Snowflake Falls on Mixed Q3 Results

Snowflake did top revenue estimates for the quarter with a 119% year over year increase.
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Shares of cloud company Snowflake  (SNOW) - Get Report dropped in after-hours trading Wednesday after the company reported third-quarter revenue that topped estimates, but missed with a wider net loss than expected. 

Snowflake reported third-quarter revenue of $159.6 million, representing year over year growth of 115%, analysts were expecting revenue of $147.52 million. 

The company also reported a net loss of $1.01 per share. Analysts expected a third-quarter net loss of 26 cents per share. 

For the fourth quarter, the company expects product revenue between $162 million and $167 million. 

“We are pleased with our performance this first quarter as a public company,” Snowflake CEO, Frank Slootman said. “The period was marked by continued strong revenue growth coupled with improving unit economics, cash flow, and operating efficiencies. Our vision of the Snowflake Data Cloud mobilizing the world’s data is clearly resonating across our customer base.”

Snowflake dropped 5% to $278 per share in after-hours trading Wednesday. 

This is the San Mateo, California-based company's first earnings release since it went public in September. The stock began pricing around $80 before jumping to $120 by the time it opened on the New York Stock Exchange. 

The stock showed volatility in its first day of trading, going as high as $319 with a low of $231. Snowflake closed Wednesday's session down 4.2% to $292.69. 

Last month, Wall Street banks released the initiations of coverage for the cloud platform company. 

Goldman initiated with a Buy rating and $268 price target while Credit Suisse initiated with a neutral rating and $250 price target. JPMorgan also had a neutral rating with a $247 price target.