Slide 1: Snowflake Investor Presentation Third Quarter Fiscal 2024
SNOWFLAKE INVESTOR PRESENTATION Third Quarter Fiscal 2024 © 2023 Snowflake Inc. All Rights Reserved
Slide 2: Statement Regarding Use of Non-GAAP Financial Measures
Statement Regarding Use of Non-GAAP Financial Measures This presentation 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 not a
Slide 3: Safe Harbor
Safe Harbor Other than statements of historical fact, all statements contained in this presentation and accompanying oral Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge commentary (collectively, the “Materials”) are forward-looking statements (“
Slide 4: 2014: Mobilized Data
2014: MOBILIZED DATA Snowflake busted the limitations of fixed capacity on-prem environments. Separation of storage and compute. Workloads scale up and down, instantly and independently.
Slide 5: 2018: Connected Data
2018: CONNECTED DATA The Data Cloud connected all data, regardless of cloud provider or region, bringing work to the data. Single platform = single governance model.
Slide 6: 2022: Programmable Data
2022: PROGRAMMABLE DATA Snowpark for Python and other languages expanded the type of work possible on the platform. Build pipelines and apps with no governance tradeoffs. 7 @) DATA SCIENCE & ML ‘
Slide 7: Journey to the Data Cloud
Journey to the Data Cloud All Data Single Engine Governed Globally Connected Self-Managing Data Lakehouse Public Programmable Cloud On-Prem 1st Gen EDW Data Lake Marketplace & Monetization © 2023 Snowflake Inc. All Rights Reserved 7
Slide 8: One Platform
ONE PLATFORM © 2023 Snowflake Inc. All Rights Reserved 8
Slide 9: Powering Many Workloads
POWERING MANY WORKLOADS © 2023 Snowflake Inc. All Rights Reserved 9
Slide 10: Data Cloud Growth
Data Cloud Growth April 2020 October 2023 Note: Visualization based on actual Data Cloud sharing activity as of April 30, 2020 and October 31, 2023, respectively. © 2023 Snowflake Inc. All Rights Reserved 10
Slide 11: An Ever Expanding Partner Ecosystem
An Ever Expanding Partner Ecosystem © 2023 Snowflake Inc. All Rights Reserved 11
Slide 12: Proven by Thousands of Customers
Proven by Thousands of Customers © 2023 Snowflake Inc. All Rights Reserved 12
Slide 13: Financial Overview
FINANCIAL OVERVIEW © 2023 Snowflake Inc. All Rights Reserved
Slide 14: Q3 Financial Highlights
Q3 Financial Highlights Rapid Growth at Scale 34% Y/Y PRODUCT REVENUE GROWTH1 Significant Expansion with Existing Customers 135% NET REVENUE RETENTION1 Strong Large Customer Momentum 436 $1M+ PRODUCT REVENUE CUSTOMERS1 Improving Product Gross Margin 78% NON-GAAP PRODUCT GROSS MARGIN Note: Fiscal yea
Slide 15: 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) RPO represents contracted future 3 Customers’ draw down from bookings as they consume revenue not yet
Slide 16: 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 17: Strong Combination of Scale & Growth
Strong Combination of Scale & Growth Annual Revenue (Millions) Quarterly Revenue (Millions) $2,066 $734 69% Y/Y 32% Y/Y Growth Growth $674 $624 $1,219 $589 $557 $1,939 $698 $592 $640 $1,140 $590 $555 $523 $554 FY21 FY22 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Product Revenue Professional Servic
Slide 18: Significant Customer Commitments
Significant Customer Commitments Remaining Performance Obligations1 (Millions) $3,661 $3,699 $3,540 $3,409 $3,003 55% 57% 57% 57% 55% Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Expect to Recognize as Revenue in the Next Twelve Months RPO Note: Fiscal year ends January 31. Numbers are rounded for presen
Slide 19: Landing Strategic Organizations
Landing Strategic Organizations Total Customers1 Forbes Global 2000 Customers1 645 647 8,907 8,528 623 8,132 614 7,776 586 7,212 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Note: Fiscal year ends January 31. 1. See definitions provided in the Appendix. © 2023 Snow
Slide 20: Adding Quality Customers
Adding Quality Customers Customers Over $1M Product Revenue1 52% Y/Y Growth 436 401 373 332 287 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Note: Fiscal year ends January 31. 1. See definitions provided in the Appendix. © 2023 Snowflake Inc. All Rights Reserved 20
Slide 21: World-Class Retention Rate
World-Class Retention Rate Net Revenue Retention Rate1 178% 175% 169% 172% 172% 164% 165% 166% 166% 158% 151% 142% 135% Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Note: Fiscal year ends January 31. 1. See definitions provided in the Append
Slide 22: Improving Product Gross Margin
Improving Product Gross Margin Non-GAAP Product Gross Margin1 Expansion Drivers 78.3% • Cloud agreement pricing • Product improvements • Scale 75.4% • Enterprise customer success 3.7 Percentage 74.6% Points Q3 FY22 Q3 FY23 Q3 FY24 Note: Fiscal year ends January 31. 1. Please see the Appendix for a r
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 15% 3 Percentage • Revenue Growth Points • Economies of Scale 12% 68% 65% • Larger Customer 63% 11% 7% Relationships 8% 17% 18% 21% • Larger Renewal Mix 9
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 $283 $287 $215 $205 $111 $102 $88 $65 $65 $69 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Note: Fiscal year ends January 31. Numbers are rounded for presentat
Slide 25: Hiring to Address our Opportunity
Hiring to Address our Opportunity Employee Headcount by Function 6,659 6,783 6,310 5,884 925 925 5,547 907 861 989 801 950 925 907 886 1,805 1,891 1,612 1,378 1,235 2,625 2,738 2,866 2,979 2,978 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 S&M R&D G&A Cost of Revenue Note: Fiscal year ends January 31. ©
Slide 26: Expanding Internationally
Expanding Internationally Revenue Mix by Geography 5% 4% 5% 5% 5% 14% 15% 15% 16% 15% 81% 81% 80% 79% 80% Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Americas EMEA APJ Note: Fiscal year ends January 31. Numbers are rounded for presentation purposes. We attribute revenue to the Americas, EMEA, and APJ re
Slide 27: Data Cloud Metrics
Data Cloud Metrics DATA SHARING1 MARKETPLACE LISTINGS1 28% 2,332 Of Customers1 Have at ≥1 Stable 9% Q/Q Growth Edge1 Note: All figures are as of October 31, 2023. 1. See definitions provided in the Appendix. © 2023 Snowflake Inc. All Rights Reserved 27
Slide 28: Fiscal 2024 Guidance
Fiscal 2024 Guidance FY21 FY22 FY23 FY24 Guidance Product Revenue ($M) $554 $1,140 $1,939 $2,650 Y/Y Product Revenue Growth 120% 106% 70% 37% Non-GAAP Product Gross Margin1 69% 74% 75% 77% Non-GAAP Operating Margin1 (38)% (3)% 5% 7% Non-GAAP Adjusted Free Cash Margin1 (12)% 12% 25% 27% Note: Fiscal
Slide 29: Long-Term Operating Model
Long-Term Operating Model FY22 FY23 FY24 Guidance FY29 Target Product Revenue ($M) $1,140 $1,939 $2,650 ~$10,000 Non-GAAP Product Gross Margin1 74% 75% 77% ~78% Non-GAAP Operating Margin1 (3)% 5% 7% ~25% Non-GAAP Adjusted Free Cash Margin1 12% 25% 27% ~30% Note: Fiscal year ends January 31. Numbers
Slide 30: Appendix
APPENDIX © 2023 Snowflake Inc. All Rights Reserved
Slide 31: Definitions
Definitions Forbes Global 2000 Customers: Our Forbes Global 2000 customer count is a subset of our customer count based on the 2023 Forbes Global 2000 list. Our Forbes Global 2000 customer count is subject to adjustments for annual updates to the list by Forbes, as well as acquisitions, consolidatio
Slide 32: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Product Gross Profit, Sales & Marketing, Research & Development Q3 FY22 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 FY21 FY22 FY23 Product revenue $ 312,458 $ 522,752 $ 555,329 $ 590,072 $ 640,209 $ 698,478 $553,794 $1,140,469 $ 1,938,783 Professional services and other
Slide 33: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations General & Administrative and Operating Income (Loss) Q3 FY22 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 FY21 FY22 FY23 Product revenue $ 312,458 $ 522,752 $ 555,329 $ 590,072 $ 640,209 $ 698,478 $553,794 $1,140,469 $ 1,938,783 Professional services and other revenue 21,
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 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 FY21 FY22 FY23 Product revenue $ 312,458 $ 522,752 $ 555,329 $ 590,072 $ 640,209 $ 698,478 $553,794 $1,140,469 $ 1,938,783 Professional services and
Slide 35: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Net Income (Loss) Per Share Q3 FY22 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 FY21 FY22 FY23 Product revenue $ 312,458 $ 522,752 $ 555,329 $ 590,072 $ 640,209 $ 698,478 $553,794 $1,140,469 $ 1,938,783 Professional services and other revenue 21,983 34,276 33,683 33,527
Slide 36: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Free Cash Flow and Adjusted Free Cash Flow Q3 FY22 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 FY21 FY22 FY23 Product revenue $ 312,458 $ 522,752 $ 555,329 $ 590,072 $ 640,209 $ 698,478 $553,794 $1,140,469 $ 1,938,783 Professional services and other revenue 21,983 34,276
Slide 37: Footnotes
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 38: Thank You
THANK YOU © 2023 Snowflake Inc. All Rights Reserved