Slide 1: Investor Presentation First Quarter Fiscal 2023
Investor Presentation First Quarter Fiscal 2023
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 This presentation also includes certain non-GAAP financial measures, which have not been prepared in acc
Slide 3: Rise of the Data Cloud and Beyond
RISE OF THE 2014 2019 2020 AND DATA CLOUD BEYOND Reserved. © 2022 Snowflake Inc. All Rights Reserved 2
Slide 4: A Cloud Native Architecture Is Required
A CLOUD NATIVE ARCHITECTURE IS REQUIRED © 2022 Snowflake Inc. All Rights Reserved 3
Slide 5: Snowflake's Architecture
SNOWFLAKE’S ARCHITECTURE © 2022 Snowflake Inc. All Rights Reserved 4
Slide 6: Snowflake's Platform
SNOWFLAKE’S PLATFORM © 2022 Snowflake Inc. All Rights Reserved 5
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. © 2022 Snowflake Inc. All Rights Reserved 6
Slide 8: Ever Expanding Ecosystem
EVER EXPANDING ECOSYSTEM © 2022 Snowflake Inc. All Rights Reserved 7
Slide 9: Q1 Financial Highlights
Q1 FINANCIAL HIGHLIGHTS Rapid Growth at Scale 84% YOY PRODUCT REVENUE GROWTH Significant Expansion with Existing Customers 174% NET REVENUE RETENTION Strong Large Customer Momentum 206 $1M+ PRODUCT REVENUE CUSTOMERS Improving Product Gross Margin 75% NON-GAAP PRODUCT GROSS MARGIN Note: Fiscal year e
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
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) 106% 85% $422 YOY Growth $1,219 YOY Growth $384 $28 $79 $334 $24 $272 $22 $229 $18 $592 $15 $394 $1,140 $360 $38 $312 $255 $214 $554 FY21 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Product Revenue Professio
Slide 13: Significant Customer Commitments
SIGNIFICANT CUSTOMER COMMITMENTS REMAINING PERFORMANCE OBLIGATIONS1 (MILLIONS) $2,646 $2,610 $1,804 $1,529 $1,432 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Note: Fiscal year ends January 31. Numbers are rounded for presentation purposes. 1. See definitions provided in the Appendix. © 2022 Snowflake In
Slide 14: Large Customer Momentum
LARGE CUSTOMER MOMENTUM TOTAL CUSTOMERS¹ CUSTOMERS OVER $1M PRODUCT REVENUE1 40% 98% 206 YOY Growth 6,322 YOY Growth 5,961 184 5,426 4,993 148 4,530 116 104 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Note: Fiscal year ends January 31. 1. See definitions provided
Slide 15: Landing Strategic Customers
LANDING STRATEGIC CUSTOMERS FORBES GLOBAL 2000 CUSTOMERS1 22% YOY Growth 506 490 468 453 415 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 14
Slide 16: World-Class Retention Rate
WORLD-CLASS RETENTION RATE DOLLAR-BASED NET REVENUE RETENTION RATE1 171% 177% 174% 168% 169% 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 15
Slide 17: Improving Product Gross Margin
IMPROVING PRODUCT GROSS MARGIN NON-GAAP PRODUCT GROSS MARGIN1 75% 74% Expansion Drivers Cloud agreement pricing Scale Product improvements Enterprise customer success 69% 6 Percentage Points Non-GAAP Product Gross Margin Expansion FY21 FY22 Q1 FY23 Note: Fiscal year ends January 31. Numbers are roun
Slide 18: Operating Leverage While Investing in Growth
OPERATING LEVERAGE WHILE INVESTING IN GROWTH NON-GAAP OPERATING EXPENSES NON-GAAP ADJUSTED FREE CASH FLOW AS % OF REVENUE1 AS % OF REVENUE1 Significantly Improved Leverage Drivers Operating Leverage 43% Revenue growth 17% Economies of scale 23% 12% 12% 10% Larger customer 18% 17% relationships 63% (
Slide 19: Focusing on Free Cash Flow Generation
FOCUSING ON FREE CASH FLOW GENERATION NON-GAAP FREE CASH FLOW1 & NON-GAAP ADJUSTED FREE CASH FLOW1 (MILLIONS) Free Cash Flow Adjusted Free Cash Flow $181 $172 $102 $71 $23 $22 $13 $9 $3 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 $(12) Note: Fiscal year ends January 31. Numbers are rounded for presentat
Slide 20: Hiring to Address Our Opportunity
HIRING TO ADDRESS OUR OPPORTUNITY EMPLOYEE HEADCOUNT BY FUNCTION 4,559 3,992 644 3,557 591 3,260 778 2,931 523 445 722 384 657 890 603 503 788 705 2,247 642 594 1,891 1,570 1,672 1,450 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 S&M R&D G&A Cost of Revenue © 2022 Snowflake Inc. All Rights Reserved 19
Slide 21: Expanding Internationally
EXPANDING INTERNATIONALLY REVENUE MIX BY GEOGRAPHY 3% 3% 4% 4% 5% 13% 14% 14% 14% 14% 84% 82% 82% 82% 82% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 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 22: Fiscal 2023 Guidance
FISCAL 2023 GUIDANCE FY23 FY29 FY20 FY21 FY22 GUIDANCE TARGET MIDPOINT PRODUCT REVENUE $252M $554M $1,140M $1,893M ~$10,000M YOY PRODUCT REVENUE GROWTH 164% 120% 106% 66% ~30% NON-GAAP PRODUCT GROSS PROFIT1 62.8% 68.7% 74.1% 74.5% ~78% NON-GAAP OPERATING INCOME (LOSS)1 (105)% (38)% (3)% 1% ~20% NON-
Slide 23: Appendix
APPENDIX © 2022 Snowflake Inc. All Rights Reserved
Slide 24: Definitions
DEFINITIONS • Remaining Performance Obligations. Remaining performance obligations (RPO) represent the amount of contracted future revenue that has not yet been recognized, including (i) deferred revenue, and (ii) non-cancelable contracted amounts that will be invoiced and recognized as revenue in f
Slide 25: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS PRODUCT GROSS PROFIT AND SALES & MARKETING Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 FY20 FY21 FY22 Product revenue $ 213,830 $ 254,623 $ 312,458 $ 359,558 $ 394,434 $252,229 $553,794 $1,140,469 Professional service and other revenue 15,084 17,575 21,983 24,216 27,937
Slide 26: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS RESEARCH & DEVELOPMENT AND GENERAL & ADMINISTRATIVE Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 FY20 FY21 FY22 Product revenue $ 213,830 $ 254,623 $ 312,458 $ 359,558 $ 394,434 $252,229 $553,794 $1,140,469 Professional service and other revenue 15,084 17,575 21,983 24,21
Slide 27: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS OPERATING INCOME (LOSS), FREE CASH FLOW, AND ADJUSTED FREE CASH FLOW Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 FY20 FY21 FY22 Product revenue $ 213,830 $ 254,623 $ 312,458 $ 359,558 $ 394,434 $252,229 $553,794 $1,140,469 Professional service and other revenue 15,084 17
Slide 28: Footnotes and definitions
1. For the three months ended April 30, 2022. 2. As of April 30, 2022. Please see our Q1 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 April 30, 2022. Based on the 202