Snowflake shares fell as much as 16% in extended trading on Wednesday after the data analytics software maker disappointed analysts by saying it doesn’t expect a positive adjusted operating margin for the current quarter.

Here’s how the company did:

• Earnings: 53 cents per share
• Revenue: $422.4 million, vs. $412.8 million as expected by analysts, according to Refinitiv.

The company’s revenue grew about 85% year over year in the quarter, which ended on April 30, according to a statement. In the prior quarter, revenue grew 101%. Almost all of Snowflake’s revenue comes from product revenue, which jumped by 84%, compared with 102% in the prior quarter. The figure accounts for use of Snowflake’s software for storing and executing queries on data stored in its system.

Snowflake reported having no adjusted operating margin, while analysts surveyed by StreetAccount had predicted a -1.2% margin.

In the quarter Snowflake took steps to become more relevant in specific industries. It announced a Retail Data Cloud that draws on an expanded partnership with Amazon, as well as a Healthcare and Life Sciences Data Cloud. One of Snowflake’s rivals, privately held Databricks, has begun focusing on industries as well.

Snowflake had 6,322 customers as of quarter end, up from 5,944 at the end of January.

With respect to guidance, management called for 71% to 73% fiscal second-quarter product revenue growth and an adjusted operating margin of -2%. Analysts polled by StreetAccount had expected 72% growth and an adjusted margin of 0.3%.

For the full fiscal year, Snowflake continues to see 65% to 67% product revenue growth and a 1% adjusted operating margin. The StreetAccount consensus was about 66% product revenue growth and an adjusted operating margin of 1%.

Snowflake’s software was quickly expanding, with 120% revenue growth, when it debuted on the New York Stock Exchange in September 2020, and the growth hasn’t slowed down much. But investors have become less favorable on the stock. Without the after-hours move, Snowflake shares have fallen about 61% since the start of the year, compared with a decline of 16% for the S&P 500 U.S. stock index over the same period.

Salesforce, through its corporate-venture arm, sold the remainder of the Snowflake stake it picked up through the initial public offering during the first quarter.

Given the reduction of Snowflake’s stock price, Rosenblatt Securities upgraded it to a buy rating from the equivalent of hold on Monday.

Snowflake executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.

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