Shares of cloud knowledge platform supplier Snowflake slid greater than 12% in prolonged buying and selling on Wednesday after the corporate issued weak steerage in its earnings report and mentioned it would purchase search startup Neeva for an undisclosed quantity.

This is how the corporate did:

• Earnings per share: 15 cents, adjusted, vs. 5 cents anticipated by analysts, in response to Refinitiv
• Income: $624 million vs. $608 million anticipated by analysts, in response to Refinitiv

The corporate’s income grew 48% yr over yr within the fiscal first quarter, however that progress was decrease than the 85% enhance yr over yr. The majority of Snowflake gross sales come from product income, which expanded 50% yr over yr. Product income accounts to be used of Snowflake’s software program for storing and working queries on knowledge saved in its system.

Snowflake mentioned it anticipates product income might be between $620 million and $625 million within the fiscal second quarter. That may signify year-over-year progress between 33% and 34%.The projection got here in effectively beneath the StreetAccount estimate of $649 million.

For the 2024 fiscal yr, Snowflake referred to as for product income of $2.6 billion. The StreetAccount consensus was $2.7 billion.

Snowflake additionally introduced it plans to amass Neeva, the privacy-focused search firm co-founded by former Google government Sridhar Ramaswamy. Benoit Dageville, Snowflake’s co-founder and president of merchandise, wrote in a weblog publish that the corporate intends to “infuse and leverage” Neeva’s AI-equipped search merchandise throughout its cloud companies. Phrases of the deal weren’t disclosed.

“Neeva permits us to faucet into among the most cutting-edge search applied sciences out there to convey search and dialog in Snowflake to a brand new stage,” Dageville wrote.

The acquisition comes days after Neeva, which was based in 2019, mentioned it will shut down its shopper search engine to deal with creating use instances for AI and huge language fashions.

The corporate will maintain its quarterly name with buyers Wednesday at 5 p.m. ET.

— CNBC’s Ashley Capoot contributed reporting to this text.