By Michael Dabaie

Snowflake Inc. shares were down 3.7% to $239.58 in afternoon trading after the company outlined a fiscal 2029 outlook for $10 billion in product revenue.

The cloud data warehousing software company said Thursday at its investor-day presentation that it has a longer-term outlook of $10 billion in product revenue, as well as 10%-plus operating margin.

Mizuho Securities USA said in a note that the company didn't update its total addressable market to incorporate the data-cloud opportunity, saying "while SNOW reiterated that its Data Cloud opportunity (encompassing data sharing/network effects) is 'significantly larger' than its TAM, it didn't quantify this yesterday, with mgmt stating that it remains immeasurable."

The firm noted that Snowflake had risen in the run-up to the investors day.

"While some investors were likely hoping for more...it's important to note the shares recently had a strong rebound...and expectations had likely risen into the event," Mizuho said.

Concerning the long-term targets, Truist Securities said: "We see this trajectory as in-line with our base case model and believe that there could be upside to estimates."

Stifel pointed to the company's data-platform and pricing model.

"Net/net, we believe Snowflake's disruptive data-platform and pricing model, coupled with workload and usage secular-growth, should generate sizable new logos gains and strong up-sell/cross-sell activity, yielding 50%+ top-line growth in coming years. Given recent success and growth opportunities, we expect Snowflake to remain in investment mode for the foreseeable future, although we believe there will be ample leverage in the model over time," Stifel said in an analyst note.

Write to Michael Dabaie at michael.dabaie@wsj.com

(END) Dow Jones Newswires

06-11-21 1448ET