SNOW Snowflake Inc.

Operator (Operator): Good afternoon, and thank you for joining us on Snowflake's Q2 Fiscal 2026 earnings call. Joining me on the call today are Sridhar Ramaswamy, our Chief Executive Officer, Mike Scarpelli, our Chief Financial Officer, and Christian Kleinerman, our Executive Vice President of Product, who will participate in the Q&A. During today's call, we will review our financial results for the second quarter of Fiscal 2026 and discuss our guidance for the third quarter and full year of Fiscal 2026. During today's call, we will make forward-looking statements, including statements related to our business operations and financial performance. These statements are subject to risks and uncertainties, which could cause them to differ materially from our actual results. Information concerning these risks and uncertainties is available in our earnings press release, our most recent Forms 10-K and 10-Q, and our other SEC reports. All our statements are made as of today based on information currently available to us. Except as required by law, we assume no obligation to update any such statements. During today's call, we will also discuss certain non-GAAP financial measures. See our investor presentation for a reconciliation of GAAP to non-GAAP measures and metric definitions, including adoption. The earnings press release and investor presentation are available on our website at investors.snowflake.com. A replay of today's call will also be posted on the website. With that, I would now like to turn the call over to Sridhar. Sridhar Ramaswamy (CEO): Thanks, Jimmy. And, hi, everyone. Thank you all for joining us today. Snowflake has delivered yet another strong quarter. And I'm proud of the incredible work across our team and the deep partnerships with our customers to deliver these results. Our core business remains very strong. And we continue to deliver product innovation to market at a rapid pace while strengthening our go-to-market motion for growth. We're executing with intensity, and alignment continues to see an enormous opportunity ahead. Snowflake remains laser-focused on our mission to empower every enterprise to achieve its full potential through data and AI. We're delivering our more than 12,000 customers tremendous value throughout their entire data life cycle with an AI data cloud that's designed to enable faster innovation and remove friction from business operations. We remain disciplined, driving operational rigor across our business, gaining greater efficiency, even as we continue to invest aggressively in growth. We continue to execute with urgency and focus to capture the opportunities ahead and sustain durable momentum. Product revenue for Q2 was $1.09 billion, up a strong 32% year over year, demonstrating an acceleration in growth from last quarter. Remaining performance obligations totaled $6.9 billion with year-over-year growth of 33%. Our net revenue retention rate was a very healthy 125%. Our non-GAAP operating margin increased to 11%, reflecting our focus on efficiency and operational rigor. As you can see, we have continued to deliver strong revenue growth and healthy results this quarter. And as a result, we are increasing our growth expectations for the year. At Snowflake, we believe that great technology is defined by the experience of making something complex feel effortless. And we put simplicity at the center of not just our product design, but our entire customer experience. We are committed to delivering a cohesive product with fast time to value, and it's the differentiator that leads customers to choose Snowflake again and again. It's why enterprise leaders like Booking.com and the InterContinental Exchange use Snowflake. Our platform is easy to use, connected to enable fluid access to data wherever it sits, and trusted by companies of all sizes and industries. Global hospitality icon, Hyatt Hotels, uses Snowflake to simplify data management and ensure unified governance. By consolidating enterprise data into a single environment, Hyatt empowers its teams with fast, secure access to information, enabling them to make informed decisions that enhance customer experiences and drive operational efficiency. This quarter, we delivered on our product strategy, introducing incredible new innovations to drive value at each stage of our customers' data journey. Of course, AI is front and center. We are continuing to advance our leadership in enterprise AI with Snowflake Intelligence, in public preview. This platform enables every user to talk to their enterprise data, turning structured and unstructured data into actionable insights through natural language. And it powers the creation of intelligent agents directly on enterprise data. Early adoption is underway with customers like Cambia Health Solutions, which serves 2.6 million members in the Pacific Northwest. They leveraged Snowflake Intelligence to create its first intelligence agent to assist their teams in improving health o ... [transcript truncated at 5,000 chars — full text available via API]

Operator (Operator): Good afternoon, and thank you for attending the Snowflake Inc. Q1 Fiscal Year 2026 Earnings Call. My name is Matt, and I will be the moderator for today’s call. All lines have been muted during the presentation, and there will be a chance for questions and answers at the end. I would now like to pass the conference over to our host, Jimmy Sexton, Head of Investor Relations. Jimmy, please go ahead. Jimmy Sexton (Head of Investor Relations): Good afternoon, and thank you for joining us on Snowflake's Q1 Fiscal 2026 Earnings Call. Joining me on the call today are Sridhar Ramaswamy, our Chief Executive Officer; Mike Scarpelli, our Chief Financial Officer; and Christian Kleinerman, our Executive Vice President of Product, who will participate in the Q&A. During today's call, we will review our financial results for the first quarter of fiscal 2026 and discuss our guidance for the second quarter and full year fiscal 2026. During today's call, we will make forward-looking statements, including statements related to our business operations and financial performance. These statements are subject to risks and uncertainties, which could cause them to differ materially from our actual results. Information concerning these risks and uncertainties is available in our earnings press release, our most recent Forms 10-K and 10-Q and other SEC reports. All our statements are made as of today based on information currently available to us. Except as required by law, we assume no obligation to update any such statements. During today's call, we will also discuss certain non-GAAP financial measures. See our investor presentation for a reconciliation of GAAP to non-GAAP measures and business metric definitions, including adoption. The earnings press release and investor presentation are available on our website at investors.snowflake.com. A replay of today's call will also be posted on the website. With that, I would now like to turn the call over to Sridhar. Sridhar Ramaswamy (CEO): Thanks, Jimmy. And hi, everyone. Thank you all for joining us today. We are off to a strong start to the year and I couldn't be more proud of our team. Our core business is very strong, our product delivery remains on overdrive, and our go-to-market engine continues to get stronger and stronger. We are in the zone and there's still an enormous opportunity ahead. At Snowflake, our mission is to empower every enterprise to achieve its full potential through data and AI. Our AI data cloud helps customers get more value out of their data, innovate faster and remove friction from their business operations. And as I have shared in the past few quarters, we are extending that value throughout the data lifecycle. We remain disciplined in driving operational rigor across our business, gaining greater efficiency even as we continue to invest aggressively in growth. We are building our strength in executing with urgency and focus to capture the opportunities ahead and sustain durable momentum. Product revenue for Q1 was $997 million, up a strong 26% year-over-year. Excluding the impact of leap year, product revenue grew 28% year-over-year. Our growth rate was stable quarter-over-quarter, showing no deceleration. Remaining performance obligations totaled $6.7 billion with year-over-year growth of 34%. Our net revenue retention was a very healthy 124%. As you can see, we have started the year with strong revenue growth and overall very healthy results, and we are increasing our growth expectations for the year. As I've shared in the past few quarters, Snowflake is obsessed with creating product cohesion to make it easier and easier for our customers to innovate faster and unlock more value from their data from ingestion to insight. Enterprise leaders like Canva and JPMorgan Chase bet their business on Snowflake because our platform is easy to use, connected to enable fluid access to data wherever it sits, and trusted by companies of all sizes and industries. And we are continuing to deliver on our vision of being the end-to-end technology provider for our customers' data journey. We've made important progress in delivering an extensible and flexible connectivity platform, both unstructured as well as structured data. Snowflake connectors, which leverage the technology from our acquisition of Datavolo, enable customers with seamless connectivity and data integration with key platforms like Google Drive, Workday, Slack, SharePoint and more to tap into critical data across the business. Global pharmaceutical leader, AstraZeneca, for example, can now analyze critical business data from systems like SAP and Workday with ease. And customers like CloudZero leverage hundreds of powerful, active data sharing connections to securely exchange data with their partners and customers, driving value across our ecosystem. As our data engineering business continues to show strength, we are helping our customers streamline and scale their data pipeline with ... [transcript truncated at 5,000 chars — full text available via API]

Operator (Operator): Good afternoon. Thank you for attending the Q4 Fiscal Year '25 Snowflake Earnings Conference Call. My name is Matt and I'll be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to pass the conference over to our host, Jimmy Sexton, Head of Investor Relations. Jimmy, please go ahead. Jimmy Sexton (Head of Investor Relations): Good afternoon and thank you for joining us on Snowflake's Q4 fiscal 2025 earnings call. Joining me on the call today are Sridhar Ramaswamy, our Chief Executive Officer; Mike Scarpelli, our Chief Financial Officer; and Christian Kleinerman, our Executive Vice President of Product, who will participate in the Q&A session. During today's call, we will review our financial results for the fourth quarter of fiscal 2025 and discuss our guidance for the first quarter and full year fiscal 2026. During today's call, we will make forward-looking statements, including statements related to our business operations and financial performance. These statements are subject to risks and uncertainties that could cause them to differ materially from our actual results. Information concerning these risks and uncertainties is available in our earnings press release, our most recent Forms 10-K and 10-Q, and our other SEC reports. All our statements are made as of today based on information currently available to us. Except as required by law, we assume no obligation to update any such statements. During today's call, we will also discuss certain non-GAAP financial measures. See our investor presentation for a reconciliation of GAAP to non-GAAP measures and business metric definitions, including adoption. The earnings press release and investor presentation are available on our website at investors.snowflake.com. A replay of today's call will also be posted on the website. With that, I would now like to turn the call over to Sridhar. Sridhar Ramaswamy (CEO): Thanks, Jimmy, and hi, everyone. Thank you all for joining us today. What a difference a year makes. It was on this call last year where I was introduced to you as Snowflake's new CEO. Have a look at the progress we've made in just one year, and I could not be more proud of our team. Our core business is very strong. Our product delivery is in overdrive and our go-to-market engine is humming. We are innovating better than ever and firing on all cylinders and we have an enormous opportunity ahead of us. Right now, Snowflake is the most consequential data and AI company on the planet. As I said in our third-quarter call, our North Star is to deliver the world's best end-to-end data platform powered by AI and we are making great progress every day to deliver on that vision. I'm incredibly proud of the operational rigor we have incorporated into our company, delivering greater efficiency while also aggressively investing and delivering on growth. And our focus on our customers has never been stronger. We continue to hear how easy and cost-effective our platform is. And we are hitting more and more multi-product adoption because of the tremendous value we are delivering to our customers. We are keeping our foot on the gas. We are building on our strengths and going after the opportunities ahead with urgency and focus to ensure we continue our strong momentum throughout this year. You can see this progress in our strong fourth quarter results and we are just getting started. Product revenue for Q4 was $943 million, up a strong 28% year-over-year. Remaining performance obligations totaled $6.9 billion with year-over-year growth of 33%. Our net revenue retention was a very healthy 126%. In the quarter, our non-GAAP operating margin increased to 9% and our non-GAAP adjusted free cash flow margin was 43%. As you can see, we delivered another quarter of strong revenue growth and overall very healthy results. As I said last quarter, we are obsessed with driving product cohesion. We are continuing to win in the market because Snowflake is easy to use, helps customers break down silos to collaborate and be connected, and is trusted by companies of all sizes and industries. This is why iconic brands like ExxonMobil, Honeywell, the London Stock Exchange Group, and thousands more are betting their business on Snowflake. Fiserv, a global provider of payments and financial technology, for example, is transforming how businesses and financial institutions use data by providing them with their own analytics platform through Snowflake. This empowers Fiserv customers to have access to insights from their transaction data, combine it with market information, and train their own AI models, enabling smarter business decisions that were previously only possible for large enterprises. Last quarter, we held our Build Summit, our biggest event of the year for our builders and developers, followed by regional meet-ups and events around th ... [transcript truncated at 5,000 chars — full text available via API]

Operator (Operator): Good afternoon. Thank you for attending the Snowflake Q3 Fiscal 2025 Earnings Conference Call. My name is Matt and I'll be your moderator for today's call. All lines will be muted during the presentation portion of the call for questions and answers at the end. I'll now pass the conference over to our host, Jimmy Sexton, Head of Investor Relations. Jimmy, please go ahead. Jimmy Sexton (Head of Investor Relations): Good afternoon, and thank you for joining us on Snowflake's Q3 Fiscal 2025 Earnings Call. Joining me on the call today is Sridhar Ramaswamy, our Chief Executive Officer; Mike Scarpelli, our Chief Financial Officer; and Christian Kleinerman, our Executive Vice President of Product, who will participate in the Q&A session. During today's call, we will review our financial results for the third quarter fiscal 2025 and discuss our guidance for the fourth quarter and full year fiscal 2025. During today's call, we will make forward-looking statements, including statements related to our business operations and financial performance. These statements are subject to risks and uncertainties, which could cause them to differ materially from our actual results. Information concerning these risks and uncertainties is available in our earnings press release, our most recent Forms 10-K and 10-Q, and our other SEC reports. All our statements are made as of today based on information currently available to us. Except as required by law, we assume no obligation to update any such statements. During today's call, we will also discuss certain non-GAAP financial measures. See our investor presentation for a reconciliation of GAAP to non-GAAP measures and business metric definitions, including adoption. Earnings press release and investor presentation are available on our website at investors.snowflake.com. A replay of today's call will also be posted on the website. With that, I would now like to turn the call over to Sridhar. Sridhar Ramaswamy (CEO): Thanks, Jimmy. And hi, everyone. Thanks for joining us today. As you've seen by now, we had a strong third quarter, outperforming expectations and increasing our FY25 product revenue guidance. More and more, it is clear that our customers believe Snowflake is the easiest and most cost effective enterprise data platform out there. Our customers are getting tremendous value from us, with many of them going all in on Snowflake. Our product development engine continues to accelerate, as we launched the same number of tier 1 features to general availability in Q3 as we did in all of fiscal 2024. Our AI feature family, Snowflake Cortex, is showing significant adoption, and we improved our go-to-market motion across the board, and it's having a huge impact on new product adoption. We are firing on all cylinders. The credit goes to the entire Snowflake team, and I'm very encouraged by our progress showing up so well in the numbers. Product revenue for the quarter was $900 million, up a strong 29% year-on-year. Remaining performance obligations totaled $5.7 billion, with year-over-year growth accelerating to 55%. Given the strong quarter, we are again increasing our product revenue outlook for the year. In the quarter, non-GAAP operating margin improved to 6%. Having driven strong gains in product speed and revenue growth in Q3, we initiated an even more rigorous approach to cost management. We've been creating centralized and more efficient teams for some areas and removing redundant management layers, which enables us to make decisions faster, and we are deploying AI to drive higher velocity while reducing overall costs. We also eliminated a number of efforts that were underperforming and not aligned with our top goals as a company. I'm particularly proud of the team for driving efficiency throughout our business. This operational rigor is now a way of life for us, enabling us to improve profitability while aggressively investing in our innovation and go-to-market engines. Our obsessive drive to produce product cohesion and ease of use has built Snowflake into the easiest to use and most cost effective enterprise data platform. And that is what is leading us to win new logos after new logos, expand within our customer base, and displace our competition over and over again. Like in the quarter, when a global telecom giant went all in on Snowflake as their data foundation, we are helping them process network performance data from systems that carry a large volume of the world's mobile traffic, so they can consistently deliver superior network speeds and reliability to millions of mobile users worldwide. I personally spent a lot of time connecting with our customers around the world. Much of it took place during our Snowflake world tours, where we welcomed a record 29,000 attendees across 24 in-person events. In the cities we returned to, we saw a remarkable 40% increase in attendance year-over-year, demonstrating the incredible momentum we are seeing at a ... [transcript truncated at 5,000 chars — full text available via API]

Operator (Operator): Good afternoon. Thank you for attending today's Snowflake Q2 and Fiscal Year 2025 Earnings Call. My name is Cole, and I will be the moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to pass the call over to Jimmy Sexton, Head of Investor Relations. Please go ahead. Jimmy Sexton (Head of Investor Relations): Good afternoon, and thank you for joining us on Snowflake's Q2 fiscal 2025 earnings call. Joining me on the call today is Sridhar Ramaswamy, our Chief Executive Officer; Mike Scarpelli, our Chief Financial Officer; and Christian Kleinerman, our Executive Vice President of Product, who will participate in the Q&A session. During today's call, we will review our financial results for the second quarter fiscal 2025 and discuss our guidance for the third quarter and full year fiscal 2025. During today's call, we will make forward-looking statements, including statements related to our business operations and financial performance. These statements are subject to risks and uncertainties, which could cause them to differ materially from our actual results. Information concerning these risks and uncertainties are available in our earnings press release, our most recent Forms 10-K and 10-Q and our other SEC reports. All our statements are made as of today based on information currently available to us. Except as required by law, we assume no obligation to update any such statements. During today's call, we will also discuss certain non-GAAP financial measures, see our investor presentation for a reconciliation of GAAP to non-GAAP measures and business metric definitions, including adoption, the earnings press release and investor presentation are available on our website, investors.snowflake.com. A replay of today's call will also be posted on the website. With that, I would now like to turn the call over to Sridhar. Sridhar Ramaswamy (CEO): Thanks, Jimmy, and hi, everyone. Thanks for joining us today. As you've seen by now, we had another strong quarter beating guidance and increasing our FY '25 product revenue expectations. I'm really proud of the team and how we accelerated our innovation pipeline. Our product delivery momentum continues to be really strong. In the first half of this year alone, we brought as much product to market as we did all of last year. We are making Snowflake the best cloud for computation, collaboration, and application on all data. We are leveraging the power of AI to make all of these easier to create, maintain, and use. This is what our team is aligned around, and I can tell you that our customers are adopting the new capabilities at an incredible rate. I have three key areas I'm personally focused on: listening to and learning from our customers, fueling innovation and product delivery, and driving execution and alignment within our go-to-market team. In Q2, we delivered on all fronts, which you can see in our results. Product revenue for the quarter was $829 million, up 30% year over year. Remaining performance obligations totaled $5.2 billion with year-over-year growth accelerating to 48%. Given the strong quarter, we are increasing our product revenue outlook for the year. Companies like Capital One, NBCU, Petco, Pfizer, Snapchat, and Western Union are all relying on Snowflake to help them fuel their businesses. I'm really encouraged by the strength of our core business and the rapid progress we have made on the AI front. I'm very optimistic about where we are going and the opportunities we have in front of us to deliver for our customers. In fact, the more I'm with our customers, the more I appreciate just how critical they are to their business and how much they're counting on us to be their trusted advisor in their AI data journey. Nothing brings to life how strong that trusted relationship is than when you go through challenges together. We obviously had some rough headlines in the quarter as some of our customers dealt with cybersecurity threats. As extensively reported, the issue wasn't on the Snowflake site. After multiple investigations by internal and external cybersecurity experts, we found no evidence that our platform was breached or compromised. However, we understand that when it comes to cybersecurity, we are all in it together. My one ask of all businesses around the world, whether they are a Snowflake customer or not, is to enable and enforce multi-factor authentication in your organization and ensure that you have network policies that are as strong as possible. Two things we at Snowflake have supported since 2016. There are a lot of bright spots in the quarter, none more than the time I spent with over 100 customers, many of them on my travels to the U.K., Germany, Canada, and across the U.S. And of course, at Snowflake summit in June. The affinity for our product is incredible. The consistent theme I hear from the C- ... [transcript truncated at 5,000 chars — full text available via API]