- Product revenue of $829.3 million in the second quarter,
representing 30% year-over-year growth
- Net revenue retention rate of 127%
- 510 customers with trailing 12-month product revenue greater
than $1 million
- 736 Forbes Global 2000 customers
- Remaining performance obligations of $5.2 billion, representing
48% year-over-year growth
- Authorized the repurchase of an additional $2.5 billion under
our stock repurchase program through March 2027
Snowflake (NYSE: SNOW), the AI Data Cloud company, today
announced financial results for its second quarter of fiscal 2025,
ended July 31, 2024.
This press release features multimedia. View
the full release here:
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Snowflake Q2 FY25 Infographic (Graphic:
Snowflake)
Revenue for the quarter was $868.8 million, representing 29%
year-over-year growth. Product revenue for the quarter was $829.3
million, representing 30% year-over-year growth. Net revenue
retention rate was 127% as of July 31, 2024. The company now has
510 customers with trailing 12-month product revenue greater than
$1 million and 736 Forbes Global 2000 customers, representing 28%
and 5% year-over-year growth, respectively. Remaining performance
obligations were $5.2 billion, representing 48% 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.
"Snowflake delivered another strong quarter, surpassing the high
end of our Q2 product revenue guidance and, as a result, we're
raising our product revenue guidance for the year," said Sridhar
Ramaswamy, CEO of Snowflake. "Product revenue was up 30%
year-over-year at $829 million, while remaining performance
obligations were $5.2 billion, up 48% year-over-year. The quarter
was hallmarked by innovation and product delivery, and great
traction in the early stages of our new AI products. With the
combination of our platform, the network effect of collaboration
and our AI innovations, we have a huge opportunity ahead to deliver
even greater value to our customers."
Second Quarter Fiscal 2025 GAAP and Non-GAAP Results:
The following table summarizes our financial results for the
second quarter of fiscal 2025:
Second Quarter Fiscal 2025
GAAP Results
Second Quarter Fiscal 2025
Non-GAAP Results(1)
Amount
(millions)
Year/Year Growth
Product revenue
$829.3
30%
Amount
(millions)
Margin
Amount
(millions)
Margin
Product gross profit
$593.7
72%
$633.8
76%
Operating income (loss)
($355.3)
(41%)
$43.7
5%
Net cash provided by operating
activities
$69.9
8%
(2)
Free cash flow
$58.8
7%
Adjusted free cash flow
$66.0
8%
(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 third
quarter of fiscal 2025:
Third Quarter Fiscal 2025
GAAP Guidance
Third Quarter Fiscal 2025
Non-GAAP Guidance(1)
Amount
(millions)
Year/Year Growth
Product revenue
$850 - $855
22%
Margin
Operating income
3%
Amount
(millions)
Weighted-average shares used in
computing net income per share attributable to Snowflake Inc.
common stockholders—diluted(2)
359
(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 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
$3,356
26%
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)
361
(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 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.
Stock Repurchase Program
In February 2023, our board of directors authorized a stock
repurchase program of up to $2.0 billion of our outstanding common
stock. As of July 31, 2024, $491.9 million remained available for
future repurchases under the stock repurchase program. In August
2024, our board of directors authorized the repurchase of an
additional $2.5 billion of our outstanding common stock under the
stock repurchase program and extended the expiration date of the
stock repurchase program from March 2025 to March 2027. Repurchases
may be effected, from time to time, either on the open market
(including via pre-set trading plans), in privately negotiated
transactions, or through other transactions in accordance with
applicable securities laws.
The timing and amount of any repurchases will be determined by
management based on an evaluation of market conditions and other
factors. The program does not obligate Snowflake to acquire any
particular amount of common stock, and the repurchase program may
be suspended or discontinued at any time at Snowflake’s
discretion.
Conference Call Details
The conference call will begin at 3 p.m. Mountain Time on August
21, 2024. Investors and participants may attend the call by dialing
(833) 470-1428 (Access code: 788782). For investors and
participants outside the United States, see global dial-in numbers
here (Access code: 788782).
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 by customers on our platform. 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 2024
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)
the release, adoption, and use of 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 extent to which customer adoption of new product capabilities
results in durable consumption; 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; the impact of cybersecurity threat activity directed
at our customers and any resulting reputational or financial
damage; 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-Q for the fiscal quarter ended April 30, 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 July 31, 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 July
31,
Six Months Ended July
31,
2024
2023
2024
2023
Revenue
$
868,823
$
674,018
$
1,697,532
$
1,297,617
Cost of revenue
288,078
218,392
560,595
427,806
Gross profit
580,745
455,626
1,136,937
869,811
Operating expenses:
Sales and marketing
400,625
343,288
801,447
674,846
Research and development
437,660
313,996
848,454
591,408
General and administrative
97,763
83,749
190,911
162,202
Total operating expenses
936,048
741,033
1,840,812
1,428,456
Operating loss
(355,303
)
(285,407
)
(703,875
)
(558,645
)
Interest income
49,265
50,280
104,044
93,411
Other income (expense), net
(7,946
)
4,086
(29,248
)
1,524
Loss before income taxes
(313,984
)
(231,041
)
(629,079
)
(463,710
)
Provision for (benefit from) income
taxes
3,786
(3,721
)
6,507
(10,326
)
Net loss
(317,770
)
(227,320
)
(635,586
)
(453,384
)
Less: net loss attributable to
noncontrolling interest
(871
)
(453
)
(1,699
)
(890
)
Net loss attributable to Snowflake
Inc.
$
(316,899
)
$
(226,867
)
$
(633,887
)
$
(452,494
)
Net loss per share attributable to
Snowflake Inc. common stockholders—basic and diluted
$
(0.95
)
$
(0.69
)
$
(1.90
)
$
(1.39
)
Weighted-average shares used in computing
net loss per share attributable to Snowflake Inc. common
stockholders—basic and diluted
334,071
327,335
333,830
325,772
Snowflake Inc.
Condensed Consolidated Balance
Sheets
(in thousands)
(unaudited)
July 31, 2024
January 31, 2024
Assets
Current assets:
Cash and cash equivalents
$
1,282,045
$
1,762,749
Short-term investments
1,948,462
2,083,499
Accounts receivable, net
431,597
926,902
Deferred commissions, current
86,899
86,096
Prepaid expenses and other current
assets
149,085
180,018
Total current assets
3,898,088
5,039,264
Long-term investments
697,406
916,307
Property and equipment, net
264,778
247,464
Operating lease right-of-use assets
272,459
252,128
Goodwill
984,076
975,906
Intangible assets, net
286,538
331,411
Deferred commissions, non-current
177,457
187,093
Other assets
363,084
273,810
Total assets
$
6,943,886
$
8,223,383
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
134,537
$
51,721
Accrued expenses and other current
liabilities
448,926
446,860
Operating lease liabilities, current
32,843
33,944
Deferred revenue, current
1,848,376
2,198,705
Total current liabilities
2,464,682
2,731,230
Operating lease liabilities,
non-current
279,969
254,037
Deferred revenue, non-current
12,280
14,402
Other liabilities
49,367
33,120
Snowflake Inc. stockholders’ equity
4,129,001
5,180,308
Noncontrolling interest
8,587
10,286
Total liabilities and stockholders’
equity
$
6,943,886
$
8,223,383
Snowflake Inc.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended July
31,
Six Months Ended July
31,
2024
2023
2024
2023
Cash flows from operating
activities:
Net loss
$
(317,770
)
$
(227,320
)
$
(635,586
)
$
(453,384
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
45,111
29,284
85,332
52,447
Non-cash operating lease costs
13,846
12,784
27,568
25,653
Amortization of deferred commissions
22,822
18,181
45,586
35,853
Stock-based compensation, net of amounts
capitalized
356,000
299,722
687,936
564,231
Net accretion of discounts on
investments
(12,780
)
(17,661
)
(24,772
)
(32,992
)
Net realized and unrealized losses (gains)
on strategic investments in equity securities
6,508
(5,309
)
27,203
(2,895
)
Deferred income tax
49
(4,026
)
49
(12,894
)
Other
1,249
1,834
1,918
11,812
Changes in operating assets and
liabilities, net of effects of business combinations:
Accounts receivable
(87,127
)
(53,050
)
492,192
309,843
Deferred commissions
(21,814
)
(24,552
)
(36,754
)
(40,992
)
Prepaid expenses and other assets
34,458
41,389
33,347
46,916
Accounts payable
70,181
20,562
91,425
17,469
Accrued expenses and other liabilities
59,325
35,648
4,637
27,106
Operating lease liabilities
(11,915
)
(5,260
)
(25,289
)
(16,023
)
Deferred revenue
(88,278
)
(39,035
)
(349,459
)
(149,515
)
Net cash provided by operating
activities
69,865
83,191
425,333
382,635
Cash flows from investing
activities:
Purchases of property and equipment
(5,043
)
(6,298
)
(21,562
)
(13,268
)
Capitalized internal-use software
development costs
(5,992
)
(7,874
)
(13,396
)
(17,215
)
Cash paid for business combinations, net
of cash, cash equivalents, and restricted cash acquired
(8,906
)
(141,459
)
(8,906
)
(264,571
)
Purchases of intangible assets
—
(27,480
)
—
(27,480
)
Purchases of investments
(196,481
)
(688,678
)
(1,274,742
)
(1,725,964
)
Sales of investments
10,437
1,614
40,797
7,266
Maturities and redemptions of
investments
590,063
971,217
1,511,458
1,780,061
Settlement of cash flow hedges
—
—
(749
)
—
Net cash provided by (used in) investing
activities
384,078
101,042
232,900
(261,171
)
Cash flows from financing
activities:
Proceeds from exercise of stock
options
12,978
16,149
23,664
31,519
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
(103,524
)
(98,311
)
(278,114
)
(182,710
)
Repurchases of common stock
(400,000
)
—
(916,329
)
(191,694
)
Net cash used in financing activities
(490,546
)
(82,162
)
(1,124,044
)
(305,820
)
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
724
470
(1,909
)
1,005
Net increase (decrease) in cash, cash
equivalents, and restricted cash
(35,879
)
102,541
(467,720
)
(183,351
)
Cash, cash equivalents, and restricted
cash—beginning of period
1,349,136
670,839
1,780,977
956,731
Cash, cash equivalents, and restricted
cash—end of period
$
1,313,257
$
773,380
$
1,313,257
$
773,380
Snowflake Inc.
GAAP to Non-GAAP
Reconciliations
(in thousands, except per
share data and percentages)
(unaudited)
Three Months Ended July
31,
Six Months Ended July
31,
2024
2023
2024
2023
Amount
Amount as a % of
Revenue
Amount
Amount as a % of
Revenue
Amount
Amount as a % of
Revenue
Amount
Amount as a % of
Revenue
Revenue:
Product revenue
$
829,250
95%
$
640,209
95%
$
1,618,837
95%
$
1,230,281
95%
Professional services and other
revenue
39,573
5%
33,809
5%
78,695
5%
67,336
5%
Revenue
$
868,823
100%
$
674,018
100%
$
1,697,532
100%
$
1,297,617
100%
Year-over-year growth
29
%
36
%
31
%
41
%
Cost of revenue:
GAAP cost of product revenue
$
235,582
$
169,046
$
455,239
$
328,424
Adjustments:
Stock-based compensation-related
charges
(29,778
)
(19,738
)
(57,013
)
(38,538
)
Amortization of acquired intangibles
(10,336
)
(7,877
)
(20,483
)
(12,458
)
Non-GAAP cost of product revenue
$
195,468
$
141,431
$
377,743
$
277,428
GAAP cost of professional services and
other revenue
$
52,496
$
49,346
$
105,356
$
99,382
Adjustments:
Stock-based compensation-related
charges
(13,689
)
(15,511
)
(27,604
)
(30,431
)
Amortization of acquired intangibles
(1,662
)
(1,662
)
(3,289
)
(3,108
)
Non-GAAP cost of professional services and
other revenue
$
37,145
$
32,173
$
74,463
$
65,843
GAAP cost of revenue
$
288,078
33%
$
218,392
32%
$
560,595
33%
$
427,806
33%
Adjustments:
Stock-based compensation-related
charges
(43,467
)
(35,249
)
(84,617
)
(68,969
)
Amortization of acquired intangibles
(11,998
)
(9,539
)
(23,772
)
(15,566
)
Non-GAAP cost of revenue
$
232,613
27%
$
173,604
26%
$
452,206
27%
$
343,271
26%
Gross profit (loss):
GAAP product gross profit
$
593,668
$
471,163
$
1,163,598
$
901,857
Adjustments:
Stock-based compensation-related
charges
29,778
19,738
57,013
38,538
Amortization of acquired intangibles
10,336
7,877
20,483
12,458
Non-GAAP product gross profit
$
633,782
$
498,778
$
1,241,094
$
952,853
GAAP professional services and other
revenue gross loss
$
(12,923
)
$
(15,537
)
$
(26,661
)
$
(32,046
)
Adjustments:
Stock-based compensation-related
charges
13,689
15,511
27,604
30,431
Amortization of acquired intangibles
1,662
1,662
3,289
3,108
Non-GAAP professional services and other
revenue gross profit
$
2,428
$
1,636
$
4,232
$
1,493
GAAP gross profit
$
580,745
67%
$
455,626
68%
$
1,136,937
67%
$
869,811
67%
Adjustments:
Stock-based compensation-related
charges
43,467
35,249
84,617
68,969
Amortization of acquired intangibles
11,998
9,539
23,772
15,566
Non-GAAP gross profit
$
636,210
73%
$
500,414
74%
$
1,245,326
73%
$
954,346
74%
Gross margin:
GAAP product gross margin
72
%
74
%
72
%
73
%
Adjustments:
Stock-based compensation-related charges
as a % of product revenue
3
%
3
%
4
%
3
%
Amortization of acquired intangibles as a
% of product revenue
1
%
1
%
1
%
1
%
Non-GAAP product gross margin
76
%
78
%
77
%
77
%
GAAP professional services and other
revenue gross margin
(33
%)
(46
%)
(34
%)
(48
%)
Adjustments:
Stock-based compensation-related charges
as a % of professional services and other revenue
35
%
46
%
35
%
45
%
Amortization of acquired intangibles as a
% of professional services and other revenue
4
%
5
%
4
%
5
%
Non-GAAP professional services and other
revenue gross margin
6
%
5
%
5
%
2
%
GAAP gross margin
67
%
68
%
67
%
67
%
Adjustments:
Stock-based compensation-related charges
as a % of revenue
5
%
5
%
5
%
6
%
Amortization of acquired intangibles as a
% of revenue
1
%
1
%
1
%
1
%
Non-GAAP gross margin
73
%
74
%
73
%
74
%
Operating expenses:
GAAP sales and marketing expense
$
400,625
46%
$
343,288
51%
$
801,447
47%
$
674,846
52%
Adjustments:
Stock-based compensation-related
charges
(83,740
)
(84,822
)
(164,361
)
(164,447
)
Amortization of acquired intangibles
(7,801
)
(7,553
)
(15,431
)
(14,860
)
Non-GAAP sales and marketing expense
$
309,084
35%
$
250,913
37%
$
621,655
36%
$
495,539
38%
GAAP research and development expense
$
437,660
51%
$
313,996
47%
$
848,454
50%
$
591,408
46%
Adjustments:
Stock-based compensation-related
charges
(209,735
)
(166,258
)
(413,776
)
(312,886
)
Amortization of acquired intangibles
(3,679
)
(3,254
)
(7,279
)
(5,078
)
Non-GAAP research and development
expense
$
224,246
26%
$
144,484
21%
$
427,399
25%
$
273,444
21%
GAAP general and administrative
expense
$
97,763
11%
$
83,749
12%
$
190,911
11%
$
162,202
12%
Adjustments:
Stock-based compensation-related
charges
(36,395
)
(27,912
)
(70,972
)
(55,560
)
Amortization of acquired intangibles
(451
)
(451
)
(892
)
(887
)
Expenses associated with acquisitions and
strategic investments
(1,783
)
(4,569
)
(2,765
)
(7,198
)
Non-GAAP general and administrative
expense
$
59,134
7%
$
50,817
8%
$
116,282
7%
$
98,557
8%
GAAP total operating expenses
$
936,048
108%
$
741,033
110%
$
1,840,812
108%
$
1,428,456
110%
Adjustments:
Stock-based compensation-related
charges
(329,870
)
(278,992
)
(649,109
)
(532,893
)
Amortization of acquired intangibles
(11,931
)
(11,258
)
(23,602
)
(20,825
)
Expenses associated with acquisitions and
strategic investments
(1,783
)
(4,569
)
(2,765
)
(7,198
)
Non-GAAP total operating expenses
$
592,464
68%
$
446,214
66%
$
1,165,336
68%
$
867,540
67%
Operating income (loss):
GAAP operating loss
$
(355,303
)
(41%)
$
(285,407
)
(42%)
$
(703,875
)
(41%)
$
(558,645
)
(43%)
Adjustments:
Stock-based compensation-related
charges(1)
373,337
314,241
733,726
601,862
Amortization of acquired intangibles
23,929
20,797
47,374
36,391
Expenses associated with acquisitions and
strategic investments
1,783
4,569
2,765
7,198
Non-GAAP operating income
$
43,746
5%
$
54,200
8%
$
79,990
5%
$
86,806
7%
Operating margin:
GAAP operating margin
(41
%)
(42
%)
(41
%)
(43
%)
Adjustments:
Stock-based compensation-related charges
as a % of revenue
43
%
46
%
43
%
46
%
Amortization of acquired intangibles as a
% of revenue
3
%
3
%
3
%
3
%
Expenses associated with acquisitions and
strategic investments as a % of revenue
—
%
1
%
—
%
1
%
Non-GAAP operating margin
5
%
8
%
5
%
7
%
Net income (loss):
GAAP net loss
$
(317,770
)
(36%)
$
(227,320
)
(34%)
$
(635,586
)
(37%)
$
(453,384
)
(35%)
Adjustments:
Stock-based compensation-related
charges(1)
373,337
314,241
733,726
601,862
Amortization of acquired intangibles
23,929
20,797
47,374
36,391
Expenses associated with acquisitions and
strategic investments
1,783
4,569
2,765
7,198
Income tax effect related to the above
adjustments and acquisitions
(18,183
)
(31,947
)
(33,738
)
(57,578
)
Non-GAAP net income
$
63,096
7%
$
80,340
12%
$
114,541
7%
$
134,489
10%
Net income (loss) attributable to
Snowflake Inc.:
GAAP net loss attributable to Snowflake
Inc.
$
(316,899
)
(36%)
$
(226,867
)
(34%)
$
(633,887
)
(37%)
$
(452,494
)
(35%)
Adjustments:
Stock-based compensation-related
charges(1)
373,337
314,241
733,726
601,862
Amortization of acquired intangibles
23,929
20,797
47,374
36,391
Expenses associated with acquisitions and
strategic investments
1,783
4,569
2,765
7,198
Income tax effect related to the above
adjustments and acquisitions
(18,183
)
(31,947
)
(33,738
)
(57,578
)
Adjustments attributable to noncontrolling
interest, net of tax
(117
)
(50
)
(230
)
(110
)
Non-GAAP net income attributable to
Snowflake Inc.
$
63,850
7%
$
80,743
12%
$
116,010
7%
$
135,269
10%
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
)
$
(0.69
)
$
(1.90
)
$
(1.39
)
Weighted-average shares used in computing
GAAP net loss per share attributable to Snowflake Inc. common
stockholders—basic and diluted
334,071
327,335
333,830
325,772
Non-GAAP net income per share attributable
to Snowflake Inc. common stockholders—basic
$
0.19
$
0.25
$
0.35
$
0.41
Weighted-average shares used in computing
non-GAAP net income per share attributable to Snowflake Inc. common
stockholders—basic
334,071
327,335
333,830
325,772
Non-GAAP net income per share attributable
to Snowflake Inc. common stockholders—diluted
$
0.18
$
0.22
$
0.32
$
0.37
Non-GAAP weighted-average shares used in
computing non-GAAP net income per share attributable to Snowflake
Inc. common stockholders—diluted(2)
359,319
363,033
361,323
361,697
Free cash flow and adjusted free cash
flow:
GAAP net cash provided by operating
activities
$
69,865
8%
$
83,191
12%
$
425,333
25%
$
382,635
29%
Adjustments:
Purchases of property and equipment
(5,043
)
(6,298
)
(21,562
)
(13,268
)
Capitalized internal-use software
development costs
(5,992
)
(7,874
)
(13,396
)
(17,215
)
Non-GAAP free cash flow
58,830
7%
69,019
10%
390,375
23%
352,152
27%
Adjustments:
Net cash paid on payroll tax-related items
on employee stock transactions(3)
7,121
19,138
41,267
22,923
Non-GAAP adjusted free cash flow
$
65,951
8%
$
88,157
13%
$
431,642
25%
$
375,075
29%
Non-GAAP free cash flow margin
7
%
10
%
23
%
27
%
Non-GAAP adjusted free cash flow
margin
8
%
13
%
25
%
29
%
(1)
Stock-based compensation-related
charges included employer payroll tax-related expenses on employee
stock transactions of approximately $9.6 million and $31.5 million
for the three and six months ended July 31, 2024, respectively, and
$12.4 million and $28.3 million for the three and six months ended
July 31, 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 and six
months ended July 31, 2024 do not include employee payroll taxes of
$103.5 million and $278.1 million, respectively, and the amounts
for the three and six months ended July 31, 2023 do not include
employee payroll taxes of $98.3 million and $182.7 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/20240821053167/en/
Investor Contact Jimmy Sexton IR@snowflake.com Press
Contact Eszter Szikora Press@snowflake.com
Grafico Azioni Snowflake (NYSE:SNOW)
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Da Set 2024 a Ott 2024
Grafico Azioni Snowflake (NYSE:SNOW)
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