Snowflake Inc. · NYSE:SNOW

Snowflake — Investor Day (June 2022)

79 slides from Snowflake's investor day presentation, Jun 14, 2022

Slide 2: Safe Harbor
Safe Harbor Other than statements of historical fact, all statements contained in this presentation and Any future product or roadmap information (collectively, the “Roadmap”) in the Materials is intended to accompanying oral commentary (collectively, the “Materials”) are forward-looking statements
Slide 3: Agenda
Agenda Developing our Market through Mission Alignment Frank Slootman, Chairman and Chief Executive Officer Developing our Market through Product Innovation Christian Kleinerman, Senior Vice President of Product Customer Journey Thomas Mazzaferro, Chief Data & Innovation Officer, Western Union Chris
Slide 11: Developing Our Market Through Product Innovation
DEVELOPING OUR MARKET THROUGH PRODUCT INNOVATION CHRISTIAN KLEINERMAN Senior Vice President of Product © 2022 Snowflake Inc. All Rights Reserved
Slide 12: Data Cloud Elements of the Platform
ELEMENTS OF THE PLATFORM DATA CLOUD + CONTENT 3rd Party SaaS Data Data Partner Data Data Services Applications Customer Data © 2022 Snowflake Inc. All Rights Reserved 12
Slide 14: Journey to the Data Cloud
Journey to the Data Cloud On Premises 1st Gen Data Lakehouse Public Cloud The Data Cloud EDW Data Lake Single Engine All Workloads X X X X ✓ ✓ All Data Formats and Sources X ✓ ✓ ✓ ✓ ✓ Governed Business Continuity ✓ X X — ✓ ✓ Global Cross-Cloud X X X — ✓ ✓ Self-Managed X X — — ✓ ✓ Programmable X ✓ ✓
Slide 15: The Data Cloud
The Data Cloud The Data Cloud ✓ Single Engine All Workloads ✓ All Data Formats and Sources ✓ Governed Business Continuity CONTINUOUS, Global Cross-Cloud ✓ TRANSPARENT Self-Managed ✓ Platform Improvements Programmable ✓ Marketplace & Monetization ✓ © 2022 Snowflake Inc. All Rights Reserved 15
Slide 16: Workload Enablement – Innovation Areas
Workload Enablement – Innovation Areas EXTENDING DIFFERENTIATION EXPANDING MARKET OPPORTUNITY Enterprise Data Foundation Native Applications Bringing Development to the Data Cybersecurity Productizing Development Unistore © 2022 Snowflake Inc. All Rights Reserved 16
Slide 17: Enterprise Data Foundation
Enterprise Data Foundation Bring together all data and all workloads Key Customer Benefits • Improved speed and cost efficiency while supporting multiple workloads. • Achieve enterprise-wide data governance and reliability, regardless of where data physically resides. Investment Areas Performance &
Slide 18: Expanding to On-Premises Storage
PRIVATE PUBLIC GA PRIVATE SOON Expanding to On-Premises Storage Query S3-compatible storage in place, without moving the data. Enables easy read and write to on-premises data. Significant expansion of the Data Cloud. © 2022 Snowflake Inc. All Rights Reserved 18
Slide 19: Iceberg Tables
PRIVATE PUBLIC GA PRIVATE SOON Iceberg Tables New table type that brings the choice of Apache Iceberg to the Snowflake platform = 1st Class Table Full Platform Interoperable Iceberg tables offer the Snowflake platform features Iceberg tables use open same management, DML, just work (encryption, meta
Slide 20: Bring Development to the Data
Bring Development to the Data Expanded programmability for developers, data scientists, and data engineers Key Customer Benefits • Accelerate development with immediate access to trusted, live data. • Remove friction from development workflows while providing familiar frameworks and tools. Investmen
Slide 21: Native Streamlit Integration
*IN DEV PRIVATE PUBLIC GA Native Streamlit Integration Native Streamlit integration in Snowflake makes it easy to: • Build apps and experiences in Python from Snowflake worksheets. • Deploy and run them on Snowflake. • Securely collaborate with other users. © 2022 Snowflake Inc. All Rights Reserved
Slide 22: Productize Development
Productize Development Accelerate the path to distribute and monetize insights in the Data Cloud Key Customer Benefits • Collaborate while preserving privacy. • Build products faster with built-in monetization capabilities. • Reach new audiences and drive growth by listing data, functions, and appli
Slide 23: Native Applications
PRIVATE PUBLIC GA Native Applications Build, Monetize, and Deploy Natively in the Data Cloud Build Faster Drive Revenue Deploy Natively Build apps using Snowflake Distribute and monetize Install and run applications functionalities like UDFs, on Snowflake Marketplace within Snowflake customer’s stor
Slide 26: Snowflake for Cybersecurity
Snowflake for Cybersecurity Protect your enterprise with near-unlimited visibility, powerful analytics, and an ecosystem of cybersecurity partners Near-Unlimited Powerful Growing Ecosystem Visibility Analytics of Connected Apps Eliminate silos and break free from Combine security logs with Bring sec
Slide 27: Deployed at Leading Companies
Deployed at Leading Companies “ Snowflake has transformed the way we view and address security risks. Our near real-time risk reporting drives prioritization and focus. You can’t argue with facts that are backed by data. Marlys Rodgers CISO, CSAA Insurance Group © 2022 Snowflake Inc. All Rights Rese
Slide 29: Unistore
Unistore A modern approach to working with transactional and analytical data together in a single platform Transactional Analytics on All in Workloads Transactional Data Snowflake Fast single-row operations for Run fast analytical queries on Use Snowflake’s trusted enterprise transactional app trans
Slide 30: Leading Companies in Preview
Leading Companies in Preview “ We look forward to seeing how Unistore will enhance the ability of Adobe Campaign to unlock even more possibilities for our customers to do personalization at scale. Nick Hall Senior Director, Adobe Campaign & Managed Cloud Services © 2022 Snowflake Inc. All Rights Res
Slide 32: Data Cloud Growth
Data Cloud Growth April 2020* April 2022** * Visualization based on actual Data Cloud sharing activity as of April 30, 2020 **Visualization based on actual Data Cloud sharing activity as of April 30, 2022. © 2022 Snowflake Inc. All Rights Reserved 32
Slide 36: FY22 Highlights
FY22 Highlights $1.1B +100% Crossed $1B in Product Revenue growing Product Revenue 106% year-over-year ~1,500 $150M Onboarded net First year of positive ~1,500 employees non-GAAP adjusted free cash flow © 2022 Snowflake Inc. All Rights Reserved Note: Fiscal year ends January 31, 2022. Please see the
Slide 37: Growing Market
Growing Market Database Management Systems as a % of Total Software Spend 17% 13% 11% CY16 CY21 CY26E Note: Calendar year ends December 31. Charts/graphics created by Snowflake based on Gartner research. Source: Gartner, Forecast: Enterprise Infrastructure Software, Worldwide, 2020-2026, 1Q22 Update
Slide 38: Secular Tailwinds
Secular Tailwinds CY20 CY25E Cloud as a % of DBMS 41% 71% CY20 CY25E OLAP as a % of DBMS 45% 56% Note: Calendar year ends December 31. Charts/graphics created by Snowflake based on Gartner research. Source: Forecast: Public Cloud Services, Worldwide, 2019-2025, 3Q21. Calculations performed by Snowfl
Slide 39: Significant Market Opportunity
Significant Market Opportunity CY26 Cloud Data Platform TAM by Workload ($ 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 creat
Slide 40: Developing the Data Cloud Opportunity
Developing the Data Cloud Opportunity Data Cloud $248B Cloud Data Platform Note: The Data Cloud graphic is for illustrative purposes only and not a representation of actual Data Cloud market size. © 2022 Snowflake Inc. All Rights Reserved 40
Slide 42: Profile of Customers Over $1M Product Revenue
Profile of Customers Over $1M Product Revenue1 Global 20001 Enterprise Corporate By Size 45% 57% 1% Data Sharing1 Powered By Snowflake By Behavior 63% 9% Note: As of April 30, 2022. 1. See definitions provided in the Appendix. © 2022 Snowflake Inc. All Rights Reserved 42
Slide 43: Targeting the Largest Organizations
Targeting the Largest Organizations Global 2000 Customer Count1 490 506 453 468 403 415 366 333 299 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Note: Fiscal year ends January 31. 1. See definitions provided in the Appendix. © 2022 Snowflake Inc. All Rights Reserved 43
Slide 44: Replacing a Fragmented Vendor Landscape
Replacing a Fragmented Vendor Landscape Cloud On-Premise Migrations1 by Type 44% 56% Data Warehouse Mixed OLTP/OLAP Big Data On-Premise Migrations1 by Vendor 12% 73% 15% Note: As of April 30, 2022. 1. See definitions provided in the Appendix. © 2022 Snowflake Inc. All Rights Reserved 44
Slide 45: Customers Start Small…
Customers Start Small… Median Initial Capacity Contract Size for Customers Over $1M Product Revenue1 ($ Thousands) $180 $100 $100 FY18 FY19 FY20 Note: Fiscal year ends January 31. Customers Over $1M Product Revenue as of April 30, 2022. 1. See definitions provided in the Appendix. © 2022 Snowflake I
Slide 46: … And Expand
… And Expand Net Revenue Retention Rate1 177% 169% 168% Q4 FY20 Q4 FY21 Q4 FY22 Note: Fiscal year ends January 31. 1. See definitions provided in the Appendix. © 2022 Snowflake Inc. All Rights Reserved 46
Slide 47: Expansion through Consolidation
Expansion through Consolidation Telecom Customer A Quarterly Compute Credit Consumption 6x Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Quarter 6 Quarter 7 Quarter 8 Quarter 9 On-prem DW Big Data Cloud DW On-prem DW Note: Fiscal year ends January 31. Amounts presented are for each fiscal quarte
Slide 48: Expansion through New Use Cases
Expansion through New Use Cases Healthcare Customer B Quarterly Compute Credit Consumption 5x Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Quarter 6 Note: Fiscal year ends January 31. Amounts presented are for each fiscal quarter. Add Data Engineering Workload © 2022 Snowflake Inc. All Rights R
Slide 49: Expansion through New Use Cases
Expansion through New Use Cases Financial Services Customer C Quarterly Compute Credit Consumption 3x Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Note: Fiscal year ends January 31. Amounts presented are for each fiscal quarter. Add Data Science Workload © 2022 Snowflake Inc. All Rights Reserve
Slide 50: Average Spend from Our Largest Customers
Average Spend from Our Largest Customers Average TTM Product Revenue for Customers Over $1M Product Revenue1 $3,660 ($ Thousands) $3,475 $3,467 $3,478 $3,395 $3,243 $3,250 $3,230 $3,194 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Note: Fiscal year ends January 31. Custome
Slide 51: Undersized in Our Largest Accounts
Undersized in Our Largest Accounts Average TTM Product Revenue for Global 2000 Customers1 ($ Thousands) $1,005 $894 $791 $685 $630 $540 $493 $417 $449 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Note: Fiscal year ends January 31. Global 2000 customers are as of the end of
Slide 53: Price per Credit Fuels Product Gross Margin Expansion
Price per Credit Fuels Product Gross Margin Expansion Year-Over-Year Percent Increase in Compute Price Per Credit 12% 8% 4% FY20 FY21 FY22 Note: Fiscal year ends January 31. © 2022 Snowflake Inc. All Rights Reserved 53
Slide 54: Enterprise Success Supports Higher Price per Credit
Enterprise Success Supports Higher Price per Credit Consumption Mix by Edition1 6% Virtual Private Snowflake 14% 9% 41% Business Critical 34% 25% 33% 38% 42% Enterprise 28% 19% 11% Standard FY20 FY21 FY22 Note: Fiscal year ends January 31. 1. See definitions provided in the Appendix. © 2022 Snowflak
Slide 55: Large Customers Offer Operating Leverage
Large Customers Offer Operating Leverage Customers Over $1M Product Revenue1 206 Customers >$20M TTM Product Revenue 184 Customers >$10M TTM Product Revenue Customers >$5M TTM Product Revenue Customers >$1M TTM Product Revenue 79 40 30 12 9 10 1 4 4 5 FY21 FY22 Q1 FY23 Note: Fiscal year ends January
Slide 56: Large Deals Boost Non-GAAP Adjusted Free Cash Flow
Large Deals Boost Non-GAAP Adjusted Free Cash Flow Deals >$1M in TCV1 153 84 84 78 68 71 48 41 19 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Note: Fiscal year ends January 31. 1. See definitions provided in the Appendix. © 2022 Snowflake Inc. All Rights Reserved 56
Slide 58: Verticalized Sales Force
Verticalized Sales Force Industry-specific approach for the largest 250 customer accounts in the US VERTICALS Enterprise customers outside of Verticals accounts ENTERPRISES Customers with 500 employees or less CORPORATE On-Demand © 2022 Snowflake Inc. All Rights Reserved 58
Slide 59: Investing in Sales Headcount
Investing in Sales Headcount +61% +28% +125% +83% +275% FY22 FY20 Verticals Enterprise Corporate EMEA APJ Industry-specific US enterprise Customers approach for the customers with 500 largest 250 outside of employees or accounts in the Verticals less US accounts © 2022 Snowflake Inc. All Rights Rese
Slide 62: Building an Ecosystem with Snowflake Ventures
Building an Ecosystem with Snowflake Ventures Data Data Data Data Data Science Analytics Visualization Security Governance Vertical © 2022 Snowflake Inc. All Rights Reserved 62
Slide 65: Time to Ramp
Time to Ramp Dollar-Weighted Average Time from Start Date to Contract Consumption Run Rate (Days)1 281 243 236 229 231 226 223 221 210 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY20 FY21 FY22 Cohort Note: Fiscal year ends January 31. 1. See definitions provided in the Appendix. © 2022 Snowflake Inc. All Rights Res
Slide 67: Customer Optimizations
Customer Optimizations Retail Customer D Quarterly Product Revenue ($ Millions) Product Revenue ($ in millions) 1 Year 2 Years Pre-Optimization Forecast $7 $18 Actual $8 $28 Net Impact $1 $10 Optimization Pre-Optimization Forecast Actual Product Revenue Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarte
Slide 68: Customer Optimizations
Customer Optimizations Telecom Customer A Quarterly Product Revenue ($ Millions) Product Revenue ($ in millions) 1 Year 2.5 Years Pre-Optimization Forecast $22 $65 Actual + Current Forecast $15 $70 Net Impact ($7) $5 Optimization Optimization Pre-Optimization Forecast Actual Product Revenue Quarter
Slide 69: Customers Over $1M Product Revenue Framework
Customers Over $1M Product Revenue Framework FY21 FY22 FY29 Target Customers Over $1M Product Revenue1 79 184 ~1,400 Average Product Revenue Per Customer Over $1M Product Revenue1 $3.4M $3.5M ~$5.5M % of Product Revenue from Customers Over $1M Product Revenue1 48% 56% ~77% Product Revenue $554M $1,1
Slide 70: Long-Term Operating Model
Long-Term Operating Model FY21 FY22 Prior FY29 Target FY29 Target Product Revenue ($M) $554 $1,140 ~$10,000 ~$10,000 Product Revenue Growth 120% 106% ~30% ~30% Non-GAAP Product Gross Margin1 69% 74% ~75% ~78% % of Revenue Non-GAAP R&D1 23% 18% ~15% ~15% Non-GAAP S&M1 63% 43% ~40% ~35% Non-GAAP G&A1
Slide 73: Statement Regarding Use of Non-GAAP Financial Measures
Statement Regarding Use of Non-GAAP Financial Measures Our non-GAAP product gross profit, operating income (loss), and net income Adjusted free cash flow is defined as free cash flow plus (minus) net cash (loss) measures exclude the effect of stock-based compensation-related paid (received) on empl
Slide 74: 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 75: Definitions
Definitions Dollar-Weighted Average Time From Start Date to Contract Consumption Run Rate: To calculate the dollar-weighted average time from start date to contract consumption run rate, we first specify a cohort of customers consisting of customers whose initial capacity contract start date occurre
Slide 76: Definitions
Definitions CY26 Cloud Data Platform TAM by Workload: To calculate this forward-looking total addressable market, we have mapped certain Gartner market opportunities to Snowflake workloads as follows: Gartner Source Gartner Market Snowflake Workload Data Warehouse Enterprise_Infrastructure_SW_Foreca
Slide 77: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Product Gross Profit and Sales & Marketing FY20 FY21 FY22 Product revenue $252,229 $553,794 $1,140,469 Professional service and other revenue 12,519 38,255 78,858 Revenue $264,748 $592,049 $1,219,327 Gross Profit GAAP product gross profit $155,607 $359,959 $792,652 G
Slide 78: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Research & Development and General & Administrative FY20 FY21 FY22 Product revenue $252,229 $553,794 $1,140,469 Professional service and other revenue 12,519 38,255 78,858 Revenue $264,748 $592,049 $1,219,327 Research & Development GAAP R&D expense $105,160 $237,946
Slide 79: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Operating Loss, Free Cash Flow, and Adjusted Free Cash Flow FY20 FY21 FY22 Product revenue $252,229 $553,794 $1,140,469 Professional service and other revenue 12,519 38,255 78,858 Revenue $264,748 $592,049 $1,219,327 Operating Loss GAAP operating loss $(358,088) $(54

Snowflake — Investor Day (June 2022) on 6ix

Snowflake — Investor Day (June 2022)

Slide 1: Snowflake Investor Day 2022

Slide 2: Safe Harbor

Slide 3: Agenda

Slide 4: Developing Our Market Through Mission Alignment

Slide 5: Where We've Been

Slide 6: Where We're Going

Slide 7: Mission Alignment at GEICO

Slide 8: Mission Alignment at Novartis

Slide 9: Mission Alignment at Kraft Heinz

Slide 10: Empowered by Workload Enablement

Slide 11: Developing Our Market Through Product Innovation

Slide 12: Data Cloud Elements of the Platform

Slide 13: Snowflake Platform

Slide 14: Journey to the Data Cloud

Slide 15: The Data Cloud

Slide 16: Workload Enablement – Innovation Areas

Slide 17: Enterprise Data Foundation

Slide 18: Expanding to On-Premises Storage

Slide 19: Iceberg Tables

Slide 20: Bring Development to the Data

Slide 21: Native Streamlit Integration

Slide 22: Productize Development

Slide 23: Native Applications

Slide 24: © 2022 Snowflake Inc. All Rights Reserved

Slide 25: New Workload

Slide 26: Snowflake for Cybersecurity

Slide 27: Deployed at Leading Companies

Slide 28: New Workload

Slide 29: Unistore

Slide 30: Leading Companies in Preview

Slide 31: Snowflake Platform

Slide 32: Data Cloud Growth

Slide 33: Snowflake Innovation

Slide 34: Customer Journey

Slide 35: Executing Against the Opportunity

Slide 36: FY22 Highlights

Slide 37: Growing Market

Slide 38: Secular Tailwinds

Slide 39: Significant Market Opportunity

Slide 40: Developing the Data Cloud Opportunity

Slide 41: Growth Drivers

Slide 42: Profile of Customers Over $1M Product Revenue

Slide 43: Targeting the Largest Organizations

Slide 44: Replacing a Fragmented Vendor Landscape

Slide 45: Customers Start Small…

Slide 46: … And Expand

Slide 47: Expansion through Consolidation

Slide 48: Expansion through New Use Cases

Slide 49: Expansion through New Use Cases

Slide 50: Average Spend from Our Largest Customers

Slide 51: Undersized in Our Largest Accounts

Slide 52: Profitability Drivers

Slide 53: Price per Credit Fuels Product Gross Margin Expansion

Slide 54: Enterprise Success Supports Higher Price per Credit

Slide 55: Large Customers Offer Operating Leverage

Slide 56: Large Deals Boost Non-GAAP Adjusted Free Cash Flow

Slide 57: Going Forward

Slide 58: Verticalized Sales Force

Slide 59: Investing in Sales Headcount

Slide 60: Focus on Workload Enablement

Slide 61: Expanding Geographically

Slide 62: Building an Ecosystem with Snowflake Ventures

Slide 63: Priorities

Slide 64: Long-Term Model

Slide 65: Time to Ramp

Slide 66: Performance Improvements

Slide 67: Customer Optimizations

Slide 68: Customer Optimizations

Slide 69: Customers Over $1M Product Revenue Framework

Slide 70: Long-Term Operating Model

Slide 71: Q&A

Slide 72: Appendix

Slide 73: Statement Regarding Use of Non-GAAP Financial Measures

Slide 74: Definitions

Slide 75: Definitions

Slide 76: Definitions

Slide 77: GAAP to Non-GAAP Reconciliations

Slide 78: GAAP to Non-GAAP Reconciliations

Slide 79: GAAP to Non-GAAP Reconciliations