SNOW
$345.11
Snowflake Inc Cl A
($15.17)
(4.21%)
Earnings Details
3rd Quarter October 2021
Wednesday, December 1, 2021 4:05:00 PM
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Summary

Snowflake Inc Cl A Misses

Snowflake Inc Cl A (SNOW) reported a 3rd Quarter October 2021 loss of $0.09 per share on revenue of $334.4 million. The consensus estimate was a loss of $0.06 per share on revenue of $305.5 million. The Earnings Whisper number was for a loss of $0.01 per share. Revenue grew 109.5% on a year-over-year basis.

The company said it expects fourth quarter product revenue of $345.0 million to $350.0 million. The current consensus revenue estimate is $339.59 million for the quarter ending January 31, 2022.

Snowflake delivers the Data Cloud — a global network where thousands of organizations mobilize data with near-unlimited scale, concurrency, and performance. Inside the Data Cloud, organizations unite their siloed data, easily discover and securely share governed data, and execute diverse analytic workloads. Wherever data or users live, Snowflake delivers a single and seamless experience across multiple public clouds. Snowflake’s platform is the engine that powers and provides access to the Data Cloud, creating a solution for data warehousing, data lakes, data engineering, data science, data application development, and data sharing.

Results
Reported Earnings
($0.09)
Earnings Whisper
($0.01)
Consensus Estimate
($0.06)
Reported Revenue
$334.4 Mil
Revenue Estimate
$305.5 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Snowflake Reports Financial Results for the Third Quarter of Fiscal 2022

  • Product revenue of $312.5 million, representing 110% year-over-year growth
  • Remaining performance obligations of $1.8 billion, representing 94% year-over-year growth
  • 5,416 total customers
  • Net revenue retention rate of 173%
  • 148 customers with trailing 12-month product revenue greater than $1 million

No-Headquarters/BOZEMAN, Mont.--(BUSINESS WIRE)--Snowflake (NYSE: SNOW), the Data Cloud company, today announced financial results for its third quarter of fiscal 2022, ended October 31, 2021.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211201006020/en/

Snowflake FY22 Q3 Earnings Infographic (Graphic: Snowflake)

Snowflake FY22 Q3 Earnings Infographic (Graphic: Snowflake)

Revenue for the quarter was $334.4 million, representing 110% year-over-year growth. Product revenue for the quarter was $312.5 million, representing 110% year-over-year growth. Remaining performance obligations were $1.8 billion, representing 94% year-over-year growth. Net revenue retention rate was 173% as of October 31, 2021. The company now has 5,416 total customers and 148 customers with trailing 12-month product revenue greater than $1 million. See the section titled “Key Business Metrics” for definitions of product revenue, remaining performance obligations, net revenue retention rate, total customers, and customers with trailing 12-month product revenue greater than $1 million.

“Snowflake saw momentum accelerate in Q3, with product revenue growing 110% year-on-year to $312.5 million. Continued international expansion during the quarter resulted in product revenue from the EMEA and APJ regions up 174% and 219% year-on-year, respectively,” said Frank Slootman, Chairman and CEO, Snowflake. “Our vertical industry focus is an important evolution of our selling motion and Snowflake continues to see broad industry adoption.”

Third Quarter Fiscal 2022 GAAP and Non-GAAP Results:

The following table summarizes our financial results for the third quarter of fiscal 2022:

 

Third Quarter Fiscal 2022

GAAP Results

 

Third Quarter Fiscal 2022

Non-GAAP Results(1)

 

Amount

(millions)

Year/Year

Growth

 

 

 

Product revenue

$312.5

110%

 

 

 

 

 

 

 

 

 

 

Amount

(millions)

Margin

 

Amount

(millions)

Margin

Product gross profit

$220.2

70%

 

$233.2

75%

Operating income (loss)

($157.3)

(47%)

 

$8.5

3%

Net cash provided by operating activities

$15.5

 

 

 

 

Free cash flow

 

 

 

$9.5

3%

Adjusted free cash flow

 

 

 

$21.5

6%

 

 

 

 

 

 

(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 fourth quarter of fiscal 2022:

 

Fourth Quarter Fiscal 2022

GAAP Guidance

 

Fourth Quarter Fiscal 2022

Non-GAAP Guidance(1)

 

Amount

(millions)

Year/Year

Growth

 

 

 

Product revenue

$345 - $350

94 - 96%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margin

Operating income

 

 

 

 

1%

 

 

 

 

 

 

 

 

 

 

Amount

(millions)

 

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

 

 

 

358

 

 

 

 

 

 

 

(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) We may have a non-GAAP net income for the fourth quarter of fiscal 2022. As a result, we are presenting the weighted-average shares used in computing net income per share attributable to common stockholders - diluted in the non-GAAP column of the table above, giving effect to all dilutive securities (stock options, restricted stock units, and employee stock purchase rights under our 2020 Employee Stock Purchase Plan). These dilutive securities would be excluded from the weighted-average shares used in computing net loss per share attributable to common stockholders - diluted if we are in a non-GAAP net loss position.

The following table summarizes our guidance for the full-year fiscal 2022:

 

Full-Year Fiscal 2022

GAAP Guidance

 

Full-Year Fiscal 2022

Non-GAAP Guidance(1)

 

Amount

(millions)

Year/Year

Growth

 

 

 

Product revenue

$1,126 - $1,131

103 - 104%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margin

Product gross profit

 

 

 

 

74%

Operating loss

 

 

 

 

(4%)

Adjusted free cash flow

 

 

 

 

8%

 

 

 

 

 

 

 

 

 

 

Amount

(millions)

 

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

 

 

 

357

 

 

 

 

 

 

 

(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) We may have a non-GAAP net income for full-year fiscal 2022. As a result, we are presenting the weighted-average shares used in computing net income per share attributable to common stockholders - diluted in the non-GAAP column of the table above, giving effect to all dilutive securities (stock options, restricted stock units, and employee stock purchase rights under our 2020 Employee Stock Purchase Plan). These dilutive securities would be excluded from the weighted-average shares used in computing net loss per share attributable to common stockholders - diluted if we are in a non-GAAP net loss position.

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 expense-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 press 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 December 1, 2021. Investors and participants can register for the call in advance by visiting http://www.directeventreg.com/registration/event/2278651. After registering, a confirmation will be sent via email, including dial-in details and unique conference call access codes required for call entry.

The call will also be webcast live on the Snowflake Investor Relations website.

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.

  • Product gross profit, Operating income (loss), and Net income (loss). Our non-GAAP product gross profit, operating income (loss), and net income (loss) measures exclude the effect of stock-based compensation expense-related charges, including employer payroll tax-related items on employee stock transactions, amortization of acquired intangibles, expenses associated with acquisitions and strategic investments, and the related income tax effect of these adjustments. 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 and Adjusted free cash flow. Free cash flow is defined as net cash provided by (used in) operating activities reduced by purchases of property and equipment and capitalized internal-use software development costs. Adjusted free cash flow is defined as free cash flow plus (minus) net cash paid (received) on payroll tax-related items on employee stock transactions. Prior to the fiscal quarter ended April 30, 2021, adjusted free cash flow was defined as free cash flow plus cash paid on only employer payroll tax-related items on employee stock transactions. Starting with the fiscal quarter ended April 30, 2021, adjusted free cash flow is defined to also exclude the effects of employee payroll tax-related items on employee stock transactions, which 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 employee payroll tax-related items will enhance stockholders' ability to evaluate our free cash flow performance, including on a quarter-over-quarter basis. The impact of excluding employee payroll tax-related items on employee stock transactions from our definition of adjusted free cash flow was not significant for any prior periods. As a result, we have not restated adjusted free cash flow measures for any periods prior to the quarter ended April 30, 2021. Free cash flow margin and adjusted free cash flow margin are calculated as free cash flow or 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

  • 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.
  • Remaining Performance Obligations. Remaining performance obligations (RPO) represent the amount of contracted future revenue that has not yet been recognized, including both deferred revenue and 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. 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 of renewals, the timing of purchases of additional capacity, average contract terms, seasonality, 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.
  • Total Customers. We count the total number of customers at the end of each period. 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. For purposes of determining our customer count, we do not include customers that consume our platform only under on-demand arrangements. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity.
  • 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. Starting with the fiscal quarter ended October 31, 2021, 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. 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.
  • 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. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity.

Use of Forward-Looking Statements

This release contains 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.” 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, the effects of COVID-19 or other public health crises on our business, results of operations, and financial condition, our ability to attract and retain customers, our ability to develop new products and services and enhance existing products and services, our ability to respond rapidly to emerging technology trends, our ability to execute on our business strategy, including our strategy related to the Data Cloud, our ability to increase and predict customer consumption of our platform, 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 July 31, 2021 and other filings and reports we make with the Securities and Exchange Commission from time to time, including our Form 10-Q that will be filed for the fiscal quarter ended October 31, 2021.

Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. 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, and execute diverse 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 223 of the 2021 Fortune 500 as of October 31, 2021, use Snowflake Data Cloud to power their businesses. Learn more at snowflake.com.

Source: Snowflake Inc.

Snowflake Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share data)

(unaudited)

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Revenue

$

334,441

 

 

$

159,624

 

 

$

835,553

 

 

$

401,584

 

Cost of revenue

120,786

 

 

66,681

 

 

324,253

 

 

159,684

 

Gross profit

213,655

 

 

92,943

 

 

511,300

 

 

241,900

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

190,971

 

 

134,727

 

 

540,678

 

 

325,267

 

Research and development

115,900

 

 

74,138

 

 

343,783

 

 

143,949

 

General and administrative

64,055

 

 

53,532

 

 

189,846

 

 

116,224

 

Total operating expenses

370,926

 

 

262,397

 

 

1,074,307

 

 

585,440

 

Operating loss

(157,271

)

 

(169,454

)

 

(563,007

)

 

(343,540

)

Interest income

1,985

 

 

1,517

 

 

6,787

 

 

5,654

 

Other income (expense), net

1,609

 

 

(519

)

 

9,867

 

 

(1,561

)

Loss before income taxes

(153,677

)

 

(168,456

)

 

(546,353

)

 

(339,447

)

Provision for income taxes

1,179

 

 

433

 

 

1,442

 

 

720

 

Net loss

$

(154,856

)

 

$

(168,889

)

 

$

(547,795

)

 

$

(340,167

)

Net loss per share attributable to common stockholders - basic and diluted

$

(0.51

)

 

$

(1.01

)

 

$

(1.84

)

 

$

(3.63

)

Weighted-average shares used in computing net loss per share attributable to common stockholders - basic and diluted

303,006,685

 

 

166,868,200

 

 

297,435,637

 

 

93,763,599

 

Snowflake Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

October 31, 2021

 

January 31, 2021

 

 

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

935,217

 

 

$

820,177

 

Short-term investments

2,955,613

 

 

3,087,887

 

Accounts receivable, net

254,243

 

 

294,017

 

Deferred commissions, current

42,896

 

 

32,371

 

Prepaid expenses and other current assets

120,288

 

 

66,200

 

Total current assets

4,308,257

 

 

4,300,652

 

Long-term investments

1,211,858

 

 

1,165,275

 

Property and equipment, net

94,377

 

 

68,968

 

Operating lease right-of-use assets

184,057

 

 

186,818

 

Goodwill

8,449

 

 

8,449

 

Intangible assets, net

26,167

 

 

16,091

 

Deferred commissions, non-current

101,551

 

 

86,164

 

Other assets

228,755

 

 

89,322

 

Total assets

$

6,163,471

 

 

$

5,921,739

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

10,559

 

 

$

5,647

 

Accrued expenses and other current liabilities

163,238

 

 

125,315

 

Operating lease liabilities, current

25,194

 

 

19,650

 

Deferred revenue, current

759,744

 

 

638,652

 

Total current liabilities

958,735

 

 

789,264

 

Operating lease liabilities, non-current

178,697

 

 

184,887

 

Deferred revenue, non-current

7,132

 

 

4,194

 

Other liabilities

12,225

 

 

6,923

 

Stockholders’ equity

5,006,682

 

 

4,936,471

 

Total liabilities and stockholders’ equity

$

6,163,471

 

 

$

5,921,739

 

Snowflake Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net loss

$

(154,856

)

 

$

(168,889

)

 

$

(547,795

)

 

$

(340,167

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

5,518

 

 

2,849

 

 

15,586

 

 

6,611

 

Non-cash operating lease costs

8,855

 

 

8,503

 

 

25,895

 

 

24,840

 

Amortization of deferred commissions

9,667

 

 

7,167

 

 

26,824

 

 

21,233

 

Stock-based compensation, net of amounts capitalized

144,387

 

 

119,141

 

 

459,392

 

 

157,790

 

Net amortization of premiums on investments

11,587

 

 

891

 

 

36,938

 

 

1,117

 

Unrealized gains on strategic investments in equity securities

(455

)

 

 

 

(8,515

)

 

 

Other

(247

)

 

24

 

 

2,535

 

 

4,073

 

Changes in operating assets and liabilities, net of effect of business combinations:

 

 

 

 

 

 

 

Accounts receivable

(16,754

)

 

(17,908

)

 

39,142

 

 

9,221

 

Deferred commissions

(18,961

)

 

(12,995

)

 

(52,892

)

 

(27,261

)

Prepaid expenses and other assets

(42,710

)

 

(28,028

)

 

(112,798

)

 

(29,480

)

Accounts payable

869

 

 

(963

)

 

4,591

 

 

(3,806

)

Accrued expenses and other liabilities

19,386

 

 

11,484

 

 

43,106

 

 

22,477

 

Operating lease liabilities

(8,766

)

 

(6,014

)

 

(24,758

)

 

(23,418

)

Deferred revenue

58,018

 

 

64,984

 

 

124,030

 

 

111,739

 

Net cash provided by (used in) operating activities

15,538

 

 

(19,754

)

 

31,281

 

 

(65,031

)

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of property and equipment

(2,282

)

 

(17,270

)

 

(12,209

)

 

(24,018

)

Capitalized internal-use software development costs

(3,788

)

 

(844

)

 

(8,612

)

 

(4,014

)

Cash paid for business combinations, net of cash acquired

 

 

 

 

 

 

(6,035

)

Purchases of intangible assets

 

 

 

 

(11,182

)

 

(6,184

)

Purchases of investments

(1,053,763

)

 

(622,385

)

 

(3,042,396

)

 

(1,235,020

)

Sales of investments

14,691

 

 

25,195

 

 

407,003

 

 

28,705

 

Maturities and redemptions of investments

1,216,206

 

 

181,669

 

 

2,610,429

 

 

371,528

 

Net cash provided by (used in) investing activities

171,064

 

 

(433,635

)

 

(56,967

)

 

(875,038

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs

 

 

 

 

 

 

478,573

 

Proceeds from initial public offering and private placements, net of underwriting discounts and other offering costs (net of reimbursement received from the underwriters)

 

 

4,244,620

 

 

 

 

4,242,284

 

Proceeds from early exercised stock options

 

 

 

 

 

 

159

 

Proceeds from exercise of stock options

24,579

 

 

10,364

 

 

90,444

 

 

31,100

 

Proceeds from issuance of common stock under the employee stock purchase plan

25,829

 

 

 

 

52,227

 

 

 

Proceeds from repayments of a nonrecourse promissory note

 

 

 

 

 

 

2,090

 

Repurchases of early exercised stock options

 

 

 

 

 

 

(30

)

Payments of deferred purchase consideration for business combinations

 

 

(564

)

 

 

 

(1,164

)

Net cash provided by financing activities

50,408

 

 

4,254,420

 

 

142,671

 

 

4,753,012

 

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(194

)

 

 

 

21

 

 

 

Net increase in cash, cash equivalents, and restricted cash

236,816

 

 

3,801,031

 

 

117,006

 

 

3,812,943

 

Cash, cash equivalents, and restricted cash at beginning of period

715,383

 

 

153,888

 

 

835,193

 

 

141,976

 

Cash, cash equivalents, and restricted cash at end of period

$

952,199

 

 

$

3,954,919

 

 

$

952,199

 

 

$

3,954,919

 

Snowflake Inc.

GAAP to Non-GAAP Reconciliations

(in thousands, except percentages)

(unaudited)

 

 

Three Months Ended October 31, 2021

 

GAAP amounts

 

GAAP amounts as a % of revenue

 

Stock-based compensation expense-related charges(1)

 

Amortization of acquired intangibles

 

Expenses associated with acquisitions and strategic investments

 

Non-GAAP amounts

 

Non-GAAP amounts as a % of revenue

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue

$

312,458

 

 

93

%

 

 

 

 

 

 

 

 

 

 

Professional services and other revenue

21,983

 

 

7

%

 

 

 

 

 

 

 

 

 

 

Revenue

334,441

 

 

100

%

 

 

 

 

 

 

 

 

 

 

Year over Year % Growth

110

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of product revenue

92,292

 

 

28

%

 

$

(12,419

)

 

$

(567

)

 

$

 

 

$

79,306

 

 

24

%

Cost of professional services and other revenue

28,494

 

 

8

%

 

(9,908

)

 

 

 

 

 

18,586

 

 

5

%

Total cost of revenue

120,786

 

 

36

%

 

(22,327

)

 

(567

)

 

 

 

97,892

 

 

29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

Product gross profit

220,166

 

 

 

 

12,419

 

 

567

 

 

 

 

233,152

 

 

 

Professional services and other gross profit (loss)

(6,511

)

 

 

 

9,908

 

 

 

 

 

 

3,397

 

 

 

Total gross profit

213,655

 

 

64

%

 

22,327

 

 

567

 

 

 

 

236,549

 

 

71

%

Product gross margin

70

%

 

 

 

5

%

 

%

 

%

 

75

%

 

 

Professional services and other gross margin

(30

%)

 

 

 

45

%

 

%

 

%

 

15

%

 

 

Total gross margin

64

%

 

 

 

7

%

 

%

 

%

 

71

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

190,971

 

 

57

%

 

(54,098

)

 

 

 

 

 

136,873

 

 

40

%

Research and development

115,900

 

 

35

%

 

(59,693

)

 

(944

)

 

 

 

55,263

 

 

17

%

General and administrative

64,055

 

 

19

%

 

(27,668

)

 

(411

)

 

(35

)

 

35,941

 

 

11

%

Total operating expenses

370,926

 

 

111

%

 

(141,459

)

 

(1,355

)

 

(35

)

 

228,077

 

 

68

%

Operating income (loss)

$

(157,271

)

 

(47

%)

 

$

163,786

 

 

$

1,922

 

 

$

35

 

 

$

8,472

 

 

3

%

Operating margin

(47

%)

 

 

 

49

%

 

1

%

 

%

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Stock-based compensation expense-related charges included approximately $19.1 million of employer payroll tax-related expenses on employee stock transactions.

 

Three Months Ended October 31, 2020

 

GAAP amounts

 

GAAP amounts as a % of revenue

 

Stock-based compensation expense-related charges(1)

 

Amortization of acquired intangibles

 

Expenses associated with acquisitions and strategic investments

 

Non-GAAP amounts

 

Non-GAAP amounts as a % of revenue

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue

$

148,473

 

 

93

%

 

 

 

 

 

 

 

 

 

 

Professional services and other revenue

11,151

 

 

7

%

 

 

 

 

 

 

 

 

 

 

Revenue

159,624

 

 

100

%

 

 

 

 

 

 

 

 

 

 

Year over Year % Growth

119

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of product revenue

51,816

 

 

32

%

 

$

(7,325

)

 

$

(567

)

 

$

 

 

$

43,924

 

 

28

%

Cost of professional services and other revenue

14,865

 

 

10

%

 

(6,203

)

 

 

 

 

 

8,662

 

 

5

%

Total cost of revenue

66,681

 

 

42

%

 

(13,528

)

 

(567

)

 

 

 

52,586

 

 

33

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

Product gross profit

96,657

 

 

 

 

7,325

 

 

567

 

 

 

 

104,549

 

 

 

Professional services and other gross profit (loss)

(3,714

)

 

 

 

6,203

 

 

 

 

 

 

2,489

 

 

 

Total gross profit

92,943

 

 

58

%

 

13,528

 

 

567

 

 

 

 

107,038

 

 

67

%

Product gross margin

65

%

 

 

 

5

%

 

%

 

%

 

70

%

 

 

Professional services and other gross margin

(33

%)

 

 

 

55

%

 

%

 

%

 

22

%

 

 

Total gross margin

58

%

 

 

 

9

%

 

%

 

%

 

67

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

134,727

 

 

84

%

 

(40,337

)

 

 

 

 

 

94,390

 

 

59

%

Research and development

74,138

 

 

46

%

 

(39,406

)

 

 

 

 

 

34,732

 

 

22

%

General and administrative

53,532

 

 

34

%

 

(27,197

)

 

(309

)

 

 

 

26,026

 

 

16

%

Total operating expenses

262,397

 

 

164

%

 

(106,940

)

 

(309

)

 

 

 

155,148

 

 

97

%

Operating loss

$

(169,454

)

 

(106

%)

 

$

120,468

 

 

$

876

 

 

$

 

 

$

(48,110

)

 

(30

%)

Operating margin

(106

%)

 

 

 

76

%

 

%

 

%

 

(30

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Stock-based compensation expense-related charges included approximately $1.1 million of employer payroll tax-related expenses on employee stock transactions.

 

Nine Months Ended October 31, 2021

 

GAAP amounts

 

GAAP amounts as a % of revenue

 

Stock-based compensation expense-related charges(1)

 

Amortization of acquired intangibles

 

Expenses associated with acquisitions and strategic investments

 

Non-GAAP amounts

 

Non-GAAP amounts as a % of revenue

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue

$

780,911

 

 

93

%

 

 

 

 

 

 

 

 

 

 

Professional services and other revenue

54,642

 

 

7

%

 

 

 

 

 

 

 

 

 

 

Revenue

835,553

 

 

100

%

 

 

 

 

 

 

 

 

 

 

Year over Year % Growth

108

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of product revenue

245,420

 

 

29

%

 

$

(37,813

)

 

$

(1,700

)

 

$

 

 

$

205,907

 

 

25

%

Cost of professional services and other revenue

78,833

 

 

10

%

 

(31,941

)

 

 

 

 

 

46,892

 

 

5

%

Total cost of revenue

324,253

 

 

39

%

 

(69,754

)

 

(1,700

)

 

 

 

252,799

 

 

30

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

Product gross profit

535,491

 

 

 

 

37,813

 

 

1,700

 

 

 

 

575,004

 

 

 

Professional services and other gross profit (loss)

(24,191

)

 

 

 

31,941

 

 

 

 

 

 

7,750

 

 

 

Total gross profit

511,300

 

 

61

%

 

69,754

 

 

1,700

 

 

 

 

582,754

 

 

70

%

Product gross margin

69

%

 

 

 

5

%

 

%

 

%

 

74

%

 

 

Professional services and other gross margin

(44

%)

 

 

 

58

%

 

%

 

%

 

14

%

 

 

Total gross margin

61

%

 

 

 

9

%

 

%

 

%

 

70

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

540,678

 

 

65

%

 

(165,969

)

 

 

 

 

 

374,709

 

 

45

%

Research and development

343,783

 

 

40

%

 

(186,346

)

 

(2,741

)

 

 

 

154,696

 

 

19

%

General and administrative

189,846

 

 

23

%

 

(85,624

)

 

(1,209

)

 

(431

)

 

102,582

 

 

12

%

Total operating expenses

1,074,307

 

 

128

%

 

(437,939

)

 

(3,950

)

 

(431

)

 

631,987

 

 

76

%

Operating loss

$

(563,007

)

 

(67

%)

 

$

507,693

 

 

$

5,650

 

 

$

431

 

 

$

(49,233

)

 

(6

%)

Operating margin

(67

%)

 

 

 

60

%

 

1

%

 

%

 

(6

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Stock-based compensation expense-related charges included approximately $47.4 million of employer payroll tax-related expenses on employee stock transactions.

 

Nine Months Ended October 31, 2020

 

GAAP amounts

 

GAAP amounts as a % of revenue

 

Stock-based compensation expense-related charges(1)

 

Amortization of acquired intangibles

 

Expenses associated with acquisitions and strategic investments

 

Non-GAAP amounts

 

Non-GAAP amounts as a % of revenue

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue

$

375,506

 

 

94

%

 

 

 

 

 

 

 

 

 

 

Professional services and other revenue

26,078

 

 

6

%

 

 

 

 

 

 

 

 

 

 

Revenue

401,584

 

 

100

%

 

 

 

 

 

 

 

 

 

 

Year over Year % Growth

127

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of product revenue

130,065

 

 

32

%

 

$

(8,553

)

 

$

(1,130

)

 

$

 

 

$

120,382

 

 

30

%

Cost of professional services and other revenue

29,619

 

 

8

%

 

(7,402

)

 

 

 

 

 

22,217

 

 

6

%

Total cost of revenue

159,684

 

 

40

%

 

(15,955

)

 

(1,130

)

 

 

 

142,599

 

 

36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

Product gross profit

245,441

 

 

 

 

8,553

 

 

1,130

 

 

 

 

255,124

 

 

 

Professional services and other gross profit (loss)

(3,541

)

 

 

 

7,402

 

 

 

 

 

 

3,861

 

 

 

Total gross profit

241,900

 

 

60

%

 

15,955

 

 

1,130

 

 

 

 

258,985

 

 

64

%

Product gross margin

65

%

 

 

 

3

%

 

%

 

%

 

68

%

 

 

Professional services and other gross margin

(14

%)

 

 

 

29

%

 

%

 

%

 

15

%

 

 

Total gross margin

60

%

 

 

 

4

%

 

%

 

%

 

64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

325,267

 

 

81

%

 

(52,099

)

 

(12

)

 

 

 

273,156

 

 

68

%

Research and development

143,949

 

 

36

%

 

(50,514

)

 

 

 

 

 

93,435

 

 

23

%

General and administrative

116,224

 

 

29

%

 

(43,934

)

 

(717

)

 

(252

)

 

71,321

 

 

18

%

Total operating expenses

585,440

 

 

146

%

 

(146,547

)

 

(729

)

 

(252

)

 

437,912

 

 

109

%

Operating loss

$

(343,540

)

 

(86

%)

 

$

162,502

 

 

$

1,859

 

 

$

252

 

 

$

(178,927

)

 

(45

%)

Operating margin

(86

%)

 

 

 

41

%

 

%

 

%

 

(45

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Stock-based compensation expense-related charges included approximately $4.5 million of employer payroll tax-related expenses on employee stock transactions.

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Revenue

$

334,441

 

 

$

159,624

 

 

$

835,553

 

 

$

401,584

 

 

 

 

 

 

 

 

 

GAAP net cash provided by (used in) operating activities

$

15,538

 

 

$

(19,754

)

 

$

31,281

 

 

$

(65,031

)

Less: purchases of property and equipment

(2,282

)

 

(17,270

)

 

(12,209

)

 

(24,018

)

Less: capitalized internal-use software development costs

(3,788

)

 

(844

)

 

(8,612

)

 

(4,014

)

Non-GAAP free cash flow

9,468

 

 

(37,868

)

 

10,460

 

 

(93,063

)

Add: net cash paid on payroll tax-related items on employee stock transactions

12,058

 

 

812

 

 

37,267

 

 

4,196

 

Non-GAAP adjusted free cash flow

$

21,526

 

 

$

(37,056

)

 

$

47,727

 

 

$

(88,867

)

Non-GAAP free cash flow margin

3

%

 

(24

%)

 

1

%

 

(23

%)

Non-GAAP adjusted free cash flow margin

6

%

 

(23

%)

 

6

%

 

(22

%)

 

 

 

 

 

 

 

 

 

Investor Contact
Jimmy Sexton
IR@snowflake.com

Press Contact
Eszter Szikora
Press@snowflake.com

Source: Snowflake Inc.