Financial Data and Key Metrics Changes - Product revenue for Q1 was $997 million, representing a strong 26% year-over-year growth, and 28% when excluding the impact of the leap year [10][25] - Remaining performance obligations totaled $6.7 billion, with year-over-year growth of 34% [10] - Net revenue retention was a healthy 124% [11] - Non-GAAP product gross margin was 75.7%, and non-GAAP operating margin was 9%, up 442 basis points year-over-year [27][28] - Non-GAAP adjusted free cash flow margin was 20% [28] - The company ended the quarter with $4.9 billion in cash and investments [29] Business Line Data and Key Metrics Changes - New product offerings, particularly Snowpark and Dynamic Tables, outperformed expectations in Q1 [25] - The data engineering business showed strength, helping customers streamline their data pipelines [12] - The company added 451 net new customers in Q1, growing 19% year-over-year [27] Market Data and Key Metrics Changes - Strong growth was noted in the technology and retail sectors [25] - The company is expanding its addressable market with the launch of Snowflake Public Sector Inc. and new automotive solutions [22] Company Strategy and Development Direction - The company aims to empower enterprises through data and AI, focusing on operational rigor and efficiency while investing in growth [9] - Snowflake is committed to being an end-to-end technology provider for customers' data journeys [11] - The company is focusing on building a flexible connectivity platform for both structured and unstructured data [12] - There is a renewed focus on go-to-market operations under the new Chief Revenue Officer [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to the year and the ongoing momentum in revenue growth [8] - The company expects Q2 product revenue between $1.035 billion and $1.040 billion, representing 25% year-over-year growth [29] - Management noted that customer behavior is being closely monitored to inform forecasts [29] Other Important Information - The company plans to host an Investor Day on June 3 in conjunction with Snowflake Summit [30] - The company is leveraging AI internally to boost productivity [22] Q&A Session Summary Question: Consumption trends exiting the quarter - Management stated that Q1 consumption was strong, and they feel good about consumption levels [34][36] Question: Monetization trends associated with Cortex - Management indicated that customers are investing in Snowflake to make their data processes AI-ready, with no separate contracts for AI [39][41] Question: Performance of Snowpark and Dynamic Tables - Management noted that both product maturation and go-to-market efforts contributed to their strong performance [45][47] Question: Federal government opportunities - Management highlighted increasing awareness of Snowflake's capabilities within government departments and optimism for future engagements [72][73] Question: Impact of macroeconomic conditions - Management observed that their customer base has evolved to include larger, more mature companies that are cost-focused, with no significant macro pressure noted [61][62] Question: Share buyback strategy - Management plans to evaluate share buybacks on a quarterly basis and anticipates utilizing the remaining authorization [56] Question: AI adoption and customer investments - Management confirmed that there is a strong demand for AI-related capabilities, with customers increasingly focusing on data rather than just models [113]

Financial Data and Key Metrics Changes - Product revenue for Q1 was $997 million, up 26% year over year, with a growth rate stable quarter over quarter [6][19] - Remaining performance obligations totaled $6.7 billion, reflecting a year-over-year growth of 34% [6] - Net revenue retention was reported at 124%, indicating strong customer retention and expansion [7] - Non-GAAP product gross margin was 75.7%, and non-GAAP operating margin was 9%, up 442 basis points year over year [21][24] - The company ended the quarter with $4.9 billion in cash and cash equivalents [24] Business Line Data and Key Metrics Changes - New product offerings, particularly Snowpark and Dynamic Tables, outperformed expectations in Q1 [19] - The data engineering business showed strength, helping customers streamline their data pipelines [8] - The company launched over 125 product capabilities in the quarter, marking significant innovation [11] Market Data and Key Metrics Changes - The company added 451 net new customers in Q1, representing a 19% year-over-year growth [21] - Strong adoption of open data formats, particularly Apache Iceberg, was noted, enhancing customer flexibility [11] Company Strategy and Development Direction - The company aims to empower enterprises through data and AI, focusing on operational efficiency while investing in growth [5][17] - Snowflake is expanding its addressable market with new solutions for the public sector and automotive industries [17] - The company emphasizes collaboration with hyperscalers like AWS and Azure to enhance customer outcomes [76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business, noting that customer behavior remains strong despite macroeconomic pressures [58][60] - The company expects Q2 product revenue between $1.035 billion and $1.04 billion, representing 25% year-over-year growth [24] - There is optimism regarding the federal government opportunity, with ongoing discussions about data infrastructure efficiency [67] Other Important Information - The company plans to host its Investor Day on June 3 in conjunction with Snowflake Summit [25] - Management is actively seeking candidates for the CFO position following a transition [26] Q&A Session Summary Question: Trends in consumption through the quarter - Management noted that Q1 consumption was strong, and they feel good about consumption trends [30] Question: Monetization trends associated with Cortex - Management indicated that customers are investing in Snowflake for future AI capabilities, integrating AI into their data strategies [34] Question: Performance of Snowpark and Dynamic Tables - Management acknowledged that both product maturation and go-to-market efforts contributed to their success [40] Question: Federal government opportunities - Management highlighted increasing awareness of Snowflake's capabilities within government departments and the focus on efficient data infrastructure [67] Question: Impact of AI on customer investments - Management noted that customers are increasingly recognizing the need for data to be integrated with AI capabilities [108] Question: Share buyback strategy - Management stated that they will continue to evaluate share buybacks on a quarterly basis, with no immediate plans for changes [52] Question: Importance of first-party foundation models - Management emphasized a focus on post-training techniques rather than developing large foundation models, collaborating with partners instead [100]