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Jul 31, 2022

Snowflake Q2 2023 Earnings Report

Snowflake's product revenue grew, remaining performance obligations increased, and net revenue retention rate remained high.

Key Takeaways

Snowflake reported strong financial results for the second quarter of fiscal 2023. Product revenue grew 83% year-over-year to $466.3 million, and total revenue reached $497.2 million, also representing 83% year-over-year growth. The company's remaining performance obligations were $2.7 billion, a 78% year-over-year increase, and the net revenue retention rate was 171%.

Product revenue grew 83% year-over-year to $466.3 million.

Total revenue reached $497.2 million, representing 83% year-over-year growth.

Remaining performance obligations (RPO) increased 78% year-over-year to $2.7 billion.

Net revenue retention rate was 171% as of July 31, 2022.

Total Revenue
$497M
Previous year: $272M
+82.7%
EPS
$0.01
Previous year: -$0.04
-125.0%
Remaining Performance Obligation
$2.7B
Previous year: $1.5B
+80.0%
Net Revenue Retention Rate
171%
Previous year: 169%
+1.2%
Customers With >$1M Revenue
246
Previous year: 116
+112.1%
Gross Profit
$324M
Previous year: $166M
+95.1%
Cash and Equivalents
$907M
Previous year: $699M
+29.8%
Free Cash Flow
$53.8M
Previous year: -$12M
-548.3%
Total Assets
$7.06B
Previous year: $6.03B
+17.1%

Snowflake

Snowflake

Snowflake Revenue by Segment

Forward Guidance

Snowflake provided guidance for the third quarter of fiscal 2023, projecting product revenue between $500 million and $505 million, representing 60-62% year-over-year growth, and an operating income margin of 2%. For the full fiscal year 2023, the company anticipates product revenue between $1.905 billion and $1.915 billion, indicating 67-68% year-over-year growth, a product gross profit margin of 75%, an operating income margin of 2%, and an adjusted free cash flow margin of 17%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income