| --- | --- | |---------------------------------|-------| | | | | SNOWFLAKE INVESTOR PRESENTATION | | | Third Quarter Fiscal 2025 | | Statement Regarding Use of Non-GAAP Financial Measures 2 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 accorda ...

[Q3 FY2025 Financial and Operational Overview](index=1&type=section&id=Q3%20FY2025%20Financial%20and%20Operational%20Overview) This section summarizes Snowflake's third quarter fiscal 2025 financial and operational performance, including key highlights, detailed results, future guidance, and corporate developments [Third Quarter Fiscal 2025 Highlights](index=1&type=section&id=Third%20Quarter%20Fiscal%202025%20Highlights) Snowflake reported strong growth in its third quarter of fiscal 2025, with product revenue increasing 29% year-over-year to $900.3 million, demonstrating robust customer expansion and commitment Q3 FY2025 Key Performance Indicators | Metric | Value | YoY Growth | | :--- | :--- | :--- | | Product Revenue | $900.3 million | 29% | | Total Revenue | $942.1 million | 28% | | Remaining Performance Obligations (RPO) | $5.7 billion | 55% | | Net Revenue Retention Rate | 127% | N/A | | Customers with >$1M TTM Product Revenue | 542 | 25% | | Forbes Global 2000 Customers | 754 | 8% | - CEO Sridhar Ramaswamy attributed the strong results to the company's focus on product cohesion and ease of use, which he stated is leading to new customer acquisitions and competitive displacements[3](index=3&type=chunk) [Third Quarter Fiscal 2025 Financial Performance](index=2&type=section&id=Third%20Quarter%20Fiscal%202025%20Financial%20Performance) In Q3 FY2025, Snowflake reported a GAAP operating loss of $365.5 million, while achieving a non-GAAP operating income of $58.9 million, primarily due to adjustments for stock-based compensation and other non-cash items Q3 FY2025 Financial Results Summary (in millions) | Metric | GAAP Result (in millions) | GAAP Margin | Non-GAAP Result (in millions) | Non-GAAP Margin | | :--- | :--- | :--- | :--- | :--- | | Product Revenue | $900.3 | N/A | N/A | N/A | | Product Gross Profit | $636.7 | 71% | $686.9 | 76% | | Operating Income (Loss) | ($365.5) | (39%) | $58.9 | 6% | | Net Cash from Operating Activities | $101.7 | 11% | N/A | N/A | | Free Cash Flow | N/A | N/A | $78.2 | 8% | | Adjusted Free Cash Flow | N/A | N/A | $86.8 | 9% | [Financial Outlook](index=3&type=section&id=Financial%20Outlook) Snowflake provided financial guidance for both the upcoming fourth quarter and the full fiscal year 2025, projecting continued product revenue growth on both a GAAP and non-GAAP basis [Fourth Quarter Fiscal 2025 Guidance](index=3&type=section&id=Fourth%20Quarter%20Fiscal%202025%20Guidance) Snowflake projects fourth quarter fiscal 2025 product revenue between $906 million and $911 million, representing 23% year-over-year growth, with a non-GAAP operating margin of 4% Q4 FY2025 Guidance | Metric | Guidance (in millions) | | :--- | :--- | | Product Revenue | $906 - $911 | | Product Revenue YoY Growth | 23% | | Non-GAAP Operating Margin | 4% | | Non-GAAP Diluted Weighted-Average Shares | 372 | [Full-Year Fiscal 2025 Guidance](index=3&type=section&id=Full-Year%20Fiscal%202025%20Guidance) For the full fiscal year 2025, Snowflake anticipates product revenue of $3.43 billion, a 29% year-over-year increase, alongside a non-GAAP operating margin of 5% and an adjusted free cash flow margin of 26% Full-Year FY2025 Guidance | Metric | Guidance (in millions) | | :--- | :--- | | Product Revenue | $3,430 | | Product Revenue YoY Growth | 29% | | Non-GAAP Product Gross Margin | 76% | | Non-GAAP Operating Margin | 5% | | Non-GAAP Adjusted Free Cash Flow Margin | 26% | | Non-GAAP Diluted Weighted-Average Shares | 364 | - The full-year fiscal 2025 product revenue guidance is based on achieving the higher end of the fourth-quarter guidance range[10](index=10&type=chunk) [Corporate Developments](index=4&type=section&id=Corporate%20Developments) In September 2024, Snowflake completed a significant capital raise by issuing $2.3 billion in convertible senior notes, partially used for capped call transactions and common stock repurchases - Completed a private offering of **$1.15 billion** of 0% convertible senior notes due 2027 and **$1.15 billion** due 2029, with total net proceeds of approximately **$2.27 billion**[13](index=13&type=chunk) - A portion of the proceeds was used to pay **$195.5 million** for capped call transactions and to repurchase **$399.6 million** of common stock at **$112.50 per share**[14](index=14&type=chunk) [Detailed Financial Statements and Reconciliations](index=9&type=section&id=Detailed%20Financial%20Statements%20and%20Reconciliations) This section presents Snowflake's condensed consolidated financial statements, including statements of operations, balance sheets, and cash flows, along with detailed GAAP to non-GAAP reconciliations [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the third quarter ending October 31, 2024, Snowflake's revenue increased to $942.1 million, but the GAAP operating loss widened to $365.5 million, leading to a net loss of $324.3 million Q3 Statement of Operations Summary (in millions) | Line Item | Three Months Ended Oct 31, 2024 (in millions) | Three Months Ended Oct 31, 2023 (in millions) | | :--- | :--- | :--- | | Revenue | $942.1 | $734.2 | | Gross Profit | $621.2 | $505.2 | | Total Operating Expenses | $986.7 | $765.8 | | Operating Loss | ($365.5) | ($260.6) | | Net Loss Attributable to Snowflake Inc. | ($324.3) | ($214.3) | | Net Loss Per Share | ($0.98) | ($0.65) | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of October 31, 2024, Snowflake's balance sheet showed total assets of $8.20 billion, with a significant addition of $2.27 billion in convertible senior notes and a decrease in stockholders' equity Balance Sheet Summary (in billions) | Line Item | October 31, 2024 (in billions) | January 31, 2024 (in billions) | | :--- | :--- | :--- | | Cash, cash equivalents, and investments | $4.95 | $4.76 | | Total Assets | $8.20 | $8.22 | | Convertible senior notes, net | $2.27 | $0 | | Total Liabilities | $5.27 | $3.03 | | Total Snowflake Inc. stockholders' equity | $2.93 | $5.18 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended October 31, 2024, Snowflake generated $527.0 million in net cash from operating activities, with financing activities reflecting convertible note issuance offset by stock repurchases Cash Flow Summary - Nine Months Ended Oct 31, 2024 (in millions) | Cash Flow Activity | Amount (in millions) | | :--- | :--- | | Net cash provided by operating activities | $527.0 | | Net cash used in investing activities | ($34.2) | | Net cash used in financing activities | ($106.4) | - Key financing activities for the nine-month period included **$2.3 billion** in proceeds from issuing convertible notes and **$1.93 billion** used for stock repurchases[42](index=42&type=chunk) [GAAP to Non-GAAP Reconciliations](index=12&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) The reconciliation tables detail adjustments, primarily $381.4 million in stock-based compensation, that converted a GAAP operating loss of $365.5 million into a non-GAAP operating income of $58.9 million for Q3 Q3 FY2025 GAAP Operating Loss to Non-GAAP Operating Income (in millions) | Description | Amount (in millions) | | :--- | :--- | | **GAAP operating loss** | **($365.5)** | | Stock-based compensation-related charges | $381.4 | | Amortization of acquired intangibles | $24.0 | | Expenses associated with acquisitions | $1.3 | | Restructuring charges | $17.5 | | **Non-GAAP operating income** | **$58.9** | - Non-GAAP net income per diluted share was **$0.20** for the quarter, compared to a GAAP net loss per share of **($0.98)**[48](index=48&type=chunk) [Supplementary Information](index=4&type=section&id=Supplementary%20Information) This section provides additional context, including definitions of key business metrics, a statement on the use of non-GAAP financial measures, conference call details, and a cautionary note on forward-looking statements [Key Business Metrics Definitions](index=5&type=section&id=Key%20Business%20Metrics%20Definitions) Snowflake defines its key business metrics, including Product Revenue based on consumption, Net Revenue Retention Rate tracking customer cohort revenue, and Remaining Performance Obligations representing contracted future revenue - **Product Revenue:** Recognized based on consumption of compute, storage, and data transfer, distinguishing it from ratable subscription models[26](index=26&type=chunk) - **Net Revenue Retention Rate:** Calculated by dividing product revenue from a customer cohort in year two by their revenue in year one of a trailing two-year period[27](index=27&type=chunk) - **Remaining Performance Obligations (RPO):** Represents contracted future revenue not yet recognized, but is not necessarily indicative of future product revenue growth due to variable consumption timing[31](index=31&type=chunk) [Statement Regarding Use of Non-GAAP Financial Measures](index=4&type=section&id=Statement%20Regarding%20Use%20of%20Non-GAAP%20Financial%20Measures) The company explains its use of non-GAAP financial measures as supplemental information, excluding non-cash or non-recurring items like stock-based compensation, for internal decision-making - Non-GAAP measures are reported in addition to, not as a substitute for, GAAP measures[18](index=18&type=chunk) - Primary adjustments to calculate non-GAAP income include excluding stock-based compensation, amortization of acquired intangibles, acquisition expenses, and restructuring charges[19](index=19&type=chunk) - The company also reports Free Cash Flow and Adjusted Free Cash Flow as indicators of the strength of core business operations[22](index=22&type=chunk)[23](index=23&type=chunk) [Conference Call and Investor Information](index=4&type=section&id=Conference%20Call%20and%20Investor%20Information) Details for the Q3 FY2025 earnings conference call were provided, including the time, dial-in numbers, and webcast link, with a replay and investor presentation available online - The conference call was held at **3 p.m. Mountain Time** on **November 20, 2024**[15](index=15&type=chunk) - A live webcast, audio replay, and an additional investor presentation are available on the Snowflake Investor Relations website[16](index=16&type=chunk)[17](index=17&type=chunk) [Use of Forward-Looking Statements](index=6&type=section&id=Use%20of%20Forward-Looking%20Statements) This release includes a standard safe harbor statement cautioning that forward-looking statements are subject to significant risks and uncertainties detailed in SEC filings, and the company does not undertake to update them - The release contains forward-looking statements regarding performance, business strategy, and product adoption, including all statements under the "Financial Outlook" section[32](index=32&type=chunk) - Statements are subject to known and unknown risks, including general market conditions, customer consumption patterns, competition, and cybersecurity threats[33](index=33&type=chunk) - Investors are advised not to rely on forward-looking statements as predictions of future events and are directed to the company's SEC filings for further information on risks[34](index=34&type=chunk)[35](index=35&type=chunk)

Core Viewpoint - Snowflake Inc is set to report its third-quarter earnings, with Wall Street anticipating earnings per share of 15 cents and revenues of $896.99 million [1]. Stock Performance - The stock has declined by 22.48% over the past year and 31.66% year to date [2]. - As of the time of publication, Snowflake stock was trading around $129.76, down 0.37% [6]. Technical Analysis - Snowflake stock is currently in a strongly bullish trend, trading above its five, 20, and 50-day exponential moving averages, indicating buying pressure and potential for continued upward movement [3][4]. - The stock price is above its eight-day simple moving average of $127.70, 20-day SMA of $121.68, and 50-day SMA of $117.83, reinforcing bullish momentum [4]. - However, it is trading below its 200-day SMA of $142.36, which presents a bearish signal in the long term [5]. - The Moving Average Convergence Divergence (MACD) indicator stands at 3.26, supporting the bullish outlook [5]. - The Relative Strength Index (RSI) is at 61.61, indicating that the stock is nearing overbought territory but still has room for upward movement [5]. Analyst Ratings - The consensus analyst rating for Snowflake stock is currently a Buy, with a price target of $171.97, suggesting a potential upside of 31.77% [6]. - Recent analyst ratings from Rosenblatt, Citigroup, and Keybanc have set a price target of $171 for Snowflake stock [6].

Snowflake (SNOW 2.21%) went public in late 2020, and its shares peaked during the tech sector's pandemic-era surge in late 2021. The stock has since declined by about 68% from that record high, but Wall Street sees a turnaround on the horizon. Among the 45 analysts who follow the company, the median price target is $169 per share -- 33% higher than its current share price of $127.Leaning into demand for AI productsSnowflake's cloud-based platform lets customers integrate, store, transform, and make sense of ...

As the software industry nears a crossroads, one industry analyst expressed confidence in a few big names ahead of third-quarter earnings season. The Software Analyst: D.A. Davidson analyst Gil Luria reiterated Buy ratings for Palo Alto Networks Inc PANW, Couchbase Inc BASE and Snowflake Inc SNOW in a note published Monday. Cybersecurity and Infrastructure Takeaways: For Palo Alto Networks, Luria anticipates strong sales performance aided by improving firewall demand and the aftermath of the Crowdstrike Hol ...

Core Viewpoint - Snowflake (SNOW) is expected to report its third-quarter fiscal 2025 results on November 20, with revenue estimates indicating a 22.42% increase year-over-year, while earnings per share are projected to decrease by 40% compared to the previous year [1][5]. Financial Performance - The Zacks Consensus Estimate for revenues is $898.77 million, reflecting a significant year-over-year growth [1]. - SNOW's earnings have beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 43.73% [2]. Market Conditions - SNOW faces challenging macroeconomic conditions, including persistent inflation affecting customer spending, increased GPU-related costs due to investments in AI, and competitive pricing pressure from rivals like Databricks [5]. Growth Drivers - Despite challenges, SNOW's top-line growth is supported by a strong portfolio of new capabilities, including Marketplace Listing Auto-Fulfillment & Monetization, account replication & failover, and Snowpipe Streaming [6][12]. - The company has introduced several innovations, such as Iceberg and Cortex LLM-powered functions, which are expected to enhance long-term prospects through increased demand and competitive differentiation [13]. Strategic Partnerships - SNOW benefits from an expanding partner base, including major companies like Amazon, Microsoft, and NVIDIA, which enhances its ability to build customized AI data applications [17][18]. - Recent collaborations with Microsoft aim to improve interoperability between Snowflake and Microsoft Fabric OneLake, leveraging open standards for analytical storage formats [19][20]. Client Base and Adoption - SNOW's growing client base includes industry leaders such as Disney, Capital One, and Pfizer, showcasing its increasing adoption across various sectors [21]. Stock Performance - SNOW shares have underperformed, declining 36.6% compared to the Zacks Computer & Technology sector's return of 25.7% and the S&P 500's 23.5% [7]. - The stock is currently trading at a premium, with a forward 12-month price-to-sales ratio of 10.16X, compared to the sector's 6.13X, indicating a stretched valuation [10].

In its upcoming report, Snowflake Inc. (SNOW) is predicted by Wall Street analysts to post quarterly earnings of $0.15 per share, reflecting a decline of 40% compared to the same period last year. Revenues are forecasted to be $898.77 million, representing a year-over-year increase of 22.4%.The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates d ...

Core Viewpoint - Snowflake Inc. (SNOW) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending October 2024, with the actual results being crucial for its near-term stock price movement [1][2]. Financial Expectations - The consensus estimate for Snowflake's quarterly earnings is $0.15 per share, reflecting a year-over-year decrease of 40% [3]. - Expected revenues for the quarter are $898.77 million, which represents a 22.4% increase compared to the same quarter last year [3]. Estimate Revisions - Over the past 30 days, the consensus EPS estimate has been revised down by 0.13%, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Snowflake is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +13.92% [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive reading indicates a potential earnings beat, particularly when combined with a strong Zacks Rank [8]. - Snowflake currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat despite the positive Earnings ESP [10]. Historical Performance - In the last reported quarter, Snowflake exceeded the consensus EPS estimate of $0.15 by delivering earnings of $0.18, resulting in a surprise of +20% [11]. - Over the last four quarters, Snowflake has beaten consensus EPS estimates three times [12]. Conclusion - While Snowflake does not appear to be a strong candidate for an earnings beat, investors should consider other factors before making investment decisions related to the stock [15].

Snowflake Inc. (SNOW) ended the recent trading session at $125.46, demonstrating a +1.59% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.29% for the day. At the same time, the Dow lost 0.86%, and the tech-heavy Nasdaq lost 0.09%.The company's stock has climbed by 0.28% in the past month, falling short of the Computer and Technology sector's gain of 3.2% and the S&P 500's gain of 3.3%.The investment community will be closely monitoring the performan ...

Core Insights - RelationalAI announced the general availability of its Snowflake Native App at Snowflake's BUILD 2024 conference, enhancing its partnership with Snowflake to provide advanced AI capabilities within the Snowflake AI Data Cloud [1][3][4] Company Overview - RelationalAI is positioned as the industry's first knowledge graph coprocessor for the data cloud, enabling organizations to apply various analytics techniques directly to their data [6] Product Features - The Snowflake Native App allows customers to build and modernize intelligent applications with 10X less code and complexity, utilizing a data-centric architecture based on relational knowledge graphs [2] - The integration with Snowpark Container Services is now generally available on AWS and in public preview on Azure, enhancing the app's capabilities [2] Customer Benefits - Customers can leverage RelationalAI's technology to unify dispersed data and knowledge, unlocking the full potential of generative AI within a secure environment [3] - The app supports advanced analytics, including rule-based reasoning, graph analytics, prescriptive analytics, and predictive analytics, all while maintaining data security and governance [3][4] Use Cases - Spark NZ utilized RelationalAI to develop a digital twin of their network in under two weeks, showcasing the app's flexibility and scalability [4] - Agero expects to enhance its fraud detection capabilities significantly through RelationalAI's advanced graph algorithms, enabling the identification of complex fraud rings [5] Market Position - The announcement of the general availability of RelationalAI's Snowflake Native App positions the company as a key player in the enterprise AI landscape, facilitating better decision-making for joint customers [4]