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Jan 31, 2024
Snowflake Q4 2024 Earnings Report
Snowflake's Q4 2024 financial results were released, showcasing growth in product revenue and customer base.
Key Takeaways
Snowflake reported a 32% year-over-year increase in total revenue, reaching $774.7 million for Q4 2024. Product revenue grew by 33% year-over-year to $738.1 million. The company's customer base expanded, with 461 customers generating over $1 million in trailing 12-month product revenue.
Total revenue reached $774.7 million, a 32% year-over-year increase.
Product revenue grew to $738.1 million, representing a 33% year-over-year growth.
Net revenue retention rate stood at 131%.
Remaining performance obligations (RPO) amounted to $5.2 billion, a 41% year-over-year increase.
Snowflake
Snowflake
Snowflake Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
Snowflake anticipates product revenue between $745 million and $750 million for the first quarter of fiscal year 2025, representing a 26% to 27% year-over-year growth. The company projects a 3% operating income margin for the same period.
Positive Outlook
- Projected product revenue growth of 26-27% year-over-year for Q1 2025.
- Targeting a 3% operating income margin for Q1 2025.
- Full-year fiscal 2025 product revenue is expected to be $3.25 billion, representing 22% year-over-year growth.
- Projected product gross profit margin of 76% for fiscal year 2025.
- Targeting a 6% operating income margin for fiscal year 2025.
Challenges Ahead
- Uncertainty regarding the timing and amount of future stock repurchases.
- Potential variability of expenses, including stock-based compensation.
- Impact of employee stock transactions on stock-based compensation-related charges.
- Difficulty in predicting the future fair market value of common stock.
- Challenges in forecasting future hiring and retention needs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income