Snowflake(SNOW)2025-05-30 20:17Customer Growth and Engagement - As of April 30, 2025, the company had 11,578 total customers, up from 11,127 customers as of January 31, 2025, indicating a growth of approximately 4.0%[148] - The net revenue retention rate was 124% as of April 30, 2025, and 126% as of January 31, 2025, reflecting strong customer engagement and expansion[147] - Approximately 41% of the company's revenue for the three months ended April 30, 2025, was contributed by 754 customers from the Forbes Global 2000 list[148] - The number of customers with trailing 12-month product revenue greater than $1 million increased to 606, up from 579 in the previous quarter[160] - The number of customers with product revenue exceeding $1 million rose to 606, up from 479, representing approximately 66% of product revenue for the trailing 12 months[197] Revenue and Financial Performance - Revenue for the three months ended April 30, 2025, was $1,042,074, an increase from $828,709 in the same period of 2024, representing a growth of approximately 25.7%[191] - Total revenue for the three months ended April 30, 2025, was $1,042,074,000, a 26% increase from $828,709,000 in the same period of 2024[196] - Product revenue for the three months ended April 30, 2025, was $996.8 million, representing a 5.5% increase from $943.3 million in the previous quarter[160] - Product revenue increased by $207.2 million, reaching $996,813,000, primarily due to a net revenue retention rate of 124%[196] - Total cost of revenue increased to $348,786,000, a 28% rise from $272,517,000, driven by higher third-party cloud infrastructure expenses[199] - Gross profit for the same period was $693,288, compared to $556,192 in 2024, maintaining a gross profit margin of 67%[191] - Gross profit for the three months ended April 30, 2025, was $693,288,000, a 25% increase from $556,192,000 in 2024[199] Operating Expenses and Losses - Operating loss for the three months ended April 30, 2025, was $(447,257), compared to $(348,572) in 2024, indicating an increase in operating loss[191] - Total operating expenses increased to $1,140,545 in 2025 from $904,764 in 2024, with sales and marketing expenses rising to $458,554 from $400,822[191] - Research and development expenses for the three months ended April 30, 2025, were $472,404, up from $410,794 in 2024, reflecting continued investment in platform development[191] - General and administrative expenses increased significantly to $209,587 in 2025 from $93,148 in 2024, partly due to asset impairment charges of $106.5 million[185] - Stock-based compensation for the three months ended April 30, 2025, totaled $379,460, compared to $331,936 in 2024, primarily due to additional equity awards granted[191] Cash Flow and Liquidity - Net cash provided by operating activities for the same period was $228.4 million, a decrease of 47.3% compared to $432.7 million in the prior quarter[167] - Free cash flow for the three months ended April 30, 2025, was $183.4 million, down 56.0% from $415.4 million in the previous quarter[167] - As of April 30, 2025, the company reported a total liquidity of $4.9 billion, consisting of cash, cash equivalents, and investments[214] - For the three months ended April 30, 2025, net cash provided by operating activities was $228.4 million, a decrease of $127.1 million compared to $355.5 million for the same period in 2024[225][227] - Net cash used in investing activities for the three months ended April 30, 2025, was $56.0 million, primarily for property and equipment purchases[228] Strategic Investments and Future Outlook - The company plans to continue investing significantly in research and development, particularly in data science and AI technology, to enhance its platform[157] - The company aims to expand its business both domestically and internationally, focusing on meeting the needs of regulated industries[157] - The company expects to see an increase in capacity contracts providing for quarterly upfront billings and monthly in arrears billings in future periods[170] - The company expects to continue generating positive net cash flows from operating activities for fiscal 2026[227] - The company plans to continue strategic investments as part of its corporate development program, anticipating additional volatility in financial results due to market price changes and impairments[243] Market Conditions and Risks - The company is monitoring macroeconomic conditions, including inflation and high interest rates, which may impact customer budgets and consumption patterns[150] - The company recognizes that customer consumption may fluctuate due to budget rationalization and macroeconomic uncertainty, affecting revenue recognition timing[154] - A hypothetical 100 basis point increase in interest rates would have resulted in a decrease of $18.2 million in the market value of the company's cash equivalents and investments as of April 30, 2025[235] - The company expects that a strengthening U.S. dollar may slow down consumption among international customers[240] Debt and Share Repurchase - The company issued $2.3 billion of convertible senior notes in September 2024, consisting of $1.15 billion due in 2027 and $1.15 billion due in 2029[217] - The company repurchased 3.2 million shares of common stock for $490.6 million at a weighted-average price of $152.63 per share during the three months ended April 30, 2025[221] - The company has $1.5 billion remaining available for future stock repurchases under its stock repurchase program as of April 30, 2025[221] Foreign Currency and Investments - The company utilizes foreign currency forward contracts to hedge a portion of its net outstanding monetary assets and liabilities, as well as forecasted operating expenses and capital expenditures[239] - Foreign currency forward contracts are not used for trading or speculative purposes, but to manage cash flow volatility[239] - The company assesses strategic investments for impairment based on qualitative and quantitative factors, including the investee's financial metrics and market acceptance[241]