SUEWALLST: SNOW CONSUMPTION HEADWINDS ALLEGEDLY HID REVENUE RISKS

Important Notice Regarding Alleged Product Efficiency and Consumption Misrepresentations

NEW YORK, April 23, 2026 /PRNewswire/ -- SueWallSt notifies investors in Snowflake Inc. (NYSE: SNOW) that a class action lawsuit has been filed on behalf of shareholders who purchased securities between June 27, 2023 and February 28, 2024. Find out if you qualify to recover losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.

SNOW shares fell $41.72 per share, an 18.14% single-day decline, after the Company disclosed material revenue headwinds it had allegedly concealed for months. The lead plaintiff deadline is April 27, 2026.

How a Consumption-Based Revenue Model Created Concealed Vulnerability

Unlike traditional software companies that sell annual licenses, Snowflake generates revenue only when customers actively consume computing credits. This model ties the Company's top line directly to usage volume. According to the lawsuit, this made Snowflake uniquely vulnerable to three converging forces that management allegedly failed to disclose: product efficiency gains that let customers do more with fewer credits, open-source Iceberg Table formats that shifted storage outside the Snowflake platform, and a new tiered pricing structure that discounted storage costs for the Company's largest accounts.

Key Consumption Revenue Allegations for Shareholders

The complaint contends that during the Class Period, management made repeated positive statements about consumption trends while allegedly knowing that:

• Product efficiency improvements were reducing credit consumption per workload, creating a 6.2% to 6.3% drag on revenue growth
• Large customers had already communicated their plans to adopt Iceberg Tables, which would remove storage and associated compute revenue from Snowflake's platform
• Tiered storage pricing, rolled out beginning in Q3 of fiscal 2024, was compressing storage revenue from the Company's biggest accounts
• Storage represented approximately 10% to 11% of total revenue, making any migration to open formats a material headwind
• The combined effect of these forces made the Company's public $10 billion 2029 product revenue target unsupportable
• Jobs running on the platform grew 62% year-over-year while revenue grew only 33%, a widening gap the lawsuit alleges reflected the consumption erosion already underway

The Consumption Model Paradox

The lawsuit alleges a fundamental tension at the center of this case: Snowflake's own product improvements were cannibalizing its revenue. The action claims that as the Company made its platform faster and more efficient, customers needed fewer credits to accomplish the same work. This dynamic was compounded by Iceberg Tables, which the complaint asserts gave large enterprise customers a path to store data outside Snowflake entirely, eliminating both storage fees and the compute costs associated with importing that data.

"This case presents important questions about consumption-based revenue disclosure obligations in the cloud software sector. When a company's own product developments create material headwinds to its revenue model, investors are entitled to timely and transparent disclosure of those dynamics." -- Joseph E. Levi, Esq.

Submit your information to join this case or call Joseph E. Levi, Esq. at (212) 363-7500.

ABOUT LEVI & KORSINSKY, LLP -- Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report. Applications to serve as lead plaintiff must be filed by April 27, 2026.

CONTACT:

SueWallSt

Joseph E. Levi, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

[email protected]

Tel: (888) SueWallSt

Fax: (212) 363-7171

SOURCE SueWallSt.com