10-QPeriod: Q2 FY2025

Snowflake Inc. Quarterly Report for Q2 Ended Jul 31, 2024

Filed August 29, 2024For Securities:SNOW

Summary

Snowflake Inc. reported revenue of $868.8 million for the three months ended July 31, 2024, an increase of 29% year-over-year. The company generated a net loss of $316.9 million for the quarter, a widening compared to the prior year's loss of $226.9 million. Despite the net loss, Snowflake demonstrated strong operational cash flow generation, with $425.3 million in net cash provided by operating activities for the six months ended July 31, 2024. The company also continues to expand its customer base, with 10,249 total customers as of July 31, 2024, including 736 Forbes Global 2000 customers. The company announced an additional $2.5 billion stock repurchase authorization, signaling confidence in its financial position and commitment to returning capital to shareholders. Key financial metrics show continued growth in product revenue and a stable net revenue retention rate of 127%. However, the company's cost of revenue and operating expenses, particularly in research and development and sales and marketing, have increased significantly, contributing to the net loss. Investors should monitor the company's ability to manage its expenses while continuing to drive revenue growth and achieve profitability.

Financial Highlights

53 data points
Beta

Revenue

$868.82M

66.8% Gross Margin

Net Income

-$316.90M

-36.5% Net Margin

EPS (Diluted)

$-0.95

Total Assets

$6.94B

Cash & Equivalents

$1.28B

Free Cash Flow

$64.82M

Financial Statements
Beta
Revenue$868.82M
Cost of Revenue$288.08M
Gross Profit$580.75M
R&D Expenses$437.66M
Operating Expenses$936.05M
Operating Income-$355.30M
Net Income-$316.90M
EPS (Basic)$-0.95
EPS (Diluted)$-0.95
Shares Outstanding (Basic)334.07M
Shares Outstanding (Diluted)334.07M

Key Highlights

  • 1Revenue increased 29% year-over-year to $868.8 million for the three months ended July 31, 2024.
  • 2Net loss widened to $316.9 million for the three months ended July 31, 2024, from $226.9 million in the prior year period.
  • 3Generated $425.3 million in net cash from operating activities for the six months ended July 31, 2024.
  • 4Total customer count reached 10,249 as of July 31, 2024, with 736 Forbes Global 2000 customers.
  • 5Net revenue retention rate remained strong at 127% as of July 31, 2024.
  • 6Announced an additional $2.5 billion stock repurchase program, extending the program to March 2027.
  • 7Product gross margin was 72% for the three months ended July 31, 2024.

Frequently Asked Questions

Snowflake reported revenue of $868.8 million for the three months ended July 31, 2024, representing a 29% increase compared to the $674.0 million reported in the same period last year. Product revenue, which is the primary driver of sales, grew by 30% year-over-year.

The company reported a net loss of $316.9 million for the three months ended July 31, 2024, an increase from the $226.9 million net loss in the prior year's comparable quarter. While operating expenses, particularly in R&D and sales & marketing, increased, the company generated positive cash flow from operations, indicating underlying business health. Investors will be watching for a path to profitability as investments continue.

Snowflake continues to maintain a strong liquidity position with $3.9 billion in cash, cash equivalents, and investments as of July 31, 2024. The company generated $425.3 million in net cash from operating activities for the first six months of the fiscal year. Furthermore, Snowflake's board authorized an additional $2.5 billion stock repurchase program, extending the program's expiration to March 2027, signaling a commitment to returning capital to shareholders.

The Net Revenue Retention Rate of 127% as of July 31, 2024, is a key indicator of customer loyalty and expansion. It means that for customers who were with Snowflake at the beginning of the measurement period, their spending increased by 27% on average, demonstrating the platform's ability to grow within the existing customer base. This metric is crucial for understanding the company's ability to grow revenue from its existing clients.