Snowflake Reports Financial Results for the Fourth Quarter and Full-Year of Fiscal 2024

Rhea-AI Summary

Snowflake (NYSE: SNOW) reports strong financial results for Q4 and full-year FY24 with significant revenue growth, customer expansion, and positive business metrics. The company achieved $738.1 million in product revenue in Q4, a 33% YoY growth, and $2.67 billion in total product revenue for FY24. Snowflake's net revenue retention rate stands at 131%, with 461 customers generating over $1 million in revenue. The company has 691 Forbes Global 2000 customers and $5.2 billion in remaining performance obligations, showing a 41% YoY growth.

Positive

• Snowflake (NYSE: SNOW) achieved strong financial performance in Q4 and full-year FY24.
• Q4 product revenue reached $738.1 million, marking a 33% YoY growth.
• Full-year product revenue totaled $2.67 billion, reflecting a 38% YoY growth.
• Net revenue retention rate stands at 131% as of January 31, 2024.
• Snowflake has 461 customers with over $1 million in trailing 12-month product revenue.
• The company counts 691 Forbes Global 2000 customers, a 39% YoY growth.
• Remaining performance obligations amount to $5.2 billion, showing a 41% YoY growth.
• Snowflake's non-GAAP adjusted free cash flow grew by 56% YoY to $810 million.
• Chairman of the Board, Frank Slootman, highlights successful global enterprise engagement.
• The company is positioned as a leading Data Cloud platform for AI and data strategies.
• Snowflake provides detailed financial outlook for Q1 and full-year fiscal 2025.

Negative

• None.

Insights

Financial Analyst

The reported 33% year-over-year growth in product revenue and a net revenue retention rate of 131% are indicative of robust demand and customer satisfaction. The substantial increase in customers with trailing 12-month product revenue greater than $1 million suggests that the company is successfully scaling its operations with high-value clients. The 41% growth in remaining performance obligations to $5.2 billion signals a healthy backlog of revenue to be recognized in the future, which can provide a stable outlook for revenue streams.

However, the GAAP operating income reflects a significant loss, which raises concerns about the company's current profitability. Investors should consider the implications of these losses on long-term financial health, despite strong top-line growth. The non-GAAP measures, which exclude certain expenses, show a more favorable profitability margin, but reliance on non-GAAP metrics can sometimes obscure the true financial state of a company.

Market Research Analyst

With 691 Forbes Global 2000 customers, Snowflake is demonstrating market penetration within large, established enterprises, which is a key driver for sustained growth. The company's positioning as a Data Cloud platform for AI and data strategy is likely resonating with larger organizations undergoing digital transformation. The growth in net cash provided by operating activities by 59% year-over-year suggests efficient cash flow management, which is critical for funding operations and investments without excessive reliance on external financing.

Investors should note the forward-looking guidance for fiscal 2025, which indicates a slowdown in product revenue growth to 22%. This deceleration may reflect market saturation or increased competition, which could impact future valuations. Additionally, the company's strategy on stock repurchases, which is not reflected in the guidance due to its variability, could influence future earnings per share and should be monitored.

Legal Expert

From a legal perspective, the company's use of non-GAAP financial measures is noteworthy. While these measures can provide a clearer picture of operational performance by excluding non-cash or non-recurring items, they are not standardized and can vary significantly from one company to another. Investors should be aware of the adjustments made in these non-GAAP measures and understand how they compare to GAAP measures. The reconciliation of GAAP to non-GAAP results is essential for a full evaluation of the company's performance.

Additionally, the company's ongoing stock repurchase program could carry legal and financial implications. The timing and amount of repurchases can affect share price and market perception and it is important that the company executes this program in compliance with securities laws and in a manner that serves the best interest of shareholders.

• Product revenue of $738.1 million in the fourth quarter, representing 33% year-over-year growth
• 461 customers with trailing 12-month product revenue greater than $1 million
• Net revenue retention rate of 131%
• 691 Forbes Global 2000 customers
• Remaining performance obligations of $5.2 billion, representing 41% year-over-year growth

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 2024, ended January 31, 2024.

Snowflake Q4 and Full-Year FY24 Infographic (Graphic: Snowflake)

Revenue for the quarter was $774.7 million, representing 32% year-over-year growth. Product revenue for the quarter was $738.1 million, representing 33% year-over-year growth. The company now has 461 customers with trailing 12-month product revenue greater than $1 million and 691 Forbes Global 2000 customers, representing 39% and 8% year-over-year growth, respectively. Net revenue retention rate was 131% as of January 31, 2024. Remaining performance obligations were $5.2 billion, representing 41% year-over-year growth. Net cash provided by operating activities was $344.6 million, representing 59% year-over-year growth. See the section titled “Key Business Metrics” for definitions of product revenue, customers with trailing 12-month product revenue greater than $1 million, net revenue retention rate, Forbes Global 2000 customers, and remaining performance obligations.

“Snowflake finished fiscal 2024 with a 38% year-over-year product revenue growth, totaling $2.67 billion. Non-GAAP adjusted free cash flow was $810 million, representing 56% year-over-year growth,” said Frank Slootman, Chairman of the Board, Snowflake. “We are successfully campaigning the largest enterprises globally, as more companies and institutions make Snowflake’s Data Cloud the platform of their AI and data strategy.”

Fourth Quarter Fiscal 2024 GAAP and Non-GAAP Results:

The following table summarizes our financial results for the fourth quarter of fiscal 2024:

		Fourth Quarter Fiscal 2024 GAAP Results				Fourth Quarter Fiscal 2024 Non-GAAP Results(1)
		Amount (millions)		Year/Year Growth
Product revenue		$738.1		33%
		Amount (millions)		Margin		Amount (millions)		Margin
Product gross profit		$545.3		74%		$576.0		78%
Operating income (loss)		($275.5)		(36%)		$71.0		9%
Net cash provided by operating activities		$344.6
Free cash flow						$324.5		42%
Adjusted free cash flow						$324.3		42%

(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 2024 GAAP and Non-GAAP Results:

The following table summarizes our financial results for the full-year of fiscal 2024:

		Full-Year Fiscal 2024 GAAP Results				Full-Year Fiscal 2024 Non-GAAP Results(1)
		Amount (millions)		Year/Year Growth
Product revenue		$2,666.8		38%
		Amount (millions)		Margin		Amount (millions)		Margin
Product gross profit		$1,965.6		74%		$2,076.0		78%
Operating income (loss)		($1,094.8)		(39%)		$229.7		8%
Net cash provided by operating activities		$848.1
Free cash flow						$778.9		28%
Adjusted free cash flow						$810.2		29%

(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 2025:

		First Quarter Fiscal 2025 GAAP Guidance				First Quarter Fiscal 2025 Non-GAAP Guidance(1)
		Amount (millions)		Year/Year Growth
Product revenue		$745 - $750		26 - 27%
								Margin
Operating income								3%
						Amount (millions)
Weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders - diluted(2)						366

(1)		We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures.
(2)		The potential impact of future repurchases under our existing stock repurchase program is not reflected in our guidance for weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders - diluted due to the uncertainty regarding, and the potential variability of, the timing and amount of repurchases.

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

		Full-Year Fiscal 2025 GAAP Guidance				Full-Year Fiscal 2025 Non-GAAP Guidance(1)
		Amount (millions)		Year/Year Growth
Product revenue		$3,250		22%
								Margin
Product gross profit								76%
Operating income								6%
Adjusted free cash flow								29%
						Amount (millions)
Weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders - diluted(2)						368

(1)		We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures.
(2)		The potential impact of future repurchases under our existing stock repurchase program is not reflected in our guidance for weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders - diluted due to the uncertainty regarding, and the potential variability of, the timing and amount of repurchases.

A reconciliation of non-GAAP guidance measures to corresponding GAAP guidance measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. 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 February 28, 2024. Investors and participants may attend the call by dialing (833) 470-1428 (Access code: 766155), or if outside the United States, by dialing +1 (929) 526-1599 (Access code: 766155).

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

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

Investor Presentation Details

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

Statement Regarding Use of Non‑GAAP Financial Measures

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

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

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

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

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

Key Business Metrics

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

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

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

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

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

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

Use of Forward‑Looking Statements

This release and the accompanying oral presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding our performance, including but not limited to statements in the section titled “Financial Outlook.” Words such as “guidance,” “outlook,” “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “plan,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. 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, and fluctuations or volatility in capital markets or foreign currency exchange rates; 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 the 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-Q for the fiscal quarter ended October 31, 2023 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, 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 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, power data applications, and execute diverse AI/ML and 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 691 of the 2023 Forbes Global 2000 (G2K) as of January 31, 2024, 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 January 31,								Twelve Months Ended January 31,
		2024				2023				2024				2023
Revenue		$	774,699			$	589,012			$	2,806,489			$	2,065,659
Cost of revenue			241,804				205,657				898,558				717,540
Gross profit			532,895				383,355				1,907,931				1,348,119
Operating expenses:
Sales and marketing			361,822				303,473				1,391,747				1,106,507
Research and development			364,476				242,125				1,287,949				788,058
General and administrative			82,102				77,507				323,008				295,821
Total operating expenses			808,400				623,105				3,002,704				2,190,386
Operating loss			(275,505	)			(239,750	)			(1,094,773	)			(842,267	)
Interest income			53,761				35,531				200,663				73,839
Other income (expense), net			47,533				(2,893	)			44,887				(47,565	)
Loss before income taxes			(174,211	)			(207,112	)			(849,223	)			(815,993	)
Provision for (benefit from) income taxes			(4,299	)			372				(11,233	)			(18,467	)
Net loss			(169,912	)			(207,484	)			(837,990	)			(797,526	)
Less: net loss attributable to noncontrolling interest			(560	)			(315	)			(1,893	)			(821	)
Net loss attributable to Snowflake Inc.		$	(169,352	)		$	(207,169	)		$	(836,097	)		$	(796,705	)
Net loss per share attributable to Snowflake Inc. common stockholders - basic and diluted		$	(0.51	)		$	(0.64	)		$	(2.55	)		$	(2.50	)
Weighted-average shares used in computing net loss per share attributable to Snowflake Inc. common stockholders - basic and diluted			331,079				321,924				328,001				318,730

Snowflake Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
		January 31, 2024				January 31, 2023
Assets
Current assets:
Cash and cash equivalents		$	1,762,749			$	939,902
Short-term investments			2,083,499				3,067,966
Accounts receivable, net			926,902				715,821
Deferred commissions, current			86,096				67,901
Prepaid expenses and other current assets			180,018				193,100
Total current assets			5,039,264				4,984,690
Long-term investments			916,307				1,073,023
Property and equipment, net			247,464				160,823
Operating lease right-of-use assets			252,128				231,266
Goodwill			975,906				657,370
Intangible assets, net			331,411				186,013
Deferred commissions, non-current			187,093				145,286
Other assets			273,810				283,851
Total assets		$	8,223,383			$	7,722,322
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	51,721			$	23,672
Accrued expenses and other current liabilities			446,860				269,069
Operating lease liabilities, current			33,944				27,301
Deferred revenue, current			2,198,705				1,673,475
Total current liabilities			2,731,230				1,993,517
Operating lease liabilities, non-current			254,037				224,357
Deferred revenue, non-current			14,402				11,463
Other liabilities			33,120				24,370
Snowflake Inc. stockholders’ equity			5,180,308				5,456,436
Noncontrolling interest			10,286				12,179
Total liabilities and stockholders’ equity		$	8,223,383			$	7,722,322

Snowflake Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
		Three Months Ended January 31,								Twelve Months Ended January 31,
		2024				2023				2024				2023
Cash flows from operating activities:
Net loss		$	(169,912	)		$	(207,484	)		$	(837,990	)		$	(797,526	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			34,986				19,726				119,903				63,535
Non-cash operating lease costs			13,751				12,661				52,892				46,240
Amortization of deferred commissions			20,065				15,920				74,787				57,445
Stock-based compensation, net of amounts capitalized			305,498				250,696				1,168,015				861,533
Net amortization (accretion) of premiums (discounts) on investments			(12,299	)			(8,834	)			(61,525	)			3,497
Net realized and unrealized losses (gains) on strategic investments in equity securities			(45,704	)			1,339				(46,809	)			46,435
Deferred income tax			(13,655	)			(1,387	)			(26,762	)			(26,664	)
Other			609				940				14,895				1,618
Changes in operating assets and liabilities, net of effects of business combinations:
Accounts receivable			(417,221	)			(317,688	)			(212,083	)			(166,965	)
Deferred commissions			(68,317	)			(31,480	)			(134,787	)			(95,107	)
Prepaid expenses and other assets			8,221				(16,073	)			59,795				(2,904	)
Accounts payable			(32,460	)			(2,280	)			19,212				8,024
Accrued expenses and other liabilities			137,339				46,792				171,048				74,519
Operating lease liabilities			(11,759	)			(13,166	)			(40,498	)			(42,342	)
Deferred revenue			595,438				467,634				528,029				514,301
Net cash provided by operating activities			344,580				217,316				848,122				545,639
Cash flows from investing activities:
Purchases of property and equipment			(13,072	)			(5,362	)			(35,086	)			(25,128	)
Capitalized internal-use software development costs			(7,029	)			(6,693	)			(34,133	)			(24,012	)
Cash paid for business combinations, net of cash, cash equivalents, and restricted cash acquired			3,828				(10,054	)			(275,706	)			(362,609	)
Purchases of intangible assets			—				—				(28,744	)			(700	)
Purchases of investments			(380,877	)			(1,105,154	)			(2,476,206	)			(3,901,321	)
Sales of investments			—				—				11,266				58,813
Maturities and redemptions of investments			919,719				1,062,479				3,670,867				3,657,072
Net cash provided by (used in) investing activities			522,569				(64,784	)			832,258				(597,885	)
Cash flows from financing activities:
Proceeds from exercise of stock options			18,340				8,798				57,194				39,893
Proceeds from issuance of common stock under employee stock purchase plan			—				—				61,234				40,931
Taxes paid related to net share settlement of equity awards			(106,971	)			(48,882	)			(380,799	)			(184,648	)
Repurchases of common stock			—				—				(591,732	)			—
Capital contributions from noncontrolling interest holders			—				—				—				13,000
Payments of deferred purchase consideration for business combinations			—				—				—				(1,800	)
Net cash used in financing activities			(88,631	)			(40,084	)			(854,103	)			(92,624	)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash			2,564				8,457				(2,031	)			(933	)
Net increase (decrease) in cash, cash equivalents, and restricted cash			781,082				120,905				824,246				(145,803	)
Cash, cash equivalents, and restricted cash—beginning of period			999,895				835,826				956,731				1,102,534
Cash, cash equivalents, and restricted cash—end of period		$	1,780,977			$	956,731			$	1,780,977			$	956,731

Snowflake Inc.
GAAP to Non-GAAP Reconciliations
(in thousands, except per share data and percentages)
(unaudited)
		Three Months Ended January 31,										Twelve Months Ended January 31,
		2024					2023					2024					2023
		Amount			Amount as a % of Revenue		Amount			Amount as a % of Revenue		Amount			Amount as a % of Revenue		Amount			Amount as a % of Revenue
Revenue:
Product revenue		$	738,090		95%		$	555,329		94%		$	2,666,849		95%		$	1,938,783		94%
Professional services and other revenue			36,609		5%			33,683		6%			139,640		5%			126,876		6%
Revenue		$	774,699		100%		$	589,012		100%		$	2,806,489		100%		$	2,065,659		100%
Year-over-year growth			32%					53%					36%					69%
Cost of revenue:
GAAP cost of product revenue		$	192,776				$	158,601				$	701,200				$	547,547
Adjustments:
Stock-based compensation-related charges			(20,928)					(17,332)					(78,900)					(61,379)
Amortization of acquired intangibles			(9,760)					(2,335)					(31,403)					(4,767)
Non-GAAP cost of product revenue		$	162,088				$	138,934				$	590,897				$	481,401
GAAP cost of professional services and other revenue		$	49,028				$	47,056				$	197,358				$	169,993
Adjustments:
Stock-based compensation-related charges			(13,380)					(14,250)					(58,231)					(52,324)
Amortization of acquired intangibles			(1,663)					—					(6,434)					—
Non-GAAP cost of professional services and other revenue		$	33,985				$	32,806				$	132,693				$	117,669
GAAP cost of revenue		$	241,804		31%		$	205,657		35%		$	898,558		32%		$	717,540		35%
Adjustments:
Stock-based compensation-related charges			(34,308)					(31,582)					(137,131)					(113,703)
Amortization of acquired intangibles			(11,423)					(2,335)					(37,837)					(4,767)
Non-GAAP cost of revenue		$	196,073		25%		$	171,740		29%		$	723,590		26%		$	599,070		29%
Gross profit (loss):
GAAP product gross profit		$	545,314				$	396,728				$	1,965,649				$	1,391,236
Adjustments:
Stock-based compensation-related charges			20,928					17,332					78,900					61,379
Amortization of acquired intangibles			9,760					2,335					31,403					4,767
Non-GAAP product gross profit		$	576,002				$	416,395				$	2,075,952				$	1,457,382
GAAP professional services and other revenue gross loss		$	(12,419)				$	(13,373)				$	(57,718)				$	(43,117)
Adjustments:
Stock-based compensation-related charges			13,380					14,250					58,231					52,324
Amortization of acquired intangibles			1,663					—					6,434					—
Non-GAAP professional services and other revenue gross profit		$	2,624				$	877				$	6,947				$	9,207
GAAP gross profit		$	532,895		69%		$	383,355		65%		$	1,907,931		68%		$	1,348,119		65%
Adjustments:
Stock-based compensation-related charges			34,308					31,582					137,131					113,703
Amortization of acquired intangibles			11,423					2,335					37,837					4,767
Non-GAAP gross profit		$	578,626		75%		$	417,272		71%		$	2,082,899		74%		$	1,466,589		71%
Gross margin:
GAAP product gross margin			74%					71%					74%					72%
Adjustments:
Stock-based compensation-related charges as a % of product revenue			3%					4%					3%					3%
Amortization of acquired intangibles as a % of product revenue			1%					—%					1%					—%
Non-GAAP product gross margin			78%					75%					78%					75%
GAAP professional services and other revenue gross margin			(34%)					(40%)					(41%)					(34%)
Adjustments:
Stock-based compensation-related charges as a % of professional services and other revenue			36%					43%					41%					41%
Amortization of acquired intangibles as a % of professional services and other revenue			5%					—%					5%					—%
Non-GAAP professional services and other revenue gross margin			7%					3%					5%					7%
GAAP gross margin			69%					65%					68%					65%
Adjustments:
Stock-based compensation-related charges as a % of revenue			5%					6%					5%					6%
Amortization of acquired intangibles as a % of revenue			1%					—%					1%					—%
Non-GAAP gross margin			75%					71%					74%					71%
Operating expenses:
GAAP sales and marketing expense		$	361,822		47%		$	303,473		52%		$	1,391,747		50%		$	1,106,507		54%
Adjustments:
Stock-based compensation-related charges			(77,121)					(70,844)					(319,979)					(258,056)
Amortization of acquired intangibles			(7,800)					(7,553)					(30,235)					(25,207)
Non-GAAP sales and marketing expense		$	276,901		36%		$	225,076		38%		$	1,041,533		37%		$	823,244		39%
GAAP research and development expense		$	364,476		47%		$	242,125		41%		$	1,287,949		46%		$	788,058		38%
Adjustments:
Stock-based compensation-related charges			(181,059)					(128,026)					(663,471)					(413,080)
Amortization of acquired intangibles			(3,682)					(1,813)					(12,384)					(7,123)
Non-GAAP research and development expense		$	179,735		23%		$	112,286		19%		$	612,094		22%		$	367,855		18%
GAAP general and administrative expense		$	82,102		11%		$	77,507		13%		$	323,008		11%		$	295,821		14%
Adjustments:
Stock-based compensation-related charges			(27,816)					(25,833)					(108,942)					(104,160)
Amortization of acquired intangibles			(451)					(451)					(1,789)					(1,731)
Expenses associated with acquisitions and strategic investments			(2,811)					(4,088)					(12,715)					(9,723)
Non-GAAP general and administrative expense		$	51,024		7%		$	47,135		8%		$	199,562		7%		$	180,207		9%
GAAP total operating expense		$	808,400		105%		$	623,105		106%		$	3,002,704		107%		$	2,190,386		106%
Adjustments:
Stock-based compensation-related charges			(285,996)					(224,703)					(1,092,392)					(775,296)
Amortization of acquired intangibles			(11,933)					(9,817)					(44,408)					(34,061)
Expenses associated with acquisitions and strategic investments			(2,811)					(4,088)					(12,715)					(9,723)
Non-GAAP total operating expense		$	507,660		66%		$	384,497		65%		$	1,853,189		66%		$	1,371,306		66%
Operating income (loss):
GAAP operating loss		$	(275,505)		(36%)		$	(239,750)		(41%)		$	(1,094,773)		(39%)		$	(842,267)		(41%)
Adjustments:
Stock-based compensation-related charges(1)			320,304					256,285					1,229,523					888,999
Amortization of acquired intangibles			23,356					12,152					82,245					38,828
Expenses associated with acquisitions and strategic investments			2,811					4,088					12,715					9,723
Non-GAAP operating income		$	70,966		9%		$	32,775		6%		$	229,710		8%		$	95,283		5%
Operating margin:
GAAP operating margin			(36%)					(41%)					(39%)					(41%)
Adjustments:
Stock-based compensation-related charges as a % of revenue			42%					44%					44%					44%
Amortization of acquired intangibles as a % of revenue			3%					2%					3%					2%
Expenses associated with acquisitions and strategic investments as a % of revenue			—%					1%					—%					—%
Non-GAAP operating margin			9%					6%					8%					5%
Net income (loss):
GAAP net loss		$	(169,912)		(22%)		$	(207,484)		(35%)		$	(837,990)		(30%)		$	(797,526)		(39%)
Adjustments:
Stock-based compensation-related charges(1)			320,304					256,285					1,229,523					888,999
Amortization of acquired intangibles			23,356					12,152					82,245					38,828
Expenses associated with acquisitions and strategic investments			2,811					4,088					12,715					9,723
Income tax effect related to the above adjustments and acquisitions			(49,087)					(16,635)					(134,801)					(50,072)
Non-GAAP net income		$	127,472		16%		$	48,406		8%		$	351,692		13%		$	89,952		4%
Net income (loss) attributable to Snowflake Inc.:
GAAP net loss attributable to Snowflake Inc.		$	(169,352)		(22%)		$	(207,169)		(35%)		$	(836,097)		(30%)		$	(796,705)		(39%)
Adjustments:
Stock-based compensation-related charges(1)			320,304					256,285					1,229,523					888,999
Amortization of acquired intangibles			23,356					12,152					82,245					38,828
Expenses associated with acquisitions and strategic investments			2,811					4,088					12,715					9,723
Income tax effect related to the above adjustments and acquisitions			(49,087)					(16,635)					(134,801)					(50,072)
Adjustments attributable to noncontrolling interest, net of tax			(62)					14					(236)					(361)
Non-GAAP net income attributable to Snowflake Inc.		$	127,970		17%		$	48,735		8%		$	353,349		13%		$	90,412		4%
Net income (loss) per share attributable to Snowflake Inc. common stockholders - basic and diluted:
GAAP net loss per share attributable to Snowflake Inc. common stockholders - basic and diluted		$	(0.51)				$	(0.64)				$	(2.55)				$	(2.50)
Weighted-average shares used in computing GAAP net loss per share attributable to Snowflake Inc. common stockholders - basic and diluted			331,079					321,924					328,001					318,730
Non-GAAP net income per share attributable to Snowflake Inc. common stockholders - basic		$	0.39				$	0.15				$	1.08				$	0.28
Weighted-average shares used in computing non-GAAP net income per share attributable to Snowflake Inc. common stockholders - basic			331,079					321,924					328,001					318,730
Non-GAAP net income per share attributable to Snowflake Inc. common stockholders - diluted		$	0.35				$	0.14				$	0.98				$	0.25
Non-GAAP weighted-average shares used in computing non-GAAP net income per share attributable to Snowflake Inc. common stockholders - diluted(2)			363,757					359,513					362,064					359,144
Free cash flow and adjusted free cash flow:
GAAP net cash provided by operating activities		$	344,580		44%		$	217,316		37%		$	848,122		30%		$	545,639		26%
Adjustments:
Purchases of property and equipment			(13,072)					(5,362)					(35,086)					(25,128)
Capitalized internal-use software development costs			(7,029)					(6,693)					(34,133)					(24,012)
Non-GAAP free cash flow			324,479		42%			205,261		35%			778,903		28%			496,499		24%
Adjustments:
Net cash paid on payroll tax-related items on employee stock transactions(3)			(182)					10,034					31,282					23,927
Non-GAAP adjusted free cash flow		$	324,297		42%		$	215,295		37%		$	810,185		29%		$	520,426		25%
Non-GAAP free cash flow margin			42%					35%					28%					24%
Non-GAAP adjusted free cash flow margin			42%					37%					29%					25%

(1)		Stock-based compensation-related charges included employer payroll tax-related expenses on employee stock transactions of approximately $11.0 million and $45.5 million for the three and twelve months ended January 31, 2024, respectively, and $4.0 million and $22.7 million for the three and twelve months ended January 31, 2023, respectively.
(2)		For the periods in which we had non-GAAP net income, the non-GAAP weighted-average shares used in computing non-GAAP net income per share attributable to Snowflake Inc. common stockholders - diluted included the effect of all potentially dilutive common stock equivalents (stock options, restricted stock units, and employee stock purchase rights under our 2020 Employee Stock Purchase Plan). The potential dilutive effect of outstanding restricted stock units with performance conditions not yet satisfied is included in the non-GAAP weighted-average number of diluted shares at forecasted attainment levels to the extent we believe it is probable that the performance conditions will be met.
(3)		The amounts for the three and twelve months ended January 31, 2024 do not include employee payroll taxes of $107.0 million and $380.8 million, respectively, and the amounts for the three and twelve months ended January 31, 2023 do not include employee payroll taxes of $48.9 million and $184.6 million, respectively, related to net share settlement of employee restricted stock units, which were reflected as cash outflows for financing activities.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240228273435/en/

Investor Contact

Jimmy Sexton

IR@snowflake.com



Press Contact

Eszter Szikora

Press@snowflake.com

Source: Snowflake Inc.

FAQ

What was Snowflake's product revenue in the fourth quarter of fiscal 2024?

Snowflake reported $738.1 million in product revenue for the fourth quarter of fiscal 2024, representing a 33% year-over-year growth.

How many customers had trailing 12-month product revenue greater than $1 million in fiscal 2024?

Snowflake had 461 customers with trailing 12-month product revenue greater than $1 million in fiscal 2024.

What was Snowflake's net revenue retention rate as of January 31, 2024?

Snowflake's net revenue retention rate was 131% as of January 31, 2024.

How many Forbes Global 2000 customers does Snowflake have?

Snowflake has 691 Forbes Global 2000 customers, representing an 8% year-over-year growth.

What is the amount of Snowflake's remaining performance obligations?

Snowflake's remaining performance obligations amount to $5.2 billion, showing a 41% year-over-year growth.

What was Snowflake's non-GAAP adjusted free cash flow for fiscal 2024?

Snowflake's non-GAAP adjusted free cash flow for fiscal 2024 was $810 million, reflecting a 56% year-over-year growth.

Who highlighted Snowflake's successful global enterprise engagement?

Frank Slootman, Chairman of the Board at Snowflake, highlighted the company's successful global enterprise engagement.

What is Snowflake positioned as in the market?

Snowflake is positioned as a leading Data Cloud platform for AI and data strategies.

What financial outlook did Snowflake provide for fiscal 2025?

Snowflake provided guidance for product revenue, product gross profit margin, operating income, and adjusted free cash flow for fiscal 2025.