Q1 2026 Snowflake Inc Earnings Call Transcript
Key Points
- Product revenue for Q1 was $997 million, up 26% year-over-year, showing strong growth.
- Remaining performance obligations totaled $6.7 billion with year-over-year growth of 34%.
- Net revenue retention was a healthy 124%, indicating strong customer loyalty and expansion.
- Snowflake added 451 net new customers in Q1, growing 19% year-over-year.
- The company launched over 125 product capabilities this quarter, a 100% increase over Q1 of last year.
- Despite strong growth, the net revenue retention rate of 124% is lower than previous highs, indicating potential challenges in upselling or expanding within existing accounts.
- The company faces ongoing competition from hyperscalers like Microsoft and AWS, which could impact market share.
- CapEx was significantly up due to new headquarters and office buildouts, which may impact short-term cash flow.
- The macroeconomic environment remains uncertain, which could affect future customer spending and growth.
- The company's operating margin guidance for the fiscal year remains unchanged, suggesting limited short-term profitability improvements.
Good afternoon and thank you for attending the Snowflake Inc. Q1 fiscal year '26 earnings call. My name is Matt, and I'll be the moderator for today's call. (Operator Instructions) I'd now like 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 Q1 fiscal 2026 earnings call. Joining me on the call today are Sridhar Ramaswamy, our Chief Executive Officer; Mike Scarpelli, our Chief Financial Officer; and Christian Kleinerman, our Executive Vice President of Product, who will participate in the Q&A. During today's call, we will review our financial results for the first quarter of fiscal 2026 and discuss our guidance for the second quarter and 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 risks and uncertainties, which could cause them to
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