A banner for Snowflake Inc. is displayed celebrating the company's IPO at the New York Stock Exchange (NYSE) in New York, U.S., September 16, 2020. REUTERS/Brendan McDermid

Dec 3 (Reuters) - Snowflake forecast fourth-quarter product revenue above analysts' estimates but failed to satisfy investor expectations for stronger growth, sending its shares down about 9% in extended trading.

The cloud data analytics firm, whose shares have surged more than 70% this year, expects product revenue of $1.19 billion to $1.20 billion for the quarter ending January 31, representing 27% growth. The forecast was above analysts' estimates of $1.18 billion, according to data compiled by LSEG.

"Given the dramatic appreciation in share price this year, investors were expecting guidance of more than 30%. We believe this growth will materialize next quarter allowing shares to continue appreciating," said D.A. Davidson analyst Gil Luria.

Snowflake also announced a $200 million partnership with artificial intelligence company Anthropic to integrate its Claude models into the data analytic firm's platform.

The move comes as businesses accelerate generative AI strategies, using large language models for data analysis, automation and customer engagement, boosting demand for AI-enabled cloud services.

The multi-year deal will allow enterprises to build generative AI-powered applications and deploy advanced AI agents within Snowflake's governed data environment.

Snowflake reported quarterly revenue of $1.21 billion, compared with analysts' estimates of $1.18 billion.

(Reporting by Kritika Lamba in Bengaluru; Editing by Krishna Chandra Eluri)