Q1 2023 Snowflake Inc. Earnings Call
Okay.
Yes.
Good evening and thank you for attending today's Snowflake Q1 fiscal 2023 conference call.
My name is Danielle and I will be your moderator for today's call all lines will be here during the presentation portion of the call with an opportunity for questions and answers at the end.
You bet I would now like to pass the conference over to our host Jimmie 16, Jimmy Please.
Good afternoon, and thank you for joining us on Snowflakes Q1 fiscal 2023 earnings call with me and Bozeman, Montana are Frank <unk>, Our chairman and Chief Executive Officer, Mike Scarpelli, Our Chief Financial Officer, Christian Klein, our senior Vice President of product, who will join us for the Q&A session. During.
During today's call we will review our financial results for the first time in fiscal 2023 and discuss our guidance for the second quarter and full year fiscal 2023.
If our business future financial results.
Strategy products and features.
Long term growth and overall future prospects. These statements are subject to risks and uncertainties.
Could cause them to differ materially from actual results inform.
Information concerning those risks is available in our earnings press release distributed after market closed today.
SEC filings, including our most recently filed Form 10-K for the fiscal year ended January 31 2022.
Form 10-Q for the quarter ended April 2022 that we will file with the SEC.
Can you maybe reliance on forward looking statements and undertakes no duty or obligation to update any forward looking statements as a result of new information future events or changes in our expectations.
We'd also like to point out that on today's call. We will report both GAAP and non-GAAP results.
These non-GAAP financial measures internally for financial and operational decision, making purposes and as a means to evaluate period to period comparisons non-GAAP financial measures are presented in addition to and not as a substitute for financial measures calculated in accordance with GAAP TTM Records that seems like Dot com a replay of today's call will also be posted on the website with that I would now like to turn the call. It the frac.
Okay.
<unk> grew 82%.
Year on year to $2 6 billion.
And in the quarter, we added 16 global 2000 customers, we closed the quarter with a record $181 million of non-GAAP .
Historically enterprises have scored.
The timely manner data at the beach.
Transformed and transported to systems that produced your reports.
Our sports that made sense, our transactional and operational data.
Isn't enough time money mid day.
To ingest ever larger volumes of data and perform long running processes to make the data.
Consumable and analytics already the public cloud infrastructure, coupled with cloud native data plan.
Our fourth like Snowflake broke the back of these neighboring systems with tremendous scale performance and economics.
While these hubs.
So mobilization of data.
Data can do a lot more than that.
Okay.
What happened historically and we sometimes referred to.
The warehousing workloads at the end of the beginning because so much more as possible.
Data science can do.
Most of the courses of action.
To enable machine learning and data science workloads Snowflake, that's been investing for years now.
So park language runtime capability.
Police in support of Java Scott.
Follow up on Python.
More generally the snowflake strategic focus is to enable every single workload type debt needs to access.
Bringing data to the work.
Prior to the data cloud data.
Gross coffee transferred and replicate it to be used wherever it was needed.
Throughout two reversal data moving 24, seven golfing operational complexity cost governance risks.
Snowflake data clubs holds the promise.
Promise to bring the undesirable legacy <unk> data stays put on within the cloud and our.
Workloads enablement ensures that customers can have their needs met.
A data engineering data warehousing data Lake data science data analytics and data application development, enabling developers to build apps using your favorite tools and with simplified data access and governance and making good progress on our integration plans.
Support for unstructured data is now generally available examples include securely sharing PDF documents and smoking.
Data marketplace and storing medical images to extract data from them. We also entered the public preview for programming of unstructured data from dividends Snow Park.
Snowflake data marketplace monetization is now in public preview. This allows companies to easily published a variety of datasets.
Can become available for purchase by sloped by other snowflake users.
Our Senate conference in June will feature an industry specific applications. So snowflake in the quarter, we announced the introduction of our healthcare and life Sciences data cloud and the retail data cloud.
The health care life Sciences data cloud helps customers deliver improved patient outcomes and accelerate clinical research on time to market wonderful pharmaceutical customers estimates because using snowflake, we'll improve their time to market for a new drug like three years.
Retail data cloud empowers retailers and manufacturers and consumer packaged goods vendors to access new data and seamlessly collaborate across the retail industry.
Customers, such as 80, 451, and albertsons or leveraging snowflake for businesses across the sector.
We also enable new use cases through partner enablement.
The technologies and pure storage.
With Dell joint customers will be able to use our on premise data.
Storage with the snowflake via the cloud, while keeping their data local or seamlessly coupling to public clouds.
With pure storage joint customers will be able to work with.
Storage flashlight.
Okay.
Use cases, the opportunity for data sharing growth in Q1.
22% year on year.
20% of our growing.
Customer base has at least one stable edge up from 15% a year ago.
It's locally state the marketplace listings grew 22% quarter over quarter now with more than 1350 data listings from over 262 fuels are rich application development ecosystem empowered by Snowflake program today, there are over 400.
Yeah.
Over the past three years.
We have achieved high growth, while greatly improving unit economics operating efficiency and cash flow.
Balance sheet with $5 billion.
Trivalent and investments.
So you can continue to grow at scale.
Accordingly, we will continue to do so snowfall snowflake is not a growth at all cost company.
Vacations insurance, a return business impact reached.
Research and development investments must lead to innovate.
They shouldn't and differentiation sales and marketing investments, mostly to productive growth in G&A.
Moving free cash flow generation.
While with the mic.
Thank you Frank.
Q1 product revenues were $394 million, representing 84% year over year growth in our remaining performance obligations grew 82% year over year totaling $2 6 billion.
$2 $6 billion in RP O. We expect approximately 53% to be recognized as revenue in the next 12 months, representing 79% year over year growth.
Our net revenue retention of 174% includes 11, new 1 million customers and reflects durable growth among our largest customers in.
In Q1, 10 customers cross the $5 million plus threshold on a trailing 12 month basis, we now have $45 million.
$10 million customers similar to last quarter, five revenue grew faster year over year.
Can you to pursue a burden.
Our core strategy to drive growth in the enterprise product revenue from customers in the healthcare and life Sciences vertical grew more than 100% year over year and product revenue from customers in the financial service vertical grew just under 100% year over year.
Driving this growth is a continual move up market as we expand internationally. We are focused on the Forbes global 2000, and other large institutions in the quarter. We added 16, new global 2000 customers.
Quarter last year. This enterprise focus also leads to larger deals we booked four eight figure deals in the quarter up from two in the same quarter last year.
I would like to spend some time discussing the dynamics of our revenue and bookings.
Bookings in the quarter.
Q1 product revenue represents significant growth at scale, we're excited about our customers' adoption and expansion of the platform our business model allows.
Businesses their consumption aligns with their current business needs last year, we saw certain customers experienced much higher than expected consumption.
Their own businesses, we're growing extremely fast.
Today, some customers face.
Specific tumors consume less than we anticipated amid shifting economic circumstances.
We believe our unique to their businesses, most notably consumer facing cloud company.
Okay.
Although these customers are still growing we believe as long as they are impacted by macroeconomic headwinds that have consumption will be impacted.
<unk> patterns may fluctuate from quarter to quarter. This variability does not detract from our long term opportunity customers overall demand for Snowflake remains unchanged. This is supported by the contractual commitments they are making with us and their longer term plans for adopting the data cloud across their organization.
Turning to bookings as I mentioned on last earnings call. We saw record bookings in Q4 fiscal year 2022, we outperformed our internal plan by approximately $300 million in the quarter. This led to a tough quarter over quarter comparison, which is why youre seeing a sequential decline in <unk> in Q1, the outperformance in Q4.
<unk> led us to increase our bookings plan for fiscal 2023, and we still achieved our internal target in Q1 as a reminder, revenue is the leading indicator of our growth bookings in our P. O followed consumption as our customers purchase more capacity now turning to margins on a non-GAAP basis, our product gross margin was <unk>.
75% scale in our public cloud data centers and enterprise customer success contribute to steady gross margin improvement operating margin was zero percent benefitting from hiring linearity, our adjusted free cash flow margin was 43% positively impacted by strong collections from record Q.
For bookings.
We ended the quarter in a strong cash position with approximately $5 billion in cash cash equivalents and short and long term investments I would like to reiterate what Frank mentioned earlier Snowflake is not a growth at all cost company and since we joined it never has been we evaluate investments based on yield. This has put us in a very strong position.
We will continue to grow and are committed to showing leverage year on year now, let's turn to our guidance for the second quarter, we expect product revenues between $435 $440 million representing year over year growth between 71% and 73% turning to margins, we expect on a non-GAAP basis.
Negative, 2% operating margin and we expect 358 million diluted weighted average shares outstanding as a reminder, we will be hosting a summit conference in person in June the associated expenses will largely be incurred in every Q2 moving forward for the <unk>.
Full year fiscal 2023, we expect product revenues between $1 88, five and $1 9 billion.
Representing year over year growth between 65% and 67%.
Turning to profitability for the full year fiscal 2023, we expect on a non-GAAP basis 74, 5% product gross margin, 1% operating margin and 16% adjusted free cash flow margin and we expect 358 million diluted weighted average shares outstanding.
We are adding head count to support our growth initiatives Q1 was a record hiring quarter for the full year, we still plan on adding more than 500 net new employees. Our long term opportunity is stronger today than it has ever been our strategy of enabling more workloads and data types is playing out in front of us in our market.
Opportunity is expanding and our.
Conversations with customers. It is clear that the data cloud plays a key role in the success of their business with the growth we've seen over the last year and the expansion of our opportunity. We are confident that we will continue to execute at scale in advance of our Investor day, I would like to update our fiscal year 2029 targets for fiscal.
Year 2029, we are reiterating our target for product revenue of $10 billion growing 30% year over year, we are increasing our margin targets and now expect on a non-GAAP basis, approximately 78% product gross margin low margin, we look forward to sharing more information at our Investor day on June <unk>.
14th in Las Vegas in conjunction with Snowflake summit.
If you're interested in attending please email IR at Snowflake Dot com with that operator, you can now open up the line for questions.
Certainly.
He would like to ask a question. Please press star followed by one of your telephone keypad. If for any reason you would like to remove that question. Please press star followed by Keith again to ask a question. Please press star one and as a reminder, if you are using a speaker phone. Please remember to pickup your handset before asking your question.
We will pause here briefly as questions are registered.
First question comes from Karl Keirstead of UBS.
Please proceed.
Thanks, very much maybe I'll direct this one to you Mike Mike given that you mentioned that.
Some customers might be exposed to macro you called out consumer facing cloud companies and maybe that.
Pinched you a little bit in the April quarter, when you stepping back.
Reaffirming the full year product revenue guide of $1 9 billion, Mike what are the assumptions you're embedding in that guidance for <unk> through <unk> are you assuming that what you saw in the April quarter, essentially continues gets a little bit worse, I think that might be an interesting color from you. Thank you.
Well.
Specifically some of our large customers, where we saw declining we've taken down their forecast, but we have others that are offsetting partially some of that what I will say is April we did see weakness in week over week growth in our revenue total revenue by customer but.
To be honest the last two weeks of March or May has been very strong, but just given everything and the macro headwinds we are hearing.
We're going to be a little bit more cautious going into the full year.
Okay that makes sense to me prudent thanks, Mike.
Thank you next question comes from Alex Zukin of Wolfe Research.
Please proceed.
Hey, guys. Thanks for taking the question. So maybe just to kind of piggyback on Carl's question.
Mike can you talk about specifically, what what kind of consumption trends.
Actually took a step back and you mentioned even for some of the impacted companies. Those numbers started to step back up in May again kind of the confidence interval and how you see even within those companies consumption patterns trending around the data cloud that gives you conviction around the guidance.
Well I know all the customers that are going to be going into production that are the new ones. Because we've been working on these that gives me the confidence and literally look at the revenue on a daily basis for all of our customers and that's what we base our forecast.
And.
As I said the last two to three weeks has been very strong and weak over even with lowering.
On an individual basis some of them.
That are still growing just not at.
Sure.
Okay.
In terms of just maybe quantifying your sizing.
That impact.
Okay.
Is that possible.
It is possible, but I told you what I'm going to tell you.
Okay. Thanks, Mike.
Thank you. The next question comes from Keith Weiss with Morgan Stanley .
Please proceed excellent. Thank you.
Excellent. Thank you guys for taking the question.
Okay.
Two questions for you guys one.
Last quarter, we talked a lot about.
A a big price performance boost that you guys are pushing into your customers.
And the intended consequences both in terms of lowering revenues, but also in sending more workloads to come onto the platform. So question number. One is has that initiative had the intended consequences such so far have you seen the behaviors that you're looking to see.
From that initiative, and then to piggyback on Karl.
Okay.
Carl's question.
When when customers.
The consumption is below plan does that typically come from people actually cutting existing workloads and doing less of what they were doing before or is it more so the pace with which new workloads get deployed is slowing down.
Yeah. So on the first question you asked.
As we said last quarter, its usually a lag revenue and sounds like but everything is going as planned with regards to the rollout of <unk>.
The specifically you are asking for graviton too.
Last quarter, and we're seeing the benefit and customers and the feedback from customers has been very strong too.
About that.
On your other question I'll, let Christian answer that yes, there are two drivers.
When you see a lower consumption wanted just Nashville correlation with data and activity from the businesses. So there is some business are expecting a slowdown in their activity that may generate latest data lease trends translate into pipelines and how much we're aggregating.
The other aspect is you do see a little bit more focus on optimization of the usage of snowflake, So I would not characterize it as.
Removal of workloads, it's just optimization of what Theyre doing have mainly been Wifi to resources.
I would say is a lot of these customers, so where we've seen the and we've taken our forecast down. These are customers that have grown so fast their business.
And when you have that rapid growth in your business, you don't necessarily pay attention and costs as much. Many of these customers have publicly come out you hear them on CNBC.
Those customers to help them optimize as well too.
Got it.
Thank you. The next question comes from Mark Murphy of Jpmorgan.
Please.
Yes.
Thank you very much.
You had commented on slower consumption from a consumer cloud and we're probably associating that with Facebook Netflix peloton snap types.
Types of public companies that have missed is it reasonable to assume some softness from enterprise software companies, maybe the cash burning venture.
Back to the ones that are also.
Slowing their investments and trying to get to cash flow breakeven and then it's kind of the same question for retailers just in the wake of the Amazon Walmart.
Target, we have the three biggest retailers.
That have missed their own numbers and I'm, just wondering if theres any recalibration there.
Well I'm not going to name the customers, but none of them are the ones you mentioned.
And.
There definitely is a focus on top of mind for many cfos to find out where they can cut costs and that's the beauty of a consumption model as you only expense what you use and that's what our customer.
As far as like as well too.
And so I feel good about the forecast that we just laid out taken into consideration.
The macro environment and literally looking at our customers' continued usage of snowflake and I don't see that changing and in aggregate, yes, I'm sure there's going to be some customers that are going to underperform, but likewise theres going to be many customers that over perform.
And long term.
So snowflake and most have plans to do more with snowflake.
Thank you.
Thank you Gregg Moskowitz.
Thank you Hal.
Alright. Thank you good afternoon, guys. The net new customer account appears to be slowing down somewhat it was lower on a year over year basis, I know, it's more about quality over quantity and Mike you talked about revenue seven figure customers, but can you give us a little more color just kind of on your <unk>.
And then just kind of generally what your expectations are for net new when you look at your pipeline.
Well I don't disclose the target for what we're looking to add that as you said, we and I said in my commentary, we're really focused on the largest enterprises in the world.
It's not all customers are equal, but we want to land those customers that can be the $1 billion plus customer.
So it's the aggregate number it's the quality of those individual customers and that's what we're focused on.
Alright, thank you.
Thank you.
The next question comes from Kash Rangan of Goldman Sachs Goldman Sachs.
Please proceed thank you very much thank.
Thank you so much.
Frank and Mike.
The full effect.
Warehouse optimize their credit and the A&D outbound chip did you get the full headwind affecting this quarter.
Just curious about are there any more left to play out okay. Okay got off the ground.
Rolled out over a period of time the warehouse scheduling service was already got.
Got it to which quarter should we expect that maximum headwind then the waning.
Ted.
Okay got it.
Also be useful.
Thank you said that <unk> back in the first couple of weeks.
Is that the same cohort of customers that did go through the decline in consumption or was it.
Or is it more of an aggregate effect.
More of an aggregate effect.
Got it.
And finally are you rethinking how you structure your contracts to have more subscription more predictable element given that.
Why would that not be the case.
The problem is when you are in a consumption model.
And the only way to extract the value to cover the cost is by doing a consumption model people have contracts and it's also much more customer friendly.
Got it got it. Thank you so much appreciate it.
Yes, I understand.
Yeah.
Thank you next question comes from Kurt matching of Evercore.
Hi, Steve Thanks, very much.
Thanks, very much Greg.
Yes.
Economic cycles before I was just wondering if you can talk a little bit about sort of the importance snowflake data.
As we go through a potential economic cycle.
Yes.
The discretionary nature of it or the lack of being discretionary.
All are sort of thinking.
I will also mean that.
Discretionary.
<unk> had a very different take on that in terms of how customers are using your technology. So I was just wondering if you could give us some perspective on sort of.
The longer term importance with what you guys are enjoying for your customers and why that gives you confidence in the fiscal 'twenty guide.
Thanks.
Yes.
Fair question.
I saw some noise on this.
Got that.
The online as well.
But.
Theres, a little bit of more of a nuanced.
We're looking at meaning that it's not all one thing.
Overall, the same thing I mean, the reality is is that.
Our type of workloads become very have heavily grafted into.
Two core business processes.
The way. It is also one of the reasons why it's we've talked about this for the last two years in the calls how difficult this to move workloads to snowflake because these workloads are shall heavily grafted into operational processes. So these things are not going anywhere they are not optional theyre not like what do I feel like doing today.
By the way there are workloads like Thats far more on the data Lake site, where essentially you have a massive repository of files.
You may add data scientists are just sort of fishing files out of the lake.
I'm trying to decide to do some interesting stuff with that sort of thing is highly discretionary, but thats not the focus of our business when people put data and snowflake and when they have some serious intentions or what theyre going to do with that data.
So that's not our part of the elephant.
We're dealing with are there are there are there are users of <unk>.
Data platforms that are of that sort that are much more discretionary we can really avoid running processes, but.
Our world.
As I said so.
<unk> into core business processes.
It's not something that you can just sort of shut off for a while till till things get better.
Thank you.
Thank you. The next question comes from Raimo <unk> of Barclays.
Please proceed thank you.
Great question, if you think about the.
Yes.
A couple of other guys said on the call, Mike and Mike I think you are seeing.
Play out before.
If you think about your readiness or youre kind of adoption to the situation can you talk a little bit about what levers you have to think for example kind of half investments more in other industries that seem more stable and hence prioritize spending in different segments with different vertical segments et cetera is there anything you can do.
In terms of to do that.
Sure, It's Andy analysis like how much exposure do you have to.
Certain more consumer facing is there anything you can share or maybe dividends at the analyst day. Thank you.
Yes.
Hey, Raimo I'm not quite sure on your.
Great question, but on with regards to costs in our business, we're still seeing.
Amazing growth at scale.
And we're going to continue to invest in our business but.
As I mentioned, we've done this all the time, where we make efficient investments there is no waste in snowflake. They never it has been in the last two and a half years and I won't be going forward, but there's a great opportunity in front of us we're continuing to invest very heavily in R&D and we're investing very heavily in the go to market function.
And we will continue to do that but we're going to do it efficiently and to continue to show leverage in our model and we're very focused on free cash flow. We're also in the envious position that we're sitting on over $5 billion today, and we will be opportunistic.
Because we're doing this for the long term not for the next two quarters or three quarters.
Along this macro uncertainties or last but we're going to set yourself up for the next 10 20 years.
Yes.
Mike I came more from that.
The revenue side in terms of like the model.
<unk> spoke with like for example building vertical cloud now can you focus more on financials, because that might be like safer.
Over the next what we are what we're focused on all of those clouds, and where we see the opportunities we're going to add more resources.
And we're seeing very strong in the health care the retail it maybe you talk about all these retail clients missing, but they want better data and they want it.
Troubled times, that's when people.
Want to access data more to understand what's going on in their business, which is the point to drive more snowflake consumption.
Financial services is one that always has been one of our biggest and will continue to be our biggest.
Okay perfect. Thank you.
Thank you. Your next question comes from Brad Zelnick of Deutsche Bank.
Please proceed great.
Great. Thank you so much guys. So instead of trying to dream up the 16th way of asking you about the macro and the impact it's having I wanted maybe put that aside for a SEC.
I mean, you're delivering amazing growth at scale, and certainly that shouldn't be lost but.
If we just think about pricing and may be competitive dynamics. I think you guys had strong disciplined when it comes to pricing very ROI focused but is there any reason to believe pricing is an obstacle for adoption and maybe any evidence that you have to believe your competitors are seeing the same things you are seeing.
And perhaps I don't know if its changes to win rates or customers, even stratify in their consumption.
Across other alternatives to save money anything that you can help us to appreciate what's going on along those dimensions would be helpful. Thank you.
Yes sprint Brad.
Our business is not commoditized, which is sort of.
The other way of characterizing.
No. Your question there are certainly people in our world that are trying to commoditize the business.
But customer.
Customers are trying to do very difficult things also very amazing thing so.
What they are paying per credit.
Already incredibly optimized it's incredibly competitive this is physics and the economics right and there aren't many places to hide in terms of what we charge for it so.
It's not very very productive for people.
To pursue thinks on that basis it still.
Developing the impact <unk> sides.
It is really where it's at right now so we've really not.
Felt that pressure.
At all and yes, you're right.
Maintain good pricing discipline, we want to make sure that.
Customers don't feel that they are subsidizing somebody else's business that we have good discipline.
And we will continue to do that but we sell best of breed, we sell value we sell impact.
We are verticalizing, our business, because we are really adopting and owning the customers who'd credits right. I mean, those are really nonsensical conversations with customers when they when a hospital is trying to save lives or improved quality of life. Those are the core missions of the institutions.
That want to use snowflake.
For for really amazing things.
That's the conversations that I'm certainly having.
With customers.
People are not coming at us with a hammer.
To be cheaper that's just not the dynamic that's playing out out there I'm not aware of a single customer.
Customer significant customer opportunity, we're going after where we lost it over pricing not a single one.
I'll add one more thing that we also look at it.
The ratio of price performance and the performance enhancements that progressively deliver improve not only the faster decisions and usage per customers, but also the economics of the platform.
From that customer.
Customers see the value.
Yes.
We can use many examples we have a lot of pharma customers.
Their mission in life is to accelerate time to market of lifesaving pharmaceuticals, that's what they're trying to do snowflake helps with that that's what's on their mind Thats what preoccupying. The how do we do this right. So there is this whole commoditization thing I think is.
As a doctor just wont have very well.
Really appreciate the color. Thank you guys.
Thank you. The next question comes from Neil.
Rick of William Blair.
Please proceed.
Hi, Thanks for taking my question.
Your sales and marketing head count grew 55% year.
And the macro related noise from some customers why is now the right time to accelerate that growth and when factoring in the time needed for new reps to ramp and the time needed to load data from Newcastle.
Customers onto the platform when should we expect this accelerated head count growth to show up in the financial model.
Well, it's reflected in our long term target of getting to $10 billion by fiscal year 2029. In Q1 is always our biggest hiring quarter in sales and marketing as we've said before because we onboard people at the beginning of the new comp here, but also for our sales kickoff and it tends to be very heavy more.
In the <unk> that we try to onboard and big groups at once.
And typically depending on the nature of the rep, whether you're a corporate team are you on the enterprise or majors, it's anywhere from a six month ramp to nine.
Nine months to a year.
The people we're hiring now we'll have more of an impact on revenue next year has somewhat of an impact on bookings towards the end of the year, but this is what we're planning on doing all along and as I said, we're going to continue to invest in our go to market function because of the opportunity we have in front of us and we've shown that we can do it efficiently.
<unk> continue to show leverage.
That's helpful. Thank you and if I could just quickly follow up Frank in your prepared remarks, you mentioned that all the great progress you've made to enable application developers you acquired Streamlet Youre, adding Python you launched powered by Snowflake have you seen any changes in the pace of App development in recent quarters are there key milestones that should.
Maybe we should watch out or maybe around the rollout of specific features and integration that could make app development, a more dependable flywheel snowflake. Thank.
Thank you.
Well.
I, specifically made mentioned in the prepared remarks about the number of power by Snowflake.
Partners that we know has been to grow those.
48% quarter on quarter.
There is an enormous.
How do things will snowflakes that they wanted to do is not a good day. Because then they will copy data out of a snowflake.
Do it somewhere else and then we fall out of alignment with our business model.
Things don't work the way, they're supposed to do so.
Our whole game is we bring we allow the work to come to the data and you know what are your whether you're a data engineer or to Europe programmer, where youre going to see everything. We do is just maximum investments you're extremely well just from a usability standpoint from an economic standpoint, obviously from.
Performance standpoint.
That's what this is all about.
More we succeed broadly along all these lines the more it drives the core business model of <unk>.
Sumit snowflake, okay. So that's that's what everything that were in full alignment with that focus on that strategy.
Okay.
We've seen a 25% increase.
But today and we think once that's fully integrated into snowflake that that will be meaningful for the App development in snow Lake.
That's great to hear thanks again.