Slide 1: Snowflake Investor Presentation Third Quarter Fiscal 2023
SNOWFLAKE INVESTOR PRESENTATION Third Quarter Fiscal 2023 © 2022 Snowflake Inc. All Rights Reserved
Slide 2: Safe Harbor and Other Information
Safe Harbor and Other Information Other than statements of historical fact, all information contained in this presentation, including statements regarding our future operating results and financial position, our business strategy and plans, product, service, and technology offerings, market growth a
Slide 3: Statement Regarding Use of Non-GAAP Financial Measures
Statement Regarding Use of Non-GAAP Financial Measures This presentation also includes certain non-GAAP financial measures, which have not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). These non-GAAP financial measures are in addition to, and
Slide 4: Legacy Solutions Led to a Proliferation of Data Silos
Legacy Solutions Led to a Proliferation of Data Silos Sales Suppliers Third-Party Web/ Enterprise Finance IoT Log Data Applications Agencies Product OLTP Usage Databases © 2022 Snowflake Inc. All Rights Reserved 4
Slide 5: Journey to the Data Cloud
Journey to the Data Cloud All Data Single Engine Governed Globally Connected Self-Managed Data Lakehouse Public Programmable Cloud On-Prem 1st Gen EDW Data Lake Marketplace & Monetization © 2022 Snowflake Inc. All Rights Reserved 5
Slide 6: Elements of the Data Cloud
Elements of the Data Cloud Platform Connecting you to the most relevant content, powered by a single platform 3rd Party SaaS Customer Data Data Data Data + Services Partner Applications Data Data Services + Apps © 2022 Snowflake Inc. All Rights Reserved 6
Slide 7: The Data Cloud
THE DATA CLOUD A software company runs and monetizes their application using on- platform usage-based billing. THOUSANDS OF COVID-19 data is available live on Snowflake Marketplace from open ORGANIZATIONS data providers COLLABORATING WITH THEIR Today’s financial data can be purchased and accessed EC
Slide 8: Snowflake Platform
Snowflake Platform © 2022 Snowflake Inc. All Rights Reserved 8
Slide 9: Expanding Partner Ecosystem
Expanding Partner Ecosystem © 2022 Snowflake Inc. All Rights Reserved 9
Slide 10: Customer Depth Across Industries
Customer Depth Across Industries ADVERTISING, FINANCIAL MEDIA, AND HEALTHCARE & SERVICES TECHNOLOGY ENTERTAINMENT RETAIL & CPG LIFE SCIENCES © 2022 Snowflake Inc. All Rights Reserved 10
Slide 11: The Next Wave of Innovation
The Next Wave of Innovation © 2022 Snowflake Inc. All Rights Reserved
Slide 12: Significant Market Opportunity
Significant Market Opportunity CY26 Platform TAM by Workload ($ in Billions) Data Warehouse, $173 Data Lake, $10 Cybersecurity Unistore $248 Cloud Data Platform Collaboration, Data Science & ML, $14 Data Engineering $51 Applications Note: Calendar year ends December 31. Charts/graphics created by Sn
Slide 13: Financial Overview
FINANCIAL OVERVIEW © 2022 Snowflake Inc. All Rights Reserved
Slide 14: Q3 Financial Highlights
Q3 Financial Highlights Rapid Growth at Scale 67% Y/Y PRODUCT REVENUE GROWTH Significant Expansion with Existing Customers 165% NET REVENUE RETENTION Strong Large Customer Momentum 287 $1M+ PRODUCT REVENUE CUSTOMERS Improving Product Gross Margin 75% NON-GAAP PRODUCT GROSS MARGIN Note: Fiscal year e
Slide 15: Our Consumption Model
Our Consumption Model Revenue Recognition Pricing Model Billings Terms Consumption Consumption Typically Upfront Snowflake recognizes the substantial The platform is priced based on Snowflake typically bills customers majority of its revenue as customers consumption of compute, storage, annually in
Slide 16: We Focus on Product Revenue and RPO
We Focus on Product Revenue and RPO Product Revenue Product Revenue is the leading indicator of growth Consume Consumption patterns 4 dictate Remaining Performance future bookings Obligations (RPO) 3 Customers’ draw down RPO represents contracted future from bookings as they consume revenue not yet
Slide 17: Strong Combination of Scale & Growth
Strong Combination of Scale & Growth Annual Revenue (Millions) Quarterly Revenue (Millions) $557 $1,219 67% Y/Y Growth $497 $34 $79 $422 $31 106% Y/Y Growth $384 $28 $334 $24 $22 $592 $523 $1,140 $466 $38 $394 $360 $312 $554 FY21 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Product Revenue Professio
Slide 18: Significant Customer Commitments
Significant Customer Commitments Remaining Performance Obligations1 (Millions) $3,003 $2,646 $2,716 $2,610 $1,804 55% 57% 52% 53% 55% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Expect to Recognize as Revenue in the Next Twelve Months RPO Note: Fiscal year ends January 31. Numbers are rounded for presen
Slide 19: Large Customer Momentum
Large Customer Momentum Total Customers1 Customers Over $1M Product Revenue1 34% Y/Y Growth 7,292 6,818 6,333 5,966 287 5,432 94% 246 Y/Y Growth 206 184 148 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Note: Fiscal year ends January 31. 1. See definitions provided
Slide 20: Landing Strategic Customers
Landing Strategic Customers Forbes Global 2000 Customers1 18% Y/Y Growth 543 515 501 486 462 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Note: Fiscal year ends January 31. 1. See definitions provided in the Appendix. © 2022 Snowflake Inc. All Rights Reserved 20
Slide 21: World-Class Retention Rate
World-Class Retention Rate Dollar-Based Net Revenue Retention Rate1 177% 174% 172% 171% 165% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Note: Fiscal year ends January 31. 1. See definitions provided in the Appendix. © 2022 Snowflake Inc. All Rights Reserved 21
Slide 22: Improving Product Gross Margin
Improving Product Gross Margin Non-GAAP Product Gross Margin1 Expansion Drivers 75% Cloud agreement pricing 74% Scale Product improvements Enterprise customer success 6 Percentage Points Non-GAAP Product Gross 69% Margin Expansion FY21 FY22 FY23 YTDYTD FY23 Note: Fiscal year ends January 31. Numbers
Slide 23: Operating Leverage While Investing in Growth
Operating Leverage While Investing in Growth Non-GAAP Operating Non-GAAP Adjusted FCF Leverage Drivers Expenses as % of Revenue1 as % of Revenue1 Significantly Improved Revenue growth Operating Leverage 17% 21% Economies of scale 23% Larger customer 12% 9% 12% relationships 18% 17% Larger renewal mi
Slide 24: Focus on Free Cash Flow Generation
Focus on Free Cash Flow Generation Non-GAAP Free Cash Flow1 & Non-GAAP Adjusted Free Cash Flow1 (Millions) Free Cash Flow Adjusted Free Cash Flow $181 $172 $102 $71 $65 $65 $59 $54 $22 $9 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Note: Fiscal year ends January 31. Numbers are rounded for presentation
Slide 25: Hiring to Address our Opportunity
Hiring to Address our Opportunity Employee Headcount by Function 5,547 4,991 801 4,559 722 3,992 644 886 3,557 845 591 778 523 1,235 722 1,007 657 890 788 705 2,417 2,625 2,247 1,672 1,891 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 S&M R&D G&A Cost of Revenue © 2022 Snowflake Inc. All Rights Reserved 2
Slide 26: Expanding Internationally
Expanding Internationally Revenue Mix by Geography 4% 4% 4% 5% 5% 14% 14% 14% 14% 14% 82% 82% 82% 81% 81% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Americas EMEA APJ Note: Numbers are rounded for presentation purposes. We attribute revenue to the Americas, EMEA, and APJ regions, as applicable, based o
Slide 27: Data Cloud Metrics
Data Cloud Metrics DATA SHARING MARKETPLACE POWERED BY LISTINGS1 SNOWFLAKE 22% 1,702 709 Of Customers1 Have at ≥1 11% Q/Q Growth Registrants Stable Edge1 20% Q/Q Growth Note: All figures are as of October 31, 2022. 1. See definitions provided in the Appendix. © 2022 Snowflake Inc. All Rights Reserve
Slide 28: Fiscal 2023 Guidance
Fiscal 2023 Guidance FY23 Guidance FY20 FY21 FY22 Midpoint FY29 Target Product Revenue ($M) $252 $554 $1,140 $1,922 ~$10,000 Y/Y Product Revenue Growth 164% 120% 106% 68% ~30% Non-GAAP Product Gross Profit1 62.8% 68.7% 74.1% 75% ~78% Non-GAAP Operating Income (Loss)1 (105)% (38)% (3)% 3% ~20% Non-GA
Slide 29: Appendix
APPENDIX © 2022 Snowflake Inc. All Rights Reserved
Slide 30: Definitions
Definitions Customers with Trailing 12-Month Product Revenue Greater than $1M. To calculate the number of customers with trailing 12-month product revenue greater than $1 million, we count the number of customers under capacity arrangements that contributed more than $1 million in product revenue in
Slide 31: Definitions
Definitions Total Customers. We count the total number of customers at the end of each period. For purposes of determining our customer count, we treat each customer account, including accounts for end-customers under a reseller arrangement, that has at least one corresponding capacity contract as a
Slide 32: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Product Gross Profit, Sales & Marketing, Research & Development Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 FY21 FY22 FY23 YTD Product revenue $ 312,458 $ 359,558 $ 394,434 $ 466,268 $ 522,752 $ 553,794 $ 1,140,469 $ 1,383,454 Professional service and other revenue 21,98
Slide 33: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations General & Administrative and Operating Income (Loss) Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 FY21 FY22 FY23 YTD Product revenue $ 312,458 $ 359,558 $ 394,434 $ 466,268 $ 522,752 $ 553,794 $ 1,140,469 $ 1,383,454 Professional service and other revenue 21,983 24,216 27
Slide 34: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Net Income (Loss) and Net Income (Loss) Attributable to Snowflake Inc. Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 FY21 FY22 FY23 YTD Product revenue $ 312,458 $ 359,558 $ 394,434 $ 466,268 $ 522,752 $ 553,794 $ 1,140,469 $ 1,383,454 Professional service and other revenu
Slide 35: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Net Income (Loss) Per Share, Free Cash Flow and Adjusted Free Cash Flow Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 FY21 FY22 FY23 YTD Product revenue $ 312,458 $ 359,558 $ 394,434 $ 466,268 $ 522,752 $ 553,794 $ 1,140,469 $ 1,383,454 Professional service and other reven
Slide 36: respond to each required question in the survey or (ii) submit a complete set
1. For the three months ended July 31, 2022. 2. As of July 31, 2022. Please see our Q2 FY23 earnings press release for definitions of net revenue retention rate, total customers, and customers with trailing 12-month product revenue greater than $1 million. 3. As of July 31, 2022. Based on the 2022 F
Slide 37: Thank You
THANK YOU © 2022 Snowflake Inc. All Rights Reserved