SNOW Q4 2024 Earnings

Call Details

• Call Title: Snowflake Inc. Q4 2024 Earnings Call
• Date: February 28, 2024 at 10:00 PM UTC
• Management Team:
  • Katherine McCracken (Senior Manager, Investor Relations)
  • Frank Slootman (Chairman and Chief Executive Officer)
  • Sridhar Ramaswamy (Chief Executive Officer)
  • Mike Scarpelli (Chief Financial Officer)
  • Christian Kleinerman (Executive Vice President of Product)

Call Summary

Financial Performance

• Fiscal 2024 product revenue grew 38% year-over-year to $2.67B.
• Q4 product revenue was $738M, which was up 33% year-over-year.
• Remaining performance obligations were $5.2B, which was up 41% year-over-year.
• Non-GAAP product gross margin expanded to 77.8% for FY24 and was approximately 78% in Q4, which was up about 300 basis points year-over-year.
• Non-GAAP adjusted free cash flow was $810M for the year, representing 56% year-over-year growth.
• Cash, cash equivalents and investments ended the quarter at $4.8B.
• Q4 included Snowflake's largest deal to date, a five-year $250M contract with an existing customer.

Guidance

• For Q1 FY25, product revenue is expected between $745M and $750M, representing year-over-year growth of 26% to 27%.
• For full-year FY25, product revenue is expected to be approximately $3.25B, representing year-over-year growth of 22%.
• Snowpark is expected to contribute approximately 3% of product revenue in FY25.
• Full-year FY25 targets include non-GAAP product gross margin of 76% and non-GAAP operating margin of 6%.
• Full-year FY25 non-GAAP adjusted free cash flow margin is expected to be 29%.
• Diluted weighted average shares outstanding are expected to be approximately $368M for FY25.
• The FY25 forecast assumes customer behavior similar to fiscal 2024 and does not include potential revenue benefits from new product initiatives coming to GA.
• Forecasted FY25 assumptions include approximately $50M of GPU-related costs, with approximately $10M flowing through cost of product revenue.
• The company expects approximately $30M of P&L impact from consumption-based commission expensing with no cash flow impact.