Snowflake Reports Financial Results for the Second Quarter of Fiscal 2022

August 25, 2021

  • Product revenue of $254.6 million, representing 103% year-over-year growth
  • Remaining performance obligations of $1.5 billion, representing 122% year-over-year growth
  • 4,990 total customers
  • Net revenue retention rate of 169%
  • 116 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 second quarter of fiscal 2022, ended July 31, 2021.

Revenue for the quarter was $272.2 million, representing 104% year-over-year growth. Product revenue for the quarter was $254.6 million, representing 103% year-over-year growth. Remaining performance obligations were $1.5 billion, representing 122% year-over-year growth. Net revenue retention rate was 169% as of July 31, 2021. The company now has 4,990 total customers and 116 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 continued momentum in Q2 with triple-digit growth in product revenue, reflecting strength in customer consumption,” said Snowflake Chairman and CEO Frank Slootman. “While increasing net revenue retention rate to 169%, we also boosted gross margin and operating margin efficiency while our adjusted free cash flow was positive for the third quarter in a row.”

Second Quarter Fiscal 2022 GAAP and Non-GAAP Results:

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

Second Quarter Fiscal 2022

GAAP Results

Second Quarter Fiscal 2022

Non-GAAP Results(1)

Amount

(millions)

Year/Year

Growth

Product revenue

$254.6

103%

Amount

(millions)

Margin

Amount

(millions)

Margin

Product gross profit

$173.6

68%

$187.4

74%

Operating loss

($200.1)

(74%)

($21.9)

(8%)

Net cash used in operating activities

($6.1)

Free cash flow

($12.0)

(4%)

Adjusted free cash flow

$2.8

1%

(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 third quarter of fiscal 2022:

Third Quarter Fiscal 2022

GAAP Guidance

Third Quarter Fiscal 2022

Non-GAAP Guidance(1)

Amount

(millions)

Year/Year

Growth

Product revenue

$280 – $285

89 – 92%

Margin

Operating loss

(7%)

Amount

(millions)

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

303

(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.

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

$1,060 – $1,070

91 – 93%

Margin

Product gross profit

73%

Operating loss

(9%)

Adjusted free cash flow

7%

Amount

(millions)

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

300

(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.

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 2 p.m. Pacific Time on August 25, 2021. Investors and participants can register for the call in advance by visiting http://www.directeventreg.com/registration/event/8086935. 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 and Operating income (loss). Our non-GAAP product gross profit and operating 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, and expenses associated with acquisitions and strategic investments. 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. 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 April 30, 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 July 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 212 of the 2021 Fortune 500 as of July 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 July 31,

Six Months Ended July 31,

2021

2020

2021

2020

Revenue

$

272,198

$

133,145

$

501,112

$

241,960

Cost of revenue

106,121

50,446

203,467

93,003

Gross profit

166,077

82,699

297,645

148,957

Operating expenses:

Sales and marketing

182,903

92,663

349,707

190,540

Research and development

118,087

36,533

227,883

69,811

General and administrative

65,228

31,186

125,791

62,692

Total operating expenses

366,218

160,382

703,381

323,043

Operating loss

(200,141

)

(77,683

)

(405,736

)

(174,086

)

Interest income

2,190

1,689

4,802

4,137

Other income (expense), net

8,746

(1,109

)

8,258

(1,042

)

Loss before income taxes

(189,205

)

(77,103

)

(392,676

)

(170,991

)

Provision for income taxes

514

531

263

287

Net loss

$

(189,719

)

$

(77,634

)

$

(392,939

)

$

(171,278

)

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

$

(0.64

)

$

(1.31

)

$

(1.33

)

$

(3.01

)

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

297,717,099

59,260,645

294,603,943

56,809,625

Snowflake Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

July 31, 2021

January 31, 2021

Assets

Current assets:

Cash and cash equivalents

$

698,548

$

820,177

Short-term investments

3,436,941

3,087,887

Accounts receivable, net

237,457

294,017

Deferred commissions, current

39,265

32,371

Prepaid expenses and other current assets

95,891

66,200

Total current assets

4,508,102

4,300,652

Long-term investments

956,011

1,165,275

Property and equipment, net

83,643

68,968

Operating lease right-of-use assets

174,974

186,818

Goodwill

8,449

8,449

Intangible assets, net

28,089

16,091

Deferred commissions, non-current

96,174

86,164

Other assets

176,974

89,322

Total assets

$

6,032,416

$

5,921,739

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

9,475

$

5,647

Accrued expenses and other current liabilities

143,864

125,315

Operating lease liabilities, current

20,641

19,650

Deferred revenue, current

701,758

638,652

Total current liabilities

875,738

789,264

Operating lease liabilities, non-current

174,256

184,887

Deferred revenue, non-current

7,100

4,194

Other liabilities

10,357

6,923

Stockholders’ equity

4,964,965

4,936,471

Total liabilities and stockholders’ equity

$

6,032,416

$

5,921,739

Snowflake Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Three Months Ended July 31,

Six Months Ended July 31,

2021

2020

2021

2020

Cash flows from operating activities:

Net loss

$

(189,719

)

$

(77,634

)

$

(392,939

)

$

(171,278

)

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

Depreciation and amortization

5,384

2,240

10,068

3,762

Non-cash operating lease costs

8,531

8,212

17,040

16,337

Amortization of deferred commissions

8,841

6,840

17,157

14,066

Stock-based compensation, net of amounts capitalized

163,991

18,204

315,005

38,649

Net amortization of premiums on investments

12,332

279

25,351

226

Unrealized gains on strategic investments in privately-held equity securities

(8,060

)

(8,060

)

Other

1,568

4,224

2,782

4,049

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

Accounts receivable

(71,283

)

(55,572

)

55,896

27,129

Deferred commissions

(19,182

)

(8,722

)

(33,931

)

(14,266

)

Prepaid expenses and other assets

(15,731

)

7,494

(70,088

)

(1,452

)

Accounts payable

4,967

14

3,722

(2,843

)

Accrued expenses and other liabilities

30,287

16,148

23,720

10,993

Operating lease liabilities

(8,159

)

(9,817

)

(15,992

)

(17,404

)

Deferred revenue

70,122

49,405

66,012

46,755

Net cash provided by (used in) operating activities

(6,111

)

(38,685

)

15,743

(45,277

)

Cash flows from investing activities:

Purchases of property and equipment

(3,497

)

(4,715

)

(9,927

)

(6,748

)

Capitalized internal-use software development costs

(2,344

)

(981

)

(4,824

)

(3,170

)

Cash paid for business combinations, net of cash acquired

(6,035

)

(6,035

)

Purchases of intangible assets

(722

)

(184

)

(11,182

)

(6,184

)

Purchases of investments

(842,963

)

(358,811

)

(1,988,633

)

(612,635

)

Sales of investments

7,929

3,510

392,312

3,510

Maturities and redemptions of investments

877,635

97,817

1,394,223

189,859

Net cash provided by (used in) investing activities

36,038

(269,399

)

(228,031

)

(441,403

)

Cash flows from financing activities:

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

478,573

Proceeds from early exercised stock options

159

Proceeds from exercise of stock options

24,463

9,864

65,865

20,736

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

26,398

Proceeds from repayments of a nonrecourse promissory note

2,090

2,090

Repurchases of early exercised stock options

(30

)

Payments of deferred offering costs

(2,231

)

(2,336

)

Payment of deferred purchase consideration for a business combination

(600

)

(600

)

Net cash provided by financing activities

24,463

9,123

92,263

498,592

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

196

215

Net increase (decrease) in cash, cash equivalents, and restricted cash

54,586

(298,961

)

(119,810

)

11,912

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

660,797

452,849

835,193

141,976

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

$

715,383

$

153,888

$

715,383

$

153,888

Snowflake Inc.

GAAP to Non-GAAP Reconciliations

(in thousands, except percentages)

(unaudited)

Three Months Ended July 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

$

254,623

94

%

Professional services and other revenue

17,575

6

%

Revenue

272,198

100

%

Year over Year % Growth

104

%

Cost of revenue:

Cost of product revenue

81,048

30

%

$

(13,226

)

$

(566

)

$

$

67,256

25

%

Cost of professional services and other revenue

25,073

9

%

(9,877

)

15,196

5

%

Total cost of revenue

106,121

39

%

(23,103

)

(566

)

82,452

30

%

Gross profit (loss):

Product gross profit

173,575

13,226

566

187,367

Professional services and other gross profit (loss)

(7,498

)

9,877

2,379

Total gross profit

166,077

61

%

23,103

566

189,746

70

%

Product gross margin

68

%

6

%

%

%

74

%

Professional services and other gross margin

(43

%)

57

%

%

%

14

%

Total gross margin

61

%

9

%

%

%

70

%

Operating expenses:

Sales and marketing

182,903

68

%

(57,626

)

125,277

46

%

Research and development

118,087

43

%

(65,841

)

(942

)

51,304

19

%

General and administrative

65,228

24

%

(29,839

)

(401

)

75

35,063

13

%

Total operating expenses

366,218

135

%

(153,306

)

(1,343

)

75

211,644

78

%

Operating loss

$

(200,141

)

(74

%)

$

176,409

$

1,909

$

(75

)

$

(21,898

)

(8

%)

Operating margin

(74

%)

65

%

1

%

%

(8

%)

(1) Stock-based compensation expense-related charges included approximately $12.1 million of employer payroll tax-related expenses on employee stock transactions.

Three Months Ended July 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

$

125,216

94

%

Professional services and other revenue

7,929

6

%

Revenue

133,145

100

%

Year over Year % Growth

121

%

Cost of revenue:

Cost of product revenue

42,716

32

%

$

(613

)

$

(281

)

$

$

41,822

31

%

Cost of professional services and other revenue

7,730

6

%

(580

)

7,150

6

%

Total cost of revenue

50,446

38

%

(1,193

)

(281

)

48,972

37

%

Gross profit:

Product gross profit

82,500

613

281

83,394

Professional services and other gross profit

199

580

779

Total gross profit

82,699

62

%

1,193

281

84,173

63

%

Product gross margin

66

%

1

%

%

%

67

%

Professional services and other gross margin

3

%

7

%

%

%

10

%

Total gross margin

62

%

1

%

%

%

63

%

Operating expenses:

Sales and marketing

92,663

70

%

(5,371

)

(1

)

87,291

65

%

Research and development

36,533

27

%

(5,166

)

31,367

24

%

General and administrative

31,186

23

%

(6,840

)

(305

)

(252

)

23,789

18

%

Total operating expenses

160,382

120

%

(17,377

)

(306

)

(252

)

142,447

107

%

Operating loss

$

(77,683

)

(58

%)

$

18,570

$

587

$

252

$

(58,274

)

(44

%)

Operating margin

(58

%)

14

%

%

%

(44

%)

(1) Stock-based compensation expense-related charges included approximately $0.4 million of employer payroll tax-related expenses on employee stock transactions.

Six Months Ended July 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

$

468,453

93

%

Professional services and other revenue

32,659

7

%

Revenue

501,112

100

%

Year over Year % Growth

107

%

Cost of revenue:

Cost of product revenue

153,128

31

%

$

(25,394

)

$

(1,133

)

$

$

126,601

25

%

Cost of professional services and other revenue

50,339

10

%

(22,033

)

28,306

6

%

Total cost of revenue

203,467

41

%

(47,427

)

(1,133

)

154,907

31

%

Gross profit (loss):

Product gross profit

315,325

25,394

1,133

341,852

Professional services and other gross profit (loss)

(17,680

)

22,033

4,353

Total gross profit

297,645

59

%

47,427

1,133

346,205

69

%

Product gross margin

67

%

6

%

%

%

73

%

Professional services and other gross margin

(54

%)

67

%

%

%

13

%

Total gross margin

59

%

10

%

%

%

69

%

Operating expenses:

Sales and marketing

349,707

70

%

(111,871

)

237,836

48

%

Research and development

227,883

45

%

(126,653

)

(1,797

)

99,433

20

%

General and administrative

125,791

25

%

(57,956

)

(798

)

(396

)

66,641

13

%

Total operating expenses

703,381

140

%

(296,480

)

(2,595

)

(396

)

403,910

81

%

Operating loss

$

(405,736

)

(81

%)

$

343,907

$

3,728

$

396

$

(57,705

)

(12

%)

Operating margin

(81

%)

68

%

1

%

%

(12

%)

(1) Stock-based compensation expense-related charges included approximately $28.3 million of employer payroll tax-related expenses on employee stock transactions.

Six Months Ended July 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

$

227,033

94

%

Professional services and other revenue

14,927

6

%

Revenue

241,960

100

%

Year over Year % Growth

133

%

Cost of revenue:

Cost of product revenue

78,249

32

%

$

(1,228

)

$

(563

)

$

$

76,458

32

%

Cost of professional services and other revenue

14,754

6

%

(1,199

)

13,555

5

%

Total cost of revenue

93,003

38

%

(2,427

)

(563

)

90,013

37

%

Gross profit:

Product gross profit

148,784

1,228

563

150,575

Professional services and other gross profit

173

1,199

1,372

Total gross profit

148,957

62

%

2,427

563

151,947

63

%

Product gross margin

66

%

%

%

%

66

%

Professional services and other gross margin

1

%

8

%

%

%

9

%

Total gross margin

62

%

1

%

%

%

63

%

Operating expenses:

Sales and marketing

190,540

79

%

(11,762

)

(12

)

178,766

74

%

Research and development

69,811

29

%

(11,108

)

58,703

24

%

General and administrative

62,692

26

%

(16,737

)

(408

)

(252

)

45,295

19

%

Total operating expenses

323,043

134

%

(39,607

)

(420

)

(252

)

282,764

117

%

Operating loss

$

(174,086

)

(72

%)

$

42,034

$

983

$

252

$

(130,817

)

(54

%)

Operating margin

(72

%)

18

%

%

%

(54

%)

(1) Stock-based compensation expense-related charges included approximately $3.4 million of employer payroll tax-related expenses on employee stock transactions.

Three Months Ended July 31,

Six Months Ended July 31,

2021

2020

2021

2020

Revenue

$

272,198

$

133,145

$

501,112

$

241,960

GAAP net cash provided by (used in) operating activities

$

(6,111

)

$

(38,685

)

$

15,743

$

(45,277

)

Less: purchases of property and equipment

(3,497

)

(4,715

)

(9,927

)

(6,748

)

Less: capitalized internal-use software development costs

(2,344

)

(981

)

(4,824

)

(3,170

)

Non-GAAP free cash flow

(11,952

)

(44,381

)

992

(55,195

)

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

14,764

365

25,209

3,384

Non-GAAP adjusted free cash flow

$

2,812

$

(44,016

)

$

26,201

$

(51,811

)

Non-GAAP free cash flow margin

(4

%)

(33

%)

%

(23

%)

Non-GAAP adjusted free cash flow margin

1

%

(33

%)

5

%

(21

%)

Contacts

Investor Contact
Jimmy Sexton
IR@snowflake.com

Press Contact
Eszter Szikora
Press@snowflake.com

 

Source: Snowflake Inc.

The post Snowflake Reports Financial Results for the Second Quarter of Fiscal 2022 appeared first on Snowflake.

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