The following is a summary of the Snowflake Inc. (SNOW) Q1 2025 Earnings Call Transcript:
Financial Performance:
Snowflake reported Q1 product revenue of $790 million, up 34% year-over-year.
Remaining Performance Obligations grew 46% year-over-year to $5 billion.
Non-GAAP adjusted free cash flow margin stood at 44%.
Snowflake expects Q2 product revenue between $805 million to $810 million and full year product revenue of approximately $3.3 billion, a 24% increase year-on-year.
Storage mix as a percent of revenue remained at 11%.
Business Progress:
Growth was primarily driven by data product and increased layer of AI applications.
Over 750 customers are using new AI capabilities, with significant upgrades in acquisition team in commercial space and business development.
AI product, Cortex, became generally available and features such as Iceberg, Snowpark Container Services, and Hybrid Tables are expected to be released by year-end.
Snowflake began migrating several large Global 2,000 customers to Snowpark in Q1, with more than 50% customers now using it.
Acquisition of certain technology assets and key staff from TruEra is ongoing to enhance AI capabilities.
Snowflake is noticing a trend towards long-term commitments from customers - exemplified by a $100M deal in Q1 with potential for another in Q2.
Ongoing efforts to expand the range of applications run on Snowflake through product innovations like Container Services and Hybrid Tables.
Partnerships formed with several companies to strengthen AI capabilities and grow the data on the platform.
Snowflake is focusing on AI solutions like Cortex and Arctic, using vector embedding and the Cortex index.
Plans are afoot to automate complex tasks with Snowflake and enable direct access to data, aligning with their vision of a 'single box' enterprise solution.
All sectors posted growth, with notable improvements in technology and healthcare.
More details: Snowflake IR
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