By Davit Kirakosyan

Snowflake Inc (NYSE:) shares dropped more than 15% after-hours following the company’s reported Q1 results, with EPS of ($0.53) coming in significantly worse than the Street estimate of $0.01.

Year-over-year, revenue increased 85% to $422.4 millions, which is a 65% increase over the Street estimate at $412.76million. The product revenue increased 84% to $394.4million, while the remaining performance obligations rose 82% to $2.6 billion.

Product revenue increased 84% to $394million dollars in Q1. Frank Slootman is Chairman and CEO at Snowflake. “We closed the quarter with record $181million of non-GAAP Adjusted Free Cash Flow, which combines high growth and improving unit economics.” Snowflake is committed to enabling every type of workload that requires access to data.

For Q2, the company anticipates product revenue between $435 million and $440 million. The company anticipates that product revenues will range from $1.885 to $1.9 billion for the entire 2023-year.

Snowflake’s shares fell 61% in the year to date going into these results.