Financial Data and Key Metrics Changes - Product revenue in Q3 was $1.16 billion, up 29% year-over-year [4] - Remaining performance obligations totaled $7.88 billion, with year-over-year growth accelerating to 37% [5] - Net revenue retention remained stable at 125% [5] - Non-GAAP product gross margins were 75.9% [21] - Non-GAAP operating margin expanded more than 450 basis points year-over-year to 11% [21] - For Q4, product revenue is expected between $1.195 and $1.2 billion, representing 27% year-over-year growth [22] - FY26 product revenue guidance raised to approximately $4.446 billion, representing 28% year-over-year growth [22] Business Line Data and Key Metrics Changes - Financial services and technology verticals led growth in Q3 [20] - 28% of all use cases deployed during the quarter incorporated AI [10] - More than 7,300 accounts are using AI capabilities weekly [6] - 1,200 customers are utilizing Snowflake Intelligence for AI capabilities [7] Market Data and Key Metrics Changes - The company added a record 615 new customers in Q3 [5] - The annual world tour saw over 40,000 participants, a 40% year-on-year increase [11] - The annual Build Developer Summit had a 43% increase in attendance year-over-year [11] Company Strategy and Development Direction - Snowflake aims to empower enterprises through data and AI, focusing on operational rigor and product innovation [4] - The company is expanding partnerships with major players like SAP and Google Cloud to enhance data integration and AI capabilities [11][13] - The introduction of Snowflake Intelligence is a key part of the strategy to enhance customer engagement and drive AI adoption [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain growth momentum and operational efficiency [18] - The company is focused on deepening customer relationships and expanding its product offerings [16] - Management highlighted the importance of AI in driving customer value and business growth [9][10] Other Important Information - The company achieved a milestone of $100 million in AI revenue run rate, one quarter earlier than anticipated [9] - The company is committed to maintaining a strong operational rhythm while investing for long-term growth [18] Q&A Session Summary Question: Growth rates on product revenue and Q4 guidance - Management noted that Q3 revenue growth was strong, with a slight impact from a hyperscaler outage [28] Question: Customer adoption of AI products - Management highlighted that Snowflake Intelligence is being adopted across various industries, enhancing data accessibility for business users [30] Question: Go-to-market strategy and new customer wins - Management indicated that AI capabilities are playing a significant role in acquiring new customers and expanding existing relationships [35] Question: Impact of migrations on product revenue - Management stated that migrations are still in early stages, with significant opportunities for growth [43] Question: Zero Copy agreements and their impact - Management explained that Zero Copy agreements facilitate smoother data sharing and collaboration, enhancing customer value [48] Question: Tying Snowflake investments to AI budgets - Management confirmed that many customers are aligning their Snowflake budgets with their AI initiatives, leading to larger contracts [50] Question: Accelerating AI journeys and market standardization - Management emphasized that Snowflake's platform is designed to simplify AI adoption, making it attractive for customers [55]

Financial Data and Key Metrics Changes - Product revenue in Q3 was $1.16 billion, up 29% year over year [4] - Remaining performance obligations totaled $7.88 billion, with year-over-year growth accelerating to 37% [5] - Net revenue retention remained stable at 125% [5] - Non-GAAP product gross margins were 75.9% [18] - Non-GAAP operating margin expanded more than 450 basis points year-over-year to 11% [18] - For Q4, product revenue is expected between $1.195 and $1.2 billion, representing 27% year-over-year growth [19] - FY26 product revenue guidance raised to approximately $4.446 billion, representing 28% year-over-year growth [19] Business Line Data and Key Metrics Changes - Financial services and technology verticals led growth in Q3 [17] - 28% of all use cases deployed during the quarter incorporated AI [9] - 50% of the bookings signed in Q3 were influenced by AI [8] Market Data and Key Metrics Changes - Over 7,300 accounts are using Snowflake's AI capabilities weekly [6] - The company added a record 615 new customers in Q3 [5] - Snowflake surpassed $2 billion in sales through AWS Marketplace in a single calendar year [15] Company Strategy and Development Direction - Snowflake aims to empower enterprises through data and AI, focusing on operational rigor and product innovation [4] - The company is expanding partnerships with major cloud providers and AI model developers to enhance its offerings [16] - New partnerships with companies like SAP and Anthropic are designed to deepen integrations and accelerate enterprise AI adoption [10][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, emphasizing the importance of AI in driving customer relationships and revenue [8][19] - The company is focused on efficient growth while maintaining financial discipline [21] - Management highlighted the strong demand for Snowflake's AI data cloud and the transformative impact on customer businesses [20] Other Important Information - The company achieved a major milestone of $100 million in AI revenue run rate, one quarter earlier than anticipated [8] - Snowflake maintained a rapid pace of innovation, bringing total GA product capabilities to 370 year-to-date, a 35% increase over last year [11] Q&A Session Summary Question: Growth rates on product revenue and Q4 guidance - Management noted a 29% year-over-year revenue growth and raised FY guidance by $51 million to $4.446 billion, indicating strong underlying customer behavior [22][24] Question: Types of customers using AI products - Management highlighted various customers leveraging Snowflake Intelligence, including the USA Bobsled team and Fanatics, showcasing the product's ability to unlock data access and drive business value [25][27] Question: Go-to-market strategy and new customer wins - Management indicated that Snowflake Intelligence plays a key role in customer acquisition, allowing for hyper-customized demos that demonstrate the platform's value [29] Question: Impact of migrations on product revenue - Management stated that they are still early in the migration process and expect AI to accelerate these migrations, enhancing product value [35] Question: Zero Copy agreements and their impact - Management explained that Zero Copy agreements facilitate smoother data sharing and collaboration, enhancing the overall value proposition for customers [37][38] Question: Customers tying Snowflake investments to AI budgets - Management confirmed that many customers are increasingly linking their Snowflake investments to AI initiatives, leading to larger and longer-term contracts [40] Question: Growth of AI revenue and future milestones - Management indicated that the $100 million AI revenue run rate is primarily driven by the Cortex product suite and expects continued growth in AI adoption [50][59]

Core Insights - Growth in product revenue has slowed in the latest quarter, indicating potential challenges for the company moving forward [1] - Snowflake shares have significantly outperformed peers this year, which raises expectations for upcoming results [1]

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SNOWFLAKE INVESTOR PRESENTATION Third Quarter Fiscal 2026 S N O W F L A K E T H E M E 2 0 2 5 . 0 1 © 2025 Snowflake Inc. All Rights Reserved Statement Regarding Use of Non-GAAP Financial Measures 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 a ...

Snowflake gave an outlook for operating margin that fell short of analysts’ estimates, raising concerns among investors about the profitability of new AI-based tools https://t.co/C2j1UuLknZ ...

Core Insights - The cloud-software company has narrowed its third-quarter loss while experiencing a revenue increase, driven by heightened demand for its enterprise artificial intelligence agent [1] Financial Performance - The company reported a reduction in its third-quarter loss, indicating improved financial health [1] - Revenue growth was attributed to the rising demand for its artificial intelligence solutions [1]

Financial Performance - Revenue for Q3 FY2026 was $1.21 billion, representing 29% year-over-year growth[3] - Product revenue for the quarter was $1.16 billion, also reflecting a 29% year-over-year increase[5] - Net revenue retention rate stood at 125% as of October 31, 2025[3] - The company has 688 customers with trailing 12-month product revenue greater than $1 million, a 29% increase year-over-year[3] - Remaining performance obligations reached $7.88 billion, indicating a 37% year-over-year growth[3] - Product gross profit was $837.6 million with a margin of 72%[6] - Operating income (loss) was ($329.5) million, reflecting a 27% year-over-year decline[6] - Guidance for Q4 FY2026 projects product revenue between $1,195 million and $1,200 million, representing a 27% year-over-year growth[7] - Full-year FY2026 product revenue guidance is set at $4,446 million, indicating a 28% year-over-year growth[8] - Product revenue for the three months ended October 31, 2025, was $1,212,909,000, representing a 28.8% increase from $942,094,000 in the same period of 2024[23] - The company reported a net loss attributable to Snowflake Inc. for the three months ended October 31, 2025, was $293,957,000, compared to a net loss of $324,279,000 for the same period in 2024, indicating a reduction in losses[23] - Total revenue for the nine months ended October 31, 2025, was $3,399,952, a 29% increase from $2,639,626 in the same period of 2024[29] - Year-over-year growth for total revenue in Q3 2025 was 29%, consistent with the growth rate for the nine-month period[29] Customer Metrics - The company has over 12,600 customers globally, including hundreds of the world's largest companies, utilizing its AI Data Cloud[21] - The number of customers with trailing 12-month product revenue greater than $1 million is a key metric, indicating strong customer engagement and revenue generation[16] Operating Expenses and Profitability - Operating expenses for the three months ended October 31, 2025, totaled $1,151,509,000, up from $986,657,000 in the same period of 2024, reflecting increased investment in growth[23] - Total operating expenses reached $1,151.50 million, a 5% increase from $986.66 million in the previous year[1] - GAAP gross profit for Q3 2025 was $822,036, which is 68% of total revenue, compared to 66% in Q3 2024[29] - Non-GAAP gross margin was 68%[30] - The company achieved a non-GAAP product gross profit of $879,165 in Q3 2025, reflecting strong operational performance[29] - Stock-based compensation related charges were $394.94 million, compared to $335.13 million in the prior period, indicating a significant increase[1] Cash Flow and Investments - Cash provided by operating activities for the nine months ended October 31, 2025, was $440,788,000, down 16% from $527,039,000 in the same period of 2024[27] - The company reported a net cash used in investing activities of $106,996,000 for the nine months ended October 31, 2025, compared to a net cash used of $34,242,000 in the same period of 2024[27] - Snowflake's purchases of investments amounted to $1,990,216,000 for the nine months ended October 31, 2025, compared to $2,288,985,000 in the same period of 2024, indicating a decrease of 13%[27] Strategic Focus and Future Guidance - The company continues to focus on developing new products and enhancing existing services, particularly in the AI and data management sectors[18] - Future guidance indicates a focus on strategic investments and market expansion initiatives[1] - The company plans to enhance its product offerings through new technology developments and acquisitions[1] Net Income and Loss - The company reported a net income of $1.97 billion, a decrease from $1.79 billion year-over-year[1] - Non-GAAP net income for the three months ended October 31, 2025, was $131.2 million, representing an increase of 79% compared to $73.2 million for the same period in 2024[32] - GAAP net loss attributable to the company was $293,957,000, reflecting a 24% decrease from $324,279,000 in the previous period[31] - The company reported a GAAP net loss per share attributable to Snowflake Inc. common stockholders—basic of $(0.87) for the three months ended October 31, 2025, compared to $(0.98) for the same period in 2024[32]

Core Insights - Snowflake Inc. is a leading provider of a cloud-based data platform known as the Data Cloud, which consolidates data for enhanced business insights and application development [1] - The consensus price target for Snowflake has shown an upward trend, reflecting growing confidence in its business prospects, although it slightly decreased recently [2][6] - Snowflake's competitive advantages include multi-cloud integration, superior data sharing capabilities, and a flexible three-layer architecture, positioning it for strong double-digit growth [3][6] - Analyst Joel Fishbein from Truist Financial has set a price target of $300 for Snowflake, indicating confidence in its continued growth and strong market position [4][6] - The tech sector is preparing for third-quarter earnings announcements, with Snowflake being closely watched by investors [5][6]

Partnerships & Strategic Moves - Thrive 与 Open AI 建立深度合作关系，Thrive 将获得 Open AI 最新模型的访问权限，形成巨大优势 [1] - Nvidia 收购 Synopsis 20 亿美元股份，建立多年合作伙伴关系，加速计算密集型工程和 Agentic AI 的发展 [3] Valuation & Fundraising - Data bricks 估值 1340 亿美元，据报道以 32 倍 2025 年收入倍数融资 50 亿美元，同比增长 55% [2] Industry Trends & Challenges - Workday 认为基于席位的定价模式现在是一种生存威胁 [2] - 由于 AI 效率的提高，惠普将再次裁员 10% [3] - 安全混乱迫使 Salesforce 关闭游戏网站，Open AI 放弃 Mix Panel [3] - Nvidia 的交易标志着从 CPU 到 GPU 加速一切的转变 [3] - Synopsis 表示，过去需要数周的工作负载现在只需数小时 [4]