Snowflake Q3 2024 Earnings Report
Key Takeaways
Snowflake reported a 32% year-over-year increase in total revenue, reaching $734.2 million. Product revenue grew by 34% year-over-year to $698.5 million. The company's net revenue retention rate remained strong at 135%.
Total revenue increased by 32% year-over-year to $734.2 million.
Product revenue grew by 34% year-over-year to $698.5 million.
Net revenue retention rate was 135%.
The company has 436 customers with trailing 12-month product revenue greater than $1 million.
Snowflake
Snowflake
Snowflake Revenue by Segment
Forward Guidance
Snowflake anticipates continued growth in product revenue for the fourth quarter of fiscal year 2024, with projections between $716 and $721 million, representing a 29-30% year-over-year increase. The company expects an operating income margin of 4%.
Positive Outlook
- Product revenue is projected to grow 29-30% year-over-year.
- Product revenue is expected to be between $716 and $721 million.
- Operating income margin is anticipated to be 4%.
- Weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders - diluted is expected to be 360 million.
- The full-year fiscal 2024 product gross profit is expected to be 77%.
Challenges Ahead
- Guidance is subject to various risks and uncertainties.
- Expenses that may be incurred in the future are uncertain.
- Stock-based compensation-related charges are difficult to predict.
- The potential impact of future repurchases under our existing stock repurchase program is not reflected in our guidance.
- The guidance does not include reconciliation of non-GAAP guidance measures to corresponding GAAP guidance measures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income