Cloud computing company Snowflake's share price is one-fifth, due to executive personnel changes and earnings guidance falling short of expectations.
Overnight, Snowflake closed down 1After 72%, more than 20% after hours, now at 184$2 shares, with a market capitalization of about $75 billion.
Snowflake announced its 2024 Q4 earnings report after U.S. stock market hours on Wednesday, and although revenue and earnings per share were better than expected, its product revenue guidance for the first quarter and next fiscal year fell short of expectations.
According to the financial report, Snowflake expects product revenue in the next quarter to be 745-7.$500 million, worse than analysts' consensus estimate of 7$5.9 billion;Full-year product revenue for the next fiscal year is expected to be 32$500 million, also less than the expected 34$300 million.
In addition, the operating loss in the fourth quarter increased from 2$39.8 billion to $2$75.5 billion.
Another bearish factor for the stock price comes from unexpected personnel changes. According to **, former CEO Frank Slootman has decided to leave the company, and Sridhar Ramaswamy, who previously served as senior vice president of artificial intelligence, has been appointed as the new CEO, and Slootman will remain chairman of the board.
Slootman, 65, joined Snowflake in 2019 and led the company's IPO on the New York Stock Exchange in 2020, the largest IPO in the history of a software company.
Sridhar Ramaswamy, 57, a 15-year veteran of Google, joins Snowflake after founding Neeva, Google's search engine product, which was launched by Snowflake in June last year$8.5 billion acquisition.
Snowflake said in a statement:
"There is no one better suited than Sridhar to lead Snowflake into the next phase of growth while seizing opportunities in the AI and machine learning space. ”He is a visionary technologist with a proven track record of running and scaling successful businesses. ”