SNOW Q3 2025 Earnings

Call Details

• Call Title: Snowflake Inc. Q3 2025 Earnings Call
• Date: November 20, 2024 at 10:00 PM UTC
• Management Team:
  • Sridhar Ramaswamy (Chief Executive Officer)
  • Mike Scarpelli (Chief Financial Officer)
  • Christian Kleinerman (Executive Vice President of Product)
  • Jimmy Sexton (Head of Investor Relations)

Call Summary

Financial Performance

• Product revenue for Q3 was $900 million, representing 29% year-on-year growth.
• Remaining performance obligations (RPO) were $5.7 billion, with year-on-year growth accelerating to 55%.
• Net revenue retention rate stabilized at 127% for the trailing period reported.
• Non-GAAP product gross margin for Q3 was 76% and was stable sequentially.
• Non-GAAP operating margin improved to 6% in Q3, exceeding prior guidance.
• Non-GAAP adjusted free cash flow margin for Q3 was 9%.
• Cash, cash equivalents and investments ended the quarter at $5 billion.

Guidance

• Q4 product revenue is expected between $906 and $911 million, representing 23% year-on-year growth.
• Full-year FY25 product revenue guidance was raised to approximately $3.43 billion, representing 29% year-on-year growth.
• FY25 non-GAAP product gross margin guidance was increased to 76%.
• FY25 non-GAAP operating margin guidance was set to approximately 5%.
• FY25 non-GAAP adjusted free cash flow margin guidance is approximately 26% for the year.
• The company will not separately disclose assumptions for product efficiency headwinds going forward.