NYSE$SNOW

Snowflake Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Snowflake's Q1 2023 financial results were reported, demonstrating significant revenue growth and strong customer retention.

Snowflake reported a strong first quarter in fiscal year 2023, with revenue reaching $422.4 million, representing an 85% year-over-year growth. Product revenue also saw substantial growth at 84%, totaling $394.4 million. The company's net revenue retention rate stood at 174%, with remaining performance obligations at $2.6 billion, indicating continued customer commitment and expansion.

  • Total revenue reached $422.4 million, an 85% year-over-year increase.
  • Product revenue was $394.4 million, reflecting an 84% year-over-year growth.
  • Remaining performance obligations (RPO) amounted to $2.6 billion, representing an 82% year-over-year increase.
  • Net revenue retention rate was 174% as of April 30, 2022.

Headline financials

Total Revenue

$422M

Previous: $229M+84.5%
EPS (adj)

$0.08

Previous: -$0.12+166.7%
Remaining Performance Obligations

$2.6B

Previous: $1.4B+85.7%
Net Revenue Retention Rate

174.0%

Previous: 168.0%+3.6%
Customers >$1M TTM Revenue

206

Previous: 104+98.1%
Capital Expenditures

$7.41M

Previous: -$6.43M+215.3%
Free Cash Flow

$172M

Previous: -$210M+182.2%
Net Income

-$166M

Previous: -$203M+18.4%
Operating Income

-$189M

Previous: -$206M+8.2%
Gross Profit

$274M

Previous: $132M+108.6%
Cash & Equivalents

$1.06B

Previous: $645M+65.0%
Total Assets

$7.02B

Previous: $5.93B+18.4%
Stock-Based Comp

$172M

Previous: $151M+14.2%

Revenue & EPS history

Snowflake · Revenue · Quarterly

$422M

Q1 2023+84.5%vs Q1 2022
Beat estimate in 6 of 10 quarters(60%)
ActualEstimate

Revenue by segment

Snowflake · $422M total across 2 segments · Q1 2023

  • Product Revenue
    $394M+84.5%
  • Professional Services & Other
    $27.9M+85.2%

Forward guidance

Snowflake provided financial outlook for the second quarter and full year of fiscal 2023, including product revenue and profitability expectations.

Tailwinds

  • Second quarter product revenue is projected to be between $435 million and $440 million, representing a 71-73% year-over-year growth.
  • Full-year product revenue is expected to be between $1.885 billion and $1.9 billion, indicating a 65-67% year-over-year growth.
  • The company anticipates achieving a 74.5% product gross profit margin for the full year.
  • Operating income is forecasted to be around 1% for the full year.
  • Adjusted free cash flow is projected to be approximately 16% for the full year.

Headwinds

  • The company anticipates an operating loss of 2% for the second quarter.
  • Forward-looking non-GAAP guidance measures are not reconciled to corresponding GAAP measures due to uncertainties in predicting future expenses.
  • Stock-based compensation-related charges and employer payroll tax-related items on employee stock transactions can impact future financial results.
  • The competitive and rapidly changing environment poses risks to achieving forward-looking statements.
  • New risks may emerge, and it is not possible to predict all risks or assess their potential impact on the company's business.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+1.9%

Avg return

Earnings day

-0.4%

Avg return

5 days after

-0.9%

Avg return

30 days after

54%

13 / 24 earnings

Positive

+31.6%

Q3 2025

Best reaction

-19.5%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026+2.2%-2.0%-9.7%
Q3 2026-11.4%-16.0%-18.2%
Q2 2026+20.2%+16.6%+12.1%
Q1 2026+13.5%+15.2%+18.4%
Q4 2025+4.5%+4.5%-9.4%
Q3 2025+31.6%+31.6%+27.7%
Q2 2025-12.7%-10.6%-16.4%
Q1 2025-5.0%-4.0%-21.5%
Q4 2024-19.5%-24.0%-30.9%
Q3 2024+9.4%+9.8%+16.0%
Q2 2024-3.2%-2.5%-1.9%
Q1 2024-15.6%-14.4%+1.8%
Q4 2023-12.4%-8.0%-0.1%
Q3 2023+12.8%-0.7%+5.1%
Q2 2023+28.2%+21.8%+12.5%
Q1 2023-2.2%+0.2%+16.9%
Q4 2022-14.9%-26.7%-10.8%
Q3 2022+5.9%+0.4%-0.4%
Q2 2021+3.0%+3.8%+0.9%
Q2 2022+8.5%+5.9%+12.5%
Q1 2022+6.6%+3.5%+7.4%
Q4 2020-8.0%-20.9%-12.5%
Q4 2021-8.0%-20.9%-12.5%
Q3 2021+11.2%+27.3%-7.9%
Q1 2021
Q3 2020
Q2 2020
Q1 2020
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014

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