Snowflake shares plunge 12% on guidance miss, acquisition of search startup Neeva

Shares of unreality information level supplier Snowflake slid much than 12% successful extended trading connected Wednesday aft the institution issued anemic guidance successful its net study and said it will acquire hunt startup Neeva for an undisclosed amount.

Here's however the institution did:

The company's gross grew 48% twelvemonth implicit twelvemonth successful the fiscal archetypal quarter, but that maturation was little than the 85% summation twelvemonth implicit year. The bulk of Snowflake income travel from merchandise revenue, which expanded 50% twelvemonth implicit year. Product gross accounts for usage of Snowflake's bundle for storing and moving queries connected information stored successful its system.

Snowflake said it anticipates merchandise gross volition beryllium betwixt $620 cardinal and $625 cardinal successful the fiscal 2nd quarter. That would correspond year-over-year maturation betwixt 33% and 34%.The projection came successful good beneath the StreetAccount estimation of $649 million.

For the 2024 fiscal year, Snowflake called for merchandise gross of $2.6 billion. The StreetAccount statement was $2.7 billion.

Snowflake besides announced it plans to get Neeva, the privacy-focused hunt institution co-founded by erstwhile Google enforcement Sridhar Ramaswamy. Benoit Dageville, Snowflake's co-founder and president of products, wrote successful a blog station that the institution intends to "infuse and leverage" Neeva's AI-equipped hunt products crossed its unreality services. Terms of the woody were not disclosed.

"Neeva allows america to pat into immoderate of the astir cutting-edge hunt technologies disposable to bring hunt and speech successful Snowflake to a caller level," Dageville wrote.

The acquisition comes days aft Neeva, which was founded successful 2019, said it would shut down its user hunt motor to absorption connected processing usage cases for AI and ample connection models.

The institution volition clasp its quarterly telephone with investors Wednesday astatine 5 p.m. ET.

— CNBC's Ashley Capoot contributed reporting to this article.