SNOW - Earnings call transcript Q4 2021

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Q4 FY ‘21 Snowflake’s Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Jimmy Sexton, Head of Investor Relations. you. Thank sir. ahead, go Please

Jimmy Sexton

afternoon. And QX us Snowflake’s for thank XXXX earnings you fiscal joining call. on Good

Joining me are Officer; Frank Slootman, our Chairman Scarpelli, Chief and and our Financial Officer. Mike Chief Executive

results we review and call, our the fiscal full for quarter guidance quarter XXXX. today’s During discuss our financial fiscal for will XXXX and year first fourth

substitute and filings, future over During to our financial results, of overall the results. earlier To performance presented I future or actual financial These release non-GAAP the strategy, risks call a XX-Q events, A year to on will press not filed place growth, most to after financial undertake replay turn in those measures obligation market financial to operational we We on and With prospects. to these to please our decision-making which make point use on comparisons. caution today’s to Non-GAAP like including long-term expectations. result is non-GAAP for that them changes out update investors.snowflake.com. and our XX, would concerning SEC. to call also statements, which today’s forward-looking earnings a future close our duty subject our evaluate at the earnings and will information, We and and forward-looking call, website. differ financial posted and distributed are or statements a We’d expected today’s measures, the means these release including to GAAP. fiscal distributed Form materially related you features, products new measures to forward-looking today see in reconciliations from Form statements statements that uncertainties, will as Information XX-K ended both for the statements available January of with now cause the as purposes, business, report call our in any calculated investor we results. and XXXX, Frank. also not SEC are risks non-GAAP are recently to measures could accordance file and no reliance for internally the our of undue GAAP period-to-period and of like and we posted as financial addition in refer be press today presentation, with will that, in

Frank Slootman

$X.X with performance quarter XXX% to Jimmy, base Thanks, good finished strong Remaining afternoon, customer year-on-year and our year product across of this revenue. the growth everybody. efficiency, saw XXX% fourth strengthened reflecting while operating in year. the million grew with we our We fiscal consumption $XXX over across year-on-year, for obligations new billion sales Board. rapid XXX with onboarding employees improving Coupled growth,

and computing and trends driven Our analytics, growth secular science and data by is native by cloud in cloud scale software architecture. Snowflake’s long-term enable

left data customer’s our analytics data in The coupled to the and numbered. days thing data of need as or mostly in of a terms Science significance Cloud meaning mobilize broad is of data The discover at and There was boundaries by and sets of physical can science time is data those learning essence With investment only Data diversity with promise the access, the data with individual against geographies. breaks constraints of single for data for Aladdin boundaries on BlackRock, we artificial science, Snowflake the The possible and beating orders same data of similar world’s across if That Last to partnership cloud of are strategies. Cloud, types. also legacies has the be to magnitude data up data the is are Cloud at technology that become as have that execute largest onslaught now anymore workloads they as that and the step are new are manager diversion The The shifting glimpsed of machine dictated Data quickly database. survive a relationships constraints access help data Cloud has sources is make budgets imagination increasingly decisions ground Data proportions. workload -- sees while are believe and week class powered we universe strategic critical world’s well. of giant the data. their which intelligence given adopted operations is silo between what Capacity Snowflake Snowflake the across clouds, announced Data no traversed breakthrough no science. limitations The virtually to Cloud the workloads. game has by regions thrive heart reduced clients. practically frictionless that their the Snowflake of easily Customers same data enterprise. the one and by best performance data of seamlessly The realize digital latency transformation, modern can increased Data technology. launch a the and in it workloads enables the past. number been a world unfettered to execution asset Snowflake.

and view unified becoming data data to and forward. goal our data portfolio on BlackRock is with a customers portfolio single management, data make The new more leads by around conversations leaps are Data bounds Now data governing environment. different growing inspiring and cloud going part it and trade increasing XX% standard the data positions with management. in quarter-on-quarter. prospects, and investment and create applications them and non-Aladdin Snowflake of Cloud the to and Clients driven can with a to a industry Cloud have Aladdin relationships edge access in a custom strategic a showing acting data strategies our Snowflake dashboards. Data for faster With data governed the shared and Active to execution, operations, of risk Aladdin is create clients combine will analysis plan control cutting Aladdin analyze

rapid listings on-year year- of Snowflake seeing the the fiscal attributable to marketplaces quarter-over-quarter of of providers a consumption well, total data as of XXx are marketplace to from growing end adoption We XXX the year. and as up XX% with new

added enterprises QX the Western such XX Fortune campaign customers Newly QX, data the the to continued A Genuine in in large MasterCard, Zoominfo, are Northern push We as and to providers Parts, Union world added to marketplace in successful. Foursquare. is Trust. be proving XXX including

we partner choose data of joining. still warehouse because customers data Often legacy to they meet engagements a Our of on must their migration with are the platforms. wherever customers beginning with cloud Snowflake technology

identified over year. and for have engaged We this have in many year more XX migrations legacy last we

Integration their train rushing multiply resources or and seen have partners demand System and Global GSIs the to Our are head on. provision backlogs meet to to staff,

our our with implementation for strategy on much is to up partners team rely this work. of our we While GSIs,

the We customers. Status marketing business because XX has informed support to XXX lines are pleased Snowflake across technology tells more migrating A to since of Snowflake Elite deployed to during company platform Snowflake department their quarter. their faster for warehouse their times welcome Fortune with data Partner Snowflake, Infosys decision-making to numerous on-premise process

Snowflake the of additions is refinements, as marketplace. our massive XXXX, For and execution Snowflake to federation as turbocharge date our to with focus well extend our extensions Data numerous Cloud fiscal with workload new

largest the focus, that not initiative began the end, product landing campaign we continued world, and and have in to institutions, service is the emphasis also sales, which announced we there. motions well we selling to new is A but in the latter industry new and as alliances, scale of last on this smallest, region global are the states accelerating and address Snowflake organizations. in Asia-Pacific. leadership now our will our in accelerate marketing, expanding vertical enterprises permeating as Americas, in some data and a To year have While EMEA just world’s largest

sold continue this large situations us and long have We exclusively enterprise industry Snowflake We outcome architectural that warranted. which a a go-to-market evolution enterprise. specific view large that on our as in has focus distinction, in maturation to to has But oriented. an will do almost and is we informed well motion of served so

in target mass coupled have further much now that will with verticals strategy also industry our this differentiate Snowflake. data specific We so marketplaces critical

New are excited super the Year. about We

our the call to I over that, technology, pursue We have With the fully to the now the organization turn talent Mike. will and opportunity.

Mike Scarpelli

Thank of our execution to exceptional fiscal finish a Difficulty]. quarter another [Technical QX first you, strong and publicly was year Frank. as a

organizations. million were growth spanned all XXX% representing their performance and $X.X billion. deploy continue across year-over-year Our customers our $XXX were revenues of outperformance QX remaining to we see obligations verticals product Snowflake consumption The as

by RPO results engage to be as in RPO. continue deals, billion well $X.X up in as strong multiyear driven more multi-million contracts to our to willingness customers’ Our dollar

XX% approximately expect XX as next to be the revenue We in months. recognized

business partner model. as digital through technology strong superior workloads cloud. number can this reminder execution fluctuate due reflects significantly to consumption offering and enabling Snowflakes an both As data estimate a as our the and performance is a a strategic solution, across transformation role The

We to XX greater with in months sales have benefiting geographies. last than quarter, Internationally, up consuming million opportunities continue maturing XX%, XX we increased now customers month with over In are revenue to enterprise product $X from and basis. relevant a customers trailing XX% from expanded on of efforts. across sales invest we force our the trailing in our million $X we saw XX number growth are QX now

of these the markets, this seeing stages in We promising in traction are but remain opportunity. early

gross margin discounting regions, up on year. was margins, agreements, and contribute to Turning across Favorable non-GAAP product our XXX improvement. points margin XX%, last our service steady discipline, all from to scale success gross growing enterprise basis, a basis cloud ongoing

outperformance operating Our revenue savings. and XX%, benefiting T&E was from continued margin negative

margin X%, booking inflows adjusted QX by collections outperformance. operating our was to employee and cash our relating strong program Our free purchase largest with cash being stock flow margin impacted quarter, positively

cash paid payroll adjusted for transactions. of employer impact cash on As a reminder stock free employee excludes taxes flow the

This $XX items. we from those quarter million a saw impact

be focus expansion to flow long-term free margin continue profitability, in and our on will seasonality QX we will QX cash to experience free cash While do quarters. flow we continue strongest and

On free We business. more our doubling a operations business. in our more are flow. we profitability, cash we basis, show have us that will cut help And burn $XXX implemented invest very strong the the annual year-over-year by million continuing heavily or or we proud to of than cash are XX%

to a including This a initiatives, year of Hunters, with Lacework. have $X.X position, us DataRobot, the explore including has made and long-term number strong quarter, equivalents, strategic and investments short-term cash which investments. in several Snowflake enables in and cash NOMA We cash, ended the approximately in Ventures, billion

organizations investments with Our mission more increased drive consumption Snowflake. cloud is and all engage the to data to of aim

our guidance and turn outlook. let’s Now, to

For million representing expect product $XXX between quarter of first the growth and XXXX, between $XXX year-over-year XX%. million, XX% revenues fiscal we and

XX% a margins, shares average and negative we on expect outstanding. we operating non-GAAP expect Turning weighted million margin $XXX to

$X between revenues For year the product of XX% between XXXX, growth and representing and full $X.XX XX%. fiscal billion, billion expect we year-over-year

shares we expect flow profitability, on million a and margins expect free breakeven XX% and operating basis product non-GAAP $XXX to weighted we average Turning outstanding. negative XX% gross cash margins, adjusted

outlook FedRAMP drive migrations our support Our increased includes adding investments In the foreseeable growth success. than initiatives assumes the for solutions, we new on will off an year. employees that to of potential we net remotely both to accelerating legacy to during enterprise forecast X,XXX continue of year. the initiatives, our expenses back plan COVID, customer half increase respect future, in which more order will the and of with With travel to and work

eventual XXXX. from Well successfully not timeline for on goal. a in ramped and our current to environment specific we and we We March We an employees have strong new boarded are the that office. anticipate do have productivity since return benefiting

accordance Before XXXX, that common documents X, Class converted March of their Class Today, our stock few with as class this B announced to a We all B company eliminating share our know recent governing ensuring vote. to shareholders. operationally we events. stock upcoming structure closing, like has I’d in on to shareholders each our Class stock an common the A beneficial the of and that their and equal dual common view or

users’ IPO be and Day March not transactions lastly, In subject will the week purchased all host no And their of remaining lockup concurrent addition, the virtual a June private Xth. IPO conference we our the placement shares agreement. in under conjunction secondary longer lockup Snowflake Summit Xth almost in with annual expire are a on restrictions to will our with Investor

now you are the open email you ir@snowflake.com. in that, With please up Operator, questions. for can interested If line attending

Operator

from question Lenschow Raimo Certainly. [Operator line first with comes Your Barclays. of Instructions] the

line open. Your is

Raimo Lenschow

amazing That Congrats. detailed Hey. was numbers.

a little around saw activity. First one, Frank, quarter this we more kind noise bit market of

follow because have probably of a pretty you out it’s think see up changes Can -- I then success. your I the in there and competitive Mike? explain you for dynamic if

Frank Slootman

strengthening stable been the there comparisons and change and on it, with that of legacy Raimo, with perfect, from really, terms a no of If anticipation providers, certainly our the take position course, would that are competitive types feel I global say, we standpoint that have the sort have Not of things perspective there either. public I gradually interactions in customers. the is I cloud in the

are than level We now level at operating more the far at of CEO IT. highest

position So, is we definitely there feel inflection marketplace, I the relative reflecting company, there of the is which feel that an very is the good.

Raimo Lenschow

Thank Again, you Perfect. gross gave you. seen mean, progress this year Okay. on Hey. we margins, Mike, the have us and I guidance. the

driving reach to what going led little for more the margin year goals? coming in the contracts gross long-term are the the improvement do what’s like and a it about it Thank the to is going for providers the is Just to you what drivers bit talk forward and with you. we or expect cloud it --

Mike Scarpelli

Yeah. the more expecting I in not the kicking scale cloud end existing the cloud renegotiating we I at It’s contracts a but next situation the be by of that. anticipate driven I QX. am QX benefit really contracts within We with in getting had the may say, in started year, our provider our and don’t would full year. deployments.

of deployments a have those ramping right number at We and scale see not we where now. are we

and example. been turn like, but negative at one to running Japan there an has are just just because very will As don’t many gross that Japan. starting have margin, example, ramp we we customers around that that’s a

move which world big than require those enterprises tend the not a those gross but Yes, we that as of buy deployment the to discounting, and we to our the they addition but improvement. up margin, But SKUs the confidence more out our center XX think that are see We we gives places. continued happen that get discounting data contribution mid-XXs, margin as from a deployments higher around -- us margin into higher also customers business higher in critical. offset larger year, going those to will more gradual next it’s to drive

Raimo Lenschow

Prefect. Thank Congrats. you.

Operator

question with line Your of next Cowen. from Wood the Derrick comes

Your line is open.

Derrick Wood

Frank, into the would and for a Thanks this onboard I your guess, planning New work-from-home the up congrats environment? Year, strong of first as trends how kind Great. quarter. about go-to-market at you out keep good to And clip very and Yeah. then on sales ability are a well people demand heading any there, out? particularly tweaks in you call the feeling that

Frank Slootman

Yeah.

incredibly the of the our terms we our are what and that, that are up organization in of and which we XXX lots [ph] the in largest really, really making stepped enterprise, selling half so and U.S. call available we accounts and or know separated best staffing people our this you I adjustments people, that strengthening a majors in role. marketplace and hiring organization for So, I sales sure think, we we ago for changes doing year am well are a are organization. absolute

So positive that. on really I am

in and it’s referenced prepared we general go-to-market, remarks. and mean, In our customers. of changing There’s an very I when our find with our what’s we merchants the verticalizing we conversation. aggressively always interact that are on the I industry very in important context in posture selling accounts that terms

doing. that. larger much things business, people get We want what But interested their know workloads enterprises what outcome of up and you sort and other higher all sometimes that and it in more architecture just oriented. comparing means of are are to are when Customers to in increasingly they

sales and so into marketing change well very moving at started So underway serious moving and with so last level and is alliances, year that literally will into starting every effort as and that is organization, this that a as year. significant products, are we the into investing a this in continue

Derrick Wood

see your new Thanks. to productivity more starting are Is customer the starting sharing. what’s you, the you customers effect this something move networking quarter capacity to something drive needle that maybe one in viral can generation? that called the for it help it and or is Mike out lift acceleration. or Great. to better data then on And from nice you and in that helping uptick Is

Mike Scarpelli

say, Well, in rep average that average on of increase in cap I to Snowflake. in That’s one that go in specific of with sharing. but I we fact with that deals productivity the the on they that was helps every one choose an decision is reasons the any number clearly would the also don’t data definitely the discussion of data there have why terms a of point It they customer per go and are Snowflake. ramping. brought with to terms

and people. reps those have adding many so We have ramping we been been

Derrick Wood

Great. Well done. Thanks.

Mike Scarpelli

Thanks.

Operator

comes of with Colville Deutsche Patrick line next Your Bank. from question the

Your line is open.

Patrick Colville

you native congrats on on the with an was capacity for set taking so it, just month numbers. the the incumbents I touch a with the a cloud mean extremely legacy, please? impressive But question shaping on ago. Thank on-prem the environment. dynamics vendors. the maybe Raimo vendors much yeah Hey. I to out want one How put earlier pretty competition impressive numbers question of up and from cloud around that some call of and comment

Frank Slootman

Yeah. will. seen here honestly Frank. being the my can have forward a in that destination almost go I two they say for are the -- years legacy platform, this running Patrick, never I if provider you in for is

in cloud these platforms, which some terms providers. to brings to of course, of of these vendors off legacy of relative having these -- strength will and struggles public seeing it’s focused has competition platforms very say options. off that, are the is So cloud very, competition public the I moving of been always on we legacy significant the the successfully migrating legacy and What

some are there really legacy and on the workloads and going degree platform to I providers are your moving have consistently is to hanging in cloud. to at hands. longer, now not Snowflake scale think these successfully that struggle if only are your you Snowflake because that But going to a you the is

of that commentary topic. on So sort my that’s

Patrick Colville

Yeah. XQ a that’s up the pace slowing how that should margins just I if I implicit quick -- that possible? about guys materially looks can mean is hiring component? in seems that will up we you very it of think I ask helpful. like pretty year-on-year. Are follow-on for And Mike it increase guidance or

Mike Scarpelli

No.

We are absolutely slowing down. not hiring

very going will a a in the of It onboarding As are we big and lot we to Actually that we QX quarter quarter. probably people year, kickoff next are mentioned, just people very, sales organization the our because onboarding add we largest of year. the X,XXX is marketing sales be advance had. of just in

We efficient in wellbeing can. are we investing as business our quickly as

Patrick Colville

so a results. and you impressive Thank Fantastic. much very congrats

Mike Scarpelli

you. Thank

Operator

Your of the question next comes Credit line with from Zelnick Suisse. Brad

Your is open. line

Brad Zelnick

a echo the Snowflake I I And and lagging about maybe guys. more cloud can on done well. Mike. share Frank got Excellent. partnership have Well for with for one BlakRock one congrats Frank, you as Data Cloud. the

criteria progress? well, to like of Specifically go types how maybe use can there after? about many as And are economics the this for you talk and relationships gauging these of partnerships out you that the the success

Frank Slootman

of a out No. lot there partnerships There’s to go after.

business seeing world’s realized customers, data that trillion the and people industries. conversations whole BlackRock well potential, modernize They the a become to of of and other in place than But for the this assets universe, around on. economic this asset to line conversation continue to are us. or management. this obviously, was think relationships cornerstones able a all the it’s from different $XX and so is to obviously stakeholders their as and because needed data from these They us. -- they really largest the are partners, were huge effect different building I in to are way to Snowflake -- no with leased own cloud very as triggered and data in customers be the induces where highly dominant need they be -- $XX this not under there’s their manager center practices we This they what other trillion, of the transform rash and it are access. an same financial because The network standpoint from position announcement that Data people is they idea of Cloud both by a to product, with they doing, their words have same a opportunity interact strategic the to is for provide that itself that is their really their the over whole universe, access come industry, business

Mike Scarpelli

Brad, going that way, Snowflake are simpler to those want a that through have efficient in customers. they the to data their be want it if get most Aladdin to say Aladdin, data way of all To customers

Brad Zelnick

be Excellent. to maybe just That makes you, see perfect up with sense. great retention continues And to it’s follow Mike, net strong. to really

ask think to added years? we are we about else think lands in class we how months, differently, today the XX do the retention And of they cohort that your might forward? of that I rate that’s going the our informs as view be on prior think at. or view have that last tracking you net about how customers we of size in anything and your look think relative how changing like, But how just might and about maybe

Mike Scarpelli

Yeah.

net we we north see are right throughout expect remain year what retention is It -- do high. should I be the what now. of this year very XXX rate to So

they months have. use In changing the before renewals have can proven want on the six once when data are because because any consume a to doing so we stress, if those happening plus they their revenue little terms much. a the entire doing it customers recognize are that’s do doing when Snowflake. very what not And especially they is that first Then we start you that are renewal take find they then size is of average case in customers customers and and What’s migration. most six months the consume months from migration. they six deal contract to I takes remaining we multiyear It landing, consumption legacy customers

you difference came much we haven’t he when on focusing enterprise started Frank I customers. other here, so really as in than more seen know, are, And

Fortune landing virtually in are we those We more in XX reiterate, recognized XX that in We the landed, customers. will That’s revenue But quarter. on to landed the all talked the customers. about no RPO XXX next we we be XX those months. just

Brad Zelnick

much well. gentlemen so Thanks and Awesome. stay

Mike Scarpelli

Thank you.

Operator

Your comes JMP. with Walravens next question of Patrick from line the

open. is line Your

Patrick Walravens

Frank you you Oh! can migration. Great. on Mike, and double click or congratulations. Thank the

So Snowflake why time make providers? migrate it you hard What is what it and so it platform to warehouse? about steps to have than that the so suited are to is do cloud legacy take are it consuming data then so much better the

Frank Slootman

great that’s a So question.

of database been since quite They are have been all, been been immemorial. as been easy. lengthy. have risky. have They time first So, And expensive. them They migrations leery our They customers never well. hard of have have

of databases. structures, data the code, we these it of reasons and the between that, some the can we automatically mapping usually analyze with convert the a the is of while lot is can of no data analyze we One straightforward there

that NNC simply legacy take Now out Snowflake, the you Snowflake not for counterpart a because have just proprietary of standard in artifacts completely some there, quote example, environment. do flavors have they is a

means were that want to things before. getting of on are to make they the that when to integrity data fearful When data is. we a optimize the that to sure the side the sort. The that same you customers makes other land we of migration they getting do results systems have They is what that we So have absolutely everything. workloads, reach have reengineer, the structure, exactly

a there best. maintained is is for integrity matter not the and hoping throw the a switch and of big XXX% So on this

So high why that’s are a and as things these color friction. texture bit sort little viewed of of a

and a good these wise to we it, is good are Now predictable as experience well the ton in are experience, this. lot it’s and we it time resulting accumulated a experts support we a This do. very doing results, efforts, what And at so outcome, a results, at why. tooling of wise, we very that we that that’s because of have cost have as

Patrick Walravens

you. Thank All right. That’s very helpful.

Operator

Thank you.

comes question from the next Thill of Brent Your line Jefferies. with

is line open. Your

Brent Thill

out curious have I wait. Frank, Thanks. of to terms in journey that lot customers how am discussions stance update commitment the to going unstructured. are if excited could far a starting the just the to have? beyond you your already and on of us around is you customer you see journey are What to structured the our

Frank Slootman

and of at of world come power going are to time of And last lot going really I events. the demonstrate structured Yeah. our said XXX% all, do. we think we Well, That’s that from relationships where When drive from first is just the type usual data. a between substantially so, absolutely to exist the that, update unstructured I actually are is don’t of can I on sciences, it’s where signals it June we you standpoint of out exist something to mean, the have a that between as are strategy that data. we data. we Brent, with committed and data like data think to They as well

in So, you where strategy private you of that real things should of really going starting sort. expect the results are to available half to see that second the and previews become

Brent Thill

talking some look ThoughtSpot, Frank some the things of of the Salesforce or just hearing to of partnerships. market through it’s what And other from interfaces the mass that’s consumable keep on that whether have and just customers making partnerships by one relates it and up you with we what more as that of incredible are or with stories your of the those customers like you speed feedback of hear common deployments anything Thanks. bring some faster of Can kind you the you moving the other data some Tableau on? heard because to us customers

Frank Slootman

is But definitely we we also BI, to we lot going -- are the Tableau intelligence single product in which Well, to BI literally Microsoft see we well. a that relationships with vendor we Power have are largest -- growth gangbusters going also and as with business of every is have one. expect the area

So, we are really solid. -- are really, those relationships

many so likes We with the our of of BI our But which to meant really execution, is that you and sing. be Snowsight, really and own sheer for called as opposed not performance, scale competitive the will of doubt user to much no product the the end if really homegrown just That’s better a these product have a It’s others. of listen distribution. analysts data absolutely there’s makes products provisioning. Power Snowflake

without products difficult users performance have to very looking for that no it’s the dynamic So are just these snappy Snowflake for. really

technology customer. end of this So to combination sort the there, out the of result very entire the a important BA family to of Snowflake products deliver very, with good

Brent Thill

Frank. Thanks

Operator

Sachs. Your with next question comes from the line Goldman Kash of Rangan

line is open. Your

Kash Rangan

digital Snowflake to help your will are you dots Congratulations Two on being how customer made Thanks. that? the are very initiatives questions, just are Thank the drives their CEOs, experience how employee CEOs experience, Frank just looking CIA, regards Can you much. I you digital C at increasingly connect guys. one for CEO they is what how and Could meet? Generally customer at fairly you digital. here talked about relation transformation the Snowflake by specifically talk Maybe transformation. as to us a thinking Hey, in not decisions but in the about level, the you, quarter. Snowflake superb level.

Frank Slootman

Yeah.

people taking we essentially on-premise digital the are modernization. of to They IT focused the not on looking They get same but When model from transformation, for So the workloads and the of move call is want looking are all transformation. but one they business They the and existing are that, fundamentally just to organizations to Snowflake. on what workloads. CEOs, angle like angles. they typically them are advantage taking cloud, running for utility environment platform of new you take the modernization. are

for in and thing. drive I models speed, out so is signals of determine to transformation So going of. the predict the well. are And end-to-end advantage that digital, data as make it can things it’s transformation that of digital trying it’s once means they What they can a things lights describe often to that can take I and very I are They light is relationships looking to are out, role. advantage. after Digital prescriptions big go conversations can are a looking even And to relationship plays data. data differently through these that, whether big doing people define their data easy out here

outreach, what type of yield like think very on data compared scale done. very, and these and improving very The can on cloud is have marketing to they central of precision economy things very, high the historically conversations. experiences, and high very, really obviously, very these and and efficiency processes high You service improving sales very, to

of data -- data data stakeholders One are flowing of the and are is from words media, going analyze broad people where to in orbit, data in in really and things data an structured much have by data very hard where that people operations really all really future That’s drive are we is dominated across be that very social in where moving historically data. really silos, to not address able but kinds sources between partners very their data own effortlessly partners, just then advantage other orbit they significant looking external includes for been. unstructured. a But very IoT, that, from

Kash Rangan

what you much. customers, so biggest into and from you could Frank the the Thank are me. that’s and that open also your problem pushing areas it. opportunities they it Got up Yeah.

Frank Slootman

it. was what Sorry,

Mike Scarpelli

are what that biggest us opportunities are customers into. the pushing Our

Frank Slootman

have relationships, an I Well, completely and But disclosed seamless. our It’s we is shared friction, zero we the to data where well with prepared remarks. through conversation copying Snowflake this the make opportunities opportunity every customer, journey. conversations some cloud to through networking everybody’s figure that establishing and with mean single latency, that rates with to data our The data zero our transfer I are means customers center enormous our front Historically, central APIs way we but is especially internally, been mean, struggle. growth the externally. of processes on oriented. That replicating. in are trying not are and file just bigger in out.

So that to then. it of also used course, are is enormous an to changer goes, what people game and

Kash Rangan

Super. Thank you.

Operator

the next of Your line with Stifel. question Brad Reback from comes

line Your is open.

Brad Reback

product Frank, the issues, Great. usage those the imagination. manage help they limit limited you only early set given call Thanks of limitlessness budgeting customer’s clients do and rack the -- How the that very quickly? very on the it’s that much. the system nature talked in up by you the about

Frank Slootman

for thing used -- infrastructure in not people the the have for the now change manage data obviously a that are don’t gotten historically certainly paradigm public manage And they most and centers, and often. that’s -- anymore, big to in consumption. need to new everybody we but question capacity. to in because discuss for to but good I a people that consumption cloud. that manage clouds. And is have of That’s capacity The notion Yeah. applies on-premise people they it equally topic

for they lot, compute so -- do. don’t chargeback consumers the of service a accountable do full and capability, and are and blown we have we that what of our do really are Now

we dashboards. We we have we have soft hard limits, limits, notifications, have have

motivated So the very inspired do have. that But are lot there’s the really of they at same a a scares, this. and capabilities time by so people ways to

Sometimes honestly. is a been can really very need little looking to planning of organizations very, often why mean want they do also to bit situation I and that’s blunt just do because we opposed much much a to control we bottled situation. how up as intoxicating they that reasons, managing terms really times compelling quite we used see you to in at they are services and and processing get upper consume literally of the and do there’s now there And spend. very where amount how consumption we getting no to these they allow, amount out have of do it’s the limit generations to were a for

to and mindset everybody do new a So to get needs the head it’s provide it’s a governance that manageable capabilities discipline and it’s that. and but their infrastructure new we around

Brad Reback

much. Great. Thanks very

Operator

comes Your with Brent the from Sandler. Bracelin of Piper line next question

Your open. line is

Brent Bracelin

Mike, and the Good exceeded Frank. new exceeded you, QX for -- for One for The afternoon value follow-up then contract thanks dollar a and last year. in taking of signings question. quick of all

my RPO follow QX there improving productivity? Is of so up. then quick there through is, this Walk one seasonality drivers that drove question just me momentum on that. and And the sales the some is

Mike Scarpelli

number it’s not of also going the customers, larger going a bookings ramped to obviously big are fact of in are number But as QX multiyear just things. always of that number there it’s those have obviously we their function you also well to maximize with function it’s and customers. we are into reps A, of acceleration within are people And into. sales the the customers So, try that the too those to of component now renewals, a larger get seasonality customers customers in growing a new because up. that’s large because existing and it’s getting the we are

just earlier, multiyear not we have one deals are most on historically. we as initial always the capacity renewal the cap I been and one multiyear if customers mentioned we cases. a customers case. seeing what call to contracts and they once expect more do of become larger follow when use they year be be to will That’s what That’s I As tend the tends those proven well. the company, as and see up one we sign for day have more that

Brent Bracelin

killer data it. potential of then, corporation inside a for app believe to sharing color here. have heard the we And there. Frank, Helpful has case Got use internal become the

have sharing. marketplace material of sharing great for data seeing around you and data use us sharing really for any Are cases have data externally. for internal You do internal sort you use changes any But color some data which interests around cases? customer on is stats

Mike Scarpelli

copy The interesting data against operating of thing our of and execute look maintain data. one at the larger not copy they they their departments And is, clusters functions all a most single the their sharing reasons I and internally. allow and the is single externally, business Yeah. data of units some the customers, of to is of if actually

the of sharing the have our right? how they and have much don’t they Snowflake data, that’s where will the sort, literally on entire through culture enterprise It that, on modes our actually and architecture the more of data out where anybody data and and coupled to and copies which exchanges they are is our that custody that tightly coupled same their depends drives copy should data sitting model the and and mix they we warehouses the other they their one we their sharing. sharing a is to effectively having One two because reason clusters of but run they So same sharing own data and that things want are why on data sort successful single model they is that’s they because tightest on their and for against can have of sits extremely data So data one, of customers process copy their fire own of architecturally the data, loosely the really match. land take be is that probably everybody where advantage that have the one and customers. data there’s for own and and up workloads wants of to an own the

Brent Bracelin

Great. Thank you.

Operator

from comes of the Genuity. Canaccord David question line next Your Hynes with

line is Your open.

David Hynes

Hey. guys. Thanks

the when know the spend one numbers. you me, to don’t Teradata I legacy little this not and any realize and Snowflake can at with hey, but $X are if replacement. it Teradata spent saying, only I Frank, really realize or did there Snowflake think with billion like, way, only think the look, is for else’s will of is of I in congrats, that how can than X about and way a sometimes it’s gets donator echo impressive CW dollar investors a less And question revenue peaked they amount I out turns think I gets. But about everyone big not really at into just vendors share

to question? So us of any frame kind thoughts help that

Frank Slootman

much amount is that doing times to the do fixed we what been half those spending hell have there you of migration work of have us are thing could historically a you and under Interesting hear, Teradata be the how are limits want is work marketplace we platform. telling What’s Snowflake done, XX but the that, the expanding gone may that’s a lot of not Yeah. deal and are obviously for the on money them. and customers that really capacity are a we

need can You concurrently can workloads those and much you many as run as to. workloads as individual provision you

to run there’s to a no a a.m. consequence sudden slot have everything that there in ton you a job. my line financial as I limit you X as running Obviously, operational on runs for wait much that. possibly It’s little is So hey, imagine can workloads, to do. of concurrently want like, to but all of like don’t it’s

there entertain Now they things possibility to do that. never what ever does really them is, inspire starts to because not do for it a was people to

So already has we are we existed as well sort as unleashing backlog imagination, where of that this people rushing in are the all that this all towards. just are period

digital transformation, a is very, just as because Now component fuel digital the how it evolving. really to are core very enterprises a of driver It’s data signals that processes.

market that’s I So can think get. this --

told be been line come we the are But public not by largest customers telling second the that ordinary budget may out the some. going cloud that I are item a to in forward their our behind seeing. going a based that you have of we am number We shock to that’s on of as what and

David Hynes

Perfect. Thank you, guys.

Operator

Mark Murphy JPMorgan. with Your comes next from of question line the

is open. line Your

Mark Murphy

of that take open what or had goal types was opportunities where think I for complex Benoit maybe try models a end-to-end and Thank amazing might you, Data it could analysis and data you latency larger up the reduce so Frank. to to pretty Summit, if wondering At XX the more goal. today, Cloud new a from it inside long is how through forth AI us walk times could by Snowflake? mentioned you

Frank Slootman

as our sub-seconds. our drive Today event you into seconds in answer where down of talent -- dramatically driven of that here, in want Yeah. areas company Benoit attracted Probably that question, right? one to minutes, have the sub-seconds the we But is we are and should and extraordinary is. latency we architecture that that sort to where him investing bring we event let have

to by just part to things -- has as optimization be approachable trading evolution start electronic and open really we very all of these very, the you That not requires very that that transformation. on zero. latency part our a really of think digital because on see are are the use optimizations, about right? different. approach require that up a very cases tremendous They working purpose obviously and approaching platform we critical You ongoing today. single that That are When

are are so what up, capabilities it. than that a adequate. lost lot have are But that is done where doing we totally faster of room much are how -- much, to at has where we what far. We foreseeing have certainly have become been a today where we know this do And and stuff we world we our to

to expand So the marketplace these in technologies is not this where going places again historically have been.

Mark Murphy

in Thank you follow-up mix are Snowflake of Beijing you Are a you. it good sounds large And like moving a higher with market up usage Mike, that’s rapidly. enterprises more seeing pretty usage. this or fiscal pencil we it’s in hang the Azure of been XX% AWS year? Microsoft would on Do should be think, think an I you sticking it there for around,

Mike Scarpelli

seeing think -- Microsoft. choosing are I deal. were book is go some you But our but AWS will revenue I lagging we mentioned, lot quite as enterprise when time, large to customers with for of be a there the cloud to we definitely largest -- continue

our kick one to our going partner. number Azure fiscal as of to second and remain XXXX, but AWS be cloud going it’s I So XXXX, still see think, year even the will a you half think percentage, we up in are

Mark Murphy

Thank congrats. you and

Operator

question next Citi. from with Radke comes of line Your Tyler the

Your line is open.

Tyler Radke

mean, where the able you and helping then, do you about hadn’t Hey. I wanted that could you been see on over much are with out revenue ask to that’s customer case breaking very Thanks win for point that, wanted that a you before? to new and think to land stats of sharing get think I time? a I maybe if I questions that taking data about where forward, the appreciate successful my to start data sharing. logos, you use the you as And strength Thank you. going I if there, accelerate

Frank Slootman

differentiated and out the seen that reopens incumbents highly over data be, the that completely we first know you break in Well, when and over. I we you, tell it over that have dominated know. am even will that’s time. so that will I cloud conversation and by the are will are we that’s But is What accounts -- to certainly conversation and hoping there obviously that be that we don’t will but revenue over not

it’s because goes innovation conversation it’s all transformation breaking about the we and through so POCs -- cloud, sudden it’s to workloads are just And that’s modernizing we a existing from the great of for customer, and it, obviously, just love complete Snowflake. talking inspiring the doing benchmarking for

Tyler Radke

Yeah.

Mike Scarpelli

reason And is to add use are that that, data do just to it to will data don’t the do consume a where that’s piece because data. going because, their be from whole people everything data breaking on What I the say have drive sources they would is but to other because they data, their time they will revenue sharing Tyler their is anticipate Snowflake of I pulling I sharing own any then that just Snowflake going out places. are to difficult.

and it’s So stickiness end mangled all data of is drives day, together. consumption. what the the sharing it At does drives it

Tyler Radke

Got it.

think, I Frank, around the got there. my hopes up disclosure

Frank Slootman

have We got the accountant.

Tyler Radke

you as just you forecast thinking are and the putting year assumptions macro Thank you into how this are what rates curious up, on think the follow relative your environment? about you. last are as year, a Just about close to

Mike Scarpelli

all. and we next at feel on are seeing we year gave seeing macro you now, next any just about our and and year would in are we going not guidance to what impact I are to growth see say good business we continue really the very right for

Tyler Radke

you. Thank

Operator

Your with from of comes next Rende question Stanley. the Morgan Mark line

is open. line Your

Mark Rende

the in for large as of next guess, And or solutions generally Hi. of services? I vertical guess towards potential what Mark just anything pace Thank you. quarter. out Keith financial call Weiss. broadly? I the Rende are more my of the on specific Is you on of then, customers. the strong large deals there me, with better go-to-market taking from question. terms to evolution impact for on one Thanks execution kind penetrate after verticals Congrats

Frank Slootman

whole and media are life healthcare, financial data going huge is of verticals, terms In sciences, and media companies’ the tech software replatforming services, the on applications. -- public sector in

us packaged there’s So obviously for have we a is -- very goods retail important consumer also. vertical

that data related inside using customers our are to of outcomes? they understanding a and that vertical. they it? be vertical consuming they outside. also very, their And the context of from are are is Most data, Snowflake what in going on terms doing really who we for So are the to is it. activity the How else are How outside, they proficient. What is very And cases? data marketplace data us in on. use are they concurrent providing then are on the lot data sources What have using the of

of are those very So and -- conversation business their getting that’s benefit to they in the business. what I of are and it -- specific mean we those outcomes shifting out very, it’s that really towards. terms are

level this and in comparisons, engaged itself. a this business at benchmarks. the shift there this job the we we was POCs, query? at fully the versus fast workload So, running Now, considerable is How at always are because past really a where top are the house is

that nothing wrong with that, is while level great another So, to brings this the there very because it’s for selling us, our of through outreach. motion, IP strength

Mark Rende

Great. Thank you.

Operator

Your final with line from the Davidson. D.A. question of Andrew Nowinski comes

Your line open. is

Andrew Nowinski

for Great. you Thank squeezing in. me

again want start $X XX this more months growth on million or a quarter know and trailing I So, it’s I calculation. question to really customers, just the strong with a

what’s from maybe So, provide driving I just your is that. I’d if any you assume more some of customers around that versus wondering color coming existing or am customers. could new

Mike Scarpelli

as to it significant that say Well. last six of plus signed the year current I said, coming them customers. any fiscal ramp existing up is I those old in would we from takes customers. customer months XXX% Because

have So, cusp that. of and customers we a it’s the of other customers really on are coming number from our existing that

XX-month we will trailing customers year. next in continue see into So growth dollar think that we million going to plus revenue

Andrew Nowinski

I but expected, follow Thanks, lower just certainly up bit And looked guidance. outlook all was across then maybe your fantastic on a Mike. a then great. coming great QX annual the QX looks QX, metrics. -- That’s Board, the mean, across quick a than off little

if are So just provide of versus assumptions color more of back for the more stronger somewhat you a year? kind the of you near-term half on wondering expecting half the back of year? it any QX like could am I looks

Mike Scarpelli

don’t start fiscal is and that’s relative the actually consensus correct, is Andrew. strong QX I to year business for the guide are prudent, given very full strength and the seeing Yeah. -- QX year. I into the is in a guidance is our of where this think think we

Andrew Nowinski

Very Okay. good. Mike. Thanks,

Operator

today’s participating. and this call. Thank conference for Ladies concludes you gentlemen,

may disconnect. You now

Snowflake (SNOW) 4 Mar 212021 Q4 Earnings call transcript