Snowflake Inc. · NYSE:SNOW
Snowflake — Q1 FY2022 Earnings Presentation
26 slides from Snowflake's earnings presentation, May 2021
Slide 1: Investor Presentation First Quarter Fiscal 2022
Investor Presentation First Quarter Fiscal 2022 © 2021 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 This presentation also includes certain non-GAAP financial measures, which have not been prepared in accorda
Slide 3: Rise of the Data Cloud and Beyond
RISE OF THE 2014 2019 2020 AND DATA CLOUD BEYOND © 2021 Snowflake Inc. All Rights Reserved. 2
Slide 4: A Cloud Native Architecture Is Required
A CLOUD NATIVE ARCHITECTURE IS REQUIRED © 2021 Snowflake Inc. All Rights Reserved. 3
Slide 5: Snowflake's Architecture
SNOWFLAKE’S ARCHITECTURE © 2021 Snowflake Inc. All Rights Reserved. 4
Slide 6: Snowflake's Platform
SNOWFLAKE’S PLATFORM © 2021 Snowflake Inc. All Rights Reserved. 5
Slide 7: Growing Market Opportunity
GROWING MARKET OPPORTUNITY DATA WAREHOUSE DATA CLOUD DATA $14B PLATFORM1 CLOUD ~$81B 1 Based on the Company’s own estimate as of January 31, 2020. © 2021 Snowflake Inc. All Rights Reserved. 6
Slide 8: Ever Expanding Ecosystem
EVER EXPANDING ECOSYSTEM © 2021 Snowflake Inc. All Rights Reserved. 7
Slide 9: Q1 Financial Highlights
Q1 FINANCIAL HIGHLIGHTS Rapid Growth at Scale 110% YOY PRODUCT REVENUE GROWTH Significant Expansion with Existing Customers 168% NET REVENUE RETENTION Strong Large Customer Momentum 104 $1M+ PRODUCT REVENUE CUSTOMERS Improving Product Gross Margin 72% NON-GAAP PRODUCT GROSS MARGIN © 2021 Snowflake I
Slide 10: We Are Not a SaaS Model
WE ARE NOT A SAAS MODEL 93% of revenue is consumption-based1 Revenue recognized variably only as consumption occurs In many cases, rollover of unused capacity permitted, generally on the purchase of additional capacity Contract durations increasing along with larger customer commitments Primarily bi
Slide 11: We Focus on Product Revenue and RPO
WE FOCUS ON PRODUCT REVENUE AND RPO Product Revenue Remaining Performance Billings Obligations (RPO) Why it matters: Why it matters: Why it’s less relevant: Substantial majority of our revenue Represents contracted future revenue Billings reflect the timing of the cash flows not yet recognized negot
Slide 12: Strong Combination of Scale & Growth
STRONG COMBINATION OF SCALE & GROWTH ANNUAL REVENUE (MILLIONS) QUARTERLY REVENUE (MILLIONS) 124% 110% $592 YOY Growth YOY Growth $38 $229 $190 $15 $160 $12 $265 $133 $11 $554 $109 $13 $8 $214 $7 $178 $148 $252 $125 $102 FY20 FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Product Revenue Professional S
Slide 13: Significant Customer Commitments
SIGNIFICANT CUSTOMER COMMITMENTS REMAINING PERFORMANCE OBLIGATIONS1 (MILLIONS) $1,432 $1,333 $928 $688 $468 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 © 2021 Snowflake Inc. All Rights Reserved. Note: Fiscal year ends January 31. Numbers are rounded for presentation purposes. 1 Represents the amount of
Slide 14: Large Customer Momentum
LARGE CUSTOMER MOMENTUM TOTAL CUSTOMERS¹ CUSTOMERS OVER $1M PRODUCT REVENUE2 67% 117% 104 YOY Growth 4,532 YOY Growth 4,139 3,554 77 3,117 65 2,720 56 48 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Note: Fiscal year ends January 31. 1 We count the total number of
Slide 15: Landing Strategic Customers
LANDING STRATEGIC CUSTOMERS FORTUNE 500 CUSTOMERS 30% YOY Growth 186 187 167 154 144 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 © 2021 Snowflake Inc. All Rights Reserved. Note: Based on the 2020 Fortune 500 list. Our Fortune 500 customer count is subject to adjustments for annual updates to the Fortune
Slide 16: World-Class Retention Rate
WORLD-CLASS RETENTION RATE DOLLAR-BASED NET REVENUE RETENTION RATE1 171% 168% 168% 158% 162% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Note: Fiscal year ends January 31. 1 To calculate this metric for any given period, we first specify a measurement period consisting of the trailing two years from the
Slide 17: Improving Product Gross Margin
IMPROVING PRODUCT GROSS MARGIN NON-GAAP PRODUCT GROSS MARGIN1 72% Expansion Drivers 69% Cloud agreement pricing Scale Better discipline over discounting 63% Enterprise customer success 9 Percentage Points Non-GAAP Product Gross Margin Expansion FY20 FY21 Q1 FY22 © 2021 Snowflake Inc. All Rights Rese
Slide 18: Operating Leverage While Investing in Growth
OPERATING LEVERAGE WHILE INVESTING IN GROWTH NON-GAAP OPERATING EXPENSES ADJUSTED FREE CASH FLOW AS % OF REVENUE1 AS % OF REVENUE1 Significantly Improved Leverage Drivers Operating Leverage 10% Economies of scale (12%) 26% Larger customer relationships 34% 17% Larger renewal mix leading 23% 14% 21%
Slide 19: Hiring to Address Our Opportunity
HIRING TO ADDRESS OUR OPPORTUNITY EMPLOYEE HEADCOUNT BY FUNCTION 2,931 2,495 384 2,253 339 503 2,037 282 1,854 421 218 188 354 594 294 248 478 384 440 336 1,450 1,177 1,257 1,082 1,141 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 S&M R&D G&A Cost of Revenue © 2021 Snowflake Inc. All Rights Reserved. 18
Slide 20: Expanding Internationally
EXPANDING INTERNATIONALLY REVENUE MIX BY GEOGRAPHY 3% 3% 3% 3% 3% 10% 11% 11% 12% 13% 87% 87% 86% 85% 84% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Americas EMEA APAC © 2021 Snowflake Inc. All Rights Reserved. Note: Numbers are rounded for presentation purposes. 19
Slide 21: Fiscal 2022 Guidance
FISCAL 2022 GUIDANCE FY22 GUIDANCE % OF REVENUE FY19 FY20 FY21 MIDPOINT YOY PRODUCT REVENUE GROWTH NA 164% 120% 86% NON-GAAP PRODUCT GROSS PROFIT1 58% 63% 69% 72% NON-GAAP OPERATING LOSS1 (136)% (105)% (38)% (17)% NON-GAAP ADJUSTED FREE CASH FLOW1 (152)% (75)% (12)% 0% Note: Fiscal year ends January
Slide 22: Appendix
APPENDIX © 2021 Snowflake Inc. All Rights Reserved.
Slide 23: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS PRODUCT GROSS PROFIT AND SALES & MARKETING Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 FY19 FY20 FY21 Product revenue $ 101,817 $ 125,216 $ 148,473 $ 178,288 $ 213,830 $95,683 $252,229 $553,794 Professional service and other revenue 6,998 7,929 11,151 12,177 15,084 983 1
Slide 24: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS RESEARCH & DEVELOPMENT AND GENERAL & ADMINISTRATIVE Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 FY19 FY20 FY21 Product revenue $ 101,817 $ 125,216 $ 148,473 $ 178,288 $ 213,830 $95,683 $252,229 $553,794 Professional service and other revenue 6,998 7,929 11,151 12,177 15,
Slide 25: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS OPERATING LOSS, FREE CASH FLOW, AND ADJUSTED FREE CASH FLOW Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 FY19 FY20 FY21 Product revenue $ 101,817 $ 125,216 $ 148,473 $ 178,288 $ 213,830 $95,683 $252,229 $553,794 Professional service and other revenue 6,998 7,929 11,151 12
Slide 26: Footnotes and metric definitions
1. For the three months ended April 30, 2021. 2. As of April 30, 2021. Please see our Q1 FY22 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 April 30, 2021. Based on the 202