(Bloomberg) — Snowflake Inc., a software company that helps businesses organize data in the cloud, plunged almost 25% in extended trading after projecting that annual product sales growth would slow from its previous triple-digit-percentage pace.
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Executives said improvements to the company’s data storage and analysis products will let customers get the same results by spending less, which will hurt revenue in the short term, but attract more clients in the future.
“The full-year impact of that next year is quite significant,” Chief Executive Officer Frank Slootman said on a conference call after the results were released. But “when customers see their performance per credit get cheaper, they realize they can do other things cheaper in Snowflake and they move more data into us to run more queries.”
Product sales will increase as much as 67% to $1.9…
