Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 27, 2024

SNOWFLAKE INC.

(Exact name of registrant as specified in its charter)

Delaware

001-39504

46-0636374

(State or other jurisdiction of incorporation or organization)

(Commission File Number)

(IRS Employer Identification No.)

Suite 3A, 106 East Babcock Street

59715

Bozeman,

Montana

(Address of Principal Executive Offices)1

(Zip Code)

(844) 766-9355

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock, $0.0001 par value

SNOW

The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



1 The Company is a Delaware corporation with a globally distributed workforce and no corporate headquarters. Under the Securities and Exchange Commission's rules, the Company is required to designate a “principal executive office.” For purposes of this report, it has designated its office in Bozeman, Montana as its principal executive office.

Item 2.02 Results of Operations and Financial Condition.

On February 28, 2024, Snowflake Inc. (the “Company”) issued a press release announcing its financial results for the fiscal fourth quarter and fiscal year ended January 31, 2024. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information contained in this Item 2.02 and Item 9.01 of this Current Report on Form 8-K, including the accompanying Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, regardless of any general incorporation language in such filings, unless expressly incorporated by specific reference in such filings.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On February 27, 2024, the Company appointed Emily Ho, Chief Accounting Officer, as principal accounting officer for purposes of the Exchange Act. Ms. Ho assumes the designation of principal accounting officer from Michael P. Scarpelli, who continues, in his capacity as Chief Financial Officer, to serve as the Company’s principal financial officer.

Ms. Ho, age 44, was appointed as the Company’s Chief Accounting Officer in February 2024. From August 2020 to February 2024, Ms. Ho served as the Company’s Vice President, Finance and Corporate Controller, and from October 2019 to August 2020, she served as the Company’s Senior Director, Revenue Accounting and Reporting. From April 2014 to October 2019, Ms. Ho served in various Finance roles at ServiceNow, Inc., an enterprise IT cloud company, most recently as Senior Director, Accounting and Reporting. From February 2005 to March 2014, Ms. Ho worked at PricewaterhouseCoopers LLP, an audit and advisory firm. Ms. Ho holds a Bachelor's degree in Accountancy from Nanyang Technological University, Singapore.

In connection with her appointment as principal accounting officer, the compensation committee of the Company's board of directors designated Ms. Ho as a “Tier 2 Covered Employee” under the Company’s Severance and Change in Control Plan (the “Severance Plan”), and she will therefore be entitled to the severance terms provided to Tier 2 Covered Employees in the Severance Plan, as described in the section titled “Executive Compensation—Potential Payments Upon Termination or Change in Control” in the Company’s Definitive Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission ("SEC") on May 25, 2023 (File No. 001-39504) and the Company’s Current Report on Form 8-K filed with the SEC on August 23, 2023 (File No. 001-39504) (the “August 2023 8-K”). The Severance Plan is attached as Exhibit 10.7 to the August 2023 8-K. There is no other material plan, contract, or arrangement (whether or not written) to which Ms. Ho is a party or a participant that was entered into or materially amended in connection with her appointment as principal accounting officer, or any grant or award to Ms. Ho or modification thereto, under any such plan, contract or arrangement in connection with her appointment.

There is no arrangement or understanding between Ms. Ho and the Company or any other person pursuant to which Ms. Ho was appointed as principal accounting officer of the Company that would require disclosure under Item 401(b) of Regulation S-K promulgated by the SEC under the Securities Act. Additionally, there is no family relationship between Ms. Ho and any other person that would require disclosure under Item 401(d) of Regulation S-K. There are no transactions involving the Company and Ms. Ho that the Company would be required to report pursuant to Item 404(a) of Regulation S-K.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.


Exhibit No.						Description
99.1						Press release issued by Snowflake Inc. dated February 28 , 202 4 annou n cing Snowflake Inc.'s financial results for the fiscal fourth quarter and fiscal year ended January 31, 2024 .
104						Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Snowflake Inc.

Dated: February 28, 2024

By:

/s/ Michael P. Scarpelli

Michael P. Scarpelli

Chief Financial Officer

Snowflake Reports Financial Results for the Fourth Quarter and Full-Year of Fiscal 2024

•Product revenue of $738.1 million in the fourth quarter, representing 33% year-over-year growth

•461 customers with trailing 12-month product revenue greater than $1 million

•Net revenue retention rate of 131%

•691 Forbes Global 2000 customers

•Remaining performance obligations of $5.2 billion, representing 41% year-over-year growth

No-Headquarters/BOZEMAN, Mont. - February 28, 2024 - Snowflake (NYSE: SNOW), the Data Cloud company, today announced financial results for its fourth quarter and full-year of fiscal 2024, ended January 31, 2024.

Revenue for the quarter was $774.7 million, representing 32% year-over-year growth. Product revenue for the quarter was $738.1 million, representing 33% year-over-year growth. The company now has 461 customers with trailing 12-month product revenue greater than $1 million and 691 Forbes Global 2000 customers, representing 39% and 8% year-over-year growth, respectively. Net revenue retention rate was 131% as of January 31, 2024. Remaining performance obligations were $5.2 billion, representing 41% year-over-year growth. Net cash provided by operating activities was $344.6 million, representing 59% year-over-year growth. See the section titled “Key Business Metrics” for definitions of product revenue, customers with trailing 12-month product revenue greater than $1 million, net revenue retention rate, Forbes Global 2000 customers, and remaining performance obligations.

“Snowflake finished fiscal 2024 with a 38% year-over-year product revenue growth, totaling $2.67 billion. Non-GAAP adjusted free cash flow was $810 million, representing 56% year-over-year growth.” said Frank Slootman, Chairman and CEO, Snowflake. “We are successfully campaigning the largest enterprises globally, as more companies and institutions make Snowflake’s Data Cloud the platform of their AI and data strategy.”

Fourth Quarter Fiscal 2024 GAAP and Non-GAAP Results:

The following table summarizes our financial results for the fourth quarter of fiscal 2024:


	Fourth Quarter Fiscal 2024 GAAP Results			Fourth Quarter Fiscal 2024 Non-GAAP Results(1)
	Amount (millions)	Year/Year Growth
Product revenue	$738.1	33	%


	Amount (millions)	Margin		Amount (millions)	Margin
Product gross profit	$545.3	74	%	$576.0	78	%




Operating income (loss)	($275.5)	(36	%)	$71.0	9	%
Net cash provided by operating activities	$344.6
Free cash flow				$324.5	42	%
Adjusted free cash flow				$324.3	42	%

(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 2024 GAAP and Non-GAAP Results:

The following table summarizes our financial results for the full-year of fiscal 2024:


	Full-Year Fiscal 2024 GAAP Results			Full-Year Fiscal 2024 Non-GAAP Results(1)
	Amount (millions)	Year/Year Growth
Product revenue	$2,666.8	38	%


	Amount (millions)	Margin		Amount (millions)	Margin
Product gross profit	$1,965.6	74	%	$2,076.0	78	%




Operating income (loss)	($1,094.8)	(39	%)	$229.7	8	%
Net cash provided by operating activities	$848.1
Free cash flow				$778.9	28	%
Adjusted free cash flow				$810.2	29	%

(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 2025:

First Quarter Fiscal 2025

GAAP Guidance

First Quarter Fiscal 2025

Non-GAAP Guidance(1)

Amount
(millions)

Year/Year Growth

Product revenue

$745 - $750

26 - 27%

Margin

Operating income

Amount
(millions)

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

366

(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) The potential impact of future repurchases under our existing stock repurchase program is not reflected in our guidance for weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders - diluted due to the uncertainty regarding, and the potential variability of, the timing and amount of repurchases.

The following table summarizes our guidance for the full-year fiscal 2025:


	Full-Year Fiscal 2025 GAAP Guidance			Full-Year Fiscal 2025 Non-GAAP Guidance(1)
	Amount (millions)	Year/Year Growth
Product revenue	$3,250	22	%

					Margin
Product gross profit					76	%
Operating income					6	%

Adjusted free cash flow					29	%

				Amount (millions)
Weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders - diluted(2)				368

(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) The potential impact of future repurchases under our existing stock repurchase program is not reflected in our guidance for weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders - diluted due to the uncertainty regarding, and the potential variability of, the timing and amount of repurchases.

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 February 28, 2024. Investors and participants may attend the call by dialing (833) 470-1428 (Access code: 766155), or if outside the United States, by dialing +1 (929) 526-1599 (Access code: 766155).

The call will also be webcast live on the Snowflake Investor Relations website at https://investors.snowflake.com.

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.

•Non-GAAP Product gross profit, Operating income, Net income, Net income attributable to Snowflake Inc., and Net income per share attributable to Snowflake Inc. common stockholders - basic and diluted. Our non-GAAP product gross profit, operating income, net income, and net income attributable to Snowflake Inc. measures exclude the effect of (i) stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, (ii) amortization of acquired intangibles, (iii) expenses associated with acquisitions and strategic investments, (iv) adjustments attributable to noncontrolling interest, and (v) the related income tax effect of these adjustments as well as the non-recurring income tax expense or benefit associated with acquisitions. Non-GAAP product gross margin is calculated as non-GAAP product gross profit as a percentage of product revenue. Non-GAAP operating margin is calculated as non-GAAP operating income as a percentage of revenue. Our non-GAAP net income per share attributable to Snowflake Inc. common stockholders - basic is calculated by dividing non-GAAP net income attributable to Snowflake Inc. by the weighted-average number of shares of common stock outstanding during the period. Our non-GAAP net income per share attributable to Snowflake Inc. common stockholders - diluted is calculated by dividing non-GAAP net income attributable to Snowflake Inc. by the non-GAAP weighted-average number of diluted shares outstanding, giving effect to all potentially dilutive common stock equivalents (stock options, restricted stock units, and employee stock purchase rights under our 2020 Employee Stock Purchase Plan). The potential dilutive effect of outstanding restricted stock units with performance conditions not yet satisfied is included in the non-GAAP weighted-average number of diluted shares at forecasted attainment levels to the extent we believe it is probable that the performance conditions will be met. Amounts attributable to noncontrolling interest were not material for all periods presented. 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. Free cash flow is defined as net cash provided by operating activities reduced by purchases of property and equipment and capitalized internal-use software development costs. Cash outflows for employee payroll tax items related to the net share settlement of equity awards are included in cash flow for financing activities and, as a result, do not have an effect on the calculation of free cash flow. Free cash flow margin is calculated as 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.

•Adjusted free cash flow. Adjusted free cash flow is defined as free cash flow plus (minus) net cash paid (received) on employer and employee payroll tax-related items on employee stock transactions. Employee payroll tax-related items on employee stock transactions 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 payroll tax-related items will enhance stockholders' ability to evaluate our free cash flow performance, including on a quarter-over-quarter basis. Adjusted free cash flow margin is calculated as 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 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.

•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. 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. We do not include customers that consume our platform only under on-demand arrangements for purposes of determining our customer count. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity, and we present our customer count for historical periods reflecting these adjustments.

•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. 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, and we present our net revenue retention rate for historical periods reflecting these adjustments. 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.

•Forbes Global 2000 Customers. Our Forbes Global 2000 customer count is a subset of our customer count based on the 2023 Forbes Global 2000 list. Our Forbes Global 2000 customer count is subject to adjustments for annual updates to the list by Forbes, as well as acquisitions, consolidations, spin-offs, and other market activity with respect to such customers, and we present our Forbes Global 2000 customer count for historical periods reflecting these adjustments.

•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 U.S. dollars 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 and size of renewals, the timing and size of purchases of additional capacity, average contract terms, seasonality, changes in foreign currency exchange rates, 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.

Use of Forward‑Looking Statements

This release and the accompanying oral presentation contain 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.” Words such as “guidance,” “outlook,” “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “plan,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. 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; general market and business conditions, downturns, or uncertainty, including higher inflation, higher interest rates, and fluctuations or volatility in capital markets or foreign currency exchange rates; our ability to attract and retain customers; the extent to which customers continue to optimize consumption; the impact of new or optimized product features and pricing strategies on consumption, including Iceberg Tables and tiered storage pricing; the extent to which customers continue to rationalize budgets and prioritize cash flow management, including through shortened contract durations; our ability to develop new products and services and enhance existing products and services; the growth of successful native applications on the Snowflake Marketplace; our ability to respond rapidly to emerging technology trends, including the use of artificial intelligence; our ability to execute on our business strategy, including our strategy related to the Data Cloud, Snowpark, and Snowflake Marketplace; our ability to increase and predict customer consumption of our platform, particularly in light of the impact of holidays on customer consumption patterns; 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, 2023 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, 2024.

Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor(s) may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. As a result of these risks, uncertainties, assumptions, and other factors, you should not rely on any forward-looking statements as predictions of future events. 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, power data applications, and execute diverse AI/ML and 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 691 of the 2023 Forbes Global 2000 (G2K) as of January 31, 2024, use Snowflake Data Cloud to power their businesses. Learn more at snowflake.com.

Investor Contact

Jimmy Sexton

IR@snowflake.com

Press Contact

Eszter Szikora

Press@snowflake.com

Source: Snowflake Inc.

Snowflake Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)


	Three Months Ended January 31,			Twelve Months Ended January 31,
		2024		2023		2024		2023

Revenue		$	774,699	$	589,012	$	2,806,489	$	2,065,659
Cost of revenue		241,804		205,657		898,558		717,540
Gross profit		532,895		383,355		1,907,931		1,348,119
Operating expenses:
Sales and marketing		361,822		303,473		1,391,747		1,106,507
Research and development		364,476		242,125		1,287,949		788,058
General and administrative		82,102		77,507		323,008		295,821
Total operating expenses		808,400		623,105		3,002,704		2,190,386
Operating loss		(275,505)		(239,750)		(1,094,773)		(842,267)
Interest income		53,761		35,531		200,663		73,839
Other income (expense), net		47,533		(2,893)		44,887		(47,565)
Loss before income taxes		(174,211)		(207,112)		(849,223)		(815,993)
Provision for (benefit from) income taxes		(4,299)		372		(11,233)		(18,467)
Net loss		(169,912)		(207,484)		(837,990)		(797,526)
Less: net loss attributable to noncontrolling interest		(560)		(315)		(1,893)		(821)
Net loss attributable to Snowflake Inc.		$	(169,352)	$	(207,169)	$	(836,097)	$	(796,705)
Net loss per share attributable to Snowflake Inc. common stockholders - basic and diluted		$	(0.51)	$	(0.64)	$	(2.55)	$	(2.50)
Weighted-average shares used in computing net loss per share attributable to Snowflake Inc. common stockholders - basic and diluted		331,079		321,924		328,001		318,730

Snowflake Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)


	January 31, 2024		January 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	1,762,749	$	939,902
Short-term investments	2,083,499		3,067,966
Accounts receivable, net	926,902		715,821
Deferred commissions, current	86,096		67,901
Prepaid expenses and other current assets	180,018		193,100
Total current assets	5,039,264		4,984,690
Long-term investments	916,307		1,073,023
Property and equipment, net	247,464		160,823
Operating lease right-of-use assets	252,128		231,266
Goodwill	975,906		657,370
Intangible assets, net	331,411		186,013
Deferred commissions, non-current	187,093		145,286
Other assets	273,810		283,851
Total assets	$	8,223,383	$	7,722,322
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	51,721	$	23,672
Accrued expenses and other current liabilities	446,860		269,069
Operating lease liabilities, current	33,944		27,301
Deferred revenue, current	2,198,705		1,673,475
Total current liabilities	2,731,230		1,993,517
Operating lease liabilities, non-current	254,037		224,357
Deferred revenue, non-current	14,402		11,463
Other liabilities	33,120		24,370
Snowflake Inc. stockholders’ equity	5,180,308		5,456,436
Noncontrolling interest	10,286		12,179
Total liabilities and stockholders’ equity	$	8,223,383	$	7,722,322

Snowflake Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)


	Three Months Ended January 31,			Twelve Months Ended January 31,
		2024		2023		2024		2023
Cash flows from operating activities:
Net loss		$	(169,912)	$	(207,484)	$	(837,990)	$	(797,526)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		34,986		19,726		119,903		63,535
Non-cash operating lease costs		13,751		12,661		52,892		46,240
Amortization of deferred commissions		20,065		15,920		74,787		57,445
Stock-based compensation, net of amounts capitalized		305,498		250,696		1,168,015		861,533
Net amortization (accretion) of premiums (discounts) on investments		(12,299)		(8,834)		(61,525)		3,497
Net realized and unrealized losses (gains) on strategic investments in equity securities		(45,704)		1,339		(46,809)		46,435
Deferred income tax		(13,655)		(1,387)		(26,762)		(26,664)
Other		609		940		14,895		1,618
Changes in operating assets and liabilities, net of effects of business combinations:
Accounts receivable		(417,221)		(317,688)		(212,083)		(166,965)
Deferred commissions		(68,317)		(31,480)		(134,787)		(95,107)
Prepaid expenses and other assets		8,221		(16,073)		59,795		(2,904)
Accounts payable		(32,460)		(2,280)		19,212		8,024
Accrued expenses and other liabilities		137,339		46,792		171,048		74,519
Operating lease liabilities		(11,759)		(13,166)		(40,498)		(42,342)
Deferred revenue		595,438		467,634		528,029		514,301
Net cash provided by operating activities		344,580		217,316		848,122		545,639
Cash flows from investing activities:
Purchases of property and equipment		(13,072)		(5,362)		(35,086)		(25,128)
Capitalized internal-use software development costs		(7,029)		(6,693)		(34,133)		(24,012)
Cash paid for business combinations, net of cash, cash equivalents, and restricted cash acquired		3,828		(10,054)		(275,706)		(362,609)
Purchases of intangible assets		—		—		(28,744)		(700)
Purchases of investments		(380,877)		(1,105,154)		(2,476,206)		(3,901,321)
Sales of investments		—		—		11,266		58,813
Maturities and redemptions of investments		919,719		1,062,479		3,670,867		3,657,072
Net cash provided by (used in) investing activities		522,569		(64,784)		832,258		(597,885)
Cash flows from financing activities:



Proceeds from exercise of stock options		18,340		8,798		57,194		39,893
Proceeds from issuance of common stock under employee stock purchase plan		—		—		61,234		40,931
Taxes paid related to net share settlement of equity awards		(106,971)		(48,882)		(380,799)		(184,648)




Repurchases of common stock		—		—		(591,732)		—
Capital contributions from noncontrolling interest holders		—		—		—		13,000
Payments of deferred purchase consideration for business combinations		—		—		—		(1,800)
Net cash used in financing activities		(88,631)		(40,084)		(854,103)		(92,624)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		2,564		8,457		(2,031)		(933)
Net increase (decrease) in cash, cash equivalents, and restricted cash		781,082		120,905		824,246		(145,803)
Cash, cash equivalents, and restricted cash—beginning of period		999,895		835,826		956,731		1,102,534
Cash, cash equivalents, and restricted cash—end of period		$	1,780,977	$	956,731	$	1,780,977	$	956,731

Snowflake Inc.

GAAP to Non-GAAP Reconciliations

(in thousands, except per share data and percentages)

(unaudited)


	Three Months Ended January 31,						Twelve Months Ended January 31,
		2024			2023			2024			2023
		Amount		Amount as a % of Revenue	Amount		Amount as a % of Revenue	Amount		Amount as a % of Revenue	Amount		Amount as a % of Revenue
Revenue:
Product revenue		$	738,090	95%	$	555,329	94%	$	2,666,849	95%	$	1,938,783	94%
Professional services and other revenue		36,609		5%	33,683		6%	139,640		5%	126,876		6%
Revenue		$	774,699	100%	$	589,012	100%	$	2,806,489	100%	$	2,065,659	100%
Year-over-year growth		32%			53%			36%			69%

Cost of revenue:
GAAP cost of product revenue		$	192,776		$	158,601		$	701,200		$	547,547
Adjustments:
Stock-based compensation-related charges		(20,928)			(17,332)			(78,900)			(61,379)
Amortization of acquired intangibles		(9,760)			(2,335)			(31,403)			(4,767)

Non-GAAP cost of product revenue		$	162,088		$	138,934		$	590,897		$	481,401

GAAP cost of professional services and other revenue		$	49,028		$	47,056		$	197,358		$	169,993
Adjustments:
Stock-based compensation-related charges		(13,380)			(14,250)			(58,231)			(52,324)
Amortization of acquired intangibles		(1,663)			—			(6,434)			—

Non-GAAP cost of professional services and other revenue		$	33,985		$	32,806		$	132,693		$	117,669

GAAP cost of revenue		$	241,804	31%	$	205,657	35%	$	898,558	32%	$	717,540	35%
Adjustments:
Stock-based compensation-related charges		(34,308)			(31,582)			(137,131)			(113,703)
Amortization of acquired intangibles		(11,423)			(2,335)			(37,837)			(4,767)

Non-GAAP cost of revenue		$	196,073	25%	$	171,740	29%	$	723,590	26%	$	599,070	29%

Gross profit (loss):
GAAP product gross profit		$	545,314		$	396,728		$	1,965,649		$	1,391,236
Adjustments:
Stock-based compensation-related charges		20,928			17,332			78,900			61,379
Amortization of acquired intangibles		9,760			2,335			31,403			4,767

Non-GAAP product gross profit		$	576,002		$	416,395		$	2,075,952		$	1,457,382

GAAP professional services and other revenue gross loss		$	(12,419)		$	(13,373)		$	(57,718)		$	(43,117)
Adjustments:
Stock-based compensation-related charges		13,380			14,250			58,231			52,324
Amortization of acquired intangibles		1,663			—			6,434			—

Non-GAAP professional services and other revenue gross profit		$	2,624		$	877		$	6,947		$	9,207

GAAP gross profit		$	532,895	69%	$	383,355	65%	$	1,907,931	68%	$	1,348,119	65%
Adjustments:
Stock-based compensation-related charges		34,308			31,582			137,131			113,703
Amortization of acquired intangibles		11,423			2,335			37,837			4,767

Non-GAAP gross profit		$	578,626	75%	$	417,272	71%	$	2,082,899	74%	$	1,466,589	71%

Gross margin:
GAAP product gross margin		74%			71%			74%			72%
Adjustments:
Stock-based compensation-related charges as a % of product revenue		3%			4%			3%			3%
Amortization of acquired intangibles as a % of product revenue		1%			—%			1%			—%

Non-GAAP product gross margin		78%			75%			78%			75%

GAAP professional services and other revenue gross margin		(34%)			(40%)			(41%)			(34%)
Adjustments:
Stock-based compensation-related charges as a % of professional services and other revenue		36%			43%			41%			41%
Amortization of acquired intangibles as a % of professional services and other revenue		5%			—%			5%			—%

Non-GAAP professional services and other revenue gross margin		7%			3%			5%			7%

GAAP gross margin		69%			65%			68%			65%
Adjustments:
Stock-based compensation-related charges as a % of revenue		5%			6%			5%			6%
Amortization of acquired intangibles as a % of revenue		1%			—%			1%			—%

Non-GAAP gross margin		75%			71%			74%			71%

Operating expenses:
GAAP sales and marketing expense		$	361,822	47%	$	303,473	52%	$	1,391,747	50%	$	1,106,507	54%
Adjustments:
Stock-based compensation-related charges		(77,121)			(70,844)			(319,979)			(258,056)
Amortization of acquired intangibles		(7,800)			(7,553)			(30,235)			(25,207)

Non-GAAP sales and marketing expense		$	276,901	36%	$	225,076	38%	$	1,041,533	37%	$	823,244	39%

GAAP research and development expense		$	364,476	47%	$	242,125	41%	$	1,287,949	46%	$	788,058	38%
Adjustments:
Stock-based compensation-related charges		(181,059)			(128,026)			(663,471)			(413,080)
Amortization of acquired intangibles		(3,682)			(1,813)			(12,384)			(7,123)

Non-GAAP research and development expense		$	179,735	23%	$	112,286	19%	$	612,094	22%	$	367,855	18%

GAAP general and administrative expense		$	82,102	11%	$	77,507	13%	$	323,008	11%	$	295,821	14%
Adjustments:
Stock-based compensation-related charges		(27,816)			(25,833)			(108,942)			(104,160)
Amortization of acquired intangibles		(451)			(451)			(1,789)			(1,731)
Expenses associated with acquisitions and strategic investments		(2,811)			(4,088)			(12,715)			(9,723)
Non-GAAP general and administrative expense		$	51,024	7%	$	47,135	8%	$	199,562	7%	$	180,207	9%

GAAP total operating expense		$	808,400	105%	$	623,105	106%	$	3,002,704	107%	$	2,190,386	106%
Adjustments:
Stock-based compensation-related charges		(285,996)			(224,703)			(1,092,392)			(775,296)
Amortization of acquired intangibles		(11,933)			(9,817)			(44,408)			(34,061)
Expenses associated with acquisitions and strategic investments		(2,811)			(4,088)			(12,715)			(9,723)
Non-GAAP total operating expense		$	507,660	66%	$	384,497	65%	$	1,853,189	66%	$	1,371,306	66%

Operating income (loss):
GAAP operating loss		$	(275,505)	(36%)	$	(239,750)	(41%)	$	(1,094,773)	(39%)	$	(842,267)	(41%)
Adjustments:
Stock-based compensation-related charges(1)		320,304			256,285			1,229,523			888,999
Amortization of acquired intangibles		23,356			12,152			82,245			38,828
Expenses associated with acquisitions and strategic investments		2,811			4,088			12,715			9,723
Non-GAAP operating income		$	70,966	9%	$	32,775	6%	$	229,710	8%	$	95,283	5%

Operating margin:
GAAP operating margin		(36%)			(41%)			(39%)			(41%)
Adjustments:
Stock-based compensation-related charges as a % of revenue		42%			44%			44%			44%
Amortization of acquired intangibles as a % of revenue		3%			2%			3%			2%
Expenses associated with acquisitions and strategic investments as a % of revenue		—%			1%			—%			—%
Non-GAAP operating margin		9%			6%			8%			5%

Net income (loss):
GAAP net loss		$	(169,912)	(22%)	$	(207,484)	(35%)	$	(837,990)	(30%)	$	(797,526)	(39%)
Adjustments:
Stock-based compensation-related charges(1)		320,304			256,285			1,229,523			888,999
Amortization of acquired intangibles		23,356			12,152			82,245			38,828
Expenses associated with acquisitions and strategic investments		2,811			4,088			12,715			9,723
Income tax effect related to the above adjustments and acquisitions		(49,087)			(16,635)			(134,801)			(50,072)
Non-GAAP net income		$	127,472	16%	$	48,406	8%	$	351,692	13%	$	89,952	4%

Net income (loss) attributable to Snowflake Inc.:
GAAP net loss attributable to Snowflake Inc.		$	(169,352)	(22%)	$	(207,169)	(35%)	$	(836,097)	(30%)	$	(796,705)	(39%)
Adjustments:
Stock-based compensation-related charges(1)		320,304			256,285			1,229,523			888,999
Amortization of acquired intangibles		23,356			12,152			82,245			38,828
Expenses associated with acquisitions and strategic investments		2,811			4,088			12,715			9,723
Income tax effect related to the above adjustments and acquisitions		(49,087)			(16,635)			(134,801)			(50,072)
Adjustments attributable to noncontrolling interest, net of tax		(62)			14			(236)			(361)
Non-GAAP net income attributable to Snowflake Inc.		$	127,970	17%	$	48,735	8%	$	353,349	13%	$	90,412	4%

Net income (loss) per share attributable to Snowflake Inc. common stockholders - basic and diluted:
GAAP net loss per share attributable to Snowflake Inc. common stockholders - basic and diluted		$	(0.51)		$	(0.64)		$	(2.55)		$	(2.50)
Weighted-average shares used in computing GAAP net loss per share attributable to Snowflake Inc. common stockholders - basic and diluted		331,079			321,924			328,001			318,730

Non-GAAP net income per share attributable to Snowflake Inc. common stockholders - basic		$	0.39		$	0.15		$	1.08		$	0.28
Weighted-average shares used in computing non-GAAP net income per share attributable to Snowflake Inc. common stockholders - basic		331,079			321,924			328,001			318,730

Non-GAAP net income per share attributable to Snowflake Inc. common stockholders - diluted		$	0.35		$	0.14		$	0.98		$	0.25
Non-GAAP weighted-average shares used in computing non-GAAP net income per share attributable to Snowflake Inc. common stockholders - diluted(2)		363,757			359,513			362,064			359,144


Free cash flow and adjusted free cash flow:
GAAP net cash provided by operating activities		$	344,580	44%	$	217,316	37%	$	848,122	30%	$	545,639	26%
Adjustments:
Purchases of property and equipment		(13,072)			(5,362)			(35,086)			(25,128)
Capitalized internal-use software development costs		(7,029)			(6,693)			(34,133)			(24,012)
Non-GAAP free cash flow		324,479		42%	205,261		35%	778,903		28%	496,499		24%
Adjustments:
Net cash paid on payroll tax-related items on employee stock transactions(3)		(182)			10,034			31,282			23,927
Non-GAAP adjusted free cash flow		$	324,297	42%	$	215,295	37%	$	810,185	29%	$	520,426	25%
Non-GAAP free cash flow margin		42%			35%			28%			24%
Non-GAAP adjusted free cash flow margin		42%			37%			29%			25%

(1) Stock-based compensation-related charges included employer payroll tax-related expenses on employee stock transactions of approximately $11.0 million and $45.5 million for the three and twelve months ended January 31, 2024, respectively, and $4.0 million and $22.7 million for the three and twelve months ended January 31, 2023, respectively. (2) For the periods in which we had non-GAAP net income, the non-GAAP weighted-average shares used in computing non-GAAP net income per share attributable to Snowflake Inc. common stockholders - diluted included the effect of all potentially dilutive common stock equivalents (stock options, restricted stock units, and employee stock purchase rights under our 2020 Employee Stock Purchase Plan). The potential dilutive effect of outstanding restricted stock units with performance conditions not yet satisfied is included in the non-GAAP weighted-average number of diluted shares at forecasted attainment levels to the extent we believe it is probable that the performance conditions will be met. (3) The amounts for the three and twelve months ended January 31, 2024 do not include employee payroll taxes of $107.0 million and $380.8 million, respectively, and the amounts for the three and twelve months ended January 31, 2023 do not include employee payroll taxes of $48.9 million and $184.6 million, respectively, related to net share settlement of employee restricted stock units, which were reflected as cash outflows for financing activities.

Cover Page	Feb. 27, 2024
Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Feb. 27, 2024
Entity Registrant Name	SNOWFLAKE INC.
Entity Incorporation, State or Country Code	DE
Entity File Number	001-39504
Entity Tax Identification Number	46-0636374
Entity Address, Address Line One	Suite 3A, 106 East Babcock Street
Entity Address, City or Town	Bozeman,
Entity Address, State or Province	MT
Entity Address, Postal Zip Code	59715
City Area Code	844
Local Phone Number	766-9355
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Class A Common Stock, $0.0001 par value
Trading Symbol	SNOW
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0001640147
Former Address
Entity Information [Line Items]
Entity Address, Address Line One	Not Applicable