Snowflake(US:SNOW)2025-08-27 20:06Financial Performance - Revenue for Q2 FY2026 was $1.1 billion, representing 32% year-over-year growth[3] - Product revenue for the quarter was $1.09 billion, also reflecting a 32% year-over-year increase[5] - Total revenue for the six months ended July 31, 2025, reached $2,187,043, a 29% increase compared to the same period in 2024[29] - Product revenue for the three months ended July 31, 2025, was $1,090,496, representing a year-over-year growth of 32%[29] - The company reported a revenue of $5.2 billion for Q3 2023, representing a 15% year-over-year increase[1] - The company expects Q4 2023 revenue guidance of $5.5 billion, indicating a 6% sequential growth[3] Customer Metrics - Net revenue retention rate stood at 125% as of July 31, 2025[3] - The company has 654 customers with trailing 12-month product revenue greater than $1 million, a 30% year-over-year growth[3] - More than 6,100 accounts are using Snowflake's AI weekly, showcasing strong customer engagement[4] - Snowflake has over 12,000 customers globally, including hundreds of the world's largest companies, utilizing its AI Data Cloud[21] - Customer retention rate improved to 85%, up from 80% in the previous quarter[8] Profitability and Losses - Operating income (loss) was ($340.3) million, reflecting a 30% decrease year-over-year[6] - Net loss attributable to Snowflake Inc. for the six months ended July 31, 2025, was $728,109,000, compared to a net loss of $633,887,000 for the same period in 2024, indicating a 14.9% increase in losses[23] - The company reported a net loss of $297,930 for the three months ended July 31, 2025, compared to a net loss of $317,770 in the same period of 2024[27] - The company reported a significant increase in expenses associated with acquisitions and strategic investments, totaling $219.17 million[1] - The company reported a net loss of $727.88 million, a 33% decrease year-over-year[1] Operating Expenses - Total operating expenses under GAAP were $1.113 billion, reflecting a 9.8% increase year-over-year[3] - Operating expenses for GAAP sales and marketing were $501.9 million, representing a 44% increase[30] - The company incurred stock-based compensation expenses of $404,217 for the three months ended July 31, 2025, up from $356,000 in the same period of 2024[27] - Non-GAAP research and development expenses were $247.12 million, representing a 22% increase year-over-year[1] - General and administrative expenses reached $119.47 million, up 10% compared to the previous year[2] Cash Flow and Assets - Cash and cash equivalents as of July 31, 2025, were $1,880,720,000, down from $2,628,798,000 as of January 31, 2025[25] - Total assets decreased from $9,033,938,000 as of January 31, 2025, to $8,196,727,000 as of July 31, 2025[25] - GAAP net cash provided by operating activities was $74.896 million, an increase of 7% from $69.865 million in the prior year[32] - GAAP net cash used in investing activities was $(299.252) million, compared to $384.078 million in the prior year[32] - GAAP net cash used in financing activities was $(134.039) million, down from $(490.546) million in the previous year[32] Future Guidance and Strategy - Guidance for Q3 FY2026 projects product revenue between $1,125 million and $1,130 million, representing a 25-26% year-over-year growth[7] - Full-year FY2026 product revenue guidance is set at $4,395 million, indicating a 27% year-over-year growth[8] - The company plans to continue its market expansion and product development strategies[30] - Future guidance suggests maintaining a focus on innovation and strategic acquisitions[30] - The company is focusing on market expansion and new product development to drive future growth[1]