NYSE$SNOW

Snowflake Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Snowflake experienced significant growth in product revenue and customer base.

Snowflake reported strong second-quarter results with a 104% year-over-year increase in total revenue, driven by a 103% increase in product revenue. The company's net revenue retention rate remained high at 169%, and it expanded its customer base to 4,990 total customers.

  • Total revenue increased by 104% year-over-year, reaching $272.2 million.
  • Product revenue grew by 103% year-over-year, totaling $254.6 million.
  • Remaining performance obligations grew by 122% year-over-year, reaching $1.5 billion.
  • Net revenue retention rate was 169% as of July 31, 2021.

Headline financials

Total Revenue

$272M

Previous: $133M+104.4%
EPS (adj)

-$0.04

Previous: -$3.01+98.7%
Remaining Performance Obligations

$1.5B

No prior period
Net Revenue Retention Rate

169.0%

No prior period
Customers >$1M TTM Revenue

116

No prior period
Capital Expenditures

-$9.93M

Previous: $4.72M-310.5%
Free Cash Flow

-$200M

Previous: -$43.4M-360.0%
Net Income

-$190M

Previous: -$77.6M-144.4%
Operating Income

-$200M

Previous: -$77.7M-157.6%
Gross Profit

$166M

Previous: $82.7M+100.8%
Cash & Equivalents

$699M

Previous: $139M+402.9%
Total Assets

$6.03B

No prior period
Stock-Based Comp

$164M

Previous: $18.2M+800.9%

Revenue & EPS history

Snowflake · Revenue · Quarterly

$272M

Q2 2022+104.4%vs Q2 2021
Beat estimate in 6 of 10 quarters(60%)
ActualEstimate

Revenue by segment

Snowflake · $272M total across 2 segments · Q2 2022

  • Product Revenue
    $255M+103.3%
  • Professional Services & Other
    $17.6M+121.7%

Forward guidance

Snowflake provided guidance for the third quarter and full-year fiscal 2022, including expectations for product revenue growth and operating margin.

Tailwinds

  • Expects third-quarter product revenue between $280 million and $285 million, representing 89-92% year-over-year growth.
  • Anticipates a third-quarter operating loss margin of 7%.
  • Projects full-year product revenue between $1.06 billion and $1.07 billion, representing 91-93% year-over-year growth.
  • Forecasts a full-year operating loss margin of 9%.
  • Estimates a full-year adjusted free cash flow margin of 7%.

Headwinds

  • Third-quarter operating loss is expected to be 7%.
  • Full-year operating loss is expected to be 9%.
  • Guidance is subject to various risks and uncertainties.
  • Future expenses may vary.
  • Stock-based compensation expense-related charges are difficult to predict.

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 Q2 2022

Historical avgQ2 2022

+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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