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CORRECTING and REPLACING Snowflake Reports Financial Results for the Third Quarter of Fiscal 2021

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  • Product revenue of $148.5 million, representing 115% year-over-year growth

  • Remaining performance obligations of $927.9 million, representing 240% year-over-year growth

  • 3,554 total customers

  • Net revenue retention rate of 162%

  • 65 customers with trailing 12-month product revenue greater than $1 million

In the table that summarizes guidance for the full-year fiscal 2021, figure under Year/Year Growth for product revenue should read 113-115%

The updated release reads:

SNOWFLAKE REPORTS FINANCIAL RESULTS FOR THE THIRD QUARTER OF FISCAL 2021

  • Product revenue of $148.5 million, representing 115% year-over-year growth

  • Remaining performance obligations of $927.9 million, representing 240% year-over-year growth

  • 3,554 total customers

  • Net revenue retention rate of 162%

  • 65 customers with trailing 12-month product revenue greater than $1 million

Snowflake (NYSE: SNOW), provider of the Data Cloud, today announced financial results for its third quarter of fiscal 2021, ended October 31, 2020.

Total revenue for the quarter was $159.6 million, representing 119% year-over-year growth. Product revenue was $148.5 million, representing 115% year-over-year growth. Remaining performance obligations were $927.9 million, representing 240% year-over-year growth. Net revenue retention rate was 162% as of October 31, 2020. The company now has 3,554 total customers and 65 customers with trailing 12-month product revenue greater than $1 million. See the section titled "Key Business Metrics" for definitions of product revenue, remaining performance obligations, net revenue retention rate, total customers, and customers with trailing 12-month product revenue greater than $1 million.

"We are pleased with our performance this first quarter as a public company," Snowflake CEO, Frank Slootman said. "The period was marked by continued strong revenue growth coupled with improving unit economics, cash flow, and operating efficiencies. Our vision of the Snowflake Data Cloud mobilizing the world’s data is clearly resonating across our customer base."

Third Quarter Fiscal 2021 GAAP and Non-GAAP Results:

The following table summarizes our financial results for the third quarter of fiscal 2021:

Third Quarter Fiscal 2021
GAAP Results

Third Quarter Fiscal 2021
Non-GAAP Results(1)

Amount
(millions)

Year/Year
Growth

Product revenue

$148.5

115%

Amount
(millions)

Margin

Amount
(millions)

Margin

Product gross profit

$96.7

65%

$104.5

70%

Operating loss

($169.5)

(106%)

($48.1)

(30%)

Net cash used in operating activities

($19.8)

Free cash flow

($37.9)

(24%)

Adjusted free cash flow

($37.1)

(23%)

(1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled "Statement Regarding Use of Non-GAAP Financial Measures" for an explanation of non-GAAP measures, and the table entitled "GAAP to Non-GAAP Reconciliation" for a reconciliation of GAAP to non-GAAP measures.

Note: Fiscal year ends January 31. Numbers are rounded for presentation purposes.

Financial Outlook:

Our guidance includes GAAP and non-GAAP financial measures.

The following table summarizes our guidance for the fourth quarter of fiscal 2021:

Fourth Quarter Fiscal 2021
GAAP Guidance

Fourth Quarter Fiscal 2021
Non-GAAP Guidance(1)

Amount
(millions)

Year/Year
Growth

Product revenue

$162 - $167

97 - 103%

Margin

Operating loss

(30%)

Amount
(millions)

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

283

(1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled "Statement Regarding Use of Non-GAAP Financial Measures" for an explanation of non-GAAP measures.

The following table summarizes our guidance for the full-year fiscal 2021:

Full-Year Fiscal 2021
GAAP Guidance

Full-Year Fiscal 2021
Non-GAAP Guidance(1)

Amount
(millions)

Year/Year
Growth

Product revenue

$538 - $543

113 - 115%

Margin

Product gross profit

68%

Operating loss

(40%)

Adjusted free cash flow

(18%)

Amount
(millions)

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

255

(1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled "Statement Regarding Use of Non-GAAP Financial Measures" for an explanation of non-GAAP measures.

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation expense-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP results included in this press release. Our fiscal year ends January 31, and numbers are rounded for presentation purposes.

Conference Call Details

We will host a conference call today, December 2, 2020, at 2 p.m. Pacific Time to discuss our financial results and outlook. Investors and participants can register for the call in advance by visiting http://www.directeventreg.com/registration/event/9355139. After registering, a confirmation will be sent via email, including dial-in details and unique conference call access codes required for call entry.

The call will also be webcast live on the Snowflake Investor Relations website.

An audio replay of the conference call and webcast will be available two hours after its completion and will be accessible for 30 days on the Snowflake Investor Relations website.

Investor Presentation Details

An investor presentation providing additional information and analysis can be found at https://investors.snowflake.com.

Statement Regarding Use of Non-GAAP Financial Measures

We report the following non-GAAP financial measures, which have not been prepared in accordance with generally accepted accounting principles in the United States (GAAP) in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

  • Product gross profit and Operating income (loss). Our non-GAAP product gross profit and operating income (loss) measures exclude the effect of stock-based compensation expense-related charges, including employer payroll tax-related items on employee stock transactions, amortization of acquired intangibles, and acquisition and other related adjustments. We believe the presentation of operating results that exclude these non-cash or non-recurring items provides useful supplemental information to investors and facilitates the analysis of our operating results and comparison of operating results across reporting periods.

  • Free cash flow and Adjusted free cash flow. Free cash flow is defined as net cash provided by (used in) operating activities reduced by purchases of property and equipment and capitalized internal-use software development costs. Adjusted free cash flow is defined as free cash flow plus cash paid on employer payroll tax-related items on employee stock transactions. Free cash flow margin and adjusted free cash flow margin are calculated as free cash flow or adjusted free cash flow as a percentage of revenue. We believe these measures provide useful supplemental information to investors because they are indicators of the strength and performance of our core business operations.

We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP results.

Key Business Metrics

  • Product Revenue. Product revenue is a key metric for us because we recognize revenue based on platform consumption, which is inherently variable at our customers’ discretion, and not based on the amount and duration of contract terms. Product revenue includes compute, storage, and data transfer resources, which are consumed by customers on our platform as a single, integrated offering. Customers have the flexibility to consume more than their contracted capacity during the contract term and may have the ability to roll over unused capacity to future periods, generally on the purchase of additional capacity at renewal. Our consumption-based business model distinguishes us from subscription-based software companies that generally recognize revenue ratably over the contract term and may not permit rollover. Because customers have flexibility in the timing of their consumption, which can exceed their contracted capacity or extend beyond the original contract term in many cases, the amount of product revenue recognized in a given period is an important indicator of customer satisfaction and the value derived from our platform. Product revenue excludes our professional services and other revenue.

  • Remaining Performance Obligations. Remaining performance obligations (RPO) represent the amount of contracted future revenue that has not yet been recognized, including both deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized as revenue in future periods. RPO excludes performance obligations from on-demand arrangements and certain time and materials contracts that are billed in arrears. RPO is not necessarily indicative of future product revenue growth because it does not account for the timing of customers’ consumption or their consumption of more than their contracted capacity. Moreover, RPO is influenced by a number of factors, including the timing of renewals, the timing of purchases of additional capacity, average contract terms, seasonality, and the extent to which customers are permitted to roll over unused capacity to future periods, generally upon the purchase of additional capacity at renewal.

  • Total Customers. We count the total number of customers at the end of each period. For purposes of determining our customer count, we treat each customer account that has a corresponding capacity contract as a unique customer, and a single organization with multiple divisions, segments, or subsidiaries may be counted as multiple customers. For purposes of determining our customer count, we do not include customers that consume our platform only under on-demand arrangements. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity.

  • Net Revenue Retention Rate. To calculate net revenue retention rate, we first specify a measurement period consisting of the trailing two years from our current period end. Next, we define as our measurement cohort the population of customers under capacity contracts that used our platform at any point in the first month of the first year of the measurement period. We then calculate our net revenue retention rate as the quotient obtained by dividing our product revenue from this cohort in the second year of the measurement period by our product revenue from this cohort in the first year of the measurement period. Any customer in the cohort that did not use our platform in the second year remains in the calculation and contributes zero product revenue in the second year. Our net revenue retention rate is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity. Since we will continue to attribute the historical product revenue to the consolidated contract, consolidation of capacity contracts within a customer’s organization typically will not impact our net revenue retention rate unless one of those customers was not a customer at any point in the first month of the first year of the measurement period.

  • Customers with Trailing 12-Month Product Revenue Greater than $1 Million. To calculate the number of customers with trailing 12-month product revenue greater than $1 million, we count the number of customers under capacity arrangements that contributed more than $1 million in product revenue in the trailing 12 months. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity.

Use of Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding our performance, including but not limited to statements in the section titled "Financial Outlook." The forward-looking statements contained in this release and the accompanying oral presentation are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to, those related to our business and financial performance, the effects of COVID-19 or other public health crises on our business, results of operations, and financial condition, our ability to attract and retain customers, our ability to develop new products and services and enhance existing products and services, our ability to respond rapidly to emerging technology trends, our ability to execute on our business strategy, including our strategy related to the Data Cloud, our ability to increase and predict customer consumption of our platform, our ability to compete effectively, and our ability to manage growth.

Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption "Risk Factors" and elsewhere in our Form 10-Q that will be filed for the third quarter ended October 31, 2020 and other filings and reports we make with the Securities and Exchange Commission from time to time, including our final prospectus dated September 15, 2020 and filed with the SEC pursuant to Rule 424(b)(4) on September 16, 2020.

Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Forward-looking statements speak only as of the date the statements are made and are based on information available to us at the time those statements are made and/or management's good faith belief as of that time with respect to future events. Except as required by law, we undertake no obligation, and do not intend, to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter.

About Snowflake

Snowflake delivers the Data Cloud — a global network where thousands of organizations mobilize data with near-unlimited scale, concurrency, and performance. Inside the Data Cloud, organizations unite their siloed data, easily discover and securely share governed data, and execute diverse analytic workloads. Wherever data or users live, Snowflake delivers a single and seamless experience across multiple public clouds. Snowflake’s platform is the engine that powers and provides access to the Data Cloud, creating a solution for data warehousing, data lakes, data engineering, data science, data application development, and data sharing. Join Snowflake customers, partners, and data providers already taking their businesses to new frontiers in the Data Cloud at Snowflake.com.

Source: Snowflake Inc.

Snowflake Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share data)

(unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

2020

2019

2020

2019

Revenue

$

159,624

$

73,012

$

401,584

$

177,056

Cost of revenue

66,681

29,489

159,684

82,035

Gross profit

92,943

43,523

241,900

95,021

Operating expenses:

Sales and marketing

134,727

75,668

325,267

213,133

Research and development

74,138

27,669

143,949

75,451

General and administrative

53,532

30,318

116,224

79,413

Total operating expenses

262,397

133,655

585,440

367,997

Operating loss

(169,454

)

(90,132

)

(343,540

)

(272,976

)

Interest income

1,517

2,491

5,654

9,252

Other expense, net

(519

)

(40

)

(1,561

)

(819

)

Loss before income taxes

(168,456

)

(87,681

)

(339,447

)

(264,543

)

Provision for income taxes

433

376

720

738

Net loss

$

(168,889

)

$

(88,057

)

$

(340,167

)

$

(265,281

)

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

$

(1.01

)

$

(1.92

)

$

(3.63

)

$

(6.15

)

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

166,868,200

45,911,449

93,763,599

43,113,683

Snowflake Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

October 31, 2020

January 31, 2020

Assets

Current assets:

Cash and cash equivalents

$

3,939,925

$

127,206

Short-term investments

814,123

306,844

Accounts receivable, net

168,982

179,459

Deferred commissions, current

28,063

26,358

Prepaid expenses and other current assets

35,678

25,327

Total current assets

4,986,771

665,194

Long-term investments

347,403

23,532

Property and equipment, net

53,650

27,136

Operating lease right-of-use assets

189,255

195,976

Goodwill

8,449

7,049

Intangible assets, net

14,820

4,795

Deferred commissions, non-current

73,839

69,516

Other assets

38,702

19,522

Total assets

$

5,712,889

$

1,012,720

Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)

Current liabilities

Accounts payable

$

5,061

$

8,488

Accrued expenses and other current liabilities

85,038

62,817

Operating lease liabilities, current

19,333

18,092

Deferred revenue, current

438,227

327,058

Total current liabilities

547,659

416,455

Operating lease liabilities, non-current

186,718

193,175

Deferred revenue, non-current

3,477

2,907

Other liabilities

7,220

8,466

Redeemable convertible preferred stock

936,474

Stockholders’ equity (deficit)

4,967,815

(544,757

)

Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit)

$

5,712,889

$

1,012,720

Snowflake Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

2020

2019

2020

2019

Cash flow from operating activities:

Net loss

$

(168,889

)

$

(88,057

)

$

(340,167

)

$

(265,281

)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

2,849

893

6,611

2,257

Non-cash operating lease costs

8,503

7,778

24,840

19,734

Amortization of deferred commissions

7,167

4,516

21,233

11,408

Stock-based compensation, net of amounts capitalized

119,141

22,958

157,790

57,425

Net amortization (accretion) of premiums (discounts) on investments

891

(906

)

1,117

(5,149

)

Other

24

329

4,073

1,276

Changes in operating assets and liabilities, net of effect of acquisitions:

Accounts receivable

(17,908

)

6,479

9,221

(38,193

)

Deferred commissions

(12,995

)

(15,724

)

(27,261

)

(35,004

)

Prepaid expenses and other assets

(28,028

)

(3,571

)

(29,480

)

(8,856

)

Accounts payable

(963

)

6,566

(3,806

)

10,566

Accrued expenses and other liabilities

11,484

4,891

22,477

14,368

Operating lease liabilities

(6,014

)

(8,618

)

(23,418

)

(6,052

)

Deferred revenue

64,984

38,716

111,739

107,735

Net cash used in operating activities

(19,754

)

(23,750

)

(65,031

)

(133,766

)

Cash flow from investing activities:

Purchases of property and equipment

(17,270

)

(3,157

)

(24,018

)

(14,504

)

Capitalized internal-use software development costs

(844

)

(1,319

)

(4,014

)

(2,940

)

Cash paid for acquisitions, net of cash acquired

(6,035

)

(6,314

)

Purchases of intangible assets

(6,184

)

Purchases of investments

(622,385

)

(196,834

)

(1,235,020

)

(517,479

)

Sales of investments

25,195

3,396

28,705

3,396

Maturities and redemptions of investments

181,669

217,108

371,528

691,986

Net cash (used in) provided by investing activities

(433,635

)

19,194

(875,038

)

154,145

Cash flow from financing activities:

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

11,402

478,573

24,121

Proceeds from initial public offering and private placements, net of underwriting discounts and other offering costs (net of reimbursement received from the underwriters)

4,244,620

4,242,284

Proceeds from early exercised stock options

5,378

159

5,942

Proceeds from exercise of stock options

10,364

18,203

31,100

21,139

Proceeds from repayment of a nonrecourse promissory note

2,090

Repurchases of early exercised stock options and restricted common stock

(63

)

(30

)

(391

)

Payments of deferred purchase consideration for acquisitions

(564

)

(1,164

)

Net cash provided by financing activities

4,254,420

34,920

4,753,012

50,811

Net increase in cash, cash equivalents and restricted cash

3,801,031

30,364

3,812,943

71,190

Cash, cash equivalents and restricted cash at beginning of period

153,888

163,396

141,976

122,570

Cash, cash equivalents and restricted cash at end of period

$

3,954,919

$

193,760

$

3,954,919

$

193,760

Snowflake Inc.

GAAP to Non-GAAP Reconciliations

(in thousands, except percentages)

(unaudited)

Three Months Ended October 31, 2020

GAAP amounts

GAAP amounts
as a % of
Revenue

Stock-based
compensation
expense-related
charges

Amortization of
acquired
intangibles

Acquisition and
other related
adjustments

Non-GAAP
amounts

Non-GAAP
amounts as a %
of Revenue

Revenue

Product revenue

$

148,473

93

%

Professional service and other revenue

11,151

7

%

Revenue

159,624

100

%

Year over Year % Growth

119

%

Cost of Revenue:

Cost of product revenue

51,816

32

%

$

(7,325)

$

(567)

$

$

43,924

28

%

Cost of professional service and other revenue

14,865

10

%

(6,203)

8,662

5

%

Total cost of revenue

66,681

42

%

(13,528)

(567)

52,586

33

%

Gross profit (loss):

Product gross profit

96,657

7,325

567

104,549

Professional services and other gross profit (loss)

(3,714)

6,203

2,489

Total gross profit

92,943

58

%

13,528

567

107,038

67

%

Product gross margin

65

%

5

%

%

%

70

%

Professional services and other gross margin

(33

%)

55

%

%

%

22

%

Total gross margin

58

%

8

%

%

%

67

%

Operating expenses:

Sales and marketing

134,727

84

%

(40,337)

94,390

59

%

Research and development

74,138

46

%

(39,406)

34,732

22

%

General and administrative

53,532

34

%

(27,197)

(309)

26,026

16

%

Total operating expenses

262,397

164

%

(106,940)

(309)

155,148

97

%

Operating loss

$

(169,454)

(106

%)

$

120,468

$

876

$

$

(48,110)

(30

%)

Operating margin

(106

%)

76

%

%

%

(30

%)

Three Months Ended October 31, 2019

GAAP amounts

GAAP
amounts as a % of
Revenue

Stock-based
compensation
expense-related
charges

Amortization of
acquired
intangibles

Acquisition and
other related
adjustments

Non-GAAP
amounts

Non-GAAP
amounts as a %
of Revenue

Revenue

Product revenue

$

69,213

95

%

Professional service and other revenue

3,799

5

%

Revenue

73,012

100

%

Year over Year % Growth

155

%

Cost of Revenue:

Cost of product revenue

24,646

34

%

$

(384)

$

(282)

$

$

23,980

33

%

Cost of professional service and other revenue

4,843

6

%

(449)

4,394

6

%

Total cost of revenue

29,489

40

%

(833)

(282)

28,374

39

%

Gross profit (loss):

Product gross profit

44,567

384

282

45,233

Professional services and other gross loss

(1,044)

449

(595)

Total gross profit

43,523

60

%

833

282

44,638

61

%

Product gross margin

64

%

1

%

%

%

65

%

Professional services and other gross margin

(27

%)

12

%

%

%

(15

%)

Total gross margin

60

%

1

%

%

%

61

%

Operating expenses:

Sales and marketing

75,668

104

%

(4,813)

(16)

70,839

98

%

Research and development

27,669

38

%

(4,417)

23,252

32

%

General and administrative

30,318

42

%

(12,919)

17,399

24

%

Total operating expenses

133,655

184

%

(22,149)

(16)

111,490

154

%

Operating loss

$

(90,132)

(124

%)

$

22,982

$

298

$

$

(66,852)

(93

%)

Operating margin

(124

%)

31

%

%

%

(93

%)

Nine Months Ended October 31, 2020

GAAP amounts

GAAP amounts
as a % of
Revenue

Stock-based
compensation
expense-related
charges

Amortization of
acquired
intangibles

Acquisition and
other related
adjustments

Non-GAAP
amounts

Non-GAAP
amounts as a %
of Revenue

Revenue

Product revenue

$

375,506

94

%

Professional service and other revenue

26,078

6

%

Revenue

401,584

100

%

Year over Year % Growth

127

%

Cost of Revenue:

Cost of product revenue

130,065

32

%

$

(8,553)

$

(1,130)

$

$

120,382

30

%

Cost of professional service and other revenue

29,619

8

%

(7,402)

22,217

6

%

Total cost of revenue

159,684

40

%

(15,955)

(1,130)

142,599

36

%

Gross profit (loss):

Product gross profit

245,441

8,553

1,130

255,124

Professional services and other gross profit (loss)

(3,541)

7,402

3,861

Total gross profit

241,900

60

%

15,955

1,130

258,985

64

%

Product gross margin

65

%

3

%

%

%

68

%

Professional services and other gross margin

(14

%)

29

%

%

%

15

%

Total gross margin

60

%

4

%

%

%

64

%

Operating expenses:

Sales and marketing

325,267

81

%

(52,099)

(12)

273,156

68

%

Research and development

143,949

36

%

(50,514)

93,435

23

%

General and administrative

116,224

29

%

(43,934)

(717)

(252)

71,321

18

%

Total operating expenses

585,440

146

%

(146,547)

(729)

(252)

437,912

109

%

Operating loss

$

(343,540)

(86

%)

$

162,502

$

1,859

$

252

$

(178,927)

(45

%)

Operating margin

(86

%)

41

%

%

%

(45

%)

Nine Months Ended October 31, 2019

GAAP amounts

GAAP amounts
as a % of
Revenue

Stock-based
compensation
expense-related
charges

Amortization of
acquired
intangibles

Acquisition and
other related
adjustments

Non-GAAP
amounts

Non-GAAP
amounts as a %
of Revenue

Revenue

Product revenue

$

169,797

96

%

Professional service and other revenue

7,259

4

%

Revenue

177,056

100

%

Year over Year % Growth

N/A

Cost of Revenue:

Cost of product revenue

67,845

38

%

$

(1,447)

$

(568)

$

$

65,830

37

%

Cost of professional service and other revenue

14,190

8

%

(1,236)

12,954

7

%

Total cost of revenue

82,035

46

%

(2,683)

(568)

78,784

44

%

Gross profit (loss):

Product gross profit

101,952

1,447

568

103,967

Professional services and other gross loss

(6,931)

1,236

(5,695)

Total gross profit

95,021

54

%

2,683

568

98,272

56

%

Product gross margin

60

%

1

%

%

%

61

%

Professional services and other gross margin

(95

%)

17

%

%

%

(78

%)

Total gross margin

54

%

2

%

%

%

56

%

Operating expenses:

Sales and marketing

213,133

120

%

(15,498)

(42)

197,593

113

%

Research and development

75,451

43

%

(10,857)

64,594

36

%

General and administrative

79,413

45

%

(28,499)

(328)

50,586

29

%

Total operating expenses

367,997

208

%

(54,854)

(42)

(328)

312,773

178

%

Operating loss

$

(272,976)

(154

%)

$

57,537

$

610

$

328

$

(214,501)

(122

%)

Operating margin

(154

%)

32

%

%

%

(122

%)

Three Months Ended October 31,

Nine Months Ended October 31,

2020

2019

2020

2019

Revenue

$

159,624

$

73,012

$

401,584

$

177,056

GAAP net cash used in operating activities

$

(19,754)

$

(23,750)

$

(65,031)

$

(133,766)

Less: purchases of property and equipment

(17,270)

(3,157)

(24,018)

(14,504)

Less: capitalized internal-use software development costs

(844)

(1,319)

(4,014)

(2,940)

Non-GAAP free cash flow

(37,868)

(28,226)

(93,063)

(151,210)

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

812

24

4,196

112

Non-GAAP adjusted free cash flow

$

(37,056)

$

(28,202)

$

(88,867)

$

(151,098)

Non-GAAP free cash flow margin

(24

%)

(39

%)

(23

%)

(85

%)

Non-GAAP adjusted free cash flow margin

(23

%)

(39

%)

(22

%)

(85

%)

View source version on businesswire.com: https://www.businesswire.com/news/home/20201202005932/en/

Contacts

Investor Contact
Jimmy Sexton
IR@snowflake.com

Press Contact
Eszter Szikora
Press@snowflake.com