Investment Rating - The report assigns an "Outperform" rating to the company, marking its first coverage in this regard [4][6]. Core Insights - The company is a leading data cloud provider focused on breaking down data silos and enabling unified data management and efficient utilization through its innovative platform [1][9]. - The company has a strong growth trajectory, with projected revenues of $3.51 billion, $4.39 billion, and $5.49 billion for FY2025, FY2026, and FY2027, respectively, reflecting growth rates of 25%, 25.2%, and 25.1% [4][5]. - The company is leveraging AI to drive its commercialization process and expand its market presence [4][81]. Summary by Sections Company Overview - The company specializes in data cloud services, aiming to help organizations manage and utilize data effectively, with a revenue model based on platform usage [1][9]. - As of FY2026Q2, the company has 12,062 customers, including 751 from the Forbes Global 2000, contributing approximately 42% of its revenue [9]. Financial Performance - For FY2026Q2, the company reported revenues of $1.145 billion, a year-over-year increase of 31.78%, while GAAP net loss was $298 million, up 5.96% year-over-year [1][25]. - The company expects to achieve revenues of $3.51 billion in FY2025, with a net loss of $614 million, improving to a profit of $65 million by FY2027 [5][25]. Platform Advantages - The company's platform is designed as a cloud-native data storage solution, offering high scalability and cost control, and is recognized for its superior performance in TPC-H tests [2][43]. - The platform's unique multi-cluster shared data architecture meets diverse needs, from startups to Fortune 500 companies, and allows for flexible resource allocation [2][58]. Ecosystem and Data Sharing - The launch of Snowflake Marketplace in 2021 has enabled direct data sharing among customers across different regions and cloud providers, creating a strong network effect that enhances customer retention and consumption [3][68]. - As of FY2026Q2, 40% of customers are engaged in data sharing, up from 26% in FY2024Q2 [68]. AI Integration - The company has introduced Cortex AI, which allows users to create data agents for automated data analysis and task execution, enhancing the platform's capabilities [3][75]. - The updated Snowflake Intelligence platform, set to launch in 2025, will enable users to interact with data using natural language, further improving data accessibility and usability [3][78]. Market Potential - The total addressable market (TAM) for the company is projected to grow from $161 billion in 2024 to $370 billion by 2029, with a CAGR of 18%, driven by AI and data engineering [81].

Financial Performance - Product revenue reached $1.09 billion in Q2 FY26, representing a 32% year-over-year growth[53] - The company's net revenue retention rate was 125% in Q2 FY26[41] - Non-GAAP product gross margin was 76% in Q2 FY26[41] - Non-GAAP operating margin was 11% in Q2 FY26[75] - The company had 654 customers with over $1 million in product revenue, a 30% year-over-year growth[41, 67] - Remaining Performance Obligations (RPO) reached $6.93 billion, with 50% expected to be recognized as revenue in the next twelve months[57] Customer and Market Growth - The company's total customer base grew to 12,062[61] - Forbes Global 2000 customers increased to 751[63] - The company estimates its Total Addressable Market (TAM) has more than doubled[38] AI Data Cloud - 40% of customers have at least one stable edge in data sharing[85] - Marketplace listings grew by 21% year-over-year to 3,400[85] Fiscal Year 2026 Guidance - The company projects product revenue of $4.395 billion for FY26[88] - The company projects Non-GAAP operating margin of 9% for FY26[88]

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 accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non- ...

Financial Performance - Snowflake's product revenue reached $996.813 million in Q1 FY26, representing a year-over-year growth of 26%[36, 86] - The company's net revenue retention rate was 124% in Q1 FY26[36, 61] - Snowflake had 606 customers with over $1 million in product revenue as of Q1 FY26, a 27% year-over-year increase[36, 58] - Non-GAAP product gross margin was 76% in Q1 FY26[36, 64] - Non-GAAP operating margin was 9% in Q1 FY26[64, 91] - Non-GAAP adjusted free cash flow margin was 20% in Q1 FY26[64, 96] - Remaining Performance Obligations (RPO) reached $6.687 billion, with 50% expected to be recognized as revenue in the next twelve months[49, 50] Market and Customer Growth - Snowflake estimates its platform TAM to be $342 billion[34] - The company had 11,578 total customers in Q1 FY26[52] - Snowflake had 754 Forbes Global 2000 customers in Q1 FY26[54] AI Data Cloud Metrics - 39% of Snowflake's customers have at least one stable edge for data sharing[72, 79] - There were 3,098 Marketplace listings, a 21% year-over-year growth[72] Fiscal Year 2026 Guidance - Snowflake projects product revenue of $4.325 billion for FY26[74] - The company anticipates a 25% year-over-year product revenue growth for FY26[74] - Snowflake expects a non-GAAP product gross margin of 75% and a non-GAAP operating margin of 8% for FY26[74] - The company forecasts a non-GAAP adjusted free cash flow margin of 25% for FY26[74]

Core Insights - Snowflake has evolved from a traditional data warehouse into a comprehensive platform that serves as a control center for businesses managing data and AI [3] - The platform now encompasses various functionalities including engineering, data sharing, application development, and AI workflows [3] Company Developments - Snowflake's integration capabilities have expanded, allowing for a more robust handling of data across different business functions [3]

Financial Data and Key Metrics Changes - Product revenue for Q4 was $943 million, representing a 28% year-over-year increase [11] - Remaining performance obligations totaled $6.9 billion, with a year-over-year growth of 33% [12] - Net revenue retention was reported at 126% [12] - Non-GAAP operating margin increased to 9% in Q4, while non-GAAP adjusted free cash flow margin was 43% [12][37] - For FY '25, product revenue grew 30% year-over-year to reach $3.5 billion [32] Business Line Data and Key Metrics Changes - New products, particularly Snowpark, contributed 3% of FY '25 product revenues, indicating strong adoption of new data engineering and AI features [32] - Technology customers outperformed, while financial services remained the top vertical [33] Market Data and Key Metrics Changes - EMEA was identified as a source of strength in Q4 [33] - Several large customers ran out of capacity before their contract end date, indicating strong consumption patterns [34] Company Strategy and Development Direction - The company aims to deliver the world's best end-to-end data platform powered by AI, focusing on operational rigor and efficiency while investing in growth [9][10] - The company is expanding its product offerings, including new connectors and capabilities for data integration and collaboration [27] - The focus on AI and machine learning is expected to drive future growth, with over 4,000 customers using AI and ML technology weekly [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong core business and the potential for new product features to contribute to growth in the second half of FY '26 [40][41] - The company anticipates stable growth within its core business, with new product features expected to enhance year-over-year growth rates [40] Other Important Information - The company plans to host an Investor Day in conjunction with its Summit conference in June 2026 [42] - The CFO announced plans to retire once a successor is in place, indicating a transition in leadership [44] Q&A Session Summary Question: Insights on large customers exhausting commitments - Management expects large customers to sign new commitments after exhausting their capacity, which is a common occurrence [50][52] Question: Adoption trends within the data engineering portfolio - Management noted robust adoption of technologies like Snowpark and emphasized the importance of new product features in driving customer engagement [56][58] Question: Interpretation of recent partnerships in the data space - Management highlighted the importance of partnerships with companies like ServiceNow and Salesforce, emphasizing the value of data integration and customer choice [67][72] Question: Adjacent opportunities for the company's offerings - Management acknowledged the significance of streaming and ingestion as critical areas for investment and development [82][84] Question: Guidance for the upcoming year - Management expressed confidence in the guidance provided, indicating that it reflects a thoughtful approach to revenue expectations [88][130]

Financial Performance - Snowflake's product revenue reached $3462 million for fiscal year 2025, representing a 30% year-over-year growth[49] - Q4 FY25 product revenue was $943 million, a 28% year-over-year increase[51] - The company's remaining performance obligations (RPO) totaled $6867 million at the end of Q4 FY25, with 48% expected to be recognized as revenue in the next twelve months[55] - Non-GAAP product gross margin was 76% for FY25[42, 71] - Non-GAAP operating margin was 6% for FY25[71] - Non-GAAP adjusted free cash flow margin was 26% for FY25[71] Customer Growth - Snowflake had 745 Forbes Global 2000 customers at the end of Q4 FY25[59] - The total customer count reached 11159 at the end of Q4 FY25[57] - Customers generating over $1 million in product revenue numbered 580, a 27% year-over-year increase[62] - Net revenue retention rate was 126% in Q4 FY25[42, 65] Market Opportunity - Snowflake estimates its platform TAM to be $342 billion in CY24[40] AI Data Cloud - 36% of Snowflake customers have at least one stable edge for data sharing[81] - There are 3044 marketplace listings available[81]