Core Insights - Snowflake Inc. reported quarterly earnings of $0.30 per share, exceeding the Zacks Consensus Estimate of $0.17 per share, although down from $0.35 per share a year ago [1] - The company achieved revenues of $986.77 million for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 3.58% and up from $774.7 million year-over-year [2] - Snowflake projected fiscal 2026 product revenue growth of 24%, reaching $4.28 billion, exceeding analysts' expectations of $4.21 billion [3] Financial Performance - The fourth-quarter revenue of $986.8 million exceeded the estimated $955.9 million, driven by rising demand for cloud-based solutions [5] - For the first quarter, Snowflake forecasts product revenue between $955 million and $960 million, outperforming analysts' projection of $949.3 million [3] AI Integration and Market Trends - The integration of OpenAI's models into Snowflake Cortex AI enhances its appeal to businesses seeking AI-powered data management solutions [4] - The ongoing shift towards cloud-based solutions is increasing demand for Snowflake's services [5] Management Changes - CFO Michael Scarpelli will retire but will remain until a successor is appointed, after which he will transition to an advisory role [6] Analyst Ratings and Price Targets - The average price target for Snowflake Inc. was $191.89, with a range from $115.00 to $225.00, prior to the earnings release [7] - Snowflake Inc. has an average brokerage recommendation (ABR) of 1.63, indicating a strong buy sentiment, compared to an ABR of 1.72 a month ago [8] - Of the 43 recommendations, 29 are Strong Buy, accounting for 67.44% of all recommendations, an increase from 65.12% a month ago [9] ETFs Exposure - Several exchange-traded funds (ETFs) with significant exposure to Snowflake include Spear Alpha ETF (SPRX), TrueShares Technology, AI & Deep Learning ETF (LRNZ), and Global X Cloud Computing ETF (CLOU) [10]

Core Insights - Snowflake's shares increased by 13% in premarket trading following the release of better-than-expected financial results and a positive outlook driven by strong demand for AI products [2][4] - The company reported fiscal 2025 Q4 adjusted earnings per share (EPS) of $0.30, with revenue rising 27% year-over-year to $986.8 million, surpassing analyst expectations of $0.18 EPS and $957.6 million in revenue [2][3] Financial Performance - Product revenue reached $943.3 million, reflecting a 28% increase and exceeding estimates [3] - For the current quarter, Snowflake projects product revenue between $955 million and $960 million, indicating a year-over-year growth of 21%-22% [3][4] Market Outlook - Management highlighted improved visibility into upcoming AI product launches, which are expected to drive significant growth acceleration in the second half of the fiscal year [3][4] - Citi analysts maintain a "buy" rating on Snowflake's stock, indicating confidence in the company's future performance [3]

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Financial Data and Key Metrics Changes - Product revenue for Q4 was $943 million, representing a 28% year-over-year increase [11] - Remaining performance obligations totaled $6.9 billion, with a year-over-year growth of 33% [12] - Net revenue retention was reported at 126% [12] - Non-GAAP operating margin increased to 9% in Q4, while non-GAAP adjusted free cash flow margin was 43% [12][37] - For FY '25, product revenue grew 30% year-over-year to reach $3.5 billion [32] Business Line Data and Key Metrics Changes - New products, particularly Snowpark, contributed 3% of FY '25 product revenues, indicating strong adoption of new data engineering and AI features [32] - Technology customers outperformed, while financial services remained the top vertical [33] Market Data and Key Metrics Changes - EMEA was identified as a source of strength in Q4 [33] - Several large customers ran out of capacity before their contract end date, indicating strong consumption patterns [34] Company Strategy and Development Direction - The company aims to deliver the world's best end-to-end data platform powered by AI, focusing on operational rigor and efficiency while investing in growth [9][10] - The company is expanding its product offerings, including new connectors and capabilities for data integration and collaboration [27] - The focus on AI and machine learning is expected to drive future growth, with over 4,000 customers using AI and ML technology weekly [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong core business and the potential for new product features to contribute to growth in the second half of FY '26 [40][41] - The company anticipates stable growth within its core business, with new product features expected to enhance year-over-year growth rates [40] Other Important Information - The company plans to host an Investor Day in conjunction with its Summit conference in June 2026 [42] - The CFO announced plans to retire once a successor is in place, indicating a transition in leadership [44] Q&A Session Summary Question: Insights on large customers exhausting commitments - Management expects large customers to sign new commitments after exhausting their capacity, which is a common occurrence [50][52] Question: Adoption trends within the data engineering portfolio - Management noted robust adoption of technologies like Snowpark and emphasized the importance of new product features in driving customer engagement [56][58] Question: Interpretation of recent partnerships in the data space - Management highlighted the importance of partnerships with companies like ServiceNow and Salesforce, emphasizing the value of data integration and customer choice [67][72] Question: Adjacent opportunities for the company's offerings - Management acknowledged the significance of streaming and ingestion as critical areas for investment and development [82][84] Question: Guidance for the upcoming year - Management expressed confidence in the guidance provided, indicating that it reflects a thoughtful approach to revenue expectations [88][130]

Core Insights - Snowflake Inc. reported revenue of $986.77 million for the quarter ended January 2025, reflecting a year-over-year increase of 27.4% and a surprise of +3.58% over the Zacks Consensus Estimate of $952.67 million [1] - The company's EPS was $0.30, down from $0.35 in the same quarter last year, with a significant surprise of +76.47% compared to the consensus estimate of $0.17 [1] Financial Performance Metrics - Remaining performance obligations stood at $6.90 billion, exceeding the average estimate of $6.71 billion from four analysts [4] - The number of customers with trailing 12-month product revenue greater than $1 million was 580, surpassing the estimate of 572 from two analysts [4] - Product revenue was reported at $943.30 million, which is a 27.8% increase year-over-year and above the average estimate of $910.47 million from 12 analysts [4] - Professional services and other revenue reached $43.47 million, compared to the estimated $42.70 million, marking an 18.7% year-over-year increase [4] - Non-GAAP Product Gross Profit was $715.31 million, exceeding the average estimate of $683.86 million from eight analysts [4] - GAAP Product gross profit was reported at $670.10 million, above the average estimate of $642.35 million from two analysts [4] Stock Performance - Over the past month, Snowflake's shares have returned -12.7%, while the Zacks S&P 500 composite experienced a -2.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Performance - Snowflake's product revenue reached $3462 million for fiscal year 2025, representing a 30% year-over-year growth[49] - Q4 FY25 product revenue was $943 million, a 28% year-over-year increase[51] - The company's remaining performance obligations (RPO) totaled $6867 million at the end of Q4 FY25, with 48% expected to be recognized as revenue in the next twelve months[55] - Non-GAAP product gross margin was 76% for FY25[42, 71] - Non-GAAP operating margin was 6% for FY25[71] - Non-GAAP adjusted free cash flow margin was 26% for FY25[71] Customer Growth - Snowflake had 745 Forbes Global 2000 customers at the end of Q4 FY25[59] - The total customer count reached 11159 at the end of Q4 FY25[57] - Customers generating over $1 million in product revenue numbered 580, a 27% year-over-year increase[62] - Net revenue retention rate was 126% in Q4 FY25[42, 65] Market Opportunity - Snowflake estimates its platform TAM to be $342 billion in CY24[40] AI Data Cloud - 36% of Snowflake customers have at least one stable edge for data sharing[81] - There are 3044 marketplace listings available[81]

Snowflake Inc. (SNOW) came out with quarterly earnings of $0.30 per share, beating the Zacks Consensus Estimate of $0.17 per share. This compares to earnings of $0.35 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 76.47%. A quarter ago, it was expected that this company would post earnings of $0.15 per share when it actually produced earnings of $0.20, delivering a surprise of 33.33%.Over the last four quarters, the company h ...

Core Insights - Snowflake's fiscal 2025 fourth-quarter financial report showed strong revenue growth despite a decline in adjusted earnings per share, indicating resilience in its business model [2][3]. Financial Performance - Revenue for Q4 2025 reached $986.8 million, a 27% increase from $774.7 million in Q4 2024, surpassing expectations [2][3]. - Adjusted earnings per share (EPS) were $0.30, down 14% from $0.35 in Q4 2024, but still better than analysts' forecasts [2][3]. - Adjusted free cash flow increased by 30% to $423.1 million from $324.3 million year-over-year [2]. - The net revenue retention rate was 126%, a decrease of 5 percentage points from the previous year, but still indicating solid customer spending growth [2][4]. Customer Metrics - Snowflake ended the quarter with 580 customers spending at least $1 million annually, a 28% year-over-year increase, contributing to a total customer count exceeding 11,000 [4]. Future Outlook - For Q1 of fiscal 2026, Snowflake anticipates product revenue growth of 21% to 22% and an adjusted operating margin of 5% [5]. - The company projects a 24% increase in product revenue for the entire fiscal 2026 [5]. - Snowflake expects its product revenue growth rate to accelerate throughout fiscal 2026, driven by AI adoption among customers [7]. Market Reaction - Following the earnings report, Snowflake's shares rose approximately 10% in early after-hours trading, reflecting positive market sentiment despite the decline in adjusted EPS [6].

Core Insights - Snowflake reported strong earnings for Q4 FY2025, with an EPS of $0.30, exceeding analyst expectations of $0.18 by 66.7% [2][6] - Revenue for the quarter reached $986.8 million, surpassing the estimate of $956 million, indicating operational effectiveness despite ongoing operating losses [2][6] Financial Performance - EPS (Non-GAAP) for Q4 FY2025 was $0.30, down 14.3% from $0.35 in Q4 FY2024 [3] - Total revenue increased by 27.4% year-over-year from $774.7 million in Q4 FY2024 [3] - Product revenue was $943.3 million, reflecting a 27.8% increase from $738.1 million in the previous year [3] - Free cash flow for the quarter was $415.4 million, up 28.0% from $324.5 million in Q4 FY2024 [3] Business Model and Strategy - Snowflake operates a cloud-based data platform focusing on data storage, processing, and analytics, benefiting from network effects as more organizations join [4] - The company emphasizes a consumption-based business model, aligning revenue generation with client usage, which encourages scalability [5] - The company is enhancing industry-specific data clouds, particularly in Healthcare and Financial Services, to penetrate niche markets [8] Customer Metrics - The net revenue retention rate was 126%, indicating strong customer retention, although it decreased from 131% the previous year [7] - There was a 27% increase in customers generating over $1 million in annual revenue, totaling 580 [7] Future Outlook - For Fiscal 2026, Snowflake projects product revenue to reach approximately $4.28 billion, with a target product gross profit margin of 75% and an operating income margin of 8% [10] - The company remains optimistic about future growth, focusing on managing operating losses while leveraging network effects and consumption-based pricing [11]

Financial Performance - Fourth quarter revenue was $986.8 million, representing 27% year-over-year growth[2] - Product revenue for the quarter was $943.3 million, reflecting a 28% year-over-year increase[4] - Full-year product revenue totaled $3,462.4 million, marking a 30% year-over-year increase[6] - Revenue for the three months ended January 31, 2025, was $986.77 million, a 27.4% increase from $774.70 million in the same period of 2024[24] - Total revenue for the twelve months ended January 31, 2025, reached $3.63 billion, a 29% increase compared to the previous year[30] Customer Metrics - Net revenue retention rate stood at 126% as of January 31, 2025[2] - The company has 580 customers with trailing 12-month product revenue exceeding $1 million, a 27% year-over-year growth[2] - The number of customers with trailing 12-month product revenue greater than $1 million increased to 1,200, reflecting a growth of 15% year-over-year[16] - Snowflake's customer base includes over 11,000 companies globally, with hundreds from the Forbes Global 2000 list[21] Future Guidance - Guidance for first quarter fiscal 2026 projects product revenue between $955 million and $960 million, representing a growth of 21% to 22%[7] - Full-year fiscal 2026 product revenue guidance is set at $4,280 million, reflecting a 24% year-over-year growth[8] - Snowflake aims to enhance its AI Data Cloud offerings, targeting a market growth of 25% in the next fiscal year[17] - The company anticipates continued growth in product revenue driven by increased consumption and new product features[18] Profitability and Margins - Product gross profit margin for the fourth quarter was 71% under GAAP and 76% under non-GAAP[5] - Non-GAAP product gross profit margin was reported at 75%, with operating income of $100 million and net income attributable to Snowflake Inc. of $80 million[15] - Non-GAAP gross profit for the three months ended January 31, 2025, was $716.2 million, reflecting a gross margin of 73%[30] - The GAAP gross profit margin for the twelve months ended January 31, 2025, was 67%[30] - Product gross margin was reported at 71%, compared to 74% in the previous period[31] Operating Expenses - Operating income for the fourth quarter was reported at a loss of $386.7 million under GAAP, but a profit of $92.8 million under non-GAAP[5] - Total operating expenses increased to $1,040,264, representing a 10% increase year-over-year[31] - Research and development expenses for the three months ended January 31, 2025, were $492.49 million, up from $364.48 million in the same period of 2024, a 35.1% increase[24] - Marketing expenses were reported at $432,683, representing 44% of total revenue[31] - General and administrative expenses were $115,091, accounting for 11% of total revenue[31] Cash Flow and Liquidity - Free cash flow for the period was $150 million, resulting in a free cash flow margin of 20%[15] - Adjusted free cash flow was reported at $160 million, with an adjusted free cash flow margin of 21%[15] - Non-GAAP free cash flow reached $415.4 million, representing a 42% increase compared to $324.5 million in the previous quarter[33] - Cash and cash equivalents as of January 31, 2025, were $2.63 billion, up from $1.76 billion a year earlier, marking a 49.0% increase[26] - Net cash provided by operating activities for the twelve months ended January 31, 2025, was $959.76 million, compared to $848.12 million in 2024, a 13.1% increase[28] Losses and Restructuring - Operating loss for the three months ended January 31, 2025, was $(386.68) million, compared to $(275.51) million in the same period of 2024, indicating a 40.4% increase in losses[24] - Net loss attributable to Snowflake Inc. for the twelve months ended January 31, 2025, was $(1.29) billion, compared to $(837.99) million in 2024, representing a 53.4% increase in losses[24] - The company incurred restructuring charges of $7.7 million for the twelve months ended January 31, 2025[30] - GAAP net loss amounted to $325,724, which is a 33% increase from the prior year[32] Stock and Shares - The weighted-average shares used in computing GAAP net loss per share were 331,432[32] - Weighted-average shares used in computing non-GAAP net income per share attributable to common stockholders—diluted was 370,683 for the latest quarter, up from 363,757 in the previous quarter[33] - Non-GAAP net income per share attributable to Snowflake Inc. was reported at $0.34[32] - Non-GAAP net income per share attributable to common stockholders was $0.30 for the latest quarter, compared to $0.35 in the previous quarter, reflecting a decrease of approximately 14.3%[33]