Snowflake(SNOW) - 2025 Q4 - Annual Results

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]