Levi & Korsinsky, LLP: SNOW Disclosure Timeline Reveals Pattern of Alleged Investor Harm

Key Dates and Disclosure Events Shareholders Need to Know

NEW YORK--(BUSINESS WIRE)--Levi & Korsinsky, LLP encourages investors who suffered losses in Snowflake Inc. (NYSE: SNOW) to contact the firm. WHO IS AFFECTED: Those who purchased SNOW securities between June 27, 2023 and February 28, 2024 may be entitled to recover damages. Find out if you are eligible to recover losses. You may also contact Joseph E. Levi, Esq. at [e-mail] or [phone].

Snowflake shares fell $41.72 per share, an 18.14% decline, after the Company disclosed consumption headwinds and withdrew its $10 billion product revenue target. The window to apply for lead plaintiff closes on April 27, 2026.

June 27, 2023: Investor Day Optimism

Snowflake hosted an Investor Day presentation where management reaffirmed confidence that the Company would reach $10 billion in product revenue by 2029. Management characterized consumption as "back where we'd expect it to be" and portrayed Iceberg Tables as a workload expansion opportunity in "full alignment" with the business model. The lawsuit contends these statements omitted known risks that efficiency gains and new product formats would cannibalize consumption revenue.

August 23, 2023: Q2 Fiscal 2024 Earnings Call

Management described consumption as "good" and told analysts that "stabilization is the right term." The action claims management touted upcoming product launches, including Streamlit, Unistore, and Containerized Services, as catalysts for revenue growth reacceleration, while failing to disclose material headwinds already affecting the consumption model.

November 29, 2023: Q3 Fiscal 2024 Earnings Call

Management reported "strong consumption from a broad base of customers" and highlighted new large-account wins. As alleged, tiered storage pricing had already begun rolling out to the Company's biggest customers, and large customers had already communicated their plans to adopt Iceberg Tables, yet these headwinds were not disclosed.

February 28, 2024: The Corrective Disclosure

After the market closed, Snowflake disclosed Q4 and full fiscal year 2024 results and provided guidance that shocked investors:

- Acknowledged "increased revenue headwinds" from product efficiency gains, tiered storage pricing, and Iceberg Table adoption

- Revealed a 6.2% to 6.3% revenue impact from efficiency gains alone

- Lowered FY 2025 product revenue guidance to 22% year-over-year growth versus the 30% market expectation

- Withdrew the long-standing $10 billion 2029 product revenue target

- Disclosed that tiered storage pricing had started rolling out in Q3 and ramped through Q4

Submit your claim before the deadline or call Joseph E. Levi, Esq. at [phone].

"Timely disclosure of material developments is fundamental to fair and efficient markets. The chronology in this case raises questions about the gap between when certain headwinds were known internally and when they were communicated to the investing public." -- Joseph E. Levi, Esq.

ABOUT THE FIRM -- For over two decades, Levi & Korsinsky has represented shareholders in securities class actions. Ranked in ISS Top 50 for seven consecutive years. Those wishing to serve as lead plaintiff must act by April 27, 2026.