Kessler Topaz is investigating potential claims on behalf of purchasers of Snowflake Inc. (NYSE: SNOW) ("Snowflake") Class A common stock between September 16, 2020, and February 28, 2024, related to potential violations of the federal securities laws.
Kessler Topaz Meltzer & Check, LLP is currently investigating potential violations of the federal securities laws on behalf of investors who purchased or otherwise acquired Snowflake Inc. (NYSE: SNOW) (“Snowflake”) Class A common stock between September 16, 2020, and February 28, 2024, inclusive (the “Class Period”). Our investigation is focused on whether Snowflake misled investors about the strength and sustainability of Snowflake’s consumption-based business model.
Snowflake operates a cloud data platform that enables its customers to consolidate all of their data into a single source to build data-driven applications and share data. Snowflake’s primary purpose is to allow its customers to more effectively access, analyze, and manage their data.
On September 16, 2020, Snowflake conducted its IPO and touted that its product revenue grew 164% year-over-year from fiscal year 2019 to fiscal year 2020, stating that the increase in product revenue was due, in part, to “better discipline over discounting” provided to customers as incentives. Throughout the Class Period, Snowflake repeatedly touted the company’s consumption-based business model as being “strong” and assured investors that the demand for its services was continuing to grow at rates that ultimately would allow it to achieve profitability.
On February 28, 2024, Snowflake announced disappointing revenue guidance for fiscal year 2025 and the retirement of its CEO from the company. In addressing the disappointing financial results, Snowflake acknowledged that the company was expecting poor customer consumption trends going forward, and that as a result, Snowflake anticipated lower than expected year-over-year revenue growth in the first quarter of fiscal year 2025 and fiscal year 2025. In response to this news, the price of Snowflake Class A common stock fell $41.72 per share, or more than 18%, from a close of $230.00 per share on February 28, 2024, to close at $188.28 per share on February 29, 2024.
If you have any questions or would like to discuss this investigation, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com, or or you may click here to print a PDF of this form.