Snowflake quarterly net loss widens as expenses rise

A banner for Snowflake Inc. is displayed celebrating the company's IPO at the New York Stock Exchange (NYSE) in New York, U.S., September 16, 2020. REUTERS/Brendan McDermid/File Photo

(Reuters) - Data cloud company Snowflake on Wednesday posted a bigger quarterly loss, hit by a sharp jump in its research and development and marketing expenses.

Shares of the company tumbled 13% in extended trading after the company forecast fourth-quarter product revenue to increase between 49% to 50%, compared to the 67% growth in prior quarter.

However, Snowflake beat Wall Street estimates for third-quarter revenue and profit on strong demand for the company's data storage and analytics services.

Net loss attributable to the company in third-quarter widened to $201 million, or 63 cents per share, from $155 million, or 51 cents per share, a year earlier.

The company's total operating expenses in the quarter jumped about 54% to $572.3 million.

The company's revenue rose 67% to $557 million, beating analysts' average expectation of $539.1 million, according to IBES data from Refinitiv.

(Reporting by Leroy Leo and Ananya Mariam Rajesh in Bengaluru; Editing by Shailesh Kuber and Sriraj Kalluvila)

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