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Snowflake Reports Financial Results for the First Quarter of Fiscal 2025

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Snowflake Reports Financial Results for the First Quarter of Fiscal 2025
News

News

Snowflake Reports Financial Results for the First Quarter of Fiscal 2025

2024-05-23 04:06 Last Updated At:04:10

No-Headquarters/BOZEMAN, Mont.--(BUSINESS WIRE)--May 22, 2024--

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/

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:

Financial Outlook:

Our guidance includes GAAP and non-GAAP financial measures.

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

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

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.

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.

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 Q1 FY25 Infographic (Graphic: Snowflake)

Snowflake Q1 FY25 Infographic (Graphic: Snowflake)

The U.S. military-built pier in Gaza was unloading humanitarian aid again Thursday after being removed for a second time last week because of rough seas, a U.S. defense official said. The pier was reattached to Gaza’s shoreline on Wednesday, the official said, speaking on condition of anonymity to discuss U.S. military operations.

The pier, which cost the U.S. at least $230 million, was meant to deliver humanitarian aid into Gaza via the U.N.’s World Food Program. It has faced a number of setbacks.

Aid groups have decried the pier as a distraction that took pressure off Israel to open more border crossings, which are far more productive at bringing aid into Gaza as Palestinians are facing widespread hunger. The United Nations has suspended its cooperation with the pier project since June 9 and is conducting a security review.

With Israel’s war against Hamas now in its ninth month, international criticism is growing over the U.S.-backed campaign of systematic destruction in Gaza, at a huge cost in civilian lives.

Israeli ground offensives and bombardments have killed more than 37,100 people, according to Gaza’s Health Ministry, which does not distinguish between combatants and civilians in its count. The war has largely cut off the flow of food, medicine and basic goods to Gaza, which is now totally dependent on aid groups.

Israel launched the war after Hamas’ Oct. 7 attack, in which militants stormed into southern Israel, killed some 1,200 people — mostly civilians — and abducted about 250.

Currently:

— The fate of the latest cease-fire proposal hinges on Netanyahu and Hamas’ leader in Gaza.

— A rare public rift appears between Israel’s political and military leadership over how the war in Gaza is being conducted.

— The leader of Lebanon’s Hezbollah militant group warns archenemy Israel against wider war.

— Hundreds died during this year’s Hajj pilgrimage in Saudi Arabia amid intense heat, officials say.

Follow AP’s coverage of the war in Gaza at https://apnews.com/hub/israel-hamas-war

Here's the latest:

JERUSALEM – Israel remains opposed to allowing the International Committee of the Red Cross access to detention facilities accused of harshly treating Palestinians from Gaza and is working on creating an internal inspection system, state lawyers said Wednesday.

The Red Cross had access to Israeli detention facilities holding Palestinians until Oct. 7, when Israel sealed them off from external observation. Since then, testimonies have mounted from released Palestinians of brutal treatment at the detention centers, where they are held incommunicado and without trial.

The government lawyers wrote that Israeli lawmakers are examining a proposal to form an internal body that would visit the detention facilities, hear prisoners’ complaints and communicate the information to Israeli authorities.

The body is “expected to fulfill the purpose that the Red Cross has fulfilled until now,” the lawyers wrote. They were responding to a coalition of rights groups asking Israel’s highest court to grant the Red Cross access to the detention facilities.

In response, the main rights group petitioning the court said internal Israeli examiners could not substitute for international observers.

“Mounting testimonies reveal Israel has turned its detention facilities into a black hole for Palestinian prisoners enduring appalling conditions,” said the Association for Civil Rights in Israel, adding that the government was “investing a far-fetched mechanism in order to replace the accepted arrangement by the world.”

Since the Hamas attack Oct. 7, Israel has taken at least 4,000 Palestinians from Gaza into custody in Israel, interrogating them for potential ties to the militant group. Over 1,500 have been released, according to state figures.

Hamas has rejected Red Cross appeals to visit some 120 hostages it is believed to be holding. Israel has already pronounced 43 of the hostages dead.

WASHINGTON — The U.S. military-built pier in Gaza was unloading humanitarian aid again Thursday after being removed for a second time last week because of rough seas, a U.S. defense official said. The pier was reattached to Gaza’s shoreline on Wednesday, the official said, speaking on condition of anonymity to discuss U.S. military operations.

The pier, which cost the U.S. at least $230 million, was meant to deliver humanitarian aid into Gaza via the U.N.’s World Food Program. It has faced a number of setbacks, operating for only about a week before getting blown apart by high winds in May. The U.S. military detached the floating causeway and moved it to an Israeli port last week so it wouldn't break apart again.

Aid groups have decried the pier as a distraction that took pressure off Israel to open more border crossings, which are far more productive at bringing aid into Gaza. Israel's war against Hamas has caused widespread devastation and made domestic food production nearly impossible, leaving Gaza totally dependent on aid groups for food, medicine and basic goods. Palestinians are facing widespread hunger.

Meanwhile, the United Nations has suspended its cooperation with the U.S.-led pier project since June 9. U.N. officials say they want to evaluate whether the Israeli military used the area around the pier in a June 8 hostage rescue that left more than 270 Palestinians dead, and whether any such use — or even a perception of it by fighters and ordinary people in Gaza — makes their continued role in the project untenable.

The U.S. and Israeli militaries say no part of the pier was used in the raid.

NICOSIA, Cyprus — Cyprus’ Foreign Ministry said Thursday the U.S. military-built pier in Gaza is up and running again after being detached for a second time last week because of rough seas.

Cyprus plays a key role in the pier because a security and inspection station it built screens the international aid destined for Gaza. There was no immediate confirmation from the U.S.

Theodoris Gotsis, a spokesperson for the Foreign Ministry, said the pier and the causeway in Gaza were both functioning. He said over the past 40 days, Cyprus has screened and loaded onto boats some 10,000 tons of aid for Gaza.

The U.S. military detached the causeway last week to prevent it from breaking apart again, as it did late last month when it was hit by bad weather.

The pier, used to deliver humanitarian aid into Gaza, has faced a number of setbacks since it was erected. It was operational for only about a week when it was blown apart by high winds in May and then removed again earlier this month.

The U.N.’s World Food Program, one of the main aid agencies to make use of the pier, had paused its distribution of aid coming from it earlier this month over security concerns. WFP could not immediately be reached for comment on whether it was resuming distribution.

NICOSIA, Cyprus — A spokesman for the European Union’s executive arm says any threat against Cyprus is a threat against the bloc’s 26 other member nations.

Peter Stano made the remark Thursday in response to a question regarding Hezbollah leader Hassan Nasrallah’s threat that Cyprus could be implicated in a wider conflict if the island nation allows Israel to use its ports and airports to target Lebanon.

Stano said the EU fully supports Cyprus and that the trade bloc is in contact with “a number of partners in the region," including Lebanon and Hezbollah, in order to de-escalate tension.

Cyprus has enjoyed increasingly tight relations with Israel in recent years, spawned by the discovery of undersea natural gas deposits in waters between the two neighbors. Cyprus has hosted joint Israeli-Cypriot military exercises, but has not ben involved in any military operations.

Cyprus government spokesman Konstantinos Letymbiotis repeated that any suggestion that Cyprus – either through its infrastructure or territory - would be involved in any military operation in Lebanon is “totally groundless.”

Letymbiotis reiterated that the island nation “is not part of the problem” but “part of the solution” thanks to its regional diplomatic footprint.

The Hezbollah militant group said at least three of its fighters were killed in Israeli strikes on Wednesday.

Lebanese state media reported multiple Israeli strikes along the border and in an area north of the coastal city of Tyre, about 30 kilometers (20 miles) from the frontier. The Israeli military said two Hezbollah launches damaged several vehicles in northern Israel.

The fighting came as Amos Hochstein, a senior adviser to U.S. President Joe Biden, returned to Israel after meeting with officials in Lebanon on Tuesday. There has been no word on whether he has made progress in his efforts to avoid a devastating regional war.

Kamel Mohanna, the head of the Amel Association, an NGO providing health services in Lebanon, said the group’s primary health center in the town of Khiam was hit and damaged by Israeli shelling.

Hezbollah began attacking Israel almost immediately after the Israel-Hamas war erupted on Oct. 7. There have been near daily exchanges of fire, though most of the strikes are confined to an area within a few mostly confined to the area around the border.

But the fighting has escalated in recent weeks, raising fears that the clashes could boil over into a full-blown war. Israel’s army announced late Tuesday that it has “approved and validated” plans for an offensive in Lebanon.

Israeli strikes already have killed more than 400 people in Lebanon, most of them Hezbollah fighters,

Buildings are seen in Kiryat Shmona, a city next to border with Lebanon, northern Israel, Wednesday, June 19, 2024. Hezbollah began attacking Israel almost immediately after the Israel-Hamas war erupted on Oct. 7. There have been near daily exchanges of fire, though most of the strikes are confined to an area within a few mostly confined to the area around the border. (AP Photo/Leo Correa)

Buildings are seen in Kiryat Shmona, a city next to border with Lebanon, northern Israel, Wednesday, June 19, 2024. Hezbollah began attacking Israel almost immediately after the Israel-Hamas war erupted on Oct. 7. There have been near daily exchanges of fire, though most of the strikes are confined to an area within a few mostly confined to the area around the border. (AP Photo/Leo Correa)

Hussein, son of senior Hezbollah commander Taleb Sami Abdullah, 55, who was killed last week by an Israeli strike in south Lebanon, speaks during a ceremony to commemorate the death of his father, in the southern Beirut suburb of Dahiyeh, Lebanon, Wednesday, June 19, 2024. (AP Photo/Bilal Hussein)

Hussein, son of senior Hezbollah commander Taleb Sami Abdullah, 55, who was killed last week by an Israeli strike in south Lebanon, speaks during a ceremony to commemorate the death of his father, in the southern Beirut suburb of Dahiyeh, Lebanon, Wednesday, June 19, 2024. (AP Photo/Bilal Hussein)

An Israel flag hangs on an area backdropped by buildings in Kiryat Shmona, a city next to border with Lebanon, northern Israel, Wednesday, June 19, 2024. Hezbollah began attacking Israel almost immediately after the Israel-Hamas war erupted on Oct. 7. There have been near daily exchanges of fire, though most of the strikes are confined to an area within a few mostly confined to the area around the border. (AP Photo/Leo Correa)

An Israel flag hangs on an area backdropped by buildings in Kiryat Shmona, a city next to border with Lebanon, northern Israel, Wednesday, June 19, 2024. Hezbollah began attacking Israel almost immediately after the Israel-Hamas war erupted on Oct. 7. There have been near daily exchanges of fire, though most of the strikes are confined to an area within a few mostly confined to the area around the border. (AP Photo/Leo Correa)

Hezbollah supporters raise their fists and cheer as they watch a speech given by Hezbollah leader Sayyed Hassan Nasrallah on a screen during a ceremony to commemorate the death of senior Hezbollah commander Taleb Sami Abdullah, 55, who was killed last week by an Israeli strike in south Lebanon, in the southern Beirut suburb of Dahiyeh, Lebanon, Wednesday, June 19, 2024. (AP Photo/Bilal Hussein)

Hezbollah supporters raise their fists and cheer as they watch a speech given by Hezbollah leader Sayyed Hassan Nasrallah on a screen during a ceremony to commemorate the death of senior Hezbollah commander Taleb Sami Abdullah, 55, who was killed last week by an Israeli strike in south Lebanon, in the southern Beirut suburb of Dahiyeh, Lebanon, Wednesday, June 19, 2024. (AP Photo/Bilal Hussein)

A damaged building, from previous shelling attacks from Lebanon, is seen in Kiryat Shmona, northern Israel, Wednesday, June 19, 2024. Hezbollah began attacking Israel almost immediately after the Israel-Hamas war erupted on Oct. 7. There have been near daily exchanges of fire, though most of the strikes are confined to an area within a few mostly confined to the area around the border. (AP Photo/Leo Correa)

A damaged building, from previous shelling attacks from Lebanon, is seen in Kiryat Shmona, northern Israel, Wednesday, June 19, 2024. Hezbollah began attacking Israel almost immediately after the Israel-Hamas war erupted on Oct. 7. There have been near daily exchanges of fire, though most of the strikes are confined to an area within a few mostly confined to the area around the border. (AP Photo/Leo Correa)

Palestinians mourn their relative Tamer Mohsen killed in the Israeli bombardment of Nuseirat refugee camp, at the morgue of al-Aqsa Martyrs hospital in Deir al Balah, central Gaza Strip, Wednesday, June 19, 2024. (AP Photo/Saher Alghorra)

Palestinians mourn their relative Tamer Mohsen killed in the Israeli bombardment of Nuseirat refugee camp, at the morgue of al-Aqsa Martyrs hospital in Deir al Balah, central Gaza Strip, Wednesday, June 19, 2024. (AP Photo/Saher Alghorra)

In this combination image, Hamas' leader in Gaza, Yahya Sinwar, speaks on April 13, 2022, in Gaza City, left, and Israeli Prime Minister Benjamin Netanyahu speaks on June 18, 2024, in Tel Aviv. The fate of the proposed cease-fire deal for Gaza hinges in many ways on Sinwar and Netanyahu. Each faces significant political and personal pressures that may be influencing their decision-making and neither seems in a rush to make concessions to end the war. (AP Photo)

In this combination image, Hamas' leader in Gaza, Yahya Sinwar, speaks on April 13, 2022, in Gaza City, left, and Israeli Prime Minister Benjamin Netanyahu speaks on June 18, 2024, in Tel Aviv. The fate of the proposed cease-fire deal for Gaza hinges in many ways on Sinwar and Netanyahu. Each faces significant political and personal pressures that may be influencing their decision-making and neither seems in a rush to make concessions to end the war. (AP Photo)

A man drives his motorcycle past a damaged building, from previous shelling attacks from Lebanon, in Kiryat Shmona, northern Israel, Wednesday, June 19, 2024. Hezbollah began attacking Israel almost immediately after the Israel-Hamas war erupted on Oct. 7. There have been near daily exchanges of fire, though most of the strikes are confined to an area within a few mostly confined to the area around the border. (AP Photo/Leo Correa)

A man drives his motorcycle past a damaged building, from previous shelling attacks from Lebanon, in Kiryat Shmona, northern Israel, Wednesday, June 19, 2024. Hezbollah began attacking Israel almost immediately after the Israel-Hamas war erupted on Oct. 7. There have been near daily exchanges of fire, though most of the strikes are confined to an area within a few mostly confined to the area around the border. (AP Photo/Leo Correa)

Palestinians mourn their relative Tamer Mohsen killed in the Israeli bombardment of Nuseirat refugee camp, at the morgue of al-Aqsa Martyrs hospital in Deir al Balah, central Gaza Strip, Wednesday, June 19, 2024. (AP Photo/Saher Alghorra)

Palestinians mourn their relative Tamer Mohsen killed in the Israeli bombardment of Nuseirat refugee camp, at the morgue of al-Aqsa Martyrs hospital in Deir al Balah, central Gaza Strip, Wednesday, June 19, 2024. (AP Photo/Saher Alghorra)

Palestinians mourn their relative Tamer Mohsen killed in the Israeli bombardment of Nuseirat refugee camp, at the morgue of al-Aqsa Martyrs hospital in Deir al Balah, central Gaza Strip, Wednesday, June 19, 2024. (AP Photo/Saher Alghorra)

Palestinians mourn their relative Tamer Mohsen killed in the Israeli bombardment of Nuseirat refugee camp, at the morgue of al-Aqsa Martyrs hospital in Deir al Balah, central Gaza Strip, Wednesday, June 19, 2024. (AP Photo/Saher Alghorra)

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