Snowflake Reports Financial Results for the First Quarter of Fiscal 2023

Rhea-AI Summary

Snowflake (NYSE: SNOW) reported impressive financial results for Q1 of fiscal 2023, achieving revenue of $422.4 million, an 85% increase year-over-year. The product revenue was $394.4 million, marking an 84% growth, while remaining performance obligations reached $2.6 billion (+82% YoY). The net revenue retention rate stood at an impressive 174%, with 6,322 total customers, including 206 with over $1 million in product revenue. The company ended the quarter with $181 million in non-GAAP adjusted free cash flow, reflecting strong operational efficiency.

Positive

• Revenue grew by 85% year-over-year to $422.4 million.
• Product revenue increased 84% year-over-year, totaling $394.4 million.
• Remaining performance obligations reached $2.6 billion, up 82% year-over-year.
• Net revenue retention rate of 174% demonstrates strong customer retention.
• Achieved $181 million in non-GAAP adjusted free cash flow.

Negative

• Operating loss of $188.8 million, representing a 45% increase.

• Product revenue of $394.4 million in the first quarter, representing 84% year-over-year growth
• Remaining performance obligations of $2.6 billion, representing 82% year-over-year growth
• 6,322 total customers
• Net revenue retention rate of 174%
• 206 customers with trailing 12-month product revenue greater than $1 million

No-Headquarters/BOZEMAN, Mont.--(BUSINESS WIRE)-- Snowflake (NYSE: SNOW), the Data Cloud company, today announced financial results for its first quarter of fiscal 2023, ended April 30, 2022.

Snowflake Q1 FY23 Infographic (Graphic: Snowflake)

Revenue for the quarter was $422.4 million, representing 85% year-over-year growth. Product revenue for the quarter was $394.4 million, representing 84% year-over-year growth. Remaining performance obligations were $2.6 billion, representing 82% year-over-year growth. Net revenue retention rate was 174% as of April 30, 2022. The company now has 6,322 total customers and 206 customers with trailing 12-month product revenue greater than $1 million. See the section titled “Key Business Metrics” for definitions of product revenue, remaining performance obligations, net revenue retention rate, total customers, and customers with trailing 12-month product revenue greater than $1 million.

"During Q1, product revenue grew 84% year-on-year to $394 million dollars. We closed the quarter with a record $181 million of non-GAAP adjusted free cash flow, pairing high growth with improving unit economics and operational efficiency," said Frank Slootman, Chairman and CEO, Snowflake. "Snowflake's strategic focus is to enable every single workload type that needs access to data."

First Quarter Fiscal 2023 GAAP and Non-GAAP Results:

The following table summarizes our financial results for the first quarter of fiscal 2023:

		First Quarter Fiscal 2023 GAAP Results				First Quarter Fiscal 2023 Non-GAAP Results(1)
		Amount (millions)		Year/Year Growth
Product revenue		$394.4		84%
		Amount (millions)		Margin		Amount (millions)		Margin
Product gross profit		$283.0		72%		$296.7		75%
Operating income (loss)		($188.8)		(45%)		$1.7		—%
Net cash provided by operating activities		$184.6
Free cash flow						$172.4		41%
Adjusted free cash flow						$181.4		43%

(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.
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 2023:

		Second Quarter Fiscal 2023 GAAP Guidance				Second Quarter Fiscal 2023 Non-GAAP Guidance(1)
		Amount (millions)		Year/Year Growth
Product revenue		$435 - $440		71 - 73%
								Margin
Operating loss								(2%)
						Amount (millions)
Weighted-average shares used in computing net income per share attributable to common stockholders - diluted(2)						358

(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)		We may have a non-GAAP net income for the second quarter of fiscal 2023. As a result, we are presenting the weighted-average shares used in computing net income per share attributable to common stockholders - diluted in the non-GAAP column of the table above, giving effect to all dilutive securities (stock options, restricted stock units, and employee stock purchase rights under our 2020 Employee Stock Purchase Plan). These dilutive securities would be excluded from the weighted-average shares used in computing net loss per share attributable to common stockholders - diluted if we are in a non-GAAP net loss position.

The following table summarizes our guidance for the full-year fiscal 2023:

		Full-Year Fiscal 2023 GAAP Guidance				Full-Year Fiscal 2023 Non-GAAP Guidance(1)
		Amount (millions)		Year/Year Growth
Product revenue		$1,885 - $1,900		65 - 67%
								Margin
Product gross profit								74.5%
Operating income								1%
Adjusted free cash flow								16%
						Amount (millions)
Weighted-average shares used in computing net income per share attributable to common stockholders - diluted(2)						358

(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)		We may have a non-GAAP net income for full-year fiscal 2023. As a result, we are presenting the weighted-average shares used in computing net income per share attributable to common stockholders - diluted in the non-GAAP column of the table above, giving effect to all dilutive securities (stock options, restricted stock units, and employee stock purchase rights under our 2020 Employee Stock Purchase Plan). These dilutive securities would be excluded from the weighted-average shares used in computing net loss per share attributable to common stockholders - diluted if we are in a non-GAAP net loss position.

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. 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 25, 2022. Investors and participants may attend the call by dialing (844) 200-6205 (Passcode: 167617), or if outside the United States, by dialing (929) 526-1599 (Passcode: 167617).

The call will also be webcast live on the Snowflake Investor Relations website.

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.

• Product gross profit, Operating income (loss), and Net income (loss). Our non-GAAP product gross profit, operating income (loss), and net income (loss) measures exclude the effect of stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, amortization of acquired intangibles, expenses associated with acquisitions and strategic investments, and the related income tax effect of these adjustments as well as the non-recurring income tax expense or benefit associated with acquisitions. 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 (used in) 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 starting with the fiscal quarter ended January 31, 2022, 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.
  

• 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 USD 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 of renewals, the timing of purchases of additional capacity, average contract terms, seasonality, 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.
  

• Total Customers. We count the total number of customers at the end of each period. 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. For purposes of determining our customer count, we do not include customers that consume our platform only under on-demand arrangements. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity, and we present our total customer count for historical periods reflecting these adjustments.
  

• 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. Starting with the fiscal quarter ended October 31, 2021, 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. 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.

Use of Forward‑Looking Statements

This release contains 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.” 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, the effects of COVID-19 or other public health crises on our business, results of operations, and financial condition, general market and business conditions, downturns, or uncertainty, the effects of the recent and developing armed conflict in Ukraine on our business, results of operations, and financial condition, our ability to attract and retain customers, our ability to develop new products and services and enhance existing products and services, our ability to respond rapidly to emerging technology trends, our ability to execute on our business strategy, including our strategy related to the Data Cloud, our ability to increase and predict customer consumption of our platform, 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, 2022 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, 2022.

Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. 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 enables every organization to mobilize their data with Snowflake’s Data Cloud. Customers use the Data Cloud to unite siloed data, discover and securely share data, and execute diverse analytic workloads. Wherever data or users live, Snowflake delivers a single data experience that spans multiple clouds and geographies. Thousands of customers across many industries, including 506 of the 2021 Forbes Global 2000 (G2K) as of April 30, 2022, use Snowflake Data Cloud to power their businesses. Learn more at snowflake.com.

Source: Snowflake Inc.

Snowflake Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
		Three Months Ended April 30,
		2022				2021
Revenue		$	422,371			$	228,914
Cost of revenue			147,930				97,346
Gross profit			274,441				131,568
Operating expenses:
Sales and marketing			243,912				166,804
Research and development			150,798				109,796
General and administrative			68,497				60,563
Total operating expenses			463,207				337,163
Operating loss			(188,766	)			(205,595	)
Interest income			4,759				2,612
Other expense, net			(8,481	)			(488	)
Loss before income taxes			(192,488	)			(203,471	)
Benefit from income taxes			(26,694	)			(251	)
Net loss		$	(165,794	)		$	(203,220	)
Net loss per share attributable to common stockholders - basic and diluted		$	(0.53	)		$	(0.70	)
Weighted-average shares used in computing net loss per share attributable to common stockholders - basic and diluted			314,361				291,386

Snowflake Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
		April 30, 2022				January 31, 2022
Assets
Current assets:
Cash and cash equivalents		$	1,063,401			$	1,085,729
Short-term investments			2,751,679				2,766,364
Accounts receivable, net			277,559				545,629
Deferred commissions, current			53,943				51,398
Prepaid expenses and other current assets			195,151				149,523
Total current assets			4,341,733				4,598,643
Long-term investments			1,212,378				1,256,207
Property and equipment, net			118,611				105,079
Operating lease right-of-use assets			188,946				190,356
Goodwill			502,614				8,449
Intangible assets, net			181,851				37,141
Deferred commissions, non-current			124,340				124,517
Other assets			352,226				329,306
Total assets		$	7,022,699			$	6,649,698
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	18,442			$	13,441
Accrued expenses and other current liabilities			185,281				200,664
Operating lease liabilities, current			27,298				25,101
Deferred revenue, current			1,132,697				1,157,887
Total current liabilities			1,363,718				1,397,093
Operating lease liabilities, non-current			179,251				181,196
Deferred revenue, non-current			10,434				11,180
Other liabilities			11,302				11,184
Stockholders’ equity			5,457,994				5,049,045
Total liabilities and stockholders’ equity		$	7,022,699			$	6,649,698

Snowflake Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
		Three months ended April 30,
		2022				2021
Cash flows from operating activities:
Net loss		$	(165,794	)		$	(203,220	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			9,941				4,684
Non-cash operating lease costs			10,091				8,509
Amortization of deferred commissions			13,201				8,316
Stock-based compensation, net of amounts capitalized			172,493				151,014
Net amortization of premiums on investments			8,198				13,019
Net unrealized losses on strategic investments in marketable equity securities			8,859				—
Deferred income tax			(26,664	)			—
Other			1,761				1,214
Changes in operating assets and liabilities, net of effects of a business combination:
Accounts receivable			266,656				127,179
Deferred commissions			(16,718	)			(14,749	)
Prepaid expenses and other assets			(57,535	)			(54,357	)
Accounts payable			4,158				(1,245	)
Accrued expenses and other liabilities			(14,217	)			(6,567	)
Operating lease liabilities			(8,376	)			(7,833	)
Deferred revenue			(21,441	)			(4,110	)
Net cash provided by operating activities			184,613				21,854
Cash flows from investing activities:
Purchases of property and equipment			(7,413	)			(6,430	)
Capitalized internal-use software development costs			(4,804	)			(2,480	)
Cash paid for a business combination, net of cash and cash equivalents acquired			(177,925	)			—
Purchases of intangible assets			—				(10,460	)
Purchases of investments			(897,291	)			(1,145,670	)
Sales of investments			10,974				384,383
Maturities and redemptions of investments			886,667				516,588
Net cash used in investing activities			(189,792	)			(264,069	)
Cash flows from financing activities:
Proceeds from exercise of stock options			15,276				41,402
Proceeds from issuance of common stock under employee stock purchase plan			26,094				26,398
Taxes paid related to net share settlement of equity awards			(53,216	)			—
Net cash provided by (used in) financing activities			(11,846	)			67,800
Effect of exchange rate changes on cash, cash equivalents, and restricted cash			(5,098	)			19
Net decrease in cash, cash equivalents, and restricted cash			(22,123	)			(174,396	)
Cash, cash equivalents, and restricted cash—beginning of period			1,102,534				835,193
Cash, cash equivalents, and restricted cash—end of period		$	1,080,411			$	660,797

Snowflake Inc.
GAAP to Non-GAAP Reconciliations
(in thousands, except percentages)
(unaudited)
		Three Months Ended April 30, 2022
		GAAP amounts				GAAP amounts as a % of revenue			Stock-based compensation- related charges(1)				Amortization of acquired intangibles				Expenses associated with acquisitions and strategic investments				Non-GAAP amounts				Non-GAAP amounts as a % of revenue
Revenue:
Product revenue		$	394,434			93	%
Professional services and other revenue			27,937			7	%
Revenue			422,371			100	%
Year-over-year growth			85	%
Cost of revenue:
Cost of product revenue			111,411			26	%		$	(13,141	)		$	(567	)		$	—			$	97,703			23	%
Cost of professional services and other revenue			36,519			9	%			(11,749	)			—				—				24,770			6	%
Total cost of revenue			147,930			35	%			(24,890	)			(567	)			—				122,473			29	%
Gross profit (loss):
Product gross profit			283,023							13,141				567				—				296,731
Professional services and other gross profit (loss)			(8,582	)						11,749				—				—				3,167
Total gross profit			274,441			65	%			24,890				567				—				299,898			71	%
Product gross margin			72	%						3	%			—	%			—	%			75	%
Professional services and other gross margin			(31	%)						42	%			—	%			—	%			11	%
Total gross margin			65	%						6	%			—	%			—	%			71	%
Operating expenses:
Sales and marketing			243,912			58	%			(57,624	)			(2,546	)			—				183,742			44	%
Research and development			150,798			36	%			(75,784	)			(1,766	)			—				73,248			17	%
General and administrative			68,497			16	%			(24,943	)			(412	)			(1,909	)			41,233			10	%
Total operating expenses			463,207			110	%			(158,351	)			(4,724	)			(1,909	)			298,223			71	%
Operating income (loss)		$	(188,766	)		(45	%)		$	183,241			$	5,291			$	1,909			$	1,675			—	%
Operating margin			(45	%)						44	%			1	%			—	%			—	%

(1)		Stock-based compensation-related charges included approximately $10.2 million of employer payroll tax-related expenses on employee stock transactions.

		Three Months Ended April 30, 2021
		GAAP amounts				GAAP amounts as a % of revenue			Stock-based compensation- related charges(1)				Amortization of acquired intangibles				Expenses associated with acquisitions and strategic investments				Non-GAAP amounts				Non-GAAP amounts as a % of revenue
Revenue:
Product revenue		$	213,830			93	%
Professional services and other revenue			15,084			7	%
Revenue			228,914			100	%
Year-over-year growth			110	%
Cost of revenue:
Cost of product revenue			72,080			32	%		$	(12,168	)		$	(567	)		$	—			$	59,345			26	%
Cost of professional services and other revenue			25,266			11	%			(12,156	)			—				—				13,110			6	%
Total cost of revenue			97,346			43	%			(24,324	)			(567	)			—				72,455			32	%
Gross profit (loss):
Product gross profit			141,750							12,168				567				—				154,485
Professional services and other gross profit (loss)			(10,182	)						12,156				—				—				1,974
Total gross profit			131,568			57	%			24,324				567				—				156,459			68	%
Product gross margin			66	%						6	%			—	%			—	%			72	%
Professional services and other gross margin			(68	%)						81	%			—	%			—	%			13	%
Total gross margin			57	%						11	%			—	%			—	%			68	%
Operating expenses:
Sales and marketing			166,804			73	%			(54,245	)			—				—				112,559			49	%
Research and development			109,796			48	%			(60,812	)			(855	)			—				48,129			21	%
General and administrative			60,563			26	%			(28,117	)			(397	)			(471	)			31,578			14	%
Total operating expenses			337,163			147	%			(143,174	)			(1,252	)			(471	)			192,266			84	%
Operating loss		$	(205,595	)		(90	%)		$	167,498			$	1,819			$	471			$	(35,807	)		(16	%)
Operating margin			(90	%)						73	%			1	%			—	%			(16	%)

(1)		Stock-based compensation-related charges included approximately $16.2 million of employer payroll tax-related expenses on employee stock transactions.

		Three Months Ended April 30,
		2022				2021
Revenue		$	422,371			$	228,914
GAAP net cash provided by operating activities		$	184,613			$	21,854
Less: purchases of property and equipment			(7,413	)			(6,430	)
Less: capitalized internal-use software development costs			(4,804	)			(2,480	)
Non-GAAP free cash flow			172,396				12,944
Add: net cash paid on payroll tax-related items on employee stock transactions(1)			9,045				10,445
Non-GAAP adjusted free cash flow		$	181,441			$	23,389
Non-GAAP free cash flow margin			41	%			6	%
Non-GAAP adjusted free cash flow margin			43	%			10	%

(1)

The amount for the three months ended April 30, 2022 does not include employee payroll taxes of $53.2 million related to net share settlement of employee restricted stock units, which were reflected as cash outflows for financing activities. No equity awards were net settled prior to the three months ended April 30, 2022.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220525005294/en/

Investor Contact

Jimmy Sexton

IR@snowflake.com



Press Contact

Eszter Szikora

Press@snowflake.com

Source: Snowflake Inc.

FAQ

What were Snowflake's Q1 fiscal 2023 revenue figures?

Snowflake reported total revenue of $422.4 million for Q1 fiscal 2023, an 85% increase year-over-year.

How much did Snowflake's product revenue grow in Q1 2023?

The product revenue for Q1 2023 grew by 84% year-over-year, totaling $394.4 million.

What is Snowflake's net revenue retention rate as of April 30, 2022?

As of April 30, 2022, Snowflake's net revenue retention rate was 174%.

How many total customers does Snowflake have?

Snowflake reported having 6,322 total customers.

What is the guidance for Snowflake's Q2 fiscal 2023 product revenue?

For Q2 fiscal 2023, Snowflake expects product revenue in the range of $435 million to $440 million.