Snowflake Inc. · NYSE:SNOW

Snowflake — Q3 FY2022 Earnings Presentation

26 slides from Snowflake's earnings presentation, December 2021

  1. Slide 1: Investor Presentation Third Quarter Fiscal 2022

    Investor Presentation Third Quarter Fiscal 2022 © 2021 Snowflake Inc. All Rights Reserved.

  2. 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

  3. 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

  4. Slide 4: A Cloud Native Architecture Is Required

    A CLOUD NATIVE ARCHITECTURE IS REQUIRED © 2021 Snowflake Inc. All Rights Reserved. 3

  5. Slide 5: Snowflake's Architecture

    SNOWFLAKE’S ARCHITECTURE © 2021 Snowflake Inc. All Rights Reserved. 4

  6. Slide 6: Snowflake's Platform

    SNOWFLAKE’S PLATFORM © 2021 Snowflake Inc. All Rights Reserved. 5

  7. Slide 7: Growing Market Opportunity

    GROWING MARKET OPPORTUNITY DATA WAREHOUSE DATA CLOUD DATA $14B PLATFORM1 CLOUD ~$90B 1 Based on the Company's own estimates for the market opportunity of our Cloud Data Platform as of April 30, 2021. Graphic is illustrative. © 2021 Snowflake Inc. All Rights Reserved. 6

  8. Slide 8: Ever Expanding Ecosystem

    EVER EXPANDING ECOSYSTEM © 2021 Snowflake Inc. All Rights Reserved

  9. Slide 9: Q3 Financial Highlights

    Q3 FINANCIAL HIGHLIGHTS Rapid Growth at Scale 110% YOY PRODUCT REVENUE GROWTH Significant Expansion with Existing Customers 173% NET REVENUE RETENTION Strong Large Customer Momentum 148 $1M+ PRODUCT REVENUE CUSTOMERS Improving Product Gross Margin 74.6% NON-GAAP PRODUCT GROSS MARGIN © 2021 Snowflake

  10. Slide 10: We Are Not a SaaS Model

    WE ARE NOT A SAAS MODEL 93% of revenue is consumption-based1 Revenue recognized 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 billed annu

  11. 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

  12. Slide 12: Strong Combination of Scale & Growth

    STRONG COMBINATION OF SCALE & GROWTH ANNUAL REVENUE (MILLIONS) QUARTERLY REVENUE (MILLIONS) 124% 110% $334 $592 YOY Growth YOY Growth $38 $22 $272 $229 $18 $190 $15 $160 $265 $12 $554 $312 $11 $255 $13 $214 $178 $252 $148 FY20 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Product Revenue Professional

  13. Slide 13: Significant Customer Commitments

    SIGNIFICANT CUSTOMER COMMITMENTS REMAINING PERFORMANCE OBLIGATIONS1 (MILLIONS) $1,804 $1,529 $1,432 $1,333 $928 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 © 2021 Snowflake Inc. All Rights Reserved. Note: Fiscal year ends January 31. Numbers are rounded for presentation purposes. 1 Represents the amount

  14. Slide 14: Large Customer Momentum

    LARGE CUSTOMER MOMENTUM TOTAL CUSTOMERS¹ CUSTOMERS OVER $1M PRODUCT REVENUE2 52% 128% YOY Growth 5,416 YOY Growth 148 4,990 4,532 116 4,139 104 3,554 77 65 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Note: Fiscal year ends January 31. 1 We count the total number o

  15. Slide 15: Landing Strategic Customers

    LANDING STRATEGIC CUSTOMERS FORTUNE 500 CUSTOMERS 30% YOY Growth 223 215 192 196 171 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 © 2021 Snowflake Inc. All Rights Reserved. Note: Based on the 2021 Fortune 500 list. Our Fortune 500 customer count is subject to adjustments for annual updates to the Fortune

  16. Slide 16: World-Class Retention Rate

    WORLD-CLASS RETENTION RATE DOLLAR-BASED NET REVENUE RETENTION RATE1 168% 168% 170% 173% 162% Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 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

  17. Slide 17: Improving Product Gross Margin

    IMPROVING PRODUCT GROSS MARGIN NON-GAAP PRODUCT GROSS MARGIN1 74% Expansion Drivers Cloud agreement pricing 69% Scale Enterprise customer success 63% 11 Percentage Points Non-GAAP Product Gross Margin Expansion FY20 FY21 FY22 YTD © 2021 Snowflake Inc. All Rights Reserved. Note: FY22 YTD represents t

  18. 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 6% Economies of scale (12%) 26% Larger customer 34% relationships 17% Larger renewal mix leading 23% 12% 19% t

  19. Slide 19: Hiring to Address Our Opportunity

    HIRING TO ADDRESS OUR OPPORTUNITY EMPLOYEE HEADCOUNT BY FUNCTION 3,557 3,260 523 2,931 445 2,495 384 657 2,253 603 339 503 282 705 421 642 354 594 478 1,672 440 1,570 1,450 1,177 1,257 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 S&M R&D G&A Cost of Revenue © 2021 Snowflake Inc. All Rights Reserved. 18

  20. Slide 20: Expanding Internationally

    EXPANDING INTERNATIONALLY REVENUE MIX BY GEOGRAPHY 3% 3% 3% 3% 4% 11% 12% 13% 14% 14% 86% 85% 84% 82% 82% Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Americas EMEA APJ © 2021 Snowflake Inc. All Rights Reserved. Note: Numbers are rounded for presentation purposes. We attribute revenue to the Americas, EM

  21. Slide 21: Fiscal 2022 Guidance

    FISCAL 2022 GUIDANCE FY22 GUIDANCE % OF REVENUE FY19 FY20 FY21 MIDPOINT YOY PRODUCT REVENUE GROWTH NA 164% 120% 104% NON-GAAP PRODUCT GROSS PROFIT1 58% 63% 69% 74% NON-GAAP OPERATING LOSS1 (136)% (105)% (38)% (4)% NON-GAAP ADJUSTED FREE CASH FLOW1 (152)% (75)% (12)% 8% Note: Fiscal year ends January

  22. Slide 22: Appendix

    APPENDIX © 2021 Snowflake Inc. All Rights Reserved.

  23. Slide 23: GAAP to Non-GAAP Reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS PRODUCT GROSS PROFIT AND SALES & MARKETING Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 FY20 FY21 FY22 YTD Product revenue $ 148,473 $ 178,288 $ 213,830 $ 254,623 $ 312,458 $252,229 $553,794 $780,911 Professional service and other revenue 11,151 12,177 15,084 17,575 21,98

  24. Slide 24: GAAP to Non-GAAP Reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS RESEARCH & DEVELOPMENT AND GENERAL & ADMINISTRATIVE Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 FY20 FY21 FY22 YTD Product revenue $ 148,473 $ 178,288 $ 213,830 $ 254,623 $ 312,458 $252,229 $553,794 $780,911 Professional service and other revenue 11,151 12,177 15,084 17,

  25. Slide 25: GAAP to Non-GAAP Reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS OPERATING INCOME (LOSS), FREE CASH FLOW, AND ADJUSTED FREE CASH FLOW Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 FY20 FY21 FY22 YTD Product revenue $ 148,473 $ 178,288 $ 213,830 $ 254,623 $ 312,458 $252,229 $553,794 $780,911 Professional service and other revenue 11,151

  26. Slide 26: Footnotes and definitions

    1. For the three months ended October 31, 2021. 2. As of October 31, 2021. Please see our Q3 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 © 2021 Snowflake Inc. All Ri

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