SNOW Q3 2023 Earnings

Call Details

• Call Title: Snowflake Inc. Q3 2023 Earnings Call
• Date: November 30, 2022 at 10:00 PM UTC
• Management Team:
  • Jimmy Sexton (Head of Investor Relations)
  • Frank Slootman (Chairman and Chief Executive Officer)
  • Mike Scarpelli (Chief Financial Officer)
  • Christian Kleinerman (Senior Vice President of Product)

Call Summary

Financial Performance

• Q3 product revenue was $523 million, representing 67% year-over-year growth on a reported basis.
• Remaining performance obligations (RPO) totaled $3 billion, up 66% year-over-year.
• Of the $3 billion in RPO, the company expects approximately 55% to be recognized as revenue in the next 12 months, a 68% increase compared to its estimate as of the same quarter last year.
• Non-GAAP product gross margin was 75% in the quarter and non-GAAP operating margin was 8% in the quarter.
• Adjusted free cash flow margin on a non-GAAP basis was 12% in the quarter.
• Cash and short- and long-term investments totaled $4.9 billion at quarter end.
• Product revenue from the Global 2000 outpaced the company and grew 14% sequentially in the quarter.

ARR / Recurring Revenue Growth

• Annual recurring revenue (ARR) was not disclosed on the call.
• RPO increased 66% year-over-year to $3 billion, which the company uses as a leading indicator of recurring revenue.
• Net revenue retention rate was 165% as reported for the quarter.
• The company added 28 Global 2000 customers in the quarter, which it described as its largest quarterly addition in the last five periods.
• Average trailing 12-month product revenue for Global 2000 customers was $1.3M compared to $3.7M for customers with over $1M in trailing 12-month product revenue.
• 66% of customers with over $1M in trailing 12-month product revenue were reported to have at least one stable edge.