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Oct 31, 2022
Snowflake Q3 2023 Earnings Report
Snowflake's Q3 2023 earnings showcased strong revenue growth and a high net revenue retention rate.
Key Takeaways
Snowflake reported a strong third quarter in fiscal year 2023, with revenue reaching $557.0 million, representing a 67% year-over-year growth. Product revenue also grew by 67% year-over-year, reaching $522.8 million. The company's remaining performance obligations (RPO) reached $3.0 billion, a 66% year-over-year increase, and the net revenue retention rate was 165%.
Total revenue reached $557.0 million, representing 67% year-over-year growth.
Product revenue grew 67% year-over-year to $522.8 million.
Remaining performance obligations (RPO) increased to $3.0 billion, a 66% year-over-year growth.
Net revenue retention rate was 165% as of October 31, 2022.
Revenue by Segment
Forward Guidance
Snowflake provided guidance for the fourth quarter of fiscal year 2023, projecting product revenue between $535 million and $540 million, representing a 49-50% year-over-year growth.
Positive Outlook
- Product revenue is expected to be between $535 million and $540 million.
- Year-over-year growth of product revenue is projected to be 49% - 50%.
- Operating income is expected to be 1% of revenue.
- The company anticipates non-GAAP net income for the fourth quarter of fiscal 2023.
- Weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders - diluted is expected to be 360 million.
Challenges Ahead
- 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 uncertainty regarding future expenses.
- Stock-based compensation-related charges are impacted by the timing of employee stock transactions, future fair market value of common stock, and future hiring and retention needs, all of which are difficult to predict and subject to constant change.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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