Summary
Snowflake Inc. reported a net loss of $430.1 million for the three months ended April 30, 2025, a widening from the $317.0 million loss in the prior year period. Revenue, however, showed strong growth, increasing by 26% year-over-year to $1.04 billion, primarily driven by increased consumption from existing customers, as evidenced by a net revenue retention rate of 124%. The company's operating expenses also increased significantly, particularly in general and administrative expenses, which were impacted by a $106.5 million asset impairment charge related to an office facility exit. Despite the ongoing net loss, the company maintained a solid liquidity position with $4.9 billion in cash, cash equivalents, and investments as of April 30, 2025. The company continues to invest in its platform, including AI capabilities, while managing expenses, though the path to profitability remains a key focus for investors. Key operational highlights include continued customer growth, with 11,578 total customers as of the end of the quarter, and a notable increase in large customers spending over $1 million annually. Management continues to express confidence in the long-term growth potential of the AI Data Cloud, driven by platform adoption and expansion within the existing customer base. However, investors should note the significant increase in operating expenses, particularly R&D and G&A, which outpaced revenue growth, leading to a wider operating loss. The company's stock repurchase program remains active, with $1.5 billion remaining available. Investors will be closely watching Snowflake's ability to translate its revenue growth into profitability, manage its significant operating expenses, and navigate the competitive landscape, especially in the rapidly evolving AI sector. The company's consumption-based model provides flexibility but also introduces variability in revenue recognition, making consistent operational execution critical.
Financial Highlights
53 data points| Revenue | $1.04B |
| Cost of Revenue | $348.79M |
| Gross Profit | $693.29M |
| R&D Expenses | $472.40M |
| Operating Expenses | $1.14B |
| Operating Income | -$447.26M |
| Net Income | -$430.09M |
| EPS (Basic) | $-1.29 |
| EPS (Diluted) | $-1.29 |
| Shares Outstanding (Basic) | 332.66M |
| Shares Outstanding (Diluted) | 332.66M |
Key Highlights
- 1Revenue increased 26% year-over-year to $1.04 billion, driven by strong customer consumption and a net revenue retention rate of 124%.
- 2Net loss widened to $430.1 million from $317.0 million in the prior year period.
- 3Operating expenses increased significantly, with Sales & Marketing up 14%, R&D up 15%, and G&A up 125% year-over-year, the latter impacted by a $106.5 million asset impairment charge.
- 4Total customers grew to 11,578, with 606 customers spending over $1 million annually on product revenue.
- 5The company ended the quarter with $4.9 billion in cash, cash equivalents, and investments, indicating a strong liquidity position.
- 6Remaining Performance Obligations (RPO) stood at $6.7 billion as of April 30, 2025.
- 7The company repurchased $490.6 million of its common stock during the quarter.