Summary
Snowflake Inc. reported strong revenue growth in its first fiscal year as a public company, with total revenue increasing by 124% to $592.0 million for the fiscal year ended January 31, 2021. This growth was primarily driven by a significant 120% increase in product revenue, reaching $553.8 million, supported by a robust net revenue retention rate exceeding 168% and a growing customer base, which expanded to 4,139 customers. Despite this impressive top-line performance, the company continued to incur substantial operating losses, with a net loss of $539.1 million. This loss was largely due to significant investments in sales and marketing, research and development, and general administrative expenses, totaling $893.4 million, coupled with substantial stock-based compensation expenses, which more than tripled year-over-year to $301.4 million. The company successfully completed its Initial Public Offering (IPO) in September 2020, raising $3.7 billion in net proceeds, and also secured an additional $500 million through concurrent private placements. This substantial capital infusion significantly boosted its cash position to $5.1 billion as of January 31, 2021, providing ample liquidity for future growth initiatives. While the company is prioritizing growth over near-term profitability, investors will closely monitor its path to profitability as it continues to scale its operations and market presence.
Financial Highlights
51 data points| Revenue | $592.05M |
| Cost of Revenue | $242.59M |
| Gross Profit | $349.46M |
| R&D Expenses | $237.95M |
| Operating Expenses | $893.40M |
| Operating Income | -$543.94M |
| Net Income | -$539.10M |
| EPS (Basic) | $-3.81 |
| EPS (Diluted) | $-3.81 |
| Shares Outstanding (Basic) | 141.61M |
| Shares Outstanding (Diluted) | 141.61M |
Key Highlights
- 1Revenue surged 124% year-over-year to $592.0 million for the fiscal year ended January 31, 2021.
- 2Product revenue increased 120% to $553.8 million, driven by strong customer consumption and retention.
- 3Total customers grew to 4,139, up from 2,392 in the prior year, with 77 customers generating over $1 million in product revenue.
- 4Net revenue retention rate remained exceptionally high, exceeding 168% as of January 31, 2021.
- 5The company raised approximately $4.2 billion in net proceeds from its IPO and concurrent private placements in September 2020.
- 6Despite strong revenue growth, Snowflake reported a net loss of $539.1 million for the fiscal year, driven by significant investments in growth and operations.
- 7Stock-based compensation expense increased substantially to $301.4 million, largely due to RSU grants and performance-based vesting conditions met during the IPO.