Snowflake Inc. (SNOW) came out with quarterly earnings of $0.24 per share, beating the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.09%. A quarter ago, it was expected that this company would post earnings of $0.17 per share when it actually produced earnings of $0.30, delivering a surprise of 76.47%.Over the last four quarters, the company ha ...

Financial Data and Key Metrics Changes - Product revenue for Q1 was $997 million, representing a strong 26% year-over-year growth, and 28% when excluding the impact of the leap year [10][25] - Remaining performance obligations totaled $6.7 billion, with year-over-year growth of 34% [10] - Net revenue retention was a healthy 124% [11] - Non-GAAP product gross margin was 75.7%, and non-GAAP operating margin was 9%, up 442 basis points year-over-year [27][28] - Non-GAAP adjusted free cash flow margin was 20% [28] - The company ended the quarter with $4.9 billion in cash and investments [29] Business Line Data and Key Metrics Changes - New product offerings, particularly Snowpark and Dynamic Tables, outperformed expectations in Q1 [25] - The data engineering business showed strength, helping customers streamline their data pipelines [12] - The company added 451 net new customers in Q1, growing 19% year-over-year [27] Market Data and Key Metrics Changes - Strong growth was noted in the technology and retail sectors [25] - The company is expanding its addressable market with the launch of Snowflake Public Sector Inc. and new automotive solutions [22] Company Strategy and Development Direction - The company aims to empower enterprises through data and AI, focusing on operational rigor and efficiency while investing in growth [9] - Snowflake is committed to being an end-to-end technology provider for customers' data journeys [11] - The company is focusing on building a flexible connectivity platform for both structured and unstructured data [12] - There is a renewed focus on go-to-market operations under the new Chief Revenue Officer [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to the year and the ongoing momentum in revenue growth [8] - The company expects Q2 product revenue between $1.035 billion and $1.040 billion, representing 25% year-over-year growth [29] - Management noted that customer behavior is being closely monitored to inform forecasts [29] Other Important Information - The company plans to host an Investor Day on June 3 in conjunction with Snowflake Summit [30] - The company is leveraging AI internally to boost productivity [22] Q&A Session Summary Question: Consumption trends exiting the quarter - Management stated that Q1 consumption was strong, and they feel good about consumption levels [34][36] Question: Monetization trends associated with Cortex - Management indicated that customers are investing in Snowflake to make their data processes AI-ready, with no separate contracts for AI [39][41] Question: Performance of Snowpark and Dynamic Tables - Management noted that both product maturation and go-to-market efforts contributed to their strong performance [45][47] Question: Federal government opportunities - Management highlighted increasing awareness of Snowflake's capabilities within government departments and optimism for future engagements [72][73] Question: Impact of macroeconomic conditions - Management observed that their customer base has evolved to include larger, more mature companies that are cost-focused, with no significant macro pressure noted [61][62] Question: Share buyback strategy - Management plans to evaluate share buybacks on a quarterly basis and anticipates utilizing the remaining authorization [56] Question: AI adoption and customer investments - Management confirmed that there is a strong demand for AI-related capabilities, with customers increasingly focusing on data rather than just models [113]

Financial Data and Key Metrics Changes - Product revenue for Q1 was $997 million, up 26% year over year, with a growth rate stable quarter over quarter [6][19] - Remaining performance obligations totaled $6.7 billion, reflecting a year-over-year growth of 34% [6] - Net revenue retention was reported at 124%, indicating strong customer retention and expansion [7] - Non-GAAP product gross margin was 75.7%, and non-GAAP operating margin was 9%, up 442 basis points year over year [21][24] - The company ended the quarter with $4.9 billion in cash and cash equivalents [24] Business Line Data and Key Metrics Changes - New product offerings, particularly Snowpark and Dynamic Tables, outperformed expectations in Q1 [19] - The data engineering business showed strength, helping customers streamline their data pipelines [8] - The company launched over 125 product capabilities in the quarter, marking significant innovation [11] Market Data and Key Metrics Changes - The company added 451 net new customers in Q1, representing a 19% year-over-year growth [21] - Strong adoption of open data formats, particularly Apache Iceberg, was noted, enhancing customer flexibility [11] Company Strategy and Development Direction - The company aims to empower enterprises through data and AI, focusing on operational efficiency while investing in growth [5][17] - Snowflake is expanding its addressable market with new solutions for the public sector and automotive industries [17] - The company emphasizes collaboration with hyperscalers like AWS and Azure to enhance customer outcomes [76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business, noting that customer behavior remains strong despite macroeconomic pressures [58][60] - The company expects Q2 product revenue between $1.035 billion and $1.04 billion, representing 25% year-over-year growth [24] - There is optimism regarding the federal government opportunity, with ongoing discussions about data infrastructure efficiency [67] Other Important Information - The company plans to host its Investor Day on June 3 in conjunction with Snowflake Summit [25] - Management is actively seeking candidates for the CFO position following a transition [26] Q&A Session Summary Question: Trends in consumption through the quarter - Management noted that Q1 consumption was strong, and they feel good about consumption trends [30] Question: Monetization trends associated with Cortex - Management indicated that customers are investing in Snowflake for future AI capabilities, integrating AI into their data strategies [34] Question: Performance of Snowpark and Dynamic Tables - Management acknowledged that both product maturation and go-to-market efforts contributed to their success [40] Question: Federal government opportunities - Management highlighted increasing awareness of Snowflake's capabilities within government departments and the focus on efficient data infrastructure [67] Question: Impact of AI on customer investments - Management noted that customers are increasingly recognizing the need for data to be integrated with AI capabilities [108] Question: Share buyback strategy - Management stated that they will continue to evaluate share buybacks on a quarterly basis, with no immediate plans for changes [52] Question: Importance of first-party foundation models - Management emphasized a focus on post-training techniques rather than developing large foundation models, collaborating with partners instead [100]

SNOWFLAKE INVESTOR PRESENTATION First Quarter Fiscal 2026 © 2025 Snowflake Inc. All Rights Reserved Statement Regarding Use of Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, which have not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). These non-GAAP financial measures are in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. There are a number of ...

Revenue Growth - Revenue for the first quarter of fiscal 2026 was $1.0 billion, representing 26% year-over-year growth[3] - Product revenue for the quarter was $996.8 million, also reflecting a 26% year-over-year growth[5] - For the second quarter of fiscal 2026, product revenue guidance is projected to be between $1,035 million and $1,040 million, representing a 25% year-over-year growth[8] - Full-year fiscal 2026 product revenue guidance is set at $4,325 million, reflecting a 25% year-over-year growth[9] - Total revenue for the three months ended April 30, 2025, was $1,042,074, representing a year-over-year growth of 26% compared to $828,709 in 2024[31] - Product revenue accounted for $996,813, which is 96% of total revenue, up from $789,587 (95%) in the previous year[31] Customer Metrics - Net revenue retention rate stood at 124% as of April 30, 2025[3] - The company has 606 customers with trailing 12-month product revenue greater than $1 million, marking a 27% year-over-year increase[3] - The number of customers with trailing 12-month product revenue greater than $1 million is a key metric, indicating strong customer engagement and platform usage[25] - The company reported a net revenue retention rate that reflects customer satisfaction and the value derived from the platform, calculated based on historical usage data[25] Financial Performance - Product gross profit for the first quarter was $711.5 million, with a margin of 71%[6] - Operating income for the first quarter was reported as a loss of $447.3 million under GAAP, but $91.7 million under non-GAAP, with a margin of 9%[6] - Adjusted free cash flow for the first quarter was $206.3 million, representing a 20% year-over-year growth[6] - GAAP net loss increased to $(429,952) for the three months ended April 30, 2025, compared to $(317,816) in 2024[29] - Non-GAAP net income was $87,572, which is 8% of revenue, up from 6% in the prior year[32] - Non-GAAP operating income reached $91,658, accounting for 9% of revenue, compared to 4% in the previous year[32] Cash Flow and Assets - Cash and cash equivalents as of April 30, 2025, were $2,243,083, down from $2,628,798 as of January 31, 2025[27] - Total assets decreased to $8,157,407 as of April 30, 2025, from $9,033,938 as of January 31, 2025[27] - Cash flows from operating activities generated $228,373, down from $355,468 in the same period last year[29] - Cash, cash equivalents, and restricted cash at the end of the period totaled $2,319,408, compared to $1,349,136 at the end of the previous year[29] Expenses and Investments - GAAP total operating expenses were $1,140,545, which is 110% of revenue, compared to 109% in the prior year[32] - GAAP sales and marketing expense was $458,554, accounting for 44% of revenue, down from 48% in the previous year[32] - GAAP research and development expense was $472,404, representing 46% of revenue, compared to 50% in the prior year[32] - The company plans to continue investing in product development and market expansion to drive future growth[30] Future Outlook - Remaining performance obligations totaled $6.7 billion, indicating a 34% year-over-year growth[5] - Forward-looking statements indicate expectations for future operating results and strategic initiatives, including advancements in artificial intelligence and new product offerings[18]

Core Viewpoint - Snowflake Inc. is poised to report its first quarter earnings with positive momentum, expecting earnings per share of 21 cents and revenue of $1.01 billion [1] Group 1: Stock Performance - The stock has increased by 10.84% over the past year but is down 14.50% year-to-date; however, it has surged 31.64% in the last month [1] - As of the latest publication, SNOW stock was trading at $181.04, reflecting a 1% decrease [4] Group 2: Technical Analysis - Snowflake stock has broken through major resistance levels and is above both medium and long-term moving averages, indicating a moderately bullish trend [2] - The Moving Average Convergence Divergence (MACD) indicator is at 7.82, supporting bullish sentiment, while the Relative Strength Index (RSI) is at 69.61, suggesting potential overbought conditions [3] Group 3: Analyst Ratings and Price Targets - Analysts maintain a Buy consensus rating with an average price target of $198.28, indicating a potential upside of 15.09% based on recent reports from JMP Securities, Jefferies, and Rosenblatt [4] - The average target from these reports is $208.67, suggesting further growth potential [4]

Core Insights - Snowflake Inc is set to announce its Q1 FY'26 earnings on May 21, 2024, with expected revenue growth of 21% year-over-year to approximately $1 billion and adjusted earnings forecasted at $0.21 per share, reflecting a 50% year-over-year increase [1] - The company is enhancing its AI capabilities through partnerships and acquisitions, including a multiyear partnership with Anthropic and the acquisition of AI startup Datavolo, aimed at simplifying AI application development for clients [1] - Snowflake's projected product revenues for the quarter are estimated to be between $955 million to $961 million [1] Financial Performance - Snowflake currently has a market capitalization of $61 billion, with revenue for the past twelve months reported at $3.6 billion [2] - The company has incurred operational losses of $1.5 billion and a net income loss of $1.3 billion [2] Earnings Reaction History - Over the last five years, Snowflake has recorded 18 earnings data points, with 10 positive and 8 negative one-day returns, resulting in a positive return rate of approximately 56% [5] - The positive return rate drops to 42% when considering the last three years [5] - The median of the 10 positive returns is 7.7%, while the median of the 8 negative returns is -14% [5]

Core Viewpoint - Snowflake is expected to report strong earnings growth and revenue increase, with analysts maintaining a generally optimistic outlook despite some concerns regarding its business execution and competitive pressures [1][2][3]. Group 1: Earnings and Revenue Expectations - Snowflake is projected to report earnings per share of $0.22, a 57.1% increase year-over-year, and revenue of $1 billion, reflecting a 21.1% year-over-year growth [1]. - The stock price has rebounded over 40% since the low point following tariff news, indicating a recovery in the cloud computing sector [1]. Group 2: Analyst Ratings and Price Targets - Mizuho analyst Gregg Moskowitz raised Snowflake's target price from $190 to $205, maintaining a "buy" rating and highlighting the strong growth potential in the software industry [1][2]. - The consensus among Wall Street analysts remains optimistic, with 32 "buy" ratings and 6 "hold" ratings, suggesting a strong buy consensus with a 12-month target price of $203.69, indicating potential for double-digit upside [3]. Group 3: Competitive Landscape and Concerns - Concerns have been raised by investors regarding Snowflake's business execution and competitive pressures from major cloud players like Microsoft, Amazon, and Google, which may impact its market share [2][3]. - The decline in net revenue retention rates and high equity incentive costs, which accounted for 41% of revenue last year, are seen as potential red flags for the company's future growth [2][3].

Core Viewpoint - Snowflake is expected to report strong fiscal Q1 2026 results, with projected revenues of $1 billion and earnings of 22 cents per share, indicating significant year-over-year growth [1][2]. Financial Performance - The Zacks Consensus Estimate for Snowflake's Q1 fiscal 2026 revenue is $1 billion, reflecting a year-over-year growth of 21.13% [1]. - The earnings consensus is 22 cents per share, unchanged over the past 30 days, indicating a 57.14% year-over-year growth [1]. - Snowflake's product revenues for Q1 fiscal 2026 are expected to be in the range of $955-$960 million, suggesting a year-over-year growth of 21-22% [5]. Customer Growth and Retention - As of January 31, 2025, Snowflake had 11,159 customers, up from 9,384 a year earlier, with 745 being part of the Forbes Global 2000 [5]. - The net revenue retention rate stood at 126% as of January 31, 2025, indicating strong customer loyalty and expansion [4]. Product and Technology Advancements - Snowflake's investments in AI and machine learning, including the introduction of Cortex AI, have driven customer engagement, with over 4,000 customers using these technologies weekly [6]. - The company has enhanced its AI Data Cloud by integrating core capabilities with Apache Iceberg tables, improving query performance and data sharing [13]. Market Performance - Snowflake shares have increased by 18.5% year-to-date, outperforming the Zacks Computer and Technology sector, which has decreased by 1.4% [7]. - The stock is currently trading at a forward Price/Sales ratio of 12.81X, significantly higher than the sector average of 6.18X, indicating potential overvaluation [10][11]. Strategic Partnerships - Snowflake's partnerships with major companies like Microsoft, Amazon, and NVIDIA are expected to drive growth through enhanced product integrations and collaborative sales efforts [15][16][18]. - The expanded partnership with Microsoft aims to integrate OpenAI's models into Snowflake's offerings, enhancing productivity through AI-driven insights [16]. Challenges and Considerations - The company anticipates a tougher year-over-year revenue comparison due to the impact of the leap year, which may affect top-line growth [19]. - Non-GAAP operating margins for Q1 fiscal 2026 are expected to be impacted by approximately $15 million in expenses related to the annual sales kickoff event [20].

Group 1 - The article discusses an update on the investment thesis for Snowflake (SNOW) as a new earnings release approaches, highlighting a previous sharp sell-off in the stock after the last earnings report [1] - The author emphasizes a strong buy recommendation for Snowflake, indicating confidence in the company's potential despite recent market volatility [1] - The author's background in IT and experience in managing a family portfolio for seven years contribute to a deep understanding of risk and reward in technology stocks [1] Group 2 - The article aims to provide clear and accessible insights for investors of all experience levels, focusing on technology stocks while also exploring diverse sectors for promising investment opportunities [1] - The author invites collaboration and exploration within the investor community to uncover market secrets and achieve financial success [1]