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In its earnings report, Snowflake also gave a projection of its anticipated performance for the fiscal 2022 financial year.
American cloud-based data-warehousing company Snowflake Inc (NYSE: SNOW) has released its earnings report for both the fourth quarter and the full 2021 fiscal year. According to the official press release, the firm reported product revenue of $178.3 million in the fourth quarter, representing 116% year-over-year growth.
With a total of 4,139 clients, Snowflake noted it had a revenue retention rate of 168% and that it has 77 customers with trailing 12-month product revenue greater than $1 million. Other key highlights for the company include revenue growth for the quarter coming in at $190.5 million, a 117% growth in the same period last year.
Product revenue for the Q4 was $178.3 million, representing 116% year-over-year growth while the remaining performance obligations were $1.3 billion, representing 213% year-over-year growth.
For the 2021 fiscal year, Snowflake recorded product revenue of $553.8 million, amounting to a growth of 120% year-over-year. Additionally, Non-GAAP Product gross profit came in at $380.4 million.
“We finished our fiscal year with strong performance and reported triple-digit product revenue growth,” said Snowflake CEO, Frank Slootman. “Remaining performance obligations showed a robust increase year-on-year, reflecting strength in sales across the board. Coupled with this rapid growth, we saw improving operating efficiency while expanding our footprint globally. These results indicate that customers across multiple industries rely on the Snowflake Data Cloud to mobilize their data and enable breakthrough data strategies.”
Despite the strong results declared, Snowflake’s stock closed Wednesday’s session with an 8.71% dip to $247.03 per share. This is perhaps attributed to the firm’s earnings per share for the quarter coming in at an unprecedented loss of 70 cents per share. Some recoveries are currently being recorded in the pre-market trading as SNOW is down 0.32%.
Full Year 2022 Guidance
Snowflake in its earnings report also gave a projection of its anticipated performance for the fiscal 2022 financial year. Per the guidance given, the company expects product revenue for the first quarter to come in at $195 to $200 million dollars, which will give a robust 92 to 96% growth year on year.
Projected revenue for the entire fiscal year is $1 billion to $1.02 billion, representing 81 to 84 percent growth year-over-year. These projections are ambitious for a company that went public in September 2020.
Share Model Revamp May Impact on Future Earnings Report
In a separate filing with the United States Securities and Exchange Commission (SEC), Snowflake is restructuring its two-class share system and is collapsing them into one. Based on this, every share in Class B will be converted to Class A and will be entitled to one vote each. This is a big step back from the 10 votes per share that Class B holders enjoy prior.
The elimination of the Class B shares which favor the founders and early investors may earn the company more goodwill amongst investors, and this may have an impact on the firm’s future earnings.