Summary
Snowflake Inc. (SNOW) reported its financial results for the quarter ending October 31, 2024. The company demonstrated continued revenue growth, with product revenue increasing by 29% year-over-year for the quarter and 31% year-over-year for the nine-month period, reaching $900.3 million and $2.52 billion respectively. This growth was primarily driven by increased consumption from existing customers, as evidenced by a healthy net revenue retention rate of 127%. Despite revenue growth, Snowflake reported a net loss of $324.3 million for the quarter, widening from $214.3 million in the prior year period, and a year-to-date net loss of $958.2 million. This was driven by significant operating expenses, particularly in sales and marketing ($438.0 million) and research and development ($442.4 million) for the quarter, reflecting ongoing investments in growth and product development, including AI capabilities. The company also successfully raised $2.3 billion in convertible senior notes during the quarter, strengthening its liquidity position. Key operational highlights include an increase in customers with over $1 million in trailing 12-month product revenue to 542, and a substantial remaining performance obligation (RPO) of $5.7 billion. Management continues to focus on expanding its AI Data Cloud and investing in innovation, while also managing operational costs. The company is navigating a dynamic macroeconomic environment, with an active stock repurchase program in place.
Financial Highlights
53 data points| Revenue | $942.09M |
| Cost of Revenue | $320.89M |
| Gross Profit | $621.20M |
| R&D Expenses | $442.44M |
| Operating Expenses | $986.66M |
| Operating Income | -$365.46M |
| Net Income | -$324.28M |
| EPS (Basic) | $-0.98 |
| EPS (Diluted) | $-0.98 |
| Shares Outstanding (Basic) | 331.76M |
| Shares Outstanding (Diluted) | 331.76M |
Key Highlights
- 1Revenue increased by 28% year-over-year to $942.1 million for the third quarter and 30% year-over-year to $2.64 billion for the first nine months.
- 2Product revenue, the primary driver of growth, increased by 29% year-over-year to $900.3 million for the quarter.
- 3Net loss widened to $324.3 million for the quarter, compared to $214.3 million in the prior year period, due to increased operating expenses.
- 4Operating expenses, particularly Sales & Marketing and R&D, increased year-over-year, reflecting continued investment in growth and product innovation, including AI.
- 5The company raised $2.3 billion in convertible senior notes during the quarter, enhancing its liquidity.
- 6Remaining Performance Obligations (RPO) stood at $5.7 billion as of October 31, 2024, indicating strong future revenue potential.
- 7Free Cash Flow was $78.2 million for the quarter, a positive indicator of operational cash generation despite the net loss.