The Yahoo Finance Live team reports on the decline of Snowflake shares on cloud demand warnings and the company's full-year outlook amid the economic slowdown.
DIANE KING HALL: Snowflake is trending on Yahoo Finance today. That stock initially falling after hours on Wednesday after its sales outlook missed street expectations, currently on decline now, down 13%. The company also warned that its customers may start trimming their cloud software spending, given the macroeconomic uncertainty.
So this was another surprise for me. I expected them to perform better than they did. And it's a miss.
JULIE HYMAN: Yeah. It is definitely a miss. The company-- this is one of those words growing. It's just not growing as much as expected. Right. Exactly. So the company said in the current quarter, product revenue is going to be up about 34% to $625 million. Analysts had been looking for about $646 million.
And that's the biggest part of the company's revenue. So that's one of the things that was disappointing as well. And you also, when you're talking about these big enterprise software companies, you're really focused on large customers. And so the company said by the end of the quarter of its around 8,100 customers, 373 were large clients who generated product revenue of more than $1,000,000. That is up 80% from year over year. So that would seem to be positive. But obviously, people focusing on some of the numbers dropping--
DIANE KING HALL: Exactly. Today. And so again, like, yeah, when we look at a chart for how the stock has been performing, it had been doing well--
JULIE HYMAN: Up into the numbers, yeah.
DIANE KING HALL: You know, but taking a big hit today. So we'll see how they recover from this one.