Table of Contents
a. Key Points
Strong beats across the board.
AI products are materially helping growth.
M&A expands market positioning.
Pace of innovation keeps accelerating.
b. Demand
Beat revenue estimates by 4.9%.
Its 29.5% 2-year revenue compounded annual growth rate (CAGR) compares to 28.5% last quarter and 28.4% 2 quarters ago.
Beat product revenue estimate by 4.7% & beat guidance by 5.2%.
Beat 125% net revenue retention (NRR) rate by 1 point.
Remaining performance obligation (RPO) missed estimates by 2.4%. This is because SNOW is seeing growing interest in customers renewing during Q4, which means more backlog growth will come during that quarter than during previous years.
Despite this, RPO growth accelerated from 34% Y/Y last year to 38% Y/Y this year.
c. Profits & Margins
Beat EBIT estimates by 38% & beat 9% EBIT margin guidance by 3 points.
This was related to revenue outperformance, slower hiring and some modest R&D cost leverage.
SNOW added 190 people this quarter (173 from acquiring Observe).
Beat $0.32 EPS estimates by $0.07.
Beat FCF estimates by 8.2%.
d. Balance Sheet
$3B in cash & equivalents.
$1.4B long-term investments.
$2.3B convertible senior notes.
1% Y/Y diluted share count growth.
e. Guidance & Valuation
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