News Details

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

February 28, 2024
  • 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

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)

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.

 

Investor Contact

Jimmy Sexton

IR@snowflake.com



Press Contact

Eszter Szikora

Press@snowflake.com

Source: Snowflake Inc.