Snowflake Reports Financial Results for the Fourth Quarter and Full Year of Fiscal 2022

Rhea-AI Summary

Snowflake (NYSE: SNOW) reported financial results for Q4 and full-year fiscal 2022, achieving product revenue of $359.6 million, up 102% year-over-year. Total revenue reached $383.8 million, also reflecting 101% growth. Remaining performance obligations grew 99% to $2.6 billion, with a notable net revenue retention rate of 178%. The company ended the year with 5,944 customers and 184 generating over $1 million in revenue. For fiscal 2023, Snowflake anticipates product revenue between $1.88 - $1.90 billion, representing 65-67% growth.

Positive

• Product revenue for Q4 was $359.6 million, a 102% increase year-over-year.
• Total revenue for the quarter was $383.8 million, reflecting 101% year-over-year growth.
• Remaining performance obligations reached $2.6 billion, a 99% increase year-over-year.
• Net revenue retention rate was 178%, indicating strong customer growth.
• Guidance for fiscal 2023 projects product revenue between $1.88 billion and $1.90 billion, a growth of 65-67%.

Negative

• Operating loss for Q4 was $152.0 million, representing -40% margin.
• Full-year operating loss was $715 million, a -59% margin.

• Product revenue of $359.6 million in the fourth quarter, representing 102% year-over-year growth
• Remaining performance obligations of $2.6 billion, representing 99% year-over-year growth
• 5,944 total customers
• Net revenue retention rate of 178%
• 184 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 fourth quarter and full year of fiscal 2022, ended January 31, 2022.

Snowflake Q4 and Full Year FY22 Infographic (Graphic: Snowflake)

Revenue for the quarter was $383.8 million, representing 101% year-over-year growth. Product revenue for the quarter was $359.6 million, representing 102% year-over-year growth. Remaining performance obligations were $2.6 billion, representing 99% year-over-year growth. Net revenue retention rate was 178% as of January 31, 2022. The company now has 5,944 total customers and 184 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.

“Snowflake finished fiscal 2022 with record-breaking consumption and bookings results, including triple-digit product revenue growth,” said Frank Slootman, Chairman and CEO, Snowflake. “Remaining performance obligations were $2.6 billion, representing year-on-year growth of 99%. Our net revenue retention rate reached 178% driven by continued growth from our largest customers.”

Fourth Quarter Fiscal 2022 GAAP and Non-GAAP Results:

The following table summarizes our financial results for the fourth quarter of fiscal 2022:

	Fourth Quarter Fiscal 2022 GAAP Results			Fourth Quarter Fiscal 2022 Non-GAAP Results(1)
	Amount (millions)	Year/Year Growth
Product revenue	$359.6	102%
	Amount (millions)	Margin		Amount (millions)	Margin
Product gross profit	$257.2	72%		$269.6	75%
Operating income (loss)	($152.0)	(40%)		$18.1	5%
Net cash provided by operating activities	$78.9
Free cash flow				$70.7	18%
Adjusted free cash flow				$102.1	27%

(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.

Full-Year Fiscal 2022 GAAP and Non-GAAP Results:

The following table summarizes our financial results for the full-year fiscal 2022:

	Full-Year Fiscal 2022 GAAP Results			Full-Year Fiscal 2022 Non-GAAP Results(1)
	Amount (millions)	Year/Year Growth
Product revenue	$1,140.5	106%
	Amount (millions)	Margin		Amount (millions)	Margin
Product gross profit	$792.7	70%		$844.6	74%
Operating loss	($715.0)	(59%)		($31.2)	(3%)
Net cash provided by operating activities	$110.2
Free cash flow				$81.2	7%
Adjusted free cash flow				$149.8	12%

(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 first quarter of fiscal 2023:

	First Quarter Fiscal 2023 GAAP Guidance			First Quarter Fiscal 2023 Non-GAAP Guidance(1)
	Amount (millions)	Year/Year Growth
Product revenue	$383 - $388	79 - 81%
					Margin
Operating loss					(2%)
				Amount (millions)
Weighted-average shares used in computing net income per share attributable to 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) We may have a non-GAAP net income for the first 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	$1,880 - $1,900	65 - 67%
					Margin
Product gross profit					74.5%
Operating income					1%
Adjusted free cash flow					15%
				Amount (millions)
Weighted-average shares used in computing net income per share attributable to common stockholders - diluted(2)				360

(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 March 2, 2022. Investors and participants can register for the call in advance by visiting https://conferencingportals.com/event/IHFzazQa. After registering, a confirmation will be sent via email, including dial-in details and unique conference call access codes required for call entry.

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. 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 and Adjusted 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. Adjusted free cash flow is defined as free cash flow plus (minus) net cash paid (received) on payroll tax-related items on employee stock transactions. Prior to the fiscal quarter ended April 30, 2021, adjusted free cash flow was defined as free cash flow plus cash paid on only employer payroll tax-related items on employee stock transactions. Starting with the fiscal quarter ended April 30, 2021, adjusted free cash flow is defined to also exclude the effects of employee payroll tax-related items on employee stock transactions, which 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 employee payroll tax-related items will enhance stockholders' ability to evaluate our free cash flow performance, including on a quarter-over-quarter basis. The impact of excluding employee payroll tax-related items on employee stock transactions from our definition of adjusted free cash flow was not significant for any prior periods. As a result, we have not restated adjusted free cash flow measures for any periods prior to the quarter ended April 30, 2021. Free cash flow margin and adjusted free cash flow margin are calculated as free cash flow or 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.

• 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. 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.

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, 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-Q for the fiscal quarter ended October 31, 2021 and other filings and reports we make with the Securities and Exchange Commission from time to time, including our Form 10-K that will be filed for the fiscal year ended January 31, 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 241 of the 2021 Fortune 500 and 488 of the 2021 Forbes Global 2000 (G2K) as of January 31, 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 share and per share data) (unaudited)
		Three Months Ended January 31,								Twelve Months Ended January 31,
		2022				2021				2022				2021
Revenue		$	383,774			$	190,465			$	1,219,327			$	592,049
Cost of revenue			134,180				82,904				458,433				242,588
Gross profit			249,594				107,561				760,894				349,461
Operating expenses:
Sales and marketing			203,287				154,050				743,965				479,317
Research and development			123,149				93,997				466,932				237,946
General and administrative			75,187				59,911				265,033				176,135
Total operating expenses			401,623				307,958				1,475,930				893,398
Operating loss			(152,029	)			(200,397	)			(715,036	)			(543,937	)
Interest income			2,342				1,853				9,129				7,507
Other income (expense), net			19,080				951				28,947				(610	)
Loss before income taxes			(130,607	)			(197,593	)			(676,960	)			(537,040	)
Provision for income taxes			1,546				1,342				2,988				2,062
Net loss		$	(132,153	)		$	(198,935	)		$	(679,948	)		$	(539,102	)
Net loss per share attributable to common stockholders - basic and diluted		$	(0.43	)		$	(0.70	)		$	(2.26	)		$	(3.81	)
Weighted-average shares used in computing net loss per share attributable to common stockholders - basic and diluted			308,693,468				284,121,777				300,273,227				141,613,196

Snowflake Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited)
		January 31, 2022				January 31, 2021
Assets
Current assets:
Cash and cash equivalents		$	1,085,729			$	820,177
Short-term investments			2,766,364				3,087,887
Accounts receivable, net			545,629				294,017
Deferred commissions, current			51,398				32,371
Prepaid expenses and other current assets			149,523				66,200
Total current assets			4,598,643				4,300,652
Long-term investments			1,256,207				1,165,275
Property and equipment, net			105,079				68,968
Operating lease right-of-use assets			190,356				186,818
Goodwill			8,449				8,449
Intangible assets, net			37,141				16,091
Deferred commissions, non-current			124,517				86,164
Other assets			329,306				89,322
Total assets		$	6,649,698			$	5,921,739
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	13,441			$	5,647
Accrued expenses and other current liabilities			200,664				125,315
Operating lease liabilities, current			25,101				19,650
Deferred revenue, current			1,157,887				638,652
Total current liabilities			1,397,093				789,264
Operating lease liabilities, non-current			181,196				184,887
Deferred revenue, non-current			11,180				4,194
Other liabilities			11,184				6,923
Stockholders’ equity			5,049,045				4,936,471
Total liabilities and stockholders’ equity		$	6,649,698			$	5,921,739

Snowflake Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited)
		Three Months Ended January 31,								Twelve Months Ended January 31,
		2022				2021				2022				2021
Cash flows from operating activities:
Net loss		$	(132,153	)		$	(198,935	)		$	(679,948	)		$	(539,102	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization			5,912				3,215				21,498				9,826
Non-cash operating lease costs			9,658				8,635				35,553				33,475
Amortization of deferred commissions			11,052				7,608				37,876				28,841
Stock-based compensation, net of amounts capitalized			145,703				143,651				605,095				301,441
Net amortization of premiums on investments			11,064				7,513				48,002				8,630
Net unrealized gains on strategic investments in equity securities			(19,106	)			—				(27,621	)			—
Other			(1,238	)			507				1,297				4,580
Changes in operating assets and liabilities, net of effect of business combinations:
Accounts receivable			(290,794	)			(125,510	)			(251,652	)			(116,289	)
Deferred commissions			(42,985	)			(24,183	)			(95,877	)			(51,444	)
Prepaid expenses and other assets			(46,361	)			(32,869	)			(159,159	)			(62,349	)
Accounts payable			2,780				928				7,371				(2,878	)
Accrued expenses and other liabilities			36,666				35,775				79,772				58,252
Operating lease liabilities			(13,491	)			(7,863	)			(38,249	)			(31,281	)
Deferred revenue			402,191				201,142				526,221				312,881
Net cash provided by (used in) operating activities			78,898				19,614				110,179				(45,417	)
Cash flows from investing activities:
Purchases of property and equipment			(4,012	)			(11,019	)			(16,221	)			(35,037	)
Capitalized internal-use software development costs			(4,160	)			(1,279	)			(12,772	)			(5,293	)
Cash paid for business combinations, net of cash acquired			—				—				—				(6,035	)
Purchases of intangible assets			(13,152	)			(2,190	)			(24,334	)			(8,374	)
Purchases of investments			(1,207,942	)			(3,624,832	)			(4,250,338	)			(4,859,852	)
Sales of investments			33,066				148,365				440,069				177,070
Maturities and redemptions of investments			1,232,367				329,348				3,842,796				700,876
Net cash provided by (used in) investing activities			36,167				(3,161,607	)			(20,800	)			(4,036,645	)
Cash flows from financing activities:
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs			—				—				—				478,573
Proceeds from initial public offering and private placements, net of underwriting discounts			—				—				—				4,242,284
Proceeds from early exercised stock options			—				—				—				159
Proceeds from exercise of stock options			36,592				22,278				127,036				53,378
Proceeds from issuance of common stock under employee stock purchase plan			—				—				52,227				—
Proceeds from repayments of a nonrecourse promissory note			—				—				—				2,090
Repurchases of early exercised stock options			—				—				—				(30	)
Payments of deferred purchase consideration for business combinations			(1,065	)			—				(1,065	)			(1,164	)
Net cash provided by financing activities			35,527				22,278				178,198				4,775,290
Effect of exchange rate changes on cash, cash equivalents, and restricted cash			(257	)			(11	)			(236	)			(11	)
Net increase (decrease) in cash, cash equivalents, and restricted cash			150,335				(3,119,726	)			267,341				693,217
Cash, cash equivalents, and restricted cash—beginning of period			952,199				3,954,919				835,193				141,976
Cash, cash equivalents, and restricted cash—end of period		$	1,102,534			$	835,193			$	1,102,534			$	835,193

Snowflake Inc. GAAP to Non-GAAP Reconciliations (in thousands, except percentages) (unaudited)
		Three Months Ended January 31, 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		$	359,558			94	%
Professional services and other revenue			24,216			6	%
Revenue			383,774			100	%
Year-over-year growth			101	%
Cost of revenue:
Cost of product revenue			102,397			27	%		$	(11,892	)		$	(566	)		$	—			$	89,939			23	%
Cost of professional services and other revenue			31,783			8	%			(10,529	)			—				—				21,254			6	%
Total cost of revenue			134,180			35	%			(22,421	)			(566	)			—				111,193			29	%
Gross profit (loss):
Product gross profit			257,161							11,892				566				—				269,619
Professional services and other gross profit (loss)			(7,567	)						10,529				—				—				2,962
Total gross profit			249,594			65	%			22,421				566				—				272,581			71	%
Product gross margin			72	%						3	%			—	%			—	%			75	%
Professional services and other gross margin			(31	%)						43	%			—	%			—	%			12	%
Total gross margin			65	%						6	%			—	%			—	%			71	%
Operating expenses:
Sales and marketing			203,287			53	%			(49,791	)			—				—				153,496			39	%
Research and development			123,149			32	%			(61,686	)			(1,200	)			—				60,263			16	%
General and administrative			75,187			20	%			(33,868	)			(412	)			(143	)			40,764			11	%
Total operating expenses			401,623			105	%			(145,345	)			(1,612	)			(143	)			254,523			66	%
Operating income (loss)		$	(152,029	)		(40	%)		$	167,766			$	2,178			$	143			$	18,058			5	%
Operating margin			(40	%)						44	%			1	%			—	%			5	%

(1) Stock-based compensation-related charges included approximately $21.7 million of employer payroll tax-related expenses on employee stock transactions.

		Three Months Ended January 31, 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		$	178,288			94	%
Professional services and other revenue			12,177			6	%
Revenue			190,465			100	%
Year-over-year growth			117	%
Cost of revenue:
Cost of product revenue			63,770			33	%		$	(10,171	)		$	(566	)		$	—			$	53,033			28	%
Cost of professional services and other revenue			19,134			11	%			(8,702	)			—				—				10,432			5	%
Total cost of revenue			82,904			44	%			(18,873	)			(566	)			—				63,465			33	%
Gross profit (loss):
Product gross profit			114,518							10,171				566				—				125,255
Professional services and other gross profit (loss)			(6,957	)						8,702				—				—				1,745
Total gross profit			107,561			56	%			18,873				566				—				127,000			67	%
Product gross margin			64	%						6	%			—	%			—	%			70	%
Professional services and other gross margin			(57	%)						71	%			—	%			—	%			14	%
Total gross margin			56	%						11	%			—	%			—	%			67	%
Operating expenses:
Sales and marketing			154,050			81	%			(52,438	)			—				—				101,612			54	%
Research and development			93,997			49	%			(53,440	)			—				—				40,557			21	%
General and administrative			59,911			31	%			(28,713	)			(352	)			(44	)			30,802			16	%
Total operating expenses			307,958			161	%			(134,591	)			(352	)			(44	)			172,971			91	%
Operating loss		$	(200,397	)		(105	%)		$	153,464			$	918			$	44			$	(45,971	)		(24	%)
Operating margin			(105	%)						81	%			—	%			—	%			(24	%)

(1) Stock-based compensation-related charges included approximately $9.6 million of employer payroll tax-related expenses on employee stock transactions.

		Twelve Months Ended January 31, 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		$	1,140,469			94	%
Professional services and other revenue			78,858			6	%
Revenue			1,219,327			100	%
Year-over-year growth			106	%
Cost of revenue:
Cost of product revenue			347,817			29	%		$	(49,705	)		$	(2,266	)		$	—			$	295,846			24	%
Cost of professional services and other revenue			110,616			9	%			(42,470	)			—				—				68,146			6	%
Total cost of revenue			458,433			38	%			(92,175	)			(2,266	)			—				363,992			30	%
Gross profit (loss):
Product gross profit			792,652							49,705				2,266				—				844,623
Professional services and other gross profit (loss)			(31,758	)						42,470				—				—				10,712
Total gross profit			760,894			62	%			92,175				2,266				—				855,335			70	%
Product gross margin			70	%						4	%			—	%			—	%			74	%
Professional services and other gross margin			(40	%)						54	%			—	%			—	%			14	%
Total gross margin			62	%						8	%			—	%			—	%			70	%
Operating expenses:
Sales and marketing			743,965			61	%			(215,760	)			—				—				528,205			43	%
Research and development			466,932			38	%			(248,032	)			(3,941	)			—				214,959			18	%
General and administrative			265,033			22	%			(119,492	)			(1,621	)			(574	)			143,346			12	%
Total operating expenses			1,475,930			121	%			(583,284	)			(5,562	)			(574	)			886,510			73	%
Operating loss		$	(715,036	)		(59	%)		$	675,459			$	7,828			$	574			$	(31,175	)		(3	%)
Operating margin			(59	%)						55	%			1	%			—	%			(3	%)

(1) Stock-based compensation-related charges included approximately $69.1 million of employer payroll tax-related expenses on employee stock transactions.

		Twelve Months Ended January 31, 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		$	553,794			94	%
Professional services and other revenue			38,255			6	%
Revenue			592,049			100	%
Year-over-year growth			124	%
Cost of revenue:
Cost of product revenue			193,835			33	%		$	(18,724	)		$	(1,696	)		$	—			$	173,415			29	%
Cost of professional services and other revenue			48,753			8	%			(16,104	)			—				—				32,649			6	%
Total cost of revenue			242,588			41	%			(34,828	)			(1,696	)			—				206,064			35	%
Gross profit (loss):
Product gross profit			359,959							18,724				1,696				—				380,379
Professional services and other gross profit (loss)			(10,498	)						16,104				—				—				5,606
Total gross profit			349,461			59	%			34,828				1,696				—				385,985			65	%
Product gross margin			65	%						4	%			—	%			—	%			69	%
Professional services and other gross margin			(27	%)						42	%			—	%			—	%			15	%
Total gross margin			59	%						6	%			—	%			—	%			65	%
Operating expenses:
Sales and marketing			479,317			81	%			(104,537	)			(12	)			—				374,768			63	%
Research and development			237,946			40	%			(103,954	)			—				—				133,992			23	%
General and administrative			176,135			30	%			(72,647	)			(1,069	)			(296	)			102,123			17	%
Total operating expenses			893,398			151	%			(281,138	)			(1,081	)			(296	)			610,883			103	%
Operating loss		$	(543,937	)		(92	%)		$	315,966			$	2,777			$	296			$	(224,898	)		(38	%)
Operating margin			(92	%)						54	%			—	%			—	%			(38	%)

(1) Stock-based compensation-related charges included approximately $14.2 million of employer payroll tax-related expenses on employee stock transactions.

		Three Months Ended January 31,								Twelve Months Ended January 31,
		2022				2021				2022				2021
Revenue		$	383,774			$	190,465			$	1,219,327			$	592,049
GAAP net cash provided by (used in) operating activities		$	78,898			$	19,614			$	110,179			$	(45,417	)
Less: purchases of property and equipment			(4,012	)			(11,019	)			(16,221	)			(35,037	)
Less: capitalized internal-use software development costs			(4,160	)			(1,279	)			(12,772	)			(5,293	)
Non-GAAP free cash flow			70,726				7,316				81,186				(85,747	)
Add: net cash paid on payroll tax-related items on employee stock transactions			31,378				9,940				68,645				14,136
Non-GAAP adjusted free cash flow		$	102,104			$	17,256			$	149,831			$	(71,611	)
Non-GAAP free cash flow margin			18	%			4	%			7	%			(14	%)
Non-GAAP adjusted free cash flow margin			27	%			9	%			12	%			(12	%)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220302005287/en/

Investor Contact

Jimmy Sexton

IR@snowflake.com

Press Contact

Eszter Szikora

Press@snowflake.com

Source: Snowflake

FAQ

What were Snowflake's Q4 results for fiscal 2022?

Snowflake reported Q4 product revenue of $359.6 million and total revenue of $383.8 million, both showing over 100% year-over-year growth.

What is Snowflake's projected revenue for fiscal 2023?

For fiscal 2023, Snowflake projects product revenue between $1.88 billion and $1.90 billion, reflecting a growth rate of 65-67%.

What was Snowflake's net revenue retention rate?

As of January 31, 2022, Snowflake's net revenue retention rate was 178%, indicating strong growth from existing customers.

How many customers does Snowflake have?

Snowflake has a total of 5,944 customers, with 184 generating over $1 million in trailing 12-month product revenue.