After-hours trading of Snowflake (SNOW.US) plunges more than 21%! Revenue guidance for Q1 and the entire fiscal year 2025 falls short of expectations.

After the US stock market closed on Wednesday, software producer Snowflake (SNOW.US) announced its fourth-quarter performance for fiscal year 2024. Snowflake's fourth-quarter revenue and earnings per share were better than expected, but the guidance for the first quarter and full year product revenue for fiscal year 2025 fell short of expectations, leading to the CEO's decision to resign. As a result of this news, as of the time of writing, Snowflake's stock fell over 21% after hours on Wednesday. According to the financial report, Snowflake's fourth-quarter revenue was $7.75 billion, a 32% year-over-year increase, surpassing analysts' general expectation of $7.59 billion; Non-GAAP earnings per share were $0.35, better than analysts' general expectation of $0.18, compared to $0.14 in the same period last year. Fourth-quarter product revenue was $7.38 billion, a 33% year-over-year increase, surpassing analysts' general expectation of $7.16 billion; remaining performance obligations were $5.2 billion, a 41% increase. By the end of the fourth quarter, there were 461 customers who had spent over $1 million on products in the past year. Looking ahead, Snowflake expects first-quarter product revenue for fiscal year 2025 to be between $7.45 billion and $7.50 billion (a 26% to 27% year-over-year increase), below analysts' general expectation of $7.59 billion. The company also projects full-year product revenue for fiscal year 2025 to be $32.5 billion, also falling short of analysts' general expectation of $34.3 billion. Additionally, Snowflake announced that CEO Frank Slootman has decided to resign, with Sridhar Ramaswamy, who previously served as Senior Vice President of AI at the company, appointed as CEO with immediate effect. Snowflake added that Frank Slootman will continue to serve as Chairman of the Board.