SNOW - Earnings call transcript Q2 2025

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. Thank you for attending today's Snowflake Q2 and Fiscal Year 2025 Earnings Call. My name is Cole, and I'll be the moderator for today's call. [Operator Instructions]. I'd now like to pass the call over to Jimmy Sexton, Head of Investor Relations. ahead. go Please

Jimmy Sexton

thank Fiscal and joining on us Good Earnings you Call. QX XXXX Snowflake's afternoon, for

Joining the Financial Executive Product, Officer; Kleinerman, me our Executive who Mike Ramaswamy, on our the Scarpelli, call will today participate our Q&A President Chief Vice Officer; in Christian Sridhar and of is session. Chief

XXXX. fiscal quarter we our guidance discuss will call, results and today's and year our financial for the XXXX third the During review second full fiscal quarter of for

statements, including are release, During and related we by and today's most actual assume and make based forward-looking our statements. concerning risks our to reports. financial All on to XX-K statements Forms call, business us. results. our update our These required any uncertainties, law, them to these are and available SEC our and Except press subject made statements of XX-Q statements operations recent as information we materially cause will our to risks as from uncertainties differ Information today obligation in other which earnings is performance. could no such to available currently

the measures a During of measures, see for non-GAAP today's GAAP posted turn also financial The investor we the investor definitions, presentation to to release website. call, certain our including metric website and on will of discuss I over at and be now non-GAAP our adoption. press business will reconciliation earnings presentation like also on available today's With are investors.snowflake.com. to A call replay would Sridhar. that, call

Sridhar Ramaswamy

everyone. Thanks for Thanks, us joining hi, Jimmy, today. and

expectations. did this guidance momentum and pipeline we 'XX continues we really quarter, of of to of In product now, by brought and delivery last the alone, FY market strong we as accelerated I'm have first as product all year. revenue innovation half to year much strong. our be how our we really our increasing team proud beating As you the product and another seen had

Snowflake all our AI making maintain best incredible are around at you, our team collaboration can are applications base. computation, these on part are of customers is use. make and We our new easier create, to what and of we tell I and the and the is aligned data, adopting all for capabilities This cloud leveraging to an

said XX% I quarter three can fronts, As on product $XXX key I'm million, QX, customers, fueling XX%. learning I you up performance which and our growth obligations totaled listening billion accelerating last focused to teams. results. areas quarter, delivery, $X.X was we alignment in on year-over-year. and have delivered driving for And from to personally our in execution go-to-market our revenue see year-over-year innovation Remaining the all Product within and with

Given Companies Petco, Capital help their them quarter, Snapchat are Western the NBCU, our relying Union all we product and year. One, the fuel strong businesses. like for revenue are Snowflake outlook increasing on Pfizer, play to

of us I'm are our business, really for very have the in encouraged where to going I'm rapid on customers. we deliver AI and opportunities the front about optimistic front. by made the have of progress core we the we and our strength

customers, are they more adviser how and be challenges trusted their dealt their headlines counting business customers our journey. as some is in you together. on rough how appreciate just obviously quarter relationship then and the to we cybersecurity I'm trusted the the strong Nothing to some data our their when to through critical fact, had AI brings the In threat. how with We much more life us are I with go in of

extensively As wasn't Snowflake the reported, on side. the issue

breached evidence that experts, cybersecurity platform our by investigations compromised. or multiple we After external no was internal and found

more efficiency quarter, time multifactor Snowflake spent as the or customers across the of at June. in XXXX. Germany, are supported XXX world, things. of U.K., to our and my strong I authentication theme over not, as the it many We, C-suite in geographies There product possible. industries is The is since together. organization consistent all Snowflake that your travels customer delivering on affinity to for that than Snowflake it Two policies Canada all business. summit spots and across of none I to is in ensure [indiscernible] bright the with and their businesses from have network and U.S. are And is have the ease, are they're you when asked that the of in a lot enable And and the comes understand hear reliability to a we enforce Snowflake around we a However, cybersecurity, them whether course, incredible.

of came much Summit. life And this at Snowflake to so

on-site driver provider attendees. The of energy use solutions was AI. XX% developed warehousing Day from with one plans Penske's of involving We with partners variety has portation year-on-year hosted indeed, will where momentum Penske have Penske's Developers Cortex traction example, there, transportation enhancing customers. various a And to gained improving X,XXX customers XX,XXX analysis price already being available, operations of experienced goal you're world. its performance life In and up We of innovative lot cases if iceberg to our ever announced metrics our the managers around Cortex and Logistics, of lot with we and innovation both which a first to consume of incredible. have we with provide the business. leading Cortex help over AI a and use generally and retention. truck performance to related feedback simply brought to product a

migration largest Also, customers data on financial segment their improve to [ ] analysis the transcripts and center one customer unstructured companies Iceberg customer have now support experience. analyze cloud. us more integrates indicated more is this they larger a is of sentiment Many ETL with address functionality. a a their to enabling enables hospitality AI Snowflake flexible Snowflake services the to from and accelerate the Twilio's model, call running providing to and enabling offense with deployment And data, to of derive workloads Twilio services unstructured consumer AI and will text to improve to our Cortex of their Reverse result largest journey. customers for the footprint. Cortex largest using as interoperable of companies their insight leverage is one data play of them Iceberg

QX. our one More what and seeing products we announcements to capabilities in call base. are progress. product of X general product market. is to product more And broad customer also using accounts our XXX brought new made than the XX that priorities. Iceberg of of our That's the across end QX, as net last delivery told highest we We're than availability quarter you adoption of I

a more of As weekly of using end QX, basis. the X,XXX Snowflake AI accounts on were than

We this contribution to continue and an expect revenue follow. to to increase option

engage accounts Our than This to notebooks offering is did seeing and that new is address. data with preview previously will also critical X,XXX not using traction we opportunities unlock more feature. scientists great in with public that

are available expected We opportunity, and and to in continue new innings the to Cortex generally analysts this features bring QX. we'll to are be market. early of in Cortex Search

future a trusted. is ahead. late creates to AI to And invest continuing of In are all, efficient. AI in We and huge ] easy, deliver AI, opportunity and machine learning that not it's most enterprise responsibly [

I'll hands We deliver to in turn of have lot to work Mike, you. over and of do. it. take it a to but our advantage it's

Michael Scarpelli

$XXX year-over-year, grew and in services revenue growth Product Sridhar. verticals XX% the you, Financial drove Thank totaling million. quarter. technology

to environment. of continue optimization see We stable signs a

in incentive XX% to FY this new Our revenue strong largest use in features. customers cases announced quarter. consumption, year, the and are sell year-on-year for line will quarter order consumption product signed the growth deals contributing time. convert patterns. focus reach meaningful We We would 'XX in reps grew into drive $X.X over revenue We than delivered product sequential billion. prosecute sales acquisitions that prioritize this with we and believe X-figure customer Earlier sales new historical X more new to

new acquisition is Our motion ramping. customer

We it year-over-year. QX, in impact product a material of have XX% gross non-GAAP margin expect down to was 'XX. FY slightly more In

product costs for prior Non-GAAP our newer are exceeded outperformance. customer operating As revenue mentioned from GPU-related on to demand our guidance, incurring margin order X% benefiting call, in our we of features. fulfill

and is of non-GAAP operating a investments. expected, As as R&D margin down result year-on-year go-to-market

free cash was adjusted margin non-GAAP Our X%. flow

approximately of ended our cash the customers with paying cash, annually to long-term billion advance. We in $X.X XX% see in quarter continue equivalents, investments. We short-term and

repurchase through million we million from original billion to $X used repurchase XXXX. March plan, X remaining $XXX QX, shares million In our have $XXX we

March to additional repurchase cash XXXX. This over manage expected Our flow billion Board us cash balance the use of through program repurchase and of Directors this period. allows our authorized under an $X.X dilution free our to stock

include the impact from guidance stock count not share repurchases. Our does the

Snowflake, from based revenue our our includes We behavior, Now contribution as guidance let's product to FY outlook. previously turn on 'XX observed stated. forecast

from guidance include newer not product features. Our does the contribution material

with associated does improvements. headwinds forecast Our performance include revenue

For revenue QX, million between $XXX product we expect $XXX and million.

FY guidance. revenue We We growth. 'XX year expect representing are product our now $X.XXX revenue approximately year-over-year product of XX% billion, increasing full

to Turning margins.

operating we in For expect QX, margin. X%

for non-GAAP We With we operating margin for open operator, line flow are margin questions. cash year that, XX% free maintaining product adjusted full now guidance XX% approximately you FY expect non-GAAP the margin and 'XX, up non-GAAP can margin.

Operator

with question Keith first from Stanley. Weiss Instructions]Our Morgan is [Operator

Keith Weiss

quarter product was There Excellent. be a And about you about of on normalize the concerns about optimization settling from are. couple leakage. Iceberg was to past that a just the cables, really congratulations into the into over a I data XX% concerns impacts hear solid good seem the rate accrued coming this quarters. to to there growth quarter. guys starting lot quarter like revenue about during of

consumption headwind. That may these cybersecurity gave wasn't definitely you any were consumption. the about guys expecting marketing the additional the be when on a originally these impacting in you your impact? quarter us guide? concerned but of strike, any Were were of Or the impacts It what fault was outsized it was versus crowd incident

Michael Scarpelli

a and any impacted was still impact the customers, does no a rely had incident minimal. was us day the outage that early, really production I And crowdstrike never for would from Microsoft was itself of us consumption a few say that. all on cybersecurity but It standpoint. substance and not at nothing with on our

didn't have. we So

Keith Weiss

the And in Iceberg cables with it. your then line Got was expectations?

Michael Scarpelli

rolling tables Iceberg out. is

As have XXX that about it. customers we we said, are using

that iceberg XX% customers lot and there. seeing pleased We XXX Storage trying mentioned know that but we're still customers. our very out using with new we're about of of of are workloads actually a seen revenue. is seeing storage the we our that of haven't are we're progress running We move out with Snowflake,

Operator

question Our Barclays. from Raimo is with next Lenschow

Raimo Lenschow

talent you were you, there's what like attracting have of set Can a this speak around that? for can of lot how people map [indiscernible] you what quarter quarter to Mike, Like then the you the for to that positioning And factors questions. this someone of iceberg quick with was road by gross drive the ecosystem, a Two here? iceberg your in there some of evolving? lot see is acquisition in obviously modeled. change margins forward that -- the [indiscernible] ecosystem better than do terms

Michael Scarpelli

Yes.

On some margins the for that change the year. that we deployments this the on for of slightly would margin side, than we've were that anticipating side still we quarter forecast the we what margin yet GPUs internally, XX% around had have we're don't the that side. the the in in but gross waiting is guide it world margin given was doesn't come Part -- really that better were have

Sridhar Ramaswamy

an side, of on This members is we has but the cloud Apache no and committee And project. project, program it's number yes, members a Snowflakes. companies, also acquisition the understand companies. have within on contributors the iceberg also Iceberg from the of other hyperscalers, company has the And source open important impact Tabular which to that then

to an this role take we standard that So we for shaping. very be a in significant intend industry pretty much

ensure that And industry will support. the many was so because as key interoperable. and be our feel from the acquisition was this format is Iceberg wars that an perspective, Tabular that forward. everybody one indication serves in strategy of continue And [ bet I the a truly to that said, format the we that is Hopefully, ways this the on actually of Betamax in end the broad we move and ecosystem format has centering everybody truly with ] player to everybody around to the that

Operator

Murphy with Mark question next from is JPMorgan. Our

Mark Murphy

perhaps Congrats. are deals, expansion renewals for anything couple X-figure Iceberg that into where there's Mike, want a instance, data open else or just tap companies have in unlocking call format a to are quick to new cable some or sources larger in else, then on the related is out I to follow-up. the whether an X-figure mentioned they're curious business those I'm deals of you with anything if if quarter.

Michael Scarpelli

existing were customers. Those

of never deal you're customer. see part as process that a -- Likely both net do going more. Snowflake. but want really I'm but to that But those as expansion iceberg they the with can't to of seeing, see renewal You're customers to -- from on I of in plan either X-figure they're both I looking those to those doing are specifically new say never say never. a and going more

Mark Murphy

Yes, I understand.

in Okay. to the forward I into potential fiscal the how and Sridhar software you some the we're a of think And had headwinds ramping and next improvements large balance compression. of past, other as improvements. trying on mentioned, hardware warehouse as year, to pencil terms other Any the we out you that thoughts contribute. from slate products on out of Sridhar, then those sizing. on, the discrete think you GA of that then reached In recently any products on and ledger, auto for storage that side that Then along, start follow-up, to might start new to the passed high-level side,

Sridhar Ramaswamy

I'll answer, Christian start should should to in. -- chime and and Mike

First But how wherever going indication products where tell year. all, to possible, it We have we it. new about anything is certainly can't about perform. are obviously say you next next of year, about we

next We to have to expect said, begin is this similarly, year. AI with do as then the example, we broad materially about we adoption, it what contribute given for seeing Snowflake and I that are And guidance, will to revenue products, year. going

ongoing an would say more respect of to that's I thing. optimization, performance With

because Christian? you things make product our on protects to to It and and tap into strong year. these that that that massive what continue savings it's is for important overall that for optimizations the for talked on to have about that this have We our the teams base. understand our core really we do cost customers tap important that's turn

Christian Kleinerman

this on additional uses just several of us. our us seen all continuing leadership emphasize years but of our And their continues point, be to and that I also would performance at position for priority growth price a innovate to for you've customers.

Operator

have X We question Evercore. Materne Kirk with from a

S. Kirk Materne

around at X Cortex how And lot up to really lot, to Just the like a Sridhar, think see your obviously, use ] and these partners Park excitement some industry perspective, summit talked [ about and a but of the event ones. quick them. too. from I understand of better [indiscernible] customers just came Snow can products maps an it

where So ROI are our you I'm of curious your in can and products they kind mention that the [indiscernible]/

Michael Scarpelli

can't And hear Kirk, you. echo. your line is Getting bad breaking up and really hard to hear you. really it's we a

Operator

Rangan We have [ a question from Goldman. Kash ] with

Unknown Analyst

you, you, one Mike. one So for for Sridhar,

an we the What unstructured are you you an out. conversations average services X with to Cortex customers other when where in How mix net change really, on get appreciate so start the new thin as look new of they with you you. on are warehousing-related average. kind the going core, they portfolio, luckily revenues mix consumption to at take if the customer data? like a How customers a that your you call and the are initiative services changing pointed to [ ] when are call discussing be you do does the coming of see products they just year out What emerging clearly want with or your to out profile it, What between AI is call X you So it, sulfate buckets. these for versus out services. product have to is that net quite

to compensation the in also but we this. that in said that intimated assumption you still of fiscal Mike, you towards sales 'XX, see you, for early fruit all could force its tilt the one start days, you're And

us you understand tilt more mean and internally your would working that that? is are by therefore what customers you KPIs the inform help to that you And what So towards be within to your consumption monitoring that, actually advantage. getting us,

Sridhar Ramaswamy

Thank you, Kash.

through say, Snowflake goal have key up with good a And that as starting pristine say back plane. the end gives have data lots like so the that customers really into are clean often, But I architectures. enterprise data, a our adopting customers the that of is that typically a one different Snowflake. layer, visibility. data desire most platform On that there side, the would put go to on product journey to is They standardized

is certainly value. leaning sharing that creates data that you've starting because also Next, metric which exist network thing usually, adopt key it an various like of because there a they broadly. towards next kinds, all track obviously often the things collaboration talk companies edges, becomes customers ecosystem. partners, in of They a it creates And collaboration Christian context we a have the have And heard is with and stable effect. they about

all front at And to have is strategy universe because would of around -- a Snowflake say overall that of satisfied investment because not things a sort large data is ingested iceberg a Our sudden, a can workloads this pretty company for for because key while a goes things unusual the all precisely all through which like data that be where the make played happen. has an has is us. like into a sure significant of, by be data AI acted of the it. that expansion is things little Blake I role engineering, data of before to become in industry Snowflake this been obviously, snowflake pretty Snowflake. And by is where needs upon this excitement in because

very a viewpoint. approach much we from But it

talk and and give LLM access in the like detection business insights data function be it was structured much really, chatbot revenue question how to to about access enough user for a We investing example, can text these driving feel Those to for this utility We whether something go growth. or we easier to just tend think creating to a doing to how docs, information, an be to to using follow-on unstructured transformation And sentiment like using it and by with comfortable applications. we derive of be data, customers. say, part in better used or able the use is analyst of be go are data. do in about I previous AI. don't our parallel

that. percent say for it's talk I percent this would early about too to for x versus

relevance to our for our is relevant. me, driving lots XX goal for Our customers X, And and meaningful digit products thousands be lots using of customers, is of us. and revenue

Michael Scarpelli

organization to that in muscle consumption. XXXX a coming positive muscle how for we been impact developing, building is and learn It's the forecast we on and to the on trying for paid Kash, on really focused that next have then customers' muscle in have what meaning for And them they new And was really us. on new have on reps And by driving really right the workload your acquisition customer year to bifurcated me question that is those going them. we've the revenue a of is meaningful into we consumption I go landing those today, sales our is the they're been growth comp customers within new and also, that a that We are sales land will ones. is What reps. find help grow. type impact online the force the changes. think being to It's can new with where sales see really

Operator

from with question UBS. a Kersteid have Karl We

Karl Keirstead

revenue the in Mike, you you're I'd half ask to quarter product and embedding closed about usage love second what assumptions guide. trends just the you as July

environment. is that ample I down all from IT think purely tough the line we've it's Microsoft a way so evidence the on spending everybody

revs what changes that as I'm XQ product just guide embedded the curious, call maybe you set or guide? as and you key assumptions in macro-related that XQ would variables So out you in

Michael Scarpelli

customer the year very we're quarter. it not showed or booking our standpoint stable a don't any closed seeing. as deals it's seeing and the obviously, It's we up anything, that we Order consumption quarter buying from well, just too. trends, week. raised euphoric a this the right see that's We And now worse. we beat are with in trends normal the and And it's consumption pattern environment, we I but full for very of through revenue terms guided pleased

right So we're we're is what pleased that with now seeing.

Karl Keirstead

just revenues. in embedded some of then I maybe Mike, the you've degree that a storage of the runoff Okay. and your follow-up. know guidance, of assumption

You represent you pace still tracking expected rev in X of new storage just faster? bit a little bit ago? lighter XX% is what Or repeated months the of a this earlier, runoff is little guidance, that to it or similar embedded

Michael Scarpelli

said lead and second storage is as Yes. we to earlier, was is is this happen that haven't our forecast into yet, I guidance. and I that some say, of seen are going stuff-like the of expecting year, really in Well, but would half that to any happen always factored that -- we

Operator

question next Our with Jefferies. Thill Brent from is

Brent Thill

of But of update good on Cortex patterns continues of revenue seen. highest similar can and be that's good Sridhar, was on should Is past? the on sequential you've anything the acceleration and just an the gap and Is this you going just one to we seen there. we've consistent give that between consider trend? in And RPO, there the adoption the it RPO us that seeing Mike, to for see how you're RPO. growth really

Michael Scarpelli

just answer it's first, while that I'll mind. actually on my

customers As everything buy have have ability we if monthly. their under have we've sign to they contracts that before, consumed contract, they the said long-term

through We year, that the buy of seeing end of customers now that. continue X have can our to we're top XX and right the

Those and top So their $XX range. they XX reflected to the much million current RPO just very roughly in million because in go. top they're aren't they're buying are think in customers customers as $XX XX

Christian Kleinerman

of Cortex. adoption the Christian here in

data, number office taximeization, interrogate a But but chat adoption not Cortex very is alluded That strong, it's analysts able we which the strong. [indiscernible], two as a to use structured on represents users Summit, across to introduced That's at models umbrella. also, as language enable available. Sridhar are under this whether quite strong. We the the organizations of structured. lands, that capabilities Cortex the different cases to the that Those segment at have and product is tech and so Search one, to stage adoption Cortex and be quite way both analysis.

We And how last I on usage availability. have also for demand is would back drives of out one getting into maybe customers write quite solid. a general and to better [indiscernible] going pilot assistance that queries, bit the call to in [indiscernible] which consumption

So all and up, strong product across a suite [indiscernible]. adoption in interest the

Operator

We Zelnick Deutsche have Brad a question Bank. with from

Brad Zelnick

picture It's question. really a bigger

Sridhar, maybe the increasingly why For and enterprises interacts LOMs, from warehouse, Thanks. AI world bridge Christian, does the or it build generation to if decades help as data applications. with of we've data And here? leveraging through Snowflake known to mountains how newer worlds, the these for generative data of AI well evolve is enterprise role positioned

Sridhar Ramaswamy

connectors, other we often this to learning, have also Snowflake be you then data sales I are operational with single view. the And provides additional data plan like the started to interesting out or or of a all able the are that segment multiple in from or force that back other use. first capabilities as act systems, data to they of mean, doing all, absolutely. but of the systems. applications at unified we are on companies, is systems, increasingly that Obviously, like warehouse. what machine center any comes We is we drive SAP to whether But I from of a production increasingly,

And do chain and that And of Snowflake supply of optimization. are to obviously, is. a which other Snowflake a we so a combine partners data the chain like into then provide Snowflake and uses bring their there there example, is then people see optimize company in-park also data lot lot they within data for can additional Disney, supply that customers chain platform on capability [indiscernible], with supply that to Snowflake.

AI where is going is. data have bet that a going the to are really Data Our and strong learning is machine gravity. to go

And are models. by adoption. easy-to-use the know use is able we example, seeing language any that for AI, to now is SQL And providing reason this why products Cortex with analyst broad such

like these to of need this go people transformation, really buy and don't an done amazing sequel. data up to sharing systems, Snowflake things on set applications as that is Snowflake. simple You become applications all a new like things ease It in core tech the have analytics makes new use writing X-line do as transformations the such value-add be able addition and that to to data platform

Brad Zelnick

I one products here, optimistic too all just to NRR new in light especially stabilize that think that a Maybe can online. are Am guys Mike. the you quick for of you, bringing

Michael Scarpelli

As really converge And before, to to like we'll I we've will, happy the it. over with I'm NR revenue. I'm said level, with at and see this going stabilize revenue ARR of disappointed quarter. guide Clearly, see not but given our I'm said we'd with not time, it at end growth, our the

Operator

question from Company. Cikos next Our is Mike Needham with

Michael Cikos

Great.

headlines anything year-to-date for to that demand in any those would But about? Mike on there at the of think through there that basis performance year, we reiterated Was follow-up were Snowflake any look consumption an it we top And noticed the when margin line Q&A. out flakes I know The half? related back be of security. half today, first first the the time have that saying that's of wasn't spend guidance come for the there. one for sales change still the then at the headlines the impact on now or just Sridhar as and I just a about some cycles around to muddled wanted given is in when quarter has think we're to to the back to question Keith's the the you delayed relates out expected there

Sridhar Ramaswamy

customers. to -- have Obviously, we all make we slightly conversations is the we decade got in. a sales customers, all the that we security want bring up to for practices. that or They're close about this to that when authentication, about that customer. are model the our that and had, make with this On I, And these our these they part multifactor the closely are got reason like of whether ensure the best capabilities example, the of simple, situation we to team the follow center. with topic whenever headlines. when have security. why network security like we And customers try we they potential front And muted sure point existing as out to up and honestly, breached to comes people a existing first are sure get -- policies the are well difficult We for that it an one that customer customers, we new them to new bring to as talk like work

customers both of customers get difficult new and and And helping them that spirit existing appreciate situations. through partnership

to We We our CSOs. talk best talk have to practices. field them advise our CTOs, them security on had them

say effect be or up ability absolutely existing So or I our things customers been roughly, new proactive -- sign projects. customers do mean, that new really to that. sign more any having I delay to deploy in get to conversation like not we get up just security We would there's customers and need noticeable or about the

Michael Scarpelli

or doesn't looking spend. there's on but impact, accelerating question, and we will there's I But our tell at it your is delayed change any delayed Mike, not an having whether are spend guidance. In no you

was. is guidance it same the Our what

sales gave in at guidance looking the force hiring guidance, of where which that's are areas our of quarter. some and is into we our we last potentially half of factored year, We the the for the in year accelerating particular second full want, in some the

Operator

Fishbein Joel from Truist. is question with next Our

Joel Fishbein

Congrats that good some example, and about you used Can using be maybe to hospitality on customer other use give that customers. color may case you more Iceberg. about an use maybe Sridhar, if ROI? And the case attract us spoke this as execution.

Sridhar Ramaswamy

Yes.

adoption in and see. open our customers that desire a general we adopt we [ there, use a we starts pattern small can validating an that and our architecture is you some saw with based that I see to the usually, that's case, between And the ] to deploy then use the from to engines go think our is case the I spend, larger formats, and here's pattern think scale. primary on incremental at

Operator

question We Patrick have with from a Colville Scotiabank.

now is line Your open.

Patrick Edwin Colville

Do in online, call warehousing. about commenting there to workloads mind the ago? you data query competition ask pace Sridhar. classic coming X migrations, analytical I and new now kind mean, analytics Is of pricing there. versus just I So out months wanted to on analytics of anything

Sridhar Ramaswamy

analytics consider their that Snowflake systems, like done end And end -- from space, very being the This migrations people workloads have been efficient important have is it especially of the an us. skilled best are and services that have very, is massive exceptionally complex a up that is, maintenance. In XX% to the up the cost of bear core from and low professional on-prem savings migration. implementations tested with that for that has customer continues the in be we ecosystem Yes. when and team we migrating partners something the on-prem it of we world very battle large a at to area

we having variety see And migrations from in interest tools. of And wide legacy increasing is systems. AI-aided a there also

And an but especially do by We also like data customers. also can called Snow professional remain consumption background these investing we that a our have would tool you services world by more AI, customers. migration of from lot team, in of of customer have in both of substantial kinds be faster. a acquisition these in systems part [indiscernible]. are migrations I the increases so important tools existing but Christian, the new legacy say is driving that both into our Convert used

Christian Kleinerman

is of and additional the the Maybe some closing systems processes books run they're most bits. color critical the in the organizations. that, Typically,

validation cycle where it big important are continues oftentimes, customers. to are technology process, Sridhar some results very the the of and parts validation said, are portion migration at is the to create ensuring ways how that to looking and we but there accelerate is correct. So a of constantly as And the

Michael Scarpelli

And queries question, We you queries specifically Patrick, of talk how a do because query are per We per customer's different. gone. credit cost price of your that a every has on pricing. don't

quarter-over-quarter compute. Sequentially, price for is much But to gotten better that and has so the get That I stable continues remained what year-over-year quarter-over-quarter. be. X.X%. customers, You performance can grew has say

Christian Kleinerman

branch the a have getting we workloads, that us not how Snowflake rent regular we economics customer when the our better about points, on been but customers time, a we to over and actual and give are performance And take we synthetic basis. measure performance public index that's improvement

Patrick Edwin Colville

question. open answering leave helpful. in Snow I Cortex Can Park. that 'XX thank three new saying benefit it from quick only Super factoring to I about guess minimal the a I you prepared remarks follow-up. all to of not then ask in even it's I'll for -- you and want answer I fiscal you're products and benefit

the drive and rock core could product was answer hockey Because when previous think more revenue? I and solid is very that materially your those healthy. stick

when to about and reflect. going what new the that's So stuff really

Michael Scarpelli

year as product will Snowpark that year. newer know products the the at the guidance the X% of that $XXX history we not nicely. yet, and factored our but that's beginning And I of our are have do XXXX going tracking is don't into year. about full or to guide Only be newer in 'XX have an I said said until revenue expect impact. we for the million they'll this see we impact more And to an is

Operator

is with question Wells next Michael Turrin Our Fargo. from

Michael Turrin

go to and last perspective, a Sridhar, your area. as to ask you want I that innovation mentioned back point focus key just

see thinking we're are of the Snowpark product around? around conversation beyond What and that as Summit. customer you're you initial just those efforts demand about product conversations customer signals So most areas couple those particularly having early or the newer

Sridhar Ramaswamy

customer implementing not market. So up had to new but taking conversations, cadences in are specific we we've also only doubled that teams have things

customer kinds Snowflake different data we what a we of of We that on workloads We other on that about a is injections. used on part that. port talked not Christian on streaming Snowflake were can analytic focus engineering. emphasis is place where like computation ice a call tables things distinct focus it. running special created hospitality is from Iceberg that been very by be So running definitely us. we've much the for how

is big a focus engineering data AI. So on stream, one work definitely

focused they basically will get that hit around notebooks, we GA top data on run market. machine that the team of so expect Snowflake. those our algorithms scientists And of top-to-bottom to effort on a that into sales to example, for we making engineering want most they to draw And bottom making be that products the to an have from how a sure weeks. we take AI is learning We in few complex can hands a

approach with to engineering methodical in to to pretty at notebooks, market a front are the unstructured sophisticated it including we or new have right customer we how of right things the is taking products ourselves but whether so product AI very like operations, across right organizing data gamut, And or machine learning the data It's different of time. personnel to or offering the put a matter interest. more

right storage potential to Basis that of call. throughout Is And contemplated is fair us impact things think about. for to takeaway about assume mix room from point. leaving still half, the right level points from of seeing ZIP the the for XX% that code in down that the this at you've talked that it you're that Is come not us? second but to for the you're

Michael Scarpelli

try will an that's storage, look back basis, to iceberg going to that. there and we and update impact the Well, of don't quarterly headwinds year, year, not associated half to have that second we and other every be never that with a will. always planned things. was factored think we're But that, on and the We reconcile to in. be never at We and improvements performance the still going to potential we with

Operator

question next from is Our Citi. Tyler Radke with

Tyler Radke

intra-quarter. help cyber any of that from talk in QX, consumption the sort services that reconcile of though, tech you could the magnitude from the some And QX of financial the in offsets, if I to you were know about headlines beat impacts that would But maybe saw. to trends see of smaller negative was didn't you be magnitude hear positive in and The saw beat to the hit QX. I customers was wondering continue the if you into some that just than us QX. just there Encouraging strong smaller didn't great. that QX you could

Michael Scarpelli

said term. always just it X% a we're such two. we've in as manage get I'm Tyler, I business we just manage good if a trying we X% is for long were really -- this at comes excited to not X.X% I a that don't that at try excited beat the this beat business to it's if and big to X%,

more the of year the the what's see second full important more happening now. year, think, that half that think rates what is I to the putting in we're I speaks the we fact through

Tyler Radke

were it helpful think Yes. bit commentary. collections I lighter. On cash a flow,

of about. The just moving the you from there in availability flow the terms talk cash are impact you billings some about I CapEx think just you that any kind year Is expected? function was seeing a the maintained. full could be you outlook of of talked more compress go-to-market lower the flow? GPU And cash changes given than Can pieces talked?

Michael Scarpelli

of Now Payables actually billings our said, terms bit collection annually consistent, planned. and as were much the are I advanced and or little actually higher remaining we customers as XX% pretty QX a cash flow remember, seasonality a and strongest the quarter. in our be are payables. free have QX, QX cash we going to lot QX But to going timing of flow. always our of

And so now. keeping right I'm for year comfortable the XX% the

Unknown Analyst

of point? bottomed trajectory to upward of could see gross in an medium impact at margins Snowflake, on and sort confidence here of some start have, kind the we -- see thinking you're that that through the in fact, Now AI term that

Michael Scarpelli

we all, rent of we procuring don't we actually first GPUs, So IPs talk about them.

of just customers when want I to that clarify are regions not GPUs, available newer Europe demand areas us using our to And it's So And just to feel guided. of some some outside want not we the future products for a the in And And say major I'm I margin. never what's the is about that could ones, and the that. so the certain of XX% have in unfortunately, But GPUs. the they you Asia margins. bottom know lot because I on don't in -- lot yet. vendors bigger be smaller good I'm of can get impact A can next this the XXXs, have they the of year even talking as we've our going cloud in want products. bottom an the say I have year. the

Unknown Analyst

and quarter of guys the a next XQ. quarter for sort I U.S. with uncertainty being have you And U.S. expectations guess, U.S. of, it. discounted for on the big some Fed election, Got you some Fed then

Just year. about into should kind you how think should think about that of we on of sort next curious vertical going how

Michael Scarpelli

our is say as for federal us. smallest our vertical. it's will before, And business said only I upside Well, I

But our in what close not expectations So way, some do. we is But numbers do all And we'll worldwide won't on some your We now. be We're at in it well, we have expect in do things federal. future. of those do too. lot question U.S. other of takes revenue, was public sector by itself. FedRAMP terms once high as on some working I the deals. pretty for That quarter. federal the this a good expect I deals. And until close there's time. impact deals on

close quarter some do space. And so U.S. deals expect in this I the to federal

Operator

Wolfe Our Zukin with is next from Research. question Alex

Aleksandr Zukin

beat, the raise Mike, kind in bit weaker product hear think, to technology what guys. being it little really being Can the commentary -- great got to services maybe to other the growth, answer I talk about macro regard the seeing a the on what which and a But use Obviously, in a little little the surprising you was of side, strongest financial what more on maybe double of from bit question maybe you're expect for the that those point to it's is, grades maybe like RPO strength revenue. the a a where it bit the bit little verticals earlier. Is And areas? bookings for strong while just there. is and different? you technology cases? you Is vertical maybe a you it kind than

Michael Scarpelli

grown, services, to have early like really driving are one that of them for that think, just they innings the us of other a year-over-year. in number going as I we of a we growing the that well. some -- And nicely financial And companies tech space would is some that. has migrations, to and say in are on technology just grow, of lot side, the banks the continue XXX% I are have in

Sridhar Ramaswamy

put quality to consideration, different teams in like size work is we the and actively a And play that the the which of on areas. we the different

like That's early momentum itself. we team, There that's are of the teams begin financial other where have fed example, like business, on in and strong that for are with. federal we And were are best still services. among growth. crack data out positive where sharing pioneers the We to driving the building things where we a areas

sectors, As up what is. the robust differences much as do one between growth likes to it's often ends macroeconomic can we that think how influencing the

Aleksandr Zukin

one Got it. just more. maybe And then

or And quarter the would over any are changes been of pipeline landscape some think how course that there? are If you misunderstandings investors. observed the the the What for particularly from landscape, of of or out perspective? maybe got kind year, of half a about or you year topic the say charge you a little competitive that's competitive a a the in bit the even first major this misconceptions or of

Sridhar Ramaswamy

add on. Mike Christian start, should and I'll

I a spent think time lot I've the road. of on

of this data thing stands clearly sharing capability, are [indiscernible]. our biggest data with an I've over capability, analytic And that Just from is we core quarter, out one-on-one. customers like the met that

exceptionally to move has and workloads platform month. the easy a the over a so every that our close absolutely their to are be books more doesn't the It can large complex bank best system of of data multi-quarter Snowflake that's a is that more of And it see that managing carefully. and that recognize to It's a at. process nothing they sneeze done project migration that. We we customers is, make

like that ] the were before we core that here things I we comes were that were in little a to that it When the in rapidly Snowflake. it even products management much things kind Niva been we but in about and have we in team open we've heavily the things that our opportunity, in year AI, kind acquisition early in accelerant at So through of and place coming, last newer invested of an the a a [ deploy. the would is invested we products of could moving it recognize the like capabilities. one behind my reinforce the But strength which field, wouldn't to that were already I I one how thing terms call fact that misconception, thing

and can would we for we use attention the that change previous that us are that we APIs and can building of over get products our well. it's elsewhere a you reliability that lot is can tell of products reliable And combination customers, in how confidence are the our because ease a are with say of we products. turning you tell we pay much to quarter that as more major AI strength off And I than into honestly, of meticulous AI craft world-class we

Christian Kleinerman

a how strong use, that One philosophy for on philosophy across [indiscernible] the of product Yes. out data AI, we'll advantage for last work engineering comment continue our on of make default, analytics, hear areas mine. things you quick and competitively for with is easily ease We and of do us to for box. smart invest

Sridhar Ramaswamy

very is we the are talk basically like is the a of main continue operation. SPXXXXXXXXX I the any comes our replica strength most now It's summer battle-tested deployment to applications replica that that set workloads the especially of full an of CrowdStrike like promise. platform, that keeping important This something a on run One drive cost in can concrete Snowflake. going ones. It's the has up. up Last comment the customers are on deployment. original the running core. in we the because is like That's that shocked of that, to with not XX% how the features out just been and give this find snowflake to -- the of to with hot about after something incidence topics

Operator

out are time questions. for of We

So thank you all for your participation.

now your may disconnect lines. You

Snowflake (SNOW) 21 Aug 242025 Q2 Earnings call transcript