By Senad Karaahmetovic

After the announcement of its Q1 results, Snowflake shares (NYSE:) fell more than 15% during premarket trading Thursday.

SNOW suffered a 53c loss per share in Q1 compared to 70c for the same period last year. Revenue rose by 85% YoY and was higher than the $413.9 million consensus.

Products revenue increased 84% YoY and topped the consensus estimates at $387.7million by $394.4 million. In the quarter, the net revenue retention rate was 174%, which is compared to 168% and 161.2% respectively. Analysts were expecting 70.4%. SNOW had a Q1 gross profit of 71%.

Snowflake projects product revenues in Q2 at $435m to $440m, while analysts had predicted $437.8m. SNOW projects that the adjusted operating margin will be down by 2% for the second quarter.

Snowflake anticipates that product revenues will range from $1.89 billion-$1.90 billion for the entire fiscal 2023. This is compared with the $1.88 billion-$1.90 billion range in previous forecasts, and analysts estimate $1.91 billion.

Ittai Kdron, Oppenheimer Analyst, retained an Outperform rating. The price target was reduced to $230.00 per Share to reflect lower market multiples.

“Snowflake delivered another solid quarter with multiple multi-million dollar deals and NRR >170%. Due to the more challenging macro environment, Snowflake is still taking a cautious stance regarding expectations (in-line guidance). While cognizant of potential for revenue slowdown in a recession, we remain confident in Snowflake’s ability to gain share and drive new workloads long-term. FCF and >$5B cash provide stability,” Kidron told clients.

Piper Sandler analyst Brent A. Bracelin has also decreased the target price from $300.00, to $165.00 per shares to match lower estimates regarding limited visibility.

“Management commentary around slower consumption at consumer-facing clouds in April hit a nerve with investors concerned that macro headwinds could further temper growth given Snowflake’s usage-based revenue model,” Bracelin said.