SNOW Snowflake Inc

• Product revenue of $789.6 million in the first quarter, representing 34% year-over-year growth
• Net revenue retention rate of 128%
• 485 customers with trailing 12-month product revenue greater than $1 million
• 709 Forbes Global 2000 customers
• Remaining performance obligations of $5.0 billion, representing 46% year-over-year growth

Snowflake (NYSE: SNOW), the AI Data Cloud company, today announced financial results for its first quarter of fiscal 2025, ended April 30, 2024.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240522387237/en/

Snowflake Q1 FY25 Infographic (Graphic: Snowflake)

Revenue for the quarter was $828.7 million, representing 33% year-over-year growth. Product revenue for the quarter was $789.6 million, representing 34% year-over-year growth. Net revenue retention rate was 128% as of April 30, 2024. The company now has 485 customers with trailing 12-month product revenue greater than $1 million and 709 Forbes Global 2000 customers, representing 30% and 8% year-over-year growth, respectively. Remaining performance obligations were $5.0 billion, representing 46% year-over-year growth. See the section titled “Key Business Metrics” for definitions of product revenue, net revenue retention rate, customers with trailing 12-month product revenue greater than $1 million, Forbes Global 2000 customers, and remaining performance obligations.

“We finished our first quarter with strong performance across many of our key metrics,” said Sridhar Ramaswamy, CEO, Snowflake. “Product revenue was up 34% year-over-year at nearly $790 million, while remaining performance obligations were $5.0 billion, up 46% year-over-year. Our core business is very strong. Our AI products, now generally available, are generating strong customer interest. They will help our customers deliver effective and efficient AI-powered experiences faster than ever.”

Snowflake today also announced its intent to acquire certain technology assets and hire key employees from TruEra, an AI observability platform. TruEra provides capabilities to evaluate and monitor large language model (LLM) applications and machine learning models in production.

First Quarter Fiscal 2025 GAAP and Non-GAAP Results:

The following table summarizes our financial results for the first quarter of fiscal 2025:

 

First Quarter Fiscal 2025

GAAP Results

 

First Quarter Fiscal 2025

Non-GAAP Results(1)

 

Amount

(millions)

Year/Year Growth

 

 

 

Product revenue

$789.6

34%

 

 

 

 

 

 

 

 

 

 

Amount

(millions)

Margin

 

Amount

(millions)

Margin

Product gross profit

$569.9

72%

 

$607.3

77%

Operating income (loss)

($348.6)

(42%)

 

$36.2

4%

Net cash provided by operating activities

$355.5

43 %

(2)

 

 

Free cash flow

 

 

 

$331.5

40%

Adjusted free cash flow

 

 

 

$365.7

44%

(1)

We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures, and the table titled “GAAP to Non-GAAP Reconciliations” for a reconciliation of GAAP to non-GAAP financial measures.

 

 

(2)

Calculated as net cash provided by operating activities as a percentage of revenue.

 

 

Note: Fiscal year ends January 31. Numbers are rounded for presentation purposes.

Financial Outlook:

Our guidance includes GAAP and non-GAAP financial measures.

The following table summarizes our guidance for the second quarter of fiscal 2025:

 

Second Quarter Fiscal 2025

GAAP Guidance

 

Second Quarter Fiscal 2025

Non-GAAP Guidance(1)

 

Amount

(millions)

Year/Year Growth

 

 

 

Product revenue

$805 - $810

26 - 27%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margin

Operating income

 

 

 

 

3%

 

 

 

 

 

 

 

 

 

 

Amount

(millions)

 

Weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders - diluted(2)

 

 

 

362

 

(1)

We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures.

 

(2)

The potential impact of future repurchases under our existing stock repurchase program is not reflected in our guidance for weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders - diluted due to the uncertainty regarding, and the potential variability of, the timing and amount of repurchases.

The following table summarizes our guidance for the full-year fiscal 2025:

 

Full-Year Fiscal 2025

GAAP Guidance

 

Full-Year Fiscal 2025

Non-GAAP Guidance(1)

 

Amount

(millions)

Year/Year Growth

 

 

 

Product revenue

$3,300

24%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margin

Product gross profit

 

 

 

 

75%

Operating income

 

 

 

 

3%

Adjusted free cash flow

 

 

 

 

26%

 

 

 

 

 

 

 

 

 

 

Amount

(millions)

 

Weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders - diluted(2)

 

 

 

363

 

(1)

We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures.

 

(2)

The potential impact of future repurchases under our existing stock repurchase program is not reflected in our guidance for weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders - diluted due to the uncertainty regarding, and the potential variability of, the timing and amount of repurchases.

A reconciliation of non-GAAP guidance measures to corresponding GAAP guidance measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. These factors could be material to our results computed in accordance with GAAP. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP financial results included in this release. Our fiscal year ends January 31, and numbers are rounded for presentation purposes.

Conference Call Details

We will host a conference call today, beginning at 3 p.m. Mountain Time on May 22, 2024. Investors and participants may attend the call by dialing (833) 470-1428 (Access code: 837931), or if outside the United States, by dialing +1 (929) 526-1599 (Access code: 837931).

The call will also be webcast live on the Snowflake Investor Relations website at https://investors.snowflake.com.

An audio replay of the conference call and webcast will be available two hours after its completion and will be accessible for 30 days on the Snowflake Investor Relations website.

Investor Presentation Details

An investor presentation providing additional information and analysis can be found at https://investors.snowflake.com.

Statement Regarding Use of Non‑GAAP Financial Measures

We report the following non-GAAP financial measures, which have not been prepared in accordance with generally accepted accounting principles in the United States (GAAP), in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

• Non-GAAP Product gross profit, Operating income, Net income, Net income attributable to Snowflake Inc., and Net income per share attributable to Snowflake Inc. common stockholders - basic and diluted. Non-GAAP product gross profit, operating income, net income, and net income attributable to Snowflake Inc. are each defined as the respective GAAP measure, excluding, as applicable, the effect of (i) stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, (ii) amortization of acquired intangibles, (iii) expenses associated with acquisitions and strategic investments, (iv) adjustments attributable to noncontrolling interest, and (v) the related income tax effect of these adjustments as well as the non-recurring income tax expense or benefit associated with acquisitions. Non-GAAP product gross margin is calculated as non-GAAP product gross profit as a percentage of product revenue. Non-GAAP operating margin is calculated as non-GAAP operating income as a percentage of revenue. Our non-GAAP net income per share attributable to Snowflake Inc. common stockholders - basic is calculated by dividing non-GAAP net income attributable to Snowflake Inc. by the weighted-average number of shares of common stock outstanding during the period. Our non-GAAP net income per share attributable to Snowflake Inc. common stockholders - diluted is calculated by dividing non-GAAP net income attributable to Snowflake Inc. by the non-GAAP weighted-average number of diluted shares outstanding, giving effect to all potentially dilutive common stock equivalents (stock options, restricted stock units, and employee stock purchase rights under our 2020 Employee Stock Purchase Plan). The potential dilutive effect of outstanding restricted stock units with performance conditions not yet satisfied is included in the non-GAAP weighted-average number of diluted shares at forecasted attainment levels to the extent we believe it is probable that the performance conditions will be met. Amounts attributable to noncontrolling interest were not material for all periods presented. We believe the presentation of operating results that exclude these non-cash or non-recurring items provides useful supplemental information to investors and facilitates the analysis of our operating results and comparison of operating results across reporting periods.

• Free cash flow. Free cash flow is defined as net cash provided by operating activities reduced by purchases of property and equipment and capitalized internal-use software development costs. Cash outflows for employee payroll tax items related to the net share settlement of equity awards are included in cash flow for financing activities and, as a result, do not have an effect on the calculation of free cash flow. Free cash flow margin is calculated as free cash flow as a percentage of revenue. We believe these measures provide useful supplemental information to investors because they are indicators of the strength and performance of our core business operations.

• Adjusted free cash flow. Adjusted free cash flow is defined as free cash flow plus (minus) net cash paid (received) on employer and employee payroll tax-related items on employee stock transactions. Employee payroll tax-related items on employee stock transactions are generally pass-through transactions that are expected to have a net zero impact on free cash flow over time, but that may impact free cash flow in any given fiscal quarter due to differences between the time that we receive funds from our employees and the time we remit those funds to applicable tax authorities. We believe that excluding the effects of these payroll tax-related items will enhance stockholders' ability to evaluate our free cash flow performance, including on a quarter-over-quarter basis. Adjusted free cash flow margin is calculated as adjusted free cash flow as a percentage of revenue. We believe these measures provide useful supplemental information to investors because they are indicators of the strength and performance of our core business operations.

We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP results.

Key Business Metrics

We monitor our key business metrics, including (i) free cash flow and (ii) the other metrics set forth below to help us evaluate our business and growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for the definition of free cash flow. The calculation of our key business metrics may differ from other similarly titled metrics used by other companies, securities analysts, or investors.

• Product Revenue. Product revenue is a key metric for us because we recognize revenue based on platform consumption, which is inherently variable at our customers’ discretion, and not based on the amount and duration of contract terms. Product revenue is primarily derived from the consumption of compute, storage, and data transfer resources, which are consumed by customers on our platform as a single, integrated offering. Customers have the flexibility to consume more than their contracted capacity during the contract term and may have the ability to roll over unused capacity to future periods, generally upon the purchase of additional capacity at renewal. Our consumption-based business model distinguishes us from subscription-based software companies that generally recognize revenue ratably over the contract term and may not permit rollover. Because customers have flexibility in the timing of their consumption, which can exceed their contracted capacity or extend beyond the original contract term in many cases, the amount of product revenue recognized in a given period is an important indicator of customer satisfaction and the value derived from our platform. Product revenue excludes our professional services and other revenue.

• Net Revenue Retention Rate. To calculate net revenue retention rate, we first specify a measurement period consisting of the trailing two years from our current period end. Next, we define as our measurement cohort the population of customers under capacity contracts that used our platform at any point in the first month of the first year of the measurement period. The cohorts used to calculate net revenue retention rate include end-customers under a reseller arrangement. We then calculate our net revenue retention rate as the quotient obtained by dividing our product revenue from this cohort in the second year of the measurement period by our product revenue from this cohort in the first year of the measurement period. Any customer in the cohort that did not use our platform in the second year remains in the calculation and contributes zero product revenue in the second year. Our net revenue retention rate is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity, and we present our net revenue retention rate for historical periods reflecting these adjustments. Since we will continue to attribute the historical product revenue to the consolidated contract, consolidation of capacity contracts within a customer’s organization typically will not impact our net revenue retention rate unless one of those customers was not a customer at any point in the first month of the first year of the measurement period.

• Customers with Trailing 12-Month Product Revenue Greater than $1 Million. To calculate the number of customers with trailing 12-month product revenue greater than $1 million, we count the number of customers under capacity arrangements that contributed more than $1 million in product revenue in the trailing 12 months. For purposes of determining our customer count, we treat each customer account, including accounts for end-customers under a reseller arrangement, that has at least one corresponding capacity contract as a unique customer, and a single organization with multiple divisions, segments, or subsidiaries may be counted as multiple customers. We do not include customers that consume our platform only under on-demand arrangements for purposes of determining our customer count. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity, and we present our customer count for historical periods reflecting these adjustments.

• Forbes Global 2000 Customers. Our Forbes Global 2000 customer count is a subset of our customer count based on the 2023 Forbes Global 2000 list. Our Forbes Global 2000 customer count is subject to adjustments for annual updates to the list by Forbes, as well as acquisitions, consolidations, spin-offs, and other market activity with respect to such customers, and we present our Forbes Global 2000 customer count for historical periods reflecting these adjustments.

• Remaining Performance Obligations. Remaining performance obligations (RPO) represent the amount of contracted future revenue that has not yet been recognized, including (i) deferred revenue and (ii) non-cancelable contracted amounts that will be invoiced and recognized as revenue in future periods. RPO excludes performance obligations from on-demand arrangements and certain time and materials contracts that are billed in arrears. Portions of RPO that are not yet invoiced and are denominated in foreign currencies are revalued into U.S. dollars each period based on the applicable period-end exchange rates. RPO is not necessarily indicative of future product revenue growth because it does not account for the timing of customers’ consumption or their consumption of more than their contracted capacity. Moreover, RPO is influenced by a number of factors, including the timing and size of renewals, the timing and size of purchases of additional capacity, average contract terms, seasonality, changes in foreign currency exchange rates, and the extent to which customers are permitted to roll over unused capacity to future periods, generally upon the purchase of additional capacity at renewal.

Use of Forward‑Looking Statements

This release and the accompanying oral presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding our performance, including but not limited to statements in the section titled “Financial Outlook.” Words such as “guidance,” “outlook,” “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “plan,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Other than statements of historical fact, all statements contained in this release and accompanying oral presentation are forward-looking statements, including statements regarding (i) our future operating results, targets, or financial position; (ii) our business strategy, plans, or priorities; (iii) our new or enhanced products, services, and technology offerings, including those that are under development or not generally available; (iv) market size and growth, trends, and competitive considerations; (v) our vision, strategy and expected benefits relating to artificial intelligence, Snowpark, Snowflake Marketplace, the AI Data Cloud, and AI Data Clouds for specific industries, including the expected benefits and network effects of the AI Data Cloud; and (vi) the integration, interoperability, and availability of our products, services, and technology offerings with and on third-party products and platforms, including public cloud platforms.

The forward-looking statements contained in this release and the accompanying oral presentation are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to, those related to our business and financial performance; general market and business conditions, downturns, or uncertainty, including higher inflation, higher interest rates, fluctuations or volatility in capital markets or foreign currency exchange rates, and geopolitical instability; our ability to attract and retain customers; the extent to which customers continue to optimize consumption; the impact of new or optimized product features and pricing strategies on consumption, including Iceberg tables and tiered storage pricing; the extent to which customers continue to rationalize budgets and prioritize cash flow management, including through shortened contract durations; our ability to develop new products and services and enhance existing products and services; the growth of successful native applications on the Snowflake Marketplace; our ability to respond rapidly to emerging technology trends, including the use of artificial intelligence; our ability to execute on our business strategy, including our strategy related to artificial intelligence, the AI Data Cloud, Snowpark, and Snowflake Marketplace; our ability to increase and predict customer consumption of our platform, particularly in light of the impact of holidays on customer consumption patterns; our ability to compete effectively; and our ability to manage growth.

Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in our Form 10-K for the fiscal year ended January 31, 2024 and other filings and reports we make with the Securities and Exchange Commission from time to time, including our Form 10-Q that will be filed for the fiscal quarter ended April 30, 2024.

Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor(s) may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. As a result of these risks, uncertainties, assumptions, and other factors, you should not rely on any forward-looking statements as predictions of future events. Forward-looking statements speak only as of the date the statements are made and are based on information available to us at the time those statements are made and/or management's good faith belief as of that time with respect to future events. Except as required by law, we undertake no obligation, and do not intend, to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter.

About Snowflake

Snowflake makes enterprise AI easy, efficient and trusted. Thousands of companies around the globe, including hundreds of the world’s largest, use Snowflake’s AI Data Cloud to share data, build applications, and power their business with AI. The era of enterprise AI is here. Learn more at snowflake.com (NYSE: SNOW).

Source: Snowflake Inc.

 

Snowflake Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

 

 

Three Months Ended April 30,

 

2024

 

2023

 

 

 

 

Revenue

$

828,709

 

 

$

623,599

 

Cost of revenue

 

272,517

 

 

 

209,414

 

Gross profit

 

556,192

 

 

 

414,185

 

Operating expenses:

 

 

 

Sales and marketing

 

400,822

 

 

 

331,558

 

Research and development

 

410,794

 

 

 

277,412

 

General and administrative

 

93,148

 

 

 

78,453

 

Total operating expenses

 

904,764

 

 

 

687,423

 

Operating loss

 

(348,572

)

 

 

(273,238

)

Interest income

 

54,779

 

 

 

43,131

 

Other expense, net

 

(21,302

)

 

 

(2,562

)

Loss before income taxes

 

(315,095

)

 

 

(232,669

)

Provision for (benefit from) income taxes

 

2,721

 

 

 

(6,605

)

Net loss

 

(317,816

)

 

 

(226,064

)

Less: net loss attributable to noncontrolling interest

 

(828

)

 

 

(437

)

Net loss attributable to Snowflake Inc.

$

(316,988

)

 

$

(225,627

)

Net loss per share attributable to Snowflake Inc. common stockholders - basic and diluted

$

(0.95

)

 

$

(0.70

)

Weighted-average shares used in computing net loss per share attributable to Snowflake Inc. common stockholders - basic and diluted

 

333,584

 

 

 

324,157

 

  Snowflake Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

April 30, 2024

 

January 31, 2024

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

1,330,411

 

$

1,762,749

Short-term investments

 

2,200,935

 

 

2,083,499

Accounts receivable, net

 

345,505

 

 

926,902

Deferred commissions, current

 

85,448

 

 

86,096

Prepaid expenses and other current assets

 

180,991

 

 

180,018

Total current assets

 

4,143,290

 

 

5,039,264

Long-term investments

 

927,981

 

 

916,307

Property and equipment, net

 

263,667

 

 

247,464

Operating lease right-of-use assets

 

244,681

 

 

252,128

Goodwill

 

975,906

 

 

975,906

Intangible assets, net

 

307,967

 

 

331,411

Deferred commissions, non-current

 

179,917

 

 

187,093

Other assets

 

254,609

 

 

273,810

Total assets

$

7,298,018

 

$

8,223,383

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

64,239

 

$

51,721

Accrued expenses and other current liabilities

 

398,002

 

 

446,860

Operating lease liabilities, current

 

30,940

 

 

33,944

Deferred revenue, current

 

1,935,642

 

 

2,198,705

Total current liabilities

 

2,428,823

 

 

2,731,230

Operating lease liabilities, non-current

 

247,501

 

 

254,037

Deferred revenue, non-current

 

14,692

 

 

14,402

Other liabilities

 

39,310

 

 

33,120

Snowflake Inc. stockholders’ equity

 

4,558,234

 

 

5,180,308

Noncontrolling interest

 

9,458

 

 

10,286

Total liabilities and stockholders’ equity

$

7,298,018

 

$

8,223,383

 

Snowflake Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

Three Months Ended April 30,

 

2024

 

2023

Cash flows from operating activities:

 

 

 

Net loss

$

(317,816

)

 

$

(226,064

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

40,221

 

 

 

23,163

 

Non-cash operating lease costs

 

13,722

 

 

 

12,869

 

Amortization of deferred commissions

 

22,764

 

 

 

17,672

 

Stock-based compensation, net of amounts capitalized

 

331,936

 

 

 

264,509

 

Net accretion of discounts on investments

 

(11,992

)

 

 

(15,331

)

Net realized and unrealized losses on strategic investments in equity securities

 

20,695

 

 

 

2,414

 

Deferred income tax

 

—

 

 

 

(8,868

)

Other

 

669

 

 

 

9,978

 

Changes in operating assets and liabilities, net of effects of business combinations:

 

 

 

Accounts receivable

 

579,319

 

 

 

362,893

 

Deferred commissions

 

(14,940

)

 

 

(16,440

)

Prepaid expenses and other assets

 

(1,111

)

 

 

5,527

 

Accounts payable

 

21,244

 

 

 

(3,093

)

Accrued expenses and other liabilities

 

(54,688

)

 

 

(8,542

)

Operating lease liabilities

 

(13,374

)

 

 

(10,763

)

Deferred revenue

 

(261,181

)

 

 

(110,480

)

Net cash provided by operating activities

 

355,468

 

 

 

299,444

 

Cash flows from investing activities:

 

 

 

Purchases of property and equipment

 

(16,519

)

 

 

(6,970

)

Capitalized internal-use software development costs

 

(7,404

)

 

 

(9,341

)

Cash paid for business combinations, net of cash, cash equivalents, and restricted cash acquired

 

—

 

 

 

(123,112

)

Purchases of investments

 

(1,078,261

)

 

 

(1,037,286

)

Sales of investments

 

30,360

 

 

 

5,652

 

Maturities and redemptions of investments

 

921,395

 

 

 

808,844

 

Settlement of cash flow hedges

 

(749

)

 

 

—

 

Net cash used in investing activities

 

(151,178

)

 

 

(362,213

)

Cash flows from financing activities:

 

 

 

Proceeds from exercise of stock options

 

10,686

 

 

 

15,370

 

Proceeds from issuance of common stock under employee stock purchase plan

 

46,735

 

 

 

37,065

 

Taxes paid related to net share settlement of equity awards

 

(174,590

)

 

 

(84,399

)

Repurchases of common stock

 

(516,329

)

 

 

(191,694

)

Net cash used in financing activities

 

(633,498

)

 

 

(223,658

)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

(2,633

)

 

 

535

 

Net decrease in cash, cash equivalents, and restricted cash

 

(431,841

)

 

 

(285,892

)

Cash, cash equivalents, and restricted cash—beginning of period

 

1,780,977

 

 

 

956,731

 

Cash, cash equivalents, and restricted cash—end of period

$

1,349,136

 

 

$

670,839

 

 

Snowflake Inc.

GAAP to Non-GAAP Reconciliations

(in thousands, except per share data and percentages)

(unaudited)

 

 

Three Months Ended April 30,

 

2024

 

2023

 

Amount

 

Amount as a % of Revenue

 

Amount

 

Amount as a % of Revenue

Revenue:

 

 

 

 

 

 

 

Product revenue

$

789,587

 

 

95

%

 

$

590,072

 

 

95

%

Professional services and other revenue

 

39,122

 

 

5

%

 

 

33,527

 

 

5

%

Revenue

$

828,709

 

 

100

%

 

$

623,599

 

 

100

%

Year-over-year growth

 

33

%

 

 

 

 

48

%

 

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

GAAP cost of product revenue

$

219,657

 

 

 

 

$

159,378

 

 

 

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation-related charges

 

(27,235

)

 

 

 

 

(18,800

)

 

 

Amortization of acquired intangibles

 

(10,147

)

 

 

 

 

(4,581

)

 

 

Non-GAAP cost of product revenue

$

182,275

 

 

 

 

$

135,997

 

 

 

 

 

 

 

 

 

 

 

GAAP cost of professional services and other revenue

$

52,860

 

 

 

 

$

50,036

 

 

 

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation-related charges

 

(13,915

)

 

 

 

 

(14,920

)

 

 

Amortization of acquired intangibles

 

(1,627

)

 

 

 

 

(1,446

)

 

 

Non-GAAP cost of professional services and other revenue

$

37,318

 

 

 

 

$

33,670

 

 

 

 

 

 

 

 

 

 

 

GAAP cost of revenue

$

272,517

 

 

33

%

 

$

209,414

 

 

34

%

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation-related charges

 

(41,150

)

 

 

 

 

(33,720

)

 

 

Amortization of acquired intangibles

 

(11,774

)

 

 

 

 

(6,027

)

 

 

Non-GAAP cost of revenue

$

219,593

 

 

26

%

 

$

169,667

 

 

27

%

 

 

 

 

 

 

 

 

Gross profit (loss):

 

 

 

 

 

 

 

GAAP product gross profit

$

569,930

 

 

 

 

$

430,694

 

 

 

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation-related charges

 

27,235

 

 

 

 

 

18,800

 

 

 

Amortization of acquired intangibles

 

10,147

 

 

 

 

 

4,581

 

 

 

Non-GAAP product gross profit

$

607,312

 

 

 

 

$

454,075

 

 

 

 

 

 

 

 

 

 

 

GAAP professional services and other revenue gross loss

$

(13,738

)

 

 

 

$

(16,509

)

 

 

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation-related charges

 

13,915

 

 

 

 

 

14,920

 

 

 

Amortization of acquired intangibles

 

1,627

 

 

 

 

 

1,446

 

 

 

Non-GAAP professional services and other revenue gross profit (loss)

$

1,804

 

 

 

 

$

(143

)

 

 

 

 

 

 

 

 

 

 

GAAP gross profit

$

556,192

 

 

67

%

 

$

414,185

 

 

66

%

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation-related charges

 

41,150

 

 

 

 

 

33,720

 

 

 

Amortization of acquired intangibles

 

11,774

 

 

 

 

 

6,027

 

 

 

Non-GAAP gross profit

$

609,116

 

 

74

%

 

$

453,932

 

 

73

%

 

 

 

 

 

 

 

 

Gross margin:

 

 

 

 

 

 

 

GAAP product gross margin

 

72

%

 

 

 

 

73

%

 

 

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation-related charges as a % of product revenue

 

4

%

 

 

 

 

3

%

 

 

Amortization of acquired intangibles as a % of product revenue

 

1

%

 

 

 

 

1

%

 

 

Non-GAAP product gross margin

 

77

%

 

 

 

 

77

%

 

 

 

 

 

 

 

 

 

 

GAAP professional services and other revenue gross margin

 

(35

%)

 

 

 

 

(49

%)

 

 

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation-related charges as a % of professional services and other revenue

 

36

%

 

 

 

 

45

%

 

 

Amortization of acquired intangibles as a % of professional services and other revenue

 

4

%

 

 

 

 

4

%

 

 

Non-GAAP professional services and other revenue gross margin

 

5

%

 

 

 

 

—

%

 

 

 

 

 

 

 

 

 

 

GAAP gross margin

 

67

%

 

 

 

 

66

%

 

 

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation-related charges as a % of revenue

 

6

%

 

 

 

 

6

%

 

 

Amortization of acquired intangibles as a % of revenue

 

1

%

 

 

 

 

1

%

 

 

Non-GAAP gross margin

 

74

%

 

 

 

 

73

%

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

GAAP sales and marketing expense

$

400,822

 

 

48

%

 

$

331,558

 

 

53

%

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation-related charges

 

(80,621

)

 

 

 

 

(79,625

)

 

 

Amortization of acquired intangibles

 

(7,630

)

 

 

 

 

(7,307

)

 

 

Non-GAAP sales and marketing expense

$

312,571

 

 

38

%

 

$

244,626

 

 

39

%

 

 

 

 

 

 

 

 

GAAP research and development expense

$

410,794

 

 

50

%

 

$

277,412

 

 

44

%

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation-related charges

 

(204,041

)

 

 

 

 

(146,628

)

 

 

Amortization of acquired intangibles

 

(3,600

)

 

 

 

 

(1,824

)

 

 

Non-GAAP research and development expense

$

203,153

 

 

25

%

 

$

128,960

 

 

21

%

 

 

 

 

 

 

 

 

GAAP general and administrative expense

$

93,148

 

 

11

%

 

$

78,453

 

 

13

%

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation-related charges

 

(34,577

)

 

 

 

 

(27,648

)

 

 

Amortization of acquired intangibles

 

(441

)

 

 

 

 

(436

)

 

 

Expenses associated with acquisitions and strategic investments

 

(982

)

 

 

 

 

(2,629

)

 

 

Non-GAAP general and administrative expense

$

57,148

 

 

7

%

 

$

47,740

 

 

8

%

 

 

 

 

 

 

 

 

GAAP total operating expenses

$

904,764

 

 

109

%

 

$

687,423

 

 

110

%

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation-related charges

 

(319,239

)

 

 

 

 

(253,901

)

 

 

Amortization of acquired intangibles

 

(11,671

)

 

 

 

 

(9,567

)

 

 

Expenses associated with acquisitions and strategic investments

 

(982

)

 

 

 

 

(2,629

)

 

 

Non-GAAP total operating expenses

$

572,872

 

 

70

%

 

$

421,326

 

 

68

%

 

 

 

 

 

 

 

 

Operating income (loss):

 

 

 

 

 

 

 

GAAP operating loss

$

(348,572

)

 

(42

%)

 

$

(273,238

)

 

(44

%)

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation-related charges(1)

 

360,389

 

 

 

 

 

287,621

 

 

 

Amortization of acquired intangibles

 

23,445

 

 

 

 

 

15,594

 

 

 

Expenses associated with acquisitions and strategic investments

 

982

 

 

 

 

 

2,629

 

 

 

Non-GAAP operating income

$

36,244

 

 

4

%

 

$

32,606

 

 

5

%

 

 

 

 

 

 

 

 

Operating margin:

 

 

 

 

 

 

 

GAAP operating margin

 

(42

%)

 

 

 

 

(44

%)

 

 

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation-related charges as a % of revenue

 

43

%

 

 

 

 

46

%

 

 

Amortization of acquired intangibles as a % of revenue

 

3

%

 

 

 

 

3

%

 

 

Expenses associated with acquisitions and strategic investments as a % of revenue

 

—

%

 

 

 

 

—

%

 

 

Non-GAAP operating margin

 

4

%

 

 

 

 

5

%

 

 

 

 

 

 

 

 

 

 

Net income (loss):

 

 

 

 

 

 

 

GAAP net loss

$

(317,816

)

 

(38

%)

 

$

(226,064

)

 

(36

%)

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation-related charges(1)

 

360,389

 

 

 

 

 

287,621

 

 

 

Amortization of acquired intangibles

 

23,445

 

 

 

 

 

15,594

 

 

 

Expenses associated with acquisitions and strategic investments

 

982

 

 

 

 

 

2,629

 

 

 

Income tax effect related to the above adjustments and acquisitions

 

(15,555

)

 

 

 

 

(25,631

)

 

 

Non-GAAP net income

$

51,445

 

 

6

%

 

$

54,149

 

 

9

%

 

 

 

 

 

 

 

 

Net income (loss) attributable to Snowflake Inc.:

 

 

 

 

 

 

 

GAAP net loss attributable to Snowflake Inc.

$

(316,988

)

 

(38

%)

 

$

(225,627

)

 

(36

%)

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation-related charges(1)

 

360,389

 

 

 

 

 

287,621

 

 

 

Amortization of acquired intangibles

 

23,445

 

 

 

 

 

15,594

 

 

 

Expenses associated with acquisitions and strategic investments

 

982

 

 

 

 

 

2,629

 

 

 

Income tax effect related to the above adjustments and acquisitions

 

(15,555

)

 

 

 

 

(25,631

)

 

 

Adjustments attributable to noncontrolling interest, net of tax

 

(113

)

 

 

 

 

(60

)

 

 

Non-GAAP net income attributable to Snowflake Inc.

$

52,160

 

 

6

%

 

$

54,526

 

 

9

%

 

 

 

 

 

 

 

 

Net income (loss) per share attributable to Snowflake Inc. common stockholders - basic and diluted:

 

 

 

 

 

 

 

GAAP net loss per share attributable to Snowflake Inc. common stockholders - basic and diluted

$

(0.95

)

 

 

 

$

(0.70

)

 

 

Weighted-average shares used in computing GAAP net loss per share attributable to Snowflake Inc. common stockholders - basic and diluted

 

333,584

 

 

 

 

 

324,157

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share attributable to Snowflake Inc. common stockholders - basic

$

0.16

 

 

 

 

$

0.17

 

 

 

Weighted-average shares used in computing non-GAAP net income per share attributable to Snowflake Inc. common stockholders - basic

 

333,584

 

 

 

 

 

324,157

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share attributable to Snowflake Inc. common stockholders - diluted

$

0.14

 

 

 

 

$

0.15

 

 

 

Non-GAAP weighted-average shares used in computing non-GAAP net income per share attributable to Snowflake Inc. common stockholders - diluted(2)

 

363,314

 

 

 

 

 

360,309

 

 

 

 

 

 

 

 

 

 

 

Free cash flow and adjusted free cash flow:

 

 

 

 

 

 

 

GAAP net cash provided by operating activities

$

355,468

 

 

43

%

 

$

299,444

 

 

48

%

Adjustments:

 

 

 

 

 

 

 

Purchases of property and equipment

 

(16,519

)

 

 

 

 

(6,970

)

 

 

Capitalized internal-use software development costs

 

(7,404

)

 

 

 

 

(9,341

)

 

 

Non-GAAP free cash flow

 

331,545

 

 

40

%

 

 

283,133

 

 

45

%

Adjustments:

 

 

 

 

 

 

 

Net cash paid on payroll tax-related items on employee stock transactions(3)

 

34,146

 

 

 

 

 

3,785

 

 

 

Non-GAAP adjusted free cash flow

$

365,691

 

 

44

%

 

$

286,918

 

 

46

%

Non-GAAP free cash flow margin

 

40

%

 

 

 

 

45

%

 

 

Non-GAAP adjusted free cash flow margin

 

44

%

 

 

 

 

46

%

 

 

(1)

Stock-based compensation-related charges included employer payroll tax-related expenses on employee stock transactions of approximately $21.9 million and $15.9 million for the three months ended April 30, 2024 and 2023, respectively.

 

 

(2)

For the periods in which we had non-GAAP net income, the non-GAAP weighted-average shares used in computing non-GAAP net income per share attributable to Snowflake Inc. common stockholders - diluted included the effect of all potentially dilutive common stock equivalents (stock options, restricted stock units, and employee stock purchase rights under our 2020 Employee Stock Purchase Plan). The potential dilutive effect of outstanding restricted stock units with performance conditions not yet satisfied is included in the non-GAAP weighted-average number of diluted shares at forecasted attainment levels to the extent we believe it is probable that the performance conditions will be met.

 

 

(3)

The amounts for the three months ended April 30, 2024 and 2023 do not include employee payroll taxes of $174.6 million and $84.4 million, respectively, related to net share settlement of employee restricted stock units, which were reflected as cash outflows for financing activities.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240522387237/en/

Investor Contact Jimmy Sexton IR@snowflake.com

Press Contact Eszter Szikora Press@snowflake.com