Financial Data and Key Metrics Changes - Product revenue for Q2 was $1,090 million, up 32% year over year, demonstrating an acceleration in growth from the previous quarter [10] - Remaining performance obligations totaled $6,900 million with year over year growth of 33% [10] - Net revenue retention rate was a healthy 125% [10] - Non-GAAP operating margin increased to 11%, reflecting a focus on efficiency and operational growth [10][26] - Non-GAAP product gross margin was 76.4% [26] - The company ended the quarter with $4,600 million in cash, cash equivalents, and investments [28] Business Line Data and Key Metrics Changes - New features across all four product categories (analytics, data engineering, AI, and applications and collaboration) outperformed expectations [25] - In Q2, 50 customers crossed the $1,000,000 in trailing twelve-month revenue, totaling 654 such customers [25] - The company added 533 new customers, including 15 Global 2000 companies this quarter [22] Market Data and Key Metrics Changes - Azure was the fastest-growing cloud platform for the company, growing 40% year over year [41] - The company is seeing strong adoption of open data formats, with over 1,200 accounts using Apache Iceberg [19] - AI is influencing nearly 50% of new logos won in Q2, with 25% of all deployed use cases involving AI [19] Company Strategy and Development Direction - The company remains focused on empowering enterprises through data and AI, emphasizing product innovation and operational efficiency [9] - The introduction of Snowflake Intelligence and Cortex AI SQL aims to enhance AI capabilities and streamline data management [12][14] - The company is strategically investing in partnerships and expanding its go-to-market engine to capture growth opportunities [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of growth driven by data modernization and AI transformation [34] - The company anticipates continued strong demand for its AI capabilities, with budgets being allocated for AI projects [56] - Management highlighted the importance of ease of use and customer experience in driving adoption and value realization [11][113] Other Important Information - The company is making progress on its CFO transition and will announce details once available [30] - The company did not utilize its repurchase program in Q2, with $1,500 million remaining on its authorization [28] Q&A Session All Questions and Answers Question: Insights on data infrastructure modernization among Fortune 500 companies - Management indicated that data modernization is just the beginning, with a focus on making data AI-ready to drive value realization [34] Question: Contribution from European market - Management noted that Europe is still developing but contributing, with groundwork being laid for new customer acquisition [38] Question: Performance on Azure - Azure was highlighted as the fastest-growing cloud, with better alignment between the company's field and Microsoft contributing to growth [41] Question: Drivers of upside in Q2 - Management attributed the upside to strong performance in core business and new product adoption, with large customers migrating new workloads [76] Question: Competitive environment and customer preferences - Management emphasized Snowflake's strengths in AI data platform capabilities and the importance of product quality and governance in customer decisions [80] Question: Professional services growth - Management clarified that the growth in professional services was driven by milestones from a large customer, with most services being performed by partners [85] Question: Expansion rate and consumption trends - Management indicated that the uptick in expansion rate was driven by large customers migrating new workloads, with optimizations being a normal part of the process [88] Question: Update on Crunchy integration - Management reported strong progress on the integration of Crunchy into Snowflake Postgres, with significant customer interest [104] Question: AI adoption and monetization strategy - Management highlighted a deliberate strategy for AI adoption, focusing on ease of use and broad adoption without requiring a massive sales effort [113]

Financial Data and Key Metrics Changes - Product revenue for Q2 was $1,090 million, up 32% year over year, indicating an acceleration in growth from the previous quarter [7] - Remaining performance obligations totaled $6,900 million with year-over-year growth of 33% [7] - Net revenue retention rate was 125%, reflecting strong customer loyalty [7] - Non-GAAP operating margin increased to 11%, showcasing a focus on efficiency and operational growth [7][22] - The company ended the quarter with $4,600 million in cash and investments [24] Business Line Data and Key Metrics Changes - New customer additions increased by 21% year over year, with 50 customers crossing the $1 million in trailing twelve-month revenue, totaling 654 such customers [21][22] - Non-GAAP product gross margin was 76.4% [22] - Non-GAAP adjusted free cash flow margin was 6% [23] Market Data and Key Metrics Changes - Azure was the fastest-growing cloud platform for the company, growing 40% year over year [36] - The company added 533 customers in the quarter, including 15 Global 2000 companies [18] Company Strategy and Development Direction - The company is focused on empowering enterprises through data and AI, with a commitment to product innovation and operational efficiency [6] - The introduction of Snowflake Intelligence and other AI-driven products is central to the company's strategy, aiming to enhance customer experience and operational efficiency [10][11] - The company is expanding its reach into the $17 billion data integration market with Snowflake OpenFlow [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing data modernization efforts among Fortune 500 and Global 2000 companies, viewing it as a long-term growth opportunity [29] - The company anticipates continued strong demand for AI capabilities, with nearly 50% of new logos won in Q2 influenced by AI [15] - Management expects product revenue for Q3 to be between $1,125 million and $1,130 million, representing 25% to 26% year-over-year growth [25] Other Important Information - The company launched approximately 250 new capabilities in the first half of the year, demonstrating a strong pace of innovation [13] - The company is making progress on its CFO transition and will announce details once available [26] Q&A Session Summary Question: Insights on data infrastructure modernization among Fortune 500 companies - Management believes data modernization is just the beginning, driven by the need for scalable systems and AI readiness [29] Question: Contribution from European market - Europe is still developing but contributing, with groundwork being laid for new customer acquisition [33] Question: Performance on Azure - Azure is the fastest-growing cloud platform for the company, with significant alignment and collaboration with Microsoft [36] Question: Drivers of upside in Q2 - The upside was driven by large customer migrations and new product contributions, with core business performance being strong [71] Question: Competitive environment and customer preferences - Management believes Snowflake stands out as the best AI data platform, with increasing recognition of its product quality and capabilities [75] Question: Professional services growth - Growth in professional services was driven by a large customer milestone, with most services being performed by partners [80] Question: AI adoption and monetization strategy - The company has seen broad adoption of AI products without massive sales efforts, focusing on ease of use and value delivery [111] Question: Cortex AI usage and primary use cases - Primary use cases for Cortex AI involve combining structured and unstructured data for flexible access and actionable insights [117]