10-KPeriod: FY2023

Snowflake Inc. Annual Report, Year Ended Jan 31, 2023

Filed March 29, 2023For Securities:SNOW

Summary

Snowflake Inc. reported strong revenue growth in the fiscal year ended January 31, 2023, with total revenue reaching $2.1 billion, a 69% increase year-over-year. This growth was driven by increased platform consumption from existing customers, as evidenced by a net revenue retention rate of 158%. The company expanded its customer base to 7,828, including 573 Forbes Global 2000 companies, and saw a significant increase in customers contributing over $1 million in product revenue, from 184 to 330. Despite robust top-line growth, Snowflake continued to experience net losses, reporting a net loss of $797.5 million for the fiscal year. The company is prioritizing investment in platform innovation, sales and marketing to acquire new customers, and expanding its global footprint. Key growth strategies include advancing the platform, driving increased usage within the existing customer base, and growing its partner network. Investors should monitor the company's ability to translate revenue growth into profitability while managing significant operating expenses, particularly in sales and marketing and research and development.

Financial Highlights

53 data points
Beta

Revenue

$2.07B

65.3% Gross Margin

Net Income

-$797.53M

-38.6% Net Margin

EPS (Diluted)

$-2.50

Total Assets

$7.72B

Cash & Equivalents

$939.90M

Free Cash Flow

$520.51M

Financial Statements
Beta
Revenue$2.07B
Cost of Revenue$717.54M
Gross Profit$1.35B
R&D Expenses$788.06M
Operating Expenses$2.19B
Operating Income-$842.27M
Net Income-$797.53M
EPS (Basic)$-2.50
EPS (Diluted)$-2.50
Shares Outstanding (Basic)318.73M
Shares Outstanding (Diluted)318.73M

Key Highlights

  • 1Revenue grew 69% year-over-year to $2.1 billion for the fiscal year ended January 31, 2023.
  • 2Net revenue retention rate remained strong at 158% as of January 31, 2023.
  • 3Customer count increased to 7,828, with 573 Forbes Global 2000 customers.
  • 4The number of customers contributing over $1 million in trailing 12-month product revenue more than doubled, from 184 to 330.
  • 5Despite revenue growth, the company reported a net loss of $797.5 million for the fiscal year.
  • 6Snowflake made significant investments in acquisitions, including Streamlit and Applica, to enhance its platform capabilities.
  • 7The company ended the fiscal year with $5.1 billion in cash, cash equivalents, and investments, providing substantial liquidity.

Frequently Asked Questions

Snowflake's total revenue for the fiscal year ended January 31, 2023, was $2.1 billion, representing a 69% increase compared to the prior fiscal year's revenue of $1.2 billion. Product revenue alone was $1.94 billion.

No, Snowflake is not currently profitable. The company reported a net loss of $797.5 million for the fiscal year ended January 31, 2023, continuing a trend of net losses since its inception. The company is investing heavily in growth, which has led to increased operating expenses.

Snowflake experienced significant customer growth, ending the fiscal year with 7,828 customers, up from 5,967 in the prior year. The company also boasts a strong net revenue retention rate of 158% as of January 31, 2023, indicating that its existing customers are increasing their spending on the platform.

Snowflake's primary growth strategies include continued innovation and advancement of its platform, acquiring new customers through sales and marketing investments, driving increased usage within its existing customer base, expanding its global footprint, and growing its partner network.