Q4 2025 Snowflake Inc Earnings Call Transcript
Key Points
- Snowflake Inc (SNOW) reported a strong 28% year-over-year increase in Q4 product revenue, reaching $943 million.
- The company achieved a healthy net revenue retention rate of 126%, indicating strong customer loyalty and expansion.
- Snowflake Inc (SNOW) has seen significant growth in its data engineering business and strong adoption of open data formats like Apache Iceberg.
- The company introduced over 400 product capabilities in the past year, doubling the amount from the previous year, showcasing rapid innovation.
- Snowflake Inc (SNOW) has expanded its partnership with Microsoft, integrating OpenAI's models into its Cortex platform, enhancing its AI capabilities.
- Some large customers exhausted their commitments but did not renew, opting instead to purchase as they consume, which could indicate potential volatility in future revenue.
- The Q1 product revenue growth guidance of 21% to 22% represents a slowdown compared to previous quarters.
- Non-GAAP product gross margin is expected to slightly decrease to approximately 75% for FY26.
- The company faces ongoing challenges with performance improvements, which are a regular part of its business operations.
- Snowflake Inc (SNOW) is experiencing a transition in its CFO position, which could lead to uncertainties during the leadership change.
Good afternoon. Thank you for attending the Q4 fiscal year '25 Snowflake earnings conference call. My name is Matt and I'll be your moderator for today's call. (Operator Instructions)
I'll now have to pass the conference over to our host, Jimmy Sexton, Head of Investor Relations. Jimmy, please go ahead.
Good afternoon and thank you for joining us on Snowflake's Q4 fiscal 2025 earnings call. Joining me on the call today are Sridhar Ramaswamy, our Chief Executive Office; Mike Scarpelli, our Chief Financial Officer; and Christian Kleinerman, our Executive Vice President of Product, who will participate in the Q&A session.
During today's call, we will review our financial results for the fourth quarter of fiscal 2025 and discuss our guidance for the first quarter in full year fiscal 2026. During today's call, we will make forward-looking statements, including statements related to our business operations and financial performance. These statements are subject to cause them to differ
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