Snowflake gets rid of dual-class percentage structure.

A dual-class stock structure basically means that a company has given disproportionate voting rights to one group of shareholders, typically its founders.

In a conference call with analysts, finance chief Mike Scarpelli said, "We have implemented operations that will help us show more profitability. We're continuing to invest heavily in the business." The company also announced that it had gotten rid of its dual-class structure, in which Class A shares got one vote per share and Class B shares got 10 votes per share. This structure was in place since September, when Snowflake stock debuted on the New York Stock Exchange. Now, all Class B shares will be converted into Class A shares. This change could let newer investors have more control over the company's direction.

Snowflake provides cloud-based data platform in the United States and internationally.

The  company executed the largest initial public offering for a software company on record in 2020, raising nearly $4 billion even without taking into account substantial secondary investments from Berkshire Hathaway Inc. Shares sold for $120 apiece in the initial public offering, then more than doubled in their first day of trading. However, the stock fell 8.8% to $246.78 on Wednesday, then dropped more than 5% in the extended session immediately.

 Revenue jumped 117% to $190.5 million, slowing from the previous quarter's 119% growth. Snowflake said product revenue rose 116% to $178.3 million vs. estimates of $166.8 million.

For the current quarter ending in April, Snowflake forecast product revenue in a range of $195 million to $200 million.

At the midpoint of its guidance, its outlook edged by estimates for $195.7 million.

Going into the Snowflake earnings report, the software company had a Relative Strength Rating of only 14 out of a best-possible 99. Relative strength is a measure of the price trend of a stock compared to another stock.