Snowflake Reports Financial Results for the Fourth Quarter and Full Year of Fiscal 2022

  • Product revenue of $359.6 million in the fourth quarter, representing 102% year-over-year growth
  • Remaining performance obligations of $2.6 billion, representing 99% year-over-year growth
  • 5,944 total customers
  • Net revenue retention rate of 178%
  • 184 customers with trailing 12-month product revenue greater than $1 million

Snowflake Q4 and Full Year FY22 Infographic (Graphic: Snowflake)

No-Headquarters/BOZEMAN, Mont.--()--Snowflake (NYSE: SNOW), the Data Cloud company, today announced financial results for its fourth quarter and full year of fiscal 2022, ended January 31, 2022.

Revenue for the quarter was $383.8 million, representing 101% year-over-year growth. Product revenue for the quarter was $359.6 million, representing 102% year-over-year growth. Remaining performance obligations were $2.6 billion, representing 99% year-over-year growth. Net revenue retention rate was 178% as of January 31, 2022. The company now has 5,944 total customers and 184 customers with trailing 12-month product revenue greater than $1 million. See the section titled “Key Business Metrics” for definitions of product revenue, remaining performance obligations, net revenue retention rate, total customers, and customers with trailing 12-month product revenue greater than $1 million.

“Snowflake finished fiscal 2022 with record-breaking consumption and bookings results, including triple-digit product revenue growth,” said Frank Slootman, Chairman and CEO, Snowflake. “Remaining performance obligations were $2.6 billion, representing year-on-year growth of 99%. Our net revenue retention rate reached 178% driven by continued growth from our largest customers.”

Fourth Quarter Fiscal 2022 GAAP and Non-GAAP Results:

The following table summarizes our financial results for the fourth quarter of fiscal 2022:

 

Fourth Quarter Fiscal 2022

GAAP Results

 

Fourth Quarter Fiscal 2022

Non-GAAP Results(1)

 

Amount

(millions)

Year/Year

Growth

 

 

 

Product revenue

$359.6

102%

 

 

 

 

 

 

 

 

 

 

Amount

(millions)

Margin

 

Amount

(millions)

Margin

Product gross profit

$257.2

72%

 

$269.6

75%

Operating income (loss)

($152.0)

(40%)

 

$18.1

5%

Net cash provided by operating activities

$78.9

 

 

 

 

Free cash flow

 

 

 

$70.7

18%

Adjusted free cash flow

 

 

 

$102.1

27%

(1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures, and the table titled “GAAP to Non-GAAP Reconciliations” for a reconciliation of GAAP to non-GAAP financial measures.

 

 

 

Note: Fiscal year ends January 31. Numbers are rounded for presentation purposes.

Full-Year Fiscal 2022 GAAP and Non-GAAP Results:

The following table summarizes our financial results for the full-year fiscal 2022:

 

Full-Year Fiscal 2022

GAAP Results

 

Full-Year Fiscal 2022

Non-GAAP Results(1)

 

Amount

(millions)

Year/Year

Growth

 

 

 

Product revenue

$1,140.5

106%

 

 

 

 

 

 

 

 

 

 

Amount

(millions)

Margin

 

Amount

(millions)

Margin

Product gross profit

$792.7

70%

 

$844.6

74%

Operating loss

($715.0)

(59%)

 

($31.2)

(3%)

Net cash provided by operating activities

$110.2

 

 

 

 

Free cash flow

 

 

 

$81.2

7%

Adjusted free cash flow

 

 

 

$149.8

12%

(1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures, and the table titled “GAAP to Non-GAAP Reconciliations” for a reconciliation of GAAP to non-GAAP financial measures.

 

Note: Fiscal year ends January 31. Numbers are rounded for presentation purposes.

Financial Outlook:

Our guidance includes GAAP and non-GAAP financial measures.

The following table summarizes our guidance for the first quarter of fiscal 2023:

 

First Quarter Fiscal 2023

GAAP Guidance

 

First Quarter Fiscal 2023

Non-GAAP Guidance(1)

 

Amount

(millions)

Year/Year

Growth

 

 

 

Product revenue

$383 - $388

79 - 81%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margin

Operating loss

 

 

 

 

(2%)

 

 

 

 

 

 

 

 

 

 

Amount

(millions)

 

Weighted-average shares used in computing net income per share attributable to common stockholders - diluted(2)

 

 

 

359

 

(1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures.

 

(2) We may have a non-GAAP net income for the first quarter of fiscal 2023. As a result, we are presenting the weighted-average shares used in computing net income per share attributable to common stockholders - diluted in the non-GAAP column of the table above, giving effect to all dilutive securities (stock options, restricted stock units, and employee stock purchase rights under our 2020 Employee Stock Purchase Plan). These dilutive securities would be excluded from the weighted-average shares used in computing net loss per share attributable to common stockholders - diluted if we are in a non-GAAP net loss position.

The following table summarizes our guidance for the full-year fiscal 2023:

 

Full-Year Fiscal 2023

GAAP Guidance

 

Full-Year Fiscal 2023

Non-GAAP Guidance(1)

 

Amount

(millions)

Year/Year

Growth

 

 

 

Product revenue

$1,880 - $1,900

65 - 67%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margin

Product gross profit

 

 

 

 

74.5%

Operating income

 

 

 

 

1%

Adjusted free cash flow

 

 

 

 

15%

 

 

 

 

 

 

 

 

 

 

Amount

(millions)

 

Weighted-average shares used in computing net income per share attributable to common stockholders - diluted(2)

 

 

 

360

 

(1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures.

 

(2) We may have a non-GAAP net income for full-year fiscal 2023. As a result, we are presenting the weighted-average shares used in computing net income per share attributable to common stockholders - diluted in the non-GAAP column of the table above, giving effect to all dilutive securities (stock options, restricted stock units, and employee stock purchase rights under our 2020 Employee Stock Purchase Plan). These dilutive securities would be excluded from the weighted-average shares used in computing net loss per share attributable to common stockholders - diluted if we are in a non-GAAP net loss position.

A reconciliation of non-GAAP guidance measures to corresponding GAAP guidance measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP financial results included in this release. Our fiscal year ends January 31, and numbers are rounded for presentation purposes.

Conference Call Details

We will host a conference call today, beginning at 3 p.m. Mountain Time on March 2, 2022. Investors and participants can register for the call in advance by visiting https://conferencingportals.com/event/IHFzazQa. After registering, a confirmation will be sent via email, including dial-in details and unique conference call access codes required for call entry.

The call will also be webcast live on the Snowflake Investor Relations website.

An audio replay of the conference call and webcast will be available two hours after its completion and will be accessible for 30 days on the Snowflake Investor Relations website.

Investor Presentation Details

An investor presentation providing additional information and analysis can be found at https://investors.snowflake.com.

Statement Regarding Use of Non‑GAAP Financial Measures

We report the following non-GAAP financial measures, which have not been prepared in accordance with generally accepted accounting principles in the United States (GAAP), in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

  • Product gross profit, Operating income (loss), and Net income (loss). Our non-GAAP product gross profit, operating income (loss), and net income (loss) measures exclude the effect of stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, amortization of acquired intangibles, expenses associated with acquisitions and strategic investments, and the related income tax effect of these adjustments. We believe the presentation of operating results that exclude these non-cash or non-recurring items provides useful supplemental information to investors and facilitates the analysis of our operating results and comparison of operating results across reporting periods.
  • Free cash flow and Adjusted free cash flow. Free cash flow is defined as net cash provided by (used in) operating activities reduced by purchases of property and equipment and capitalized internal-use software development costs. Adjusted free cash flow is defined as free cash flow plus (minus) net cash paid (received) on payroll tax-related items on employee stock transactions. Prior to the fiscal quarter ended April 30, 2021, adjusted free cash flow was defined as free cash flow plus cash paid on only employer payroll tax-related items on employee stock transactions. Starting with the fiscal quarter ended April 30, 2021, adjusted free cash flow is defined to also exclude the effects of employee payroll tax-related items on employee stock transactions, which are generally pass-through transactions that are expected to have a net zero impact on free cash flow over time, but that may impact free cash flow in any given fiscal quarter due to differences between the time that we receive funds from our employees and the time we remit those funds to applicable tax authorities. We believe that excluding the effects of these employee payroll tax-related items will enhance stockholders' ability to evaluate our free cash flow performance, including on a quarter-over-quarter basis. The impact of excluding employee payroll tax-related items on employee stock transactions from our definition of adjusted free cash flow was not significant for any prior periods. As a result, we have not restated adjusted free cash flow measures for any periods prior to the quarter ended April 30, 2021. Free cash flow margin and adjusted free cash flow margin are calculated as free cash flow or adjusted free cash flow as a percentage of revenue. We believe these measures provide useful supplemental information to investors because they are indicators of the strength and performance of our core business operations.

We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP results.

Key Business Metrics

We monitor our key business metrics, including (i) free cash flow starting with the fiscal quarter ended January 31, 2022, and (ii) the other metrics set forth below to help us evaluate our business and growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for the definition of free cash flow. The calculation of our key business metrics may differ from other similarly titled metrics used by other companies, securities analysts, or investors.

  • Product Revenue. Product revenue is a key metric for us because we recognize revenue based on platform consumption, which is inherently variable at our customers’ discretion, and not based on the amount and duration of contract terms. Product revenue is primarily derived from the consumption of compute, storage, and data transfer resources, which are consumed by customers on our platform as a single, integrated offering. Customers have the flexibility to consume more than their contracted capacity during the contract term and may have the ability to roll over unused capacity to future periods, generally upon the purchase of additional capacity at renewal. Our consumption-based business model distinguishes us from subscription-based software companies that generally recognize revenue ratably over the contract term and may not permit rollover. Because customers have flexibility in the timing of their consumption, which can exceed their contracted capacity or extend beyond the original contract term in many cases, the amount of product revenue recognized in a given period is an important indicator of customer satisfaction and the value derived from our platform. Product revenue excludes our professional services and other revenue.
  • 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 future periods. RPO excludes performance obligations from on-demand arrangements and certain time and materials contracts that are billed in arrears. Portions of RPO that are not yet invoiced and are denominated in foreign currencies are revalued into USD each period based on the applicable period-end exchange rates. RPO is not necessarily indicative of future product revenue growth because it does not account for the timing of customers’ consumption or their consumption of more than their contracted capacity. Moreover, RPO is influenced by a number of factors, including the timing of renewals, the timing of purchases of additional capacity, average contract terms, seasonality, and the extent to which customers are permitted to roll over unused capacity to future periods, generally upon the purchase of additional capacity at renewal.
  • 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 unique customer, and a single organization with multiple divisions, segments, or subsidiaries may be counted as multiple customers. For purposes of determining our customer count, we do not include customers that consume our platform only under on-demand arrangements. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity.
  • Net Revenue Retention Rate. To calculate net revenue retention rate, we first specify a measurement period consisting of the trailing two years from our current period end. Next, we define as our measurement cohort the population of customers under capacity contracts that used our platform at any point in the first month of the first year of the measurement period. Starting with the fiscal quarter ended October 31, 2021, the cohorts used to calculate net revenue retention rate include end-customers under a reseller arrangement. We then calculate our net revenue retention rate as the quotient obtained by dividing our product revenue from this cohort in the second year of the measurement period by our product revenue from this cohort in the first year of the measurement period. Any customer in the cohort that did not use our platform in the second year remains in the calculation and contributes zero product revenue in the second year. Our net revenue retention rate is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity. Since we will continue to attribute the historical product revenue to the consolidated contract, consolidation of capacity contracts within a customer’s organization typically will not impact our net revenue retention rate unless one of those customers was not a customer at any point in the first month of the first year of the measurement period.
  • Customers with Trailing 12-Month Product Revenue Greater than $1 Million. 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 the trailing 12 months. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity.

Use of Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding our performance, including but not limited to statements in the section titled “Financial Outlook.” The forward-looking statements contained in this release and the accompanying oral presentation are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to, those related to our business and financial performance, the effects of COVID-19 or other public health crises on our business, results of operations, and financial condition, the effects of the recent and developing armed conflict in Ukraine on our business, results of operations, and financial condition, our ability to attract and retain customers, our ability to develop new products and services and enhance existing products and services, our ability to respond rapidly to emerging technology trends, our ability to execute on our business strategy, including our strategy related to the Data Cloud, our ability to increase and predict customer consumption of our platform, our ability to compete effectively, and our ability to manage growth.

Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in our Form 10-Q for the fiscal quarter ended October 31, 2021 and other filings and reports we make with the Securities and Exchange Commission from time to time, including our Form 10-K that will be filed for the fiscal year ended January 31, 2022.

Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Forward-looking statements speak only as of the date the statements are made and are based on information available to us at the time those statements are made and/or management's good faith belief as of that time with respect to future events. Except as required by law, we undertake no obligation, and do not intend, to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter.

About Snowflake

Snowflake enables every organization to mobilize their data with Snowflake’s Data Cloud. Customers use the Data Cloud to unite siloed data, discover and securely share data, and execute diverse analytic workloads. Wherever data or users live, Snowflake delivers a single data experience that spans multiple clouds and geographies. Thousands of customers across many industries, including 241 of the 2021 Fortune 500 and 488 of the 2021 Forbes Global 2000 (G2K) as of January 31, 2022, use Snowflake Data Cloud to power their businesses. Learn more at snowflake.com.

Source: Snowflake Inc.

Snowflake Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share data)

(unaudited)

 

 

Three Months Ended January 31,

 

Twelve Months Ended January 31,

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

Revenue

$

383,774

 

 

$

190,465

 

 

$

1,219,327

 

 

$

592,049

 

Cost of revenue

 

134,180

 

 

 

82,904

 

 

 

458,433

 

 

 

242,588

 

Gross profit

 

249,594

 

 

 

107,561

 

 

 

760,894

 

 

 

349,461

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

203,287

 

 

 

154,050

 

 

 

743,965

 

 

 

479,317

 

Research and development

 

123,149

 

 

 

93,997

 

 

 

466,932

 

 

 

237,946

 

General and administrative

 

75,187

 

 

 

59,911

 

 

 

265,033

 

 

 

176,135

 

Total operating expenses

 

401,623

 

 

 

307,958

 

 

 

1,475,930

 

 

 

893,398

 

Operating loss

 

(152,029

)

 

 

(200,397

)

 

 

(715,036

)

 

 

(543,937

)

Interest income

 

2,342

 

 

 

1,853

 

 

 

9,129

 

 

 

7,507

 

Other income (expense), net

 

19,080

 

 

 

951

 

 

 

28,947

 

 

 

(610

)

Loss before income taxes

 

(130,607

)

 

 

(197,593

)

 

 

(676,960

)

 

 

(537,040

)

Provision for income taxes

 

1,546

 

 

 

1,342

 

 

 

2,988

 

 

 

2,062

 

Net loss

$

(132,153

)

 

$

(198,935

)

 

$

(679,948

)

 

$

(539,102

)

Net loss per share attributable to common stockholders - basic and diluted

$

(0.43

)

 

$

(0.70

)

 

$

(2.26

)

 

$

(3.81

)

Weighted-average shares used in computing net loss per share attributable to common stockholders - basic and diluted

 

308,693,468

 

 

 

284,121,777

 

 

 

300,273,227

 

 

 

141,613,196

 

 

Snowflake Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

January 31, 2022

 

January 31, 2021

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

1,085,729

 

$

820,177

Short-term investments

 

2,766,364

 

 

 

3,087,887

 

Accounts receivable, net

 

545,629

 

 

 

294,017

 

Deferred commissions, current

 

51,398

 

 

 

32,371

 

Prepaid expenses and other current assets

 

149,523

 

 

 

66,200

 

Total current assets

 

4,598,643

 

 

 

4,300,652

 

Long-term investments

 

1,256,207

 

 

 

1,165,275

 

Property and equipment, net

 

105,079

 

 

 

68,968

 

Operating lease right-of-use assets

 

190,356

 

 

 

186,818

 

Goodwill

 

8,449

 

 

 

8,449

 

Intangible assets, net

 

37,141

 

 

 

16,091

 

Deferred commissions, non-current

 

124,517

 

 

 

86,164

 

Other assets

 

329,306

 

 

 

89,322

 

Total assets

$

6,649,698

 

 

$

5,921,739

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

13,441

 

 

$

5,647

 

Accrued expenses and other current liabilities

 

200,664

 

 

 

125,315

 

Operating lease liabilities, current

 

25,101

 

 

 

19,650

 

Deferred revenue, current

 

1,157,887

 

 

 

638,652

 

Total current liabilities

 

1,397,093

 

 

 

789,264

 

Operating lease liabilities, non-current

 

181,196

 

 

 

184,887

 

Deferred revenue, non-current

 

11,180

 

 

 

4,194

 

Other liabilities

 

11,184

 

 

 

6,923

 

Stockholders’ equity

 

5,049,045

 

 

 

4,936,471

 

Total liabilities and stockholders’ equity

$

6,649,698

 

 

$

5,921,739

 

 

Snowflake Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

Three Months Ended January 31,

 

Twelve Months Ended January 31,

 

2022

 

2021

 

2022

 

2021

Cash flows from operating activities:

 

 

 

 

 

 

 

Net loss

$

(132,153

)

 

$

(198,935

)

 

$

(679,948

)

 

$

(539,102

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

5,912

 

 

 

3,215

 

 

 

21,498

 

 

 

9,826

 

Non-cash operating lease costs

 

9,658

 

 

 

8,635

 

 

 

35,553

 

 

 

33,475

 

Amortization of deferred commissions

 

11,052

 

 

 

7,608

 

 

 

37,876

 

 

 

28,841

 

Stock-based compensation, net of amounts capitalized

 

145,703

 

 

 

143,651

 

 

 

605,095

 

 

 

301,441

 

Net amortization of premiums on investments

 

11,064

 

 

 

7,513

 

 

 

48,002

 

 

 

8,630

 

Net unrealized gains on strategic investments in equity securities

 

(19,106

)

 

 

 

 

 

(27,621

)

 

 

 

Other

 

(1,238

)

 

 

507

 

 

 

1,297

 

 

 

4,580

 

Changes in operating assets and liabilities, net of effect of business combinations:

 

 

 

 

 

 

 

Accounts receivable

 

(290,794

)

 

 

(125,510

)

 

 

(251,652

)

 

 

(116,289

)

Deferred commissions

 

(42,985

)

 

 

(24,183

)

 

 

(95,877

)

 

 

(51,444

)

Prepaid expenses and other assets

 

(46,361

)

 

 

(32,869

)

 

 

(159,159

)

 

 

(62,349

)

Accounts payable

 

2,780

 

 

 

928

 

 

 

7,371

 

 

 

(2,878

)

Accrued expenses and other liabilities

 

36,666

 

 

 

35,775

 

 

 

79,772

 

 

 

58,252

 

Operating lease liabilities

 

(13,491

)

 

 

(7,863

)

 

 

(38,249

)

 

 

(31,281

)

Deferred revenue

 

402,191

 

 

 

201,142

 

 

 

526,221

 

 

 

312,881

 

Net cash provided by (used in) operating activities

 

78,898

 

 

 

19,614

 

 

 

110,179

 

 

 

(45,417

)

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of property and equipment

 

(4,012

)

 

 

(11,019

)

 

 

(16,221

)

 

 

(35,037

)

Capitalized internal-use software development costs

 

(4,160

)

 

 

(1,279

)

 

 

(12,772

)

 

 

(5,293

)

Cash paid for business combinations, net of cash acquired

 

 

 

 

 

 

 

 

 

 

(6,035

)

Purchases of intangible assets

 

(13,152

)

 

 

(2,190

)

 

 

(24,334

)

 

 

(8,374

)

Purchases of investments

 

(1,207,942

)

 

 

(3,624,832

)

 

 

(4,250,338

)

 

 

(4,859,852

)

Sales of investments

 

33,066

 

 

 

148,365

 

 

 

440,069

 

 

 

177,070

 

Maturities and redemptions of investments

 

1,232,367

 

 

 

329,348

 

 

 

3,842,796

 

 

 

700,876

 

Net cash provided by (used in) investing activities

 

36,167

 

 

 

(3,161,607

)

 

 

(20,800

)

 

 

(4,036,645

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs

 

 

 

 

 

 

 

 

 

 

478,573

 

Proceeds from initial public offering and private placements, net of underwriting discounts

 

 

 

 

 

 

 

 

 

 

4,242,284

 

Proceeds from early exercised stock options

 

 

 

 

 

 

 

 

 

 

159

 

Proceeds from exercise of stock options

 

36,592

 

 

 

22,278

 

 

 

127,036

 

 

 

53,378

 

Proceeds from issuance of common stock under employee stock purchase plan

 

 

 

 

 

 

 

52,227

 

 

 

 

Proceeds from repayments of a nonrecourse promissory note

 

 

 

 

 

 

 

 

 

 

2,090

 

Repurchases of early exercised stock options

 

 

 

 

 

 

 

 

 

 

(30

)

Payments of deferred purchase consideration for business combinations

 

(1,065

)

 

 

 

 

 

(1,065

)

 

 

(1,164

)

Net cash provided by financing activities

 

35,527

 

 

 

22,278

 

 

 

178,198

 

 

 

4,775,290

 

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

(257

)

 

 

(11

)

 

 

(236

)

 

 

(11

)

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

150,335

 

 

 

(3,119,726

)

 

 

267,341

 

 

 

693,217

 

Cash, cash equivalents, and restricted cash—beginning of period

 

952,199

 

 

 

3,954,919

 

 

 

835,193

 

 

 

141,976

 

Cash, cash equivalents, and restricted cash—end of period

$

1,102,534

 

 

$

835,193

 

 

$

1,102,534

 

 

$

835,193

 

 

Snowflake Inc.

GAAP to Non-GAAP Reconciliations

(in thousands, except percentages)

(unaudited)

 

 

Three Months Ended January 31, 2022

 

GAAP
amounts

 

GAAP
amounts as a
% of revenue

 

Stock-based
compensation-
related
charges(1)

 

Amortization
of acquired
intangibles

 

Expenses
associated
with
acquisitions
and strategic
investments

 

Non-GAAP
amounts

 

Non-GAAP
amounts as a
% of revenue

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue

$

359,558

 

 

94

%

 

 

 

 

 

 

 

 

 

 

Professional services and other revenue

 

24,216

 

 

6

%

 

 

 

 

 

 

 

 

 

 

Revenue

 

383,774

 

 

100

%

 

 

 

 

 

 

 

 

 

 

Year-over-year growth

 

101

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of product revenue

 

102,397

 

 

27

%

 

$

(11,892

)

 

$

(566

)

 

$

 

 

$

89,939

 

 

23

%

Cost of professional services and other revenue

 

31,783

 

 

8

%

 

 

(10,529

)

 

 

 

 

 

 

 

 

21,254

 

 

6

%

Total cost of revenue

 

134,180

 

 

35

%

 

 

(22,421

)

 

 

(566

)

 

 

 

 

 

111,193

 

 

29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

Product gross profit

 

257,161

 

 

 

 

 

11,892

 

 

 

566

 

 

 

 

 

 

269,619

 

 

 

Professional services and other gross profit (loss)

 

(7,567

)

 

 

 

 

10,529

 

 

 

 

 

 

 

 

 

2,962

 

 

 

Total gross profit

 

249,594

 

 

65

%

 

 

22,421

 

 

 

566

 

 

 

 

 

 

272,581

 

 

71

%

Product gross margin

 

72

%

 

 

 

 

3

%

 

 

%

 

 

%

 

 

75

%

 

 

Professional services and other gross margin

 

(31

%)

 

 

 

 

43

%

 

 

%

 

 

%

 

 

12

%

 

 

Total gross margin

 

65

%

 

 

 

 

6

%

 

 

%

 

 

%

 

 

71

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

203,287

 

 

53

%

 

 

(49,791

)

 

 

 

 

 

 

 

 

153,496

 

 

39

%

Research and development

 

123,149

 

 

32

%

 

 

(61,686

)

 

 

(1,200

)

 

 

 

 

 

60,263

 

 

16

%

General and administrative

 

75,187

 

 

20

%

 

 

(33,868

)

 

 

(412

)

 

 

(143

)

 

 

40,764

 

 

11

%

Total operating expenses

 

401,623

 

 

105

%

 

 

(145,345

)

 

 

(1,612

)

 

 

(143

)

 

 

254,523

 

 

66

%

Operating income (loss)

$

(152,029

)

 

(40

%)

 

$

167,766

 

 

$

2,178

 

 

$

143

 

 

$

18,058

 

 

5

%

Operating margin

 

(40

%)

 

 

 

 

44

%

 

 

1

%

 

 

%

 

 

5

%

 

 

(1) Stock-based compensation-related charges included approximately $21.7 million of employer payroll tax-related expenses on employee stock transactions.

 

Three Months Ended January 31, 2021

 

 

GAAP
amounts

 

GAAP
amounts as a
% of revenue

 

Stock-based
compensation-
related
charges(1)

 

Amortization
of acquired
intangibles

 

Expenses
associated
with
acquisitions
and strategic
investments

 

Non-GAAP
amounts

 

Non-GAAP
amounts as a
% of revenue

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue

 

$

178,288

 

 

94

%

 

 

 

 

 

 

 

 

 

 

Professional services and other revenue

 

 

12,177

 

 

6

%

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

190,465

 

 

100

%

 

 

 

 

 

 

 

 

 

 

Year-over-year growth

 

 

117

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of product revenue

 

 

63,770

 

 

33

%

 

$

(10,171

)

 

$

(566

)

 

$

 

 

$

53,033

 

 

28

%

Cost of professional services and other revenue

 

 

19,134

 

 

11

%

 

 

(8,702

)

 

 

 

 

 

 

 

 

10,432

 

 

5

%

Total cost of revenue

 

 

82,904

 

 

44

%

 

 

(18,873

)

 

 

(566

)

 

 

 

 

 

63,465

 

 

33

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product gross profit

 

 

114,518

 

 

 

 

 

10,171

 

 

 

566

 

 

 

 

 

 

125,255

 

 

 

Professional services and other gross profit (loss)

 

 

(6,957

)

 

 

 

 

8,702

 

 

 

 

 

 

 

 

 

1,745

 

 

 

Total gross profit

 

 

107,561

 

 

56

%

 

 

18,873

 

 

 

566

 

 

 

 

 

 

127,000

 

 

67

%

Product gross margin

 

 

64

%

 

 

 

 

6

%

 

 

%

 

 

%

 

 

70

%

 

 

Professional services and other gross margin

 

 

(57

%)

 

 

 

 

71

%

 

 

%

 

 

%

 

 

14

%

 

 

Total gross margin

 

 

56

%

 

 

 

 

11

%

 

 

%

 

 

%

 

 

67

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

154,050

 

 

81

%

 

 

(52,438

)

 

 

 

 

 

 

 

 

101,612

 

 

54

%

Research and development

 

 

93,997

 

 

49

%

 

 

(53,440

)

 

 

 

 

 

 

 

 

40,557

 

 

21

%

General and administrative

 

 

59,911

 

 

31

%

 

 

(28,713

)

 

 

(352

)

 

 

(44

)

 

 

30,802

 

 

16

%

Total operating expenses

 

 

307,958

 

 

161

%

 

 

(134,591

)

 

 

(352

)

 

 

(44

)

 

 

172,971

 

 

91

%

Operating loss

 

$

(200,397

)

 

(105

%)

 

$

153,464

 

 

$

918

 

 

$

44

 

 

$

(45,971

)

 

(24

%)

Operating margin

 

 

(105

%)

 

 

 

 

81

%

 

 

%

 

 

%

 

 

(24

%)

 

 

(1) Stock-based compensation-related charges included approximately $9.6 million of employer payroll tax-related expenses on employee stock transactions.

 

Twelve Months Ended January 31, 2022

 

 

GAAP
amounts

 

GAAP
amounts as a
% of revenue

 

Stock-based
compensation-
related
charges(1)

 

Amortization
of acquired
intangibles

 

Expenses
associated
with
acquisitions
and strategic
investments

 

Non-GAAP
amounts

 

Non-GAAP
amounts as a
% of revenue

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue

 

$

1,140,469

 

 

94

%

 

 

 

 

 

 

 

 

 

 

Professional services and other revenue

 

 

78,858

 

 

6

%

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

1,219,327

 

 

100

%

 

 

 

 

 

 

 

 

 

 

Year-over-year growth

 

 

106

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of product revenue

 

 

347,817

 

 

29

%

 

$

(49,705

)

 

$

(2,266

)

 

$

 

 

$

295,846

 

 

24

%

Cost of professional services and other revenue

 

 

110,616

 

 

9

%

 

 

(42,470

)

 

 

 

 

 

 

 

 

68,146

 

 

6

%

Total cost of revenue

 

 

458,433

 

 

38

%

 

 

(92,175

)

 

 

(2,266

)

 

 

 

 

 

363,992

 

 

30

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product gross profit

 

 

792,652

 

 

 

 

 

49,705

 

 

 

2,266

 

 

 

 

 

 

844,623

 

 

 

Professional services and other gross profit (loss)

 

 

(31,758

)

 

 

 

 

42,470

 

 

 

 

 

 

 

 

 

10,712

 

 

 

Total gross profit

 

 

760,894

 

 

62

%

 

 

92,175

 

 

 

2,266

 

 

 

 

 

 

855,335

 

 

70

%

Product gross margin

 

 

70

%

 

 

 

 

4

%

 

 

%

 

 

%

 

 

74

%

 

 

Professional services and other gross margin

 

 

(40

%)

 

 

 

 

54

%

 

 

%

 

 

%

 

 

14

%

 

 

Total gross margin

 

 

62

%

 

 

 

 

8

%

 

 

%

 

 

%

 

 

70

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

743,965

 

 

61

%

 

 

(215,760

)

 

 

 

 

 

 

 

 

528,205

 

 

43

%

Research and development

 

 

466,932

 

 

38

%

 

 

(248,032

)

 

 

(3,941

)

 

 

 

 

 

214,959

 

 

18

%

General and administrative

 

 

265,033

 

 

22

%

 

 

(119,492

)

 

 

(1,621

)

 

 

(574

)

 

 

143,346

 

 

12

%

Total operating expenses

 

 

1,475,930

 

 

121

%

 

 

(583,284

)

 

 

(5,562

)

 

 

(574

)

 

 

886,510

 

 

73

%

Operating loss

 

$

(715,036

)

 

(59

%)

 

$

675,459

 

 

$

7,828

 

 

$

574

 

 

$

(31,175

)

 

(3

%)

Operating margin

 

 

(59

%)

 

 

 

 

55

%

 

 

1

%

 

 

%

 

 

(3

%)

 

 

(1) Stock-based compensation-related charges included approximately $69.1 million of employer payroll tax-related expenses on employee stock transactions.

 

Twelve Months Ended January 31, 2021

 

 

GAAP
amounts

 

GAAP
amounts as a
% of revenue

 

Stock-based
compensation-
related
charges(1)

 

Amortization
of acquired
intangibles

 

Expenses
associated
with
acquisitions
and strategic
investments

 

Non-GAAP
amounts

 

Non-GAAP
amounts as a
% of revenue

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue

 

$

553,794

 

 

94

%

 

 

 

 

 

 

 

 

 

 

Professional services and other revenue

 

 

38,255

 

 

6

%

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

592,049

 

 

100

%

 

 

 

 

 

 

 

 

 

 

Year-over-year growth

 

 

124

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of product revenue

 

 

193,835

 

 

33

%

 

$

(18,724

)

 

$

(1,696

)

 

$

 

 

$

173,415

 

 

29

%

Cost of professional services and other revenue

 

 

48,753

 

 

8

%

 

 

(16,104

)

 

 

 

 

 

 

 

 

32,649

 

 

6

%

Total cost of revenue

 

 

242,588

 

 

41

%

 

 

(34,828

)

 

 

(1,696

)

 

 

 

 

 

206,064

 

 

35

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product gross profit

 

 

359,959

 

 

 

 

 

18,724

 

 

 

1,696

 

 

 

 

 

 

380,379

 

 

 

Professional services and other gross profit (loss)

 

 

(10,498

)

 

 

 

 

16,104

 

 

 

 

 

 

 

 

 

5,606

 

 

 

Total gross profit

 

 

349,461

 

 

59

%

 

 

34,828

 

 

 

1,696

 

 

 

 

 

 

385,985

 

 

65

%

Product gross margin

 

 

65

%

 

 

 

 

4

%

 

 

%

 

 

%

 

 

69

%

 

 

Professional services and other gross margin

 

 

(27

%)

 

 

 

 

42

%

 

 

%

 

 

%

 

 

15

%

 

 

Total gross margin

 

 

59

%

 

 

 

 

6

%

 

 

%

 

 

%

 

 

65

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

479,317

 

 

81

%

 

 

(104,537

)

 

 

(12

)

 

 

 

 

 

374,768

 

 

63

%

Research and development

 

 

237,946

 

 

40

%

 

 

(103,954

)

 

 

 

 

 

 

 

 

133,992

 

 

23

%

General and administrative

 

 

176,135

 

 

30

%

 

 

(72,647

)

 

 

(1,069

)

 

 

(296

)

 

 

102,123

 

 

17

%

Total operating expenses

 

 

893,398

 

 

151

%

 

 

(281,138

)

 

 

(1,081

)

 

 

(296

)

 

 

610,883

 

 

103

%

Operating loss

 

$

(543,937

)

 

(92

%)

 

$

315,966

 

 

$

2,777

 

 

$

296

 

 

$

(224,898

)

 

(38

%)

Operating margin

 

 

(92

%)

 

 

 

 

54

%

 

 

%

 

 

%

 

 

(38

%)

 

 

(1) Stock-based compensation-related charges included approximately $14.2 million of employer payroll tax-related expenses on employee stock transactions.

 
 

Three Months Ended January 31,

 

Twelve Months Ended January 31,

 

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

 

Revenue

 

$

383,774

 

 

$

190,465

 

 

$

1,219,327

 

 

$

592,049

 

 

 

 

 

 

 

 

 

 

GAAP net cash provided by (used in) operating activities

 

$

78,898

 

 

$

19,614

 

 

$

110,179

 

 

$

(45,417

)

Less: purchases of property and equipment

 

 

(4,012

)

 

 

(11,019

)

 

 

(16,221

)

 

 

(35,037

)

Less: capitalized internal-use software development costs

 

 

(4,160

)

 

 

(1,279

)

 

 

(12,772

)

 

 

(5,293

)

Non-GAAP free cash flow

 

 

70,726

 

 

 

7,316

 

 

 

81,186

 

 

 

(85,747

)

Add: net cash paid on payroll tax-related items on employee stock transactions

 

 

31,378

 

 

 

9,940

 

 

 

68,645

 

 

 

14,136

 

Non-GAAP adjusted free cash flow

 

$

102,104

 

 

$

17,256

 

 

$

149,831

 

 

$

(71,611

)

Non-GAAP free cash flow margin

 

 

18

%

 

 

4

%

 

 

7

%

 

 

(14

%)

Non-GAAP adjusted free cash flow margin

 

 

27

%

 

 

9

%

 

 

12

%

 

 

(12

%)

 

Contacts

Investor Contact
Jimmy Sexton
IR@snowflake.com

Press Contact
Eszter Szikora
Press@snowflake.com

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Contacts

Investor Contact
Jimmy Sexton
IR@snowflake.com

Press Contact
Eszter Szikora
Press@snowflake.com