Snowflake Inc. (SNOW) Q4 2024 Earnings Call Transcript

For the period ending January 31, 2024

February 28, 2024 5:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Hello, and welcome to the Q4 Fiscal Year '24 Snowflake Earnings Call. My name is Alex, I'll be coordinating the call today. [Operator Instructions]

I'll now hand you over to your host, Katherine McCracken, Senior Manager, Investor Relations. Please go ahead.

Katherine McCracken

Good afternoon, and thank you for joining us on Snowflake's Q4 fiscal 2024 earnings call.

With me in Bozeman, Montana are Sridhar Ramaswamy, our Chief Executive Officer; Frank Slootman, our Chairman; Mike Scarpelli, our Chief Financial Officer; and Christian Kleinerman, our Executive Vice President of Product, who will join us for the Q&A session.

During today's call, we will review our financial results for the fourth quarter of fiscal 2024, and discuss our guidance for the first quarter and full year fiscal 2025.

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 differ materially from actual results. Information concerning these risks and uncertainties is available in our earnings press release, our most recent Forms 10-K and 10-Q, and our other SEC reports. All our statements are made as of today, based on information currently available to us. Except as required by law, we assume no obligation to update any such statements.

During today's call, we will also discuss certain non-GAAP financial measures, the reconciliation of GAAP to non-GAAP measures is included in today's earnings press release.

The earnings press release and an accompanying investor presentation are available on our website at investors.snowflake.com. A replay of today's call will also be posted on the website.

With that, I would now like to turn the call over to Frank.

Frank Slootman

Thanks, Katherine. Welcome, and good afternoon.

Right now, you've heard the great news about Sridhar becoming our next CEO. Before we get to that, I would like to highlight our fiscal 2024 results.

FY '24 product revenue grew 38% year-over-year to reach $2.67 billion. Non-GAAP product gross margin expanded to 77.8%. Non-GAAP adjusted free cash flow was $810 million, representing 56% year-over-year growth.

We continue to pair high growth with efficiency. The year began against an unsettled macroeconomic backdrop. We witnessed lackluster sentiment and customer hesitation due to lack of visibility in their businesses. Customers prefer to wait-and-see posture versus leaning in to longer-term contract expansions. This reversed in the second half of the year and we started seeing larger multi-year commitments.