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Snowflake lower after reporting mixed earnings

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Snowflake Inc. reported mixed earnings, posting a beat on the top line but a miss on the bottom line. The Cloud-based data-warehousing startup posted quarterly revenue of $190.5M, beating Street estimates of $178.5M. The company posted a loss per share of 70 cents, a wider-than-expected loss than the street estimated loss per share of 17 cents. Yahoo Finance's Jared Blikre joined Yahoo FInance Live to break down the key metrics.

Video Transcript

- Some breaking news. We have earnings out from Snowflake. Jared Blikre has those numbers for us. Jared?

JARED BILKRE: Yeah, that's right. The stock is down 6% to 7% in after hours. That's because of a miss on the bottom line, but it was a beat on the top line. So let's start with that number, fourth quarter revenue for Snowflake coming in at $190.5 million. Estimate was for lower, at $178.5 million. But that loss per share, that came in at $0.70 per share. The Street was expecting a much narrower loss of $0.17. So that's probably accounting for some of the weakness here.

Now, they are seeing product revenue for 2022 of $1 billion to $1.02 billion. The estimate was for $1.01 billion. So basically in line right there. And they're also looking for-- let me see-- that was a product revenue. They are also seeing a loss per share of-- trying to get this number right here. Sorry, I have a slight technical problem with my readout here, but not getting that number. Basically, a miss on the bottom line.

And let's take a look at what this stock has done since inception. Now, here's the max chart, and you can see, well off of some of the IPO price here, of about $180 per share. But this could be interpreted as a giant head and shoulders formation, which just broke that neck line very recently, maybe today. If we do sustain some more losses tomorrow, probably going to confirm that pattern here.

But to summarize, it was a beat on the top line revenue, but a substantial miss, a much bigger loss than anticipated for Snowflake here, guys.

- Jared, thank you. And thank you to Charles Lieberman, the CIO at Advisors Capital Management. Jason Ware, buddy, I didn't even get a chance to grill you on anything. I think your family might say it's time for a haircut in the back there, but you're looking good.


[INAUDIBLE] Come back soon. Jason Ware with Albion Financial Group, the CIO. Thank you both.