Snowflake Reports Second Quarter Fiscal 2025 Financial Results
Intellectia.AI Updated: 2024-08-21
Snowflake Reports Second Quarter Fiscal 2025 Financial Results
Snowflake Inc. (NYSE:SNOW), the AI Data Cloud company, announced its financial results for the second quarter of fiscal 2025, ending July 31, 2024.
Key Financial Metrics
| Metric | Q2 FY25 | Q2 FY24 | YoY Change | Consensus Estimates (Q2 FY25) |
|---|---|---|---|---|
| Total Revenue | $868.8M | $673.4M | 29% | $851.3M |
| Product Revenue | $829.3M | $638.7M | 30% | N/A |
| Earnings Per Share (EPS) | N/A | N/A | N/A | $0.16 |
Snowflake reported total revenue of $868.8 million for the quarter, representing a year-over-year growth of 29%, surpassing Wall Street's consensus estimate of $851.3 million. Product revenue saw a 30% year-over-year growth, reaching $829.3 million.
Segment Revenue Performance
| Segment | Revenue Q2 FY25 | Revenue Q2 FY24 | YoY Change |
|---|---|---|---|
| Product Revenue | $829.3M | $638.7M | 30% |
Product revenue, Snowflake's primary segment, continues to be a major growth driver, achieving a year-over-year increase of 30%.
Key Operational Data
| Data Point | Q2 FY25 | Q2 FY24 | YoY Change |
|---|---|---|---|
| Net Revenue Retention Rate | 127% | N/A | N/A |
| Customers with TTM Product Revenue > $1M | 510 | 398 | 28% |
| Forbes Global 2000 Customers | 736 | 700 | 5% |
| Remaining Performance Obligations (RPO) | $5.2 Billion | $3.5 Billion | 48% |
Snowflake reported a significant increase in key operational metrics, including a net revenue retention rate of 127% and remaining performance obligations up 48% year-over-year to $5.2 billion.
Comments from Company's Officers
"Snowflake delivered another strong quarter, surpassing the high end of our Q2 product revenue guidance and, as a result, we're raising our product revenue guidance for the year," said Sridhar Ramaswamy, CEO of Snowflake. "The quarter was hallmarked by innovation and product delivery, and great traction in the early stages of our new AI products."
Share Repurchase Program
In August 2024, Snowflake's board of directors authorized the repurchase of an additional $2.5 billion of common stock, extending the expiration date of the repurchase program from March 2025 to March 2027.
Forward Guidance
Snowflake raised its product revenue guidance for fiscal year 2025, indicating its confidence in continued growth.
Stock Price Movement
Following the earnings release, Snowflake's stock price saw a decline of -4.54%.
With strong growth in key financial and operational metrics, Snowflake continues to establish itself as a leader in the AI Data Cloud industry. The company's focus on innovation and product development positions it well for future growth.
