Slide 1: Snowflake Investor Presentation Second Quarter Fiscal 2023
SNOWFLAKE INVESTOR PRESENTATION Second Quarter Fiscal 2023 © 2022 Snowflake Inc. All Rights Reserved
Slide 2: Safe Harbor and Statement Regarding Use of Non-GAAP Financial Measures
Safe Harbor and Statement Regarding Use of Non- GAAP Financial Measures Other than statements of historical fact, all information contained in this presentation, including statements regarding our future accepted accounting principles in the United States (GAAP). These non-GAAP financial measures ar
Slide 3: 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 3
Slide 4: 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 5: Elements of the Data Cloud
Elements of the Data Cloud PLATFORM + CONTENT 3rd Party SaaS Data Data Partner Data Data Services Applications Customer Data © 2022 Snowflake Inc. All Rights Reserved 5
Slide 6: The Data Cloud Today
The Data Cloud Today A software company runs and distributes their application to hundreds of customers THOUSANDS OF ORGANIZATIONS COVID-19 data is available live on Snowflake Marketplace from open COLLABORATING data providers WITH THEIR ECOSYSTEM Today’s financial data can be purchased and accessed
Slide 7: Snowflake Platform
Snowflake Platform © 2022 Snowflake Inc. All Rights Reserved 7
Slide 8: Expanding Partner Ecosystem
Expanding Partner Ecosystem © 2022 Snowflake Inc. All Rights Reserved 8
Slide 9: 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 9
Slide 10: Innovation Roadmap
Innovation Roadmap 2014 2018 TODAY DISRUPT DISRUPT DISRUPT APP ANALYTICS COLLABORATION DEVELOPMENT © 2022 Snowflake Inc. All Rights Reserved 10
Slide 11: 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 12: Financial Overview
FINANCIAL OVERVIEW © 2022 Snowflake Inc. All Rights Reserved
Slide 13: Q2 Financial Highlights
Q2 Financial Highlights Rapid Growth at Scale 83% Y/Y PRODUCT REVENUE GROWTH Significant Expansion with Existing Customers 171% NET REVENUE RETENTION Strong Large Customer Momentum 246 $1M+ PRODUCT REVENUE CUSTOMERS Improving Product Gross Margin 75% NON-GAAP PRODUCT GROSS MARGIN Note: Fiscal year e
Slide 14: 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 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) 3 Customers’ draw down RPO represents contracted future from bookings as they consume revenue not yet
Slide 16: Strong Combination of Scale & Growth
Strong Combination of Scale & Growth Annual Revenue (Millions) Quarterly Revenue (Millions) $1,219 $497 $79 83% Y/Y Growth $422 $31 106% Y/Y Growth $384 $28 $334 $24 $272 $22 $592 $1,140 $18 $466 $38 $394 $360 $312 $554 $255 FY21 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Product Revenue Professio
Slide 17: Significant Customer Commitments
Significant Customer Commitments Remaining Performance Obligations1 (Millions) $2,646 $2,716 $2,610 $1,804 $1,529 57% 52% 53% 55% 56% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Expect to Recognize as Revenue in the Next Twelve Months RPO Note: Fiscal year ends January 31. Numbers are rounded for presen
Slide 18: Large Customer Momentum
Large Customer Momentum Total Customers1 Customers Over $1M Product Revenue1 36% Y/Y Growth 6,808 6,332 5,965 246 5,430 112% 4,996 206 Y/Y Growth 184 148 116 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Note: Fiscal year ends January 31. 1. See definitions provided
Slide 19: Landing Strategic Customers
Landing Strategic Customers Forbes Global 2000 Customers1 15% Y/Y Growth 510 498 483 460 443 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Note: Fiscal year ends January 31. 1. See definitions provided in the Appendix. © 2022 Snowflake Inc. All Rights Reserved 19
Slide 20: World-Class Retention Rate
World-Class Retention Rate Dollar-Based Net Revenue Retention Rate1 176% 174% 171% 171% 169% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Note: Fiscal year ends January 31. 1. See definitions provided in the Appendix. © 2022 Snowflake Inc. All Rights Reserved 20
Slide 21: 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 22: 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 26% Revenue growth Operating Leverage 17% Economies of scale 23% Larger customer 12% 9% 12% relationships 18% 17% Larger renewal mi
Slide 23: Focus on Free Cash Flow Generation
Focus on Free Cash Flow Generation Non-GAAP Free Cash Flow1 & Non-GAAP Adjusted Free Cash Flow1 (Millions) $181 $172 $102 $71 $54 $59 $22 $9 $3 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 ($12) Free Cash Flow Adjusted Free Cash Flow Note: Fiscal year ends January 31. Numbers are rounded for presentation
Slide 24: Hiring to Address our Opportunity
Hiring to Address our Opportunity Employee Headcount by Function 4,991 4,559 722 3,992 644 3,557 845 3,260 591 778 523 445 722 1,007 657 890 603 788 642 705 2,247 2,417 1,672 1,891 1,570 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 S&M R&D G&A Cost of Revenue © 2022 Snowflake Inc. All Rights Reserved 24
Slide 25: Expanding Internationally
Expanding Internationally Revenue Mix by Geography 4% 4% 4% 4% 5% 14% 14% 14% 14% 14% 82% 82% 82% 82% 81% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Americas EMEA APJ Note: Numbers are rounded for presentation purposes. We attribute revenue to the Americas, EMEA, and APJ regions, as applicable, based o
Slide 26: Data Cloud Metrics
Data Cloud Metrics DATA SHARING MARKETPLACE POWERED BY LISTINGS1 SNOWFLAKE 21% 1,539 590 Of Customers1 Have at ≥1 13% Q/Q Growth Registrants Stable Edge1 35% Q/Q Growth Note: All figures are as of July 31, 2022. 1. See definitions provided in the Appendix. © 2022 Snowflake Inc. All Rights Reserved 2
Slide 27: Fiscal 2023 Guidance
Fiscal 2023 Guidance FY23 Guidance FY20 FY21 FY22 Midpoint FY29 Target Product Revenue ($M) $252 $554 $1,140 $1,910 ~$10,000 Y/Y Product Revenue Growth 164% 120% 106% 67% ~30% Non-GAAP Product Gross Profit1 62.8% 68.7% 74.1% 75% ~78% Non-GAAP Operating Income (Loss)1 (105)% (38)% (3)% 2% ~20% Non-GA
Slide 28: Appendix
APPENDIX © 2022 Snowflake Inc. All Rights Reserved
Slide 29: 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 30: 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 31: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Product Gross Profit and Sales & Marketing Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 FY21 FY22 FY23 YTD Product revenue $ 254,623 $ 312,458 $ 359,558 $ 394,434 $ 466,268 $553,794 $1,140,469 $ 860,702 Professional service and other revenue 17,575 21,983 24,216 27,937 30
Slide 32: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Research & Development and General & Administrative Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 FY21 FY22 FY23 YTD Product revenue $ 254,623 $ 312,458 $ 359,558 $ 394,434 $ 466,268 $553,794 $1,140,469 $ 860,702 Professional service and other revenue 17,575 21,983 24,216
Slide 33: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Operating Income (Loss), Free Cash Flow, and Adjusted Free Cash Flow Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 FY21 FY22 FY23 YTD Product revenue $ 254,623 $ 312,458 $ 359,558 $ 394,434 $ 466,268 $553,794 $1,140,469 $ 860,702 Professional service and other revenue 17,5
Slide 34: 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 35: Thank You
THANK YOU © 2022 Snowflake Inc. All Rights Reserved