Q4 2024 Snowflake Inc Earnings Call

February 28, 2024

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Kash Rangan: Hello and welcome to the Q4 Fiscal Year 2024 Snowflake Earnings Call. My name is Alex. I'll be coordinating the call today. If you'd like to ask a question at the end of the presentation, you can press star followed by 1 on your telephone keypad. I'll now hand it over to your host, Katherine McCracken, Senior Manager, Investor Relations. Please go ahead.

Alex: Hello, and welcome to the Q4 fiscal year 'twenty for Snowflake earnings call. My name is Alex that'd be cool thanks, Nicole today.

Unknown Executive: I'll be coordinating the call today. If you'd like to ask a question at the end of the presentation, you can press start followed by 1 on your telephone keypad. We will handover to your host, Katherine McCracken, Senior Manager, Investor Relations. Please go ahead. Good afternoon, and thank you for joining us for Snowflake's Q4. 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 of fiscal 2025. Additionally, 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.

Speaker Change: If you'd like to ask a question at the end of the presentation. You can press star followed by one on the telephone keypad.

Alex: I'll now hand over to your highest Katherine Mccracken senior manager of Investor Relations. Please go ahead.

Katherine McCracken: Good afternoon, and thank you for joining us on Snowflake's Q4 fiscal year 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 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.

Katherine McCracken: Good afternoon, and thank you for joining us on Snowflake's Q4 fiscal year 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 Q4 fiscal 2024 and discuss our guidance for the Q1 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.

Katherine Mccracken: Good afternoon, and thank you for joining us on Snowflakes Q4 fiscal 2024.

Katherine Mccracken: With me in Bozeman, Montana, or SEDAR Ramaswami, our Chief Executive Officer, Frank <unk>, Our chairman, Mike Scarpelli, Our Chief Financial Officer, and Christian Klein Irvin, our executive Vice President of product, who will join us for the Q&A session.

Katherine Mccracken: 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.

Unknown Executive: 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. Except as required by law, we assume no obligation to update any. During today's call, we will also discuss certain non-GAAP financial measures. Reconciliation of GAAP to non-GAAP measures is included in today's earnings process. 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. With that, I would now like to turn it over to all of you. Thanks, Katherine. Welcome and good afternoon.

Katherine Mccracken: Information concerning these risks and uncertainties is available in our earnings press release, our most recent Form 10-K, and 10-Q and our other SEC reports.

Katherine McCracken: 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. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release. The earnings press release and an accompanying investor brief 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.

All our statements are made as of today based on information currently.

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.

Conciliation of GAAP to non-GAAP measures is included in today's earnings press release.

Katherine Mccracken: The earnings press release, and in and competing Investor presentation are available on our website investors thought sounds like dotcom.

A replay of today's call will also be posted on the web.

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

Frank Slootman: Thanks, Katherine. Welcome and good afternoon. By 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. FY24 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 preferred a 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. Q4 was an exceptionally strong bookings quarter. We reported $5.2 billion of remaining performance obligations, representing accelerated year-over-year growth of 41%.

Frank: Thanks, Catherine welcome and good afternoon, right now you have heard the great news for both street are becoming our next CEO.

Frank Slootman: By 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. FY24 product revenue grew 38% year-over-year to reach $2.67 billion, non-GAAP product gross margin expanded to 77.8%, and non-GAAP adjusted free cash flow was $810 million, representing 56% year-over-year growth. Continue to pair high growth with efficiency. The year began against an unsettled macroeconomic backdrop.

Frank: Before we get to that I would like to highlight our fiscal 2024 results.

Frank: 424 product revenue grew 38% year over year to reach 2.67 billion non-GAAP product gross margin expanded to 77, 8%.

Frank: non-GAAP adjusted free cash flow was $810 million, representing 56% year over year growth.

Frank: We continue to pay a high growth with efficiency.

The year began against an uncertain macroeconomic backdrop, we witness lackluster sentiment and customer hesitation due to lack of visibility in their businesses.

Unknown Executive: We witnessed lackluster sentiments and customer hesitation due to the lack of visibility in their businesses. Customers prefer a 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. Q4 was an exceptionally strong bookings quarter. We reported 5.2 billion in remaining performance obligations, representing accelerated year-on-year growth of 41%. Our international theaters outperformed the company as a whole. [inaudible] Streamlit and Snowflake, the Snowpark ML Modeling API, and Cortex ML Functions are all generally available.

Frank: Customers prefer to wait and see posture versus leaning in to longer term contract expansions.

Frank: This reversed in the second half of the year and we started seeing larger multiyear commitments.

Frank: Q4 wasn't exceptionally strong bookings quarter, we reported $5 2 billion of remaining performance obligations, representing accelerated year on year growth of 41% our international theaters outperformed the company as a whole.

Frank Slootman: Our international theaters outperformed the company as a whole. We continue to see success in our effort to expand to the largest enterprises globally. We added 14 Global 2000s in the quarter, and 8 of our top 10 customers grew sequentially. Meanwhile, Snowflake has announced many new technologies that let customers mobilize AI. Streamlit in Snowflake, Snowpark ML Modeling API, and Cortex ML functions are all generally available. We also received FedRAMP High authorization on the AWS GovCloud. This enables Snowflake to protect some of the federal government's most sensitive unclassified data. Now, on the topic of CEO transition, I was brought to Snowflake 5 years ago to help the company break out and scale. I wanted to grow the business fast, but not at all cost. It had to be efficient and establish a foundation for long-term growth. I believe the company succeeded on that mission.

Frank Slootman: Our international theaters outperformed the company as a whole. We continue to see success in our effort to expand to the largest enterprises globally. We added 14 Global 2000s in the quarter and 8 of our top 10 customers grew sequentially. Meanwhile, Snowflake has announced many new technologies that let customers mobilize AI. Streamlit in Snowflake, Snowpark ML Modeling API, and Cortex ML functions are all generally available. We also received FedRAMP High authorization on the AWS GovCloud. This enables Snowflake to protect some of the federal government's most sensitive unclassified data. Now, on the topic of CEO transition, I was brought to Snowflake 5 years ago to help the company break out and scale. I wanted to grow the business fast, but not at all cost. It had to be efficient and establish a foundation for long-term growth. I believe the company succeeded on that mission.

Frank: We continue to see success in our effort to campaign the largest enterprises globally. We added 14 global two thousands in the quarter.

Frank: Eight of our top 10 customers grew sequentially. Meanwhile, Snowflake has announced many new technologies customers mobilized AI extremely.

Frank: Streamline and snowflake.

Frank: Ml modeling API and cortex ml functions are old.

Unknown Executive: We also received FedRAMP High Authorization on the AWS GovCloud. This enables Snowflake to protect some of the federal government's most sensitive, unclassified data. Now on the topic of CEO transition, I was brought to Snowflake five years ago to help the company break out and scale. I wanted to grow the business fast, but not at all costs. It had to be efficient and establish a foundation for long-term growth. I believe the company succeeded in that mission. The board has run a succession process that wasn't based on an arbitrary timeline but instead looked for an opportunity to advance the company's mission well into the future. The arrival of Sridhar Ramaswamy through the acquisition of Niva last year represented that opportunity.

Frank: Generally available.

Frank: We also received February on high authorization on the AWS cloud. This enables snowflake to protect some of the federal government's most sensitive unclassified data.

Speaker Change: Now on the topic of CEO transition I was brought the snowflake five years ago to help the company breakout and scale I wanted to grow the business, but not at all cost that have to be efficient and establish a foundation for long term growth.

Speaker Change: I believe the company succeeded on that Commission. The board has run a succession process that wasn't based on arbitrary timeline, but instead looked for an opportunity to advance the company's mission well into the future. The arrival of street ramaswami through the acquisition of <unk> last year represented that opportunity.

Frank Slootman: The board has run a succession process that wasn't based on an arbitrary timeline, but instead looked for an opportunity to advance the company's mission well into the future. The arrival of Sridhar Ramaswamy through the acquisition of Neeva last year represented that opportunity. Since joining us, Sridhar has been leading Snowflake's AI strategies, bringing new products and features to market at an incredible pace. He led the launch of Snowflake Cortex, Snowflake's new fully managed service that makes AI simple and secure. Prior to Neeva, Sridhar led all of Google's advertising products. During his 15-year tenure at Google, he helped grow AdWords and Google's advertising business from $1.5 billion to over $100 billion. With the onslaught of generative AI, Snowflake needs a hard-driving technologist to navigate the challenges the new world represents.

Unknown Executive: Since joining us, Schueter has been leading Snowflake's AI strategies, bringing new products and features to market at an incredible pace. You helped launch Snowflake's Cortex, its new fully managed service that makes AI simple and secure. Prior to Niva, Sridhar led all of Google's advertising products.

Speaker Change: Since joining us shooter has been leading snowflakes AI strategies, bringing new products and features to market at an incredible pace you, let the launch of snow flex cortex Snowflakes, New fully managed service that makes it simple and secure prime.

Speaker Change: Prior to knee luxury that'll, let all of Google's advertising products. During his 15 year tenure at Google. He helped grow at works in Googles advertising business from $1 5 billion to over 100 billion.

Frank Slootman: During his 15-year tenure at Google, he helped grow Edwards and Google's advertising business from $1.5 billion to over $100 billion. With the onslaught of generative AI, Snowflake needs a hard-driving technologist to navigate the challenges the new world represents. Sridhar's vision for the future and his proven ability to execute at scale made it clear to us as a board that he was the right executive at the right time to lead Snowflake. This marks my retirement from an operating role. I will remain on duty as chairman of the board and look forward to working with Sridhar and the team going forward. With that, I will pass it over to Sridhar. Thank you, Frank.

Speaker Change: With the onslaught of generative.

Speaker Change: Like need to hard driving technology technologists to navigate the challenges the new world represents.

Frank Slootman: Sridhar's vision for the future and his proven ability to execute at scale made it clear to us as a board that he is the right executive at the right time to lead Snowflake. This marks my retirement from an operating role. I will remain on duty as chairman of the board and look forward to working with Sridhar and the team going forward. With that, I will pass it over to Sridhar.

Speaker Change: Our vision for the future and its proven ability to execute at scale made it clear to us as a board. He is the right executive at the right time.

Speaker Change: Lead snowflake.

Speaker Change: This marks my retirement from an operating role our I will remain on duty as chairman of the board and look forward to working with treater and the team going forward with that I will pass it over to <unk>.

Sridhar Ramaswamy: Thank you, Frank. I'm honored to have been chosen to lead this great company. The success Snowflake has achieved is a testament to the great customers, employees, and partners who have contributed along the way. And of course, Frank has been a huge part of getting us here, which I gratefully acknowledge. Snowflake is a once-in-a-generation company that will revolutionize the world with its cloud data platform. This has become more true in the past year with the rapid technology innovations we have seen. Generative AI is at the forefront of my customer conversations. This drives renewed emphasis on data strategy in preparation of these new technologies. You heard the team say it many times: there is no AI strategy without a data strategy. And this has opened a massive opportunity for Snowflake to address.

Speaker Change: Yes.

Speaker Change: Thank you Frank.

Sridhar Ramaswamy: I'm honored to have been chosen to lead this great company. The success Snowflake has achieved is a testament to the great customers, employees, and partners who have contributed along the way. And, of course, Frank has been a huge part of getting us here, which I gratefully acknowledge. Snowflake is a once-in-a-generation company that will revolutionize the world with its cloud data platform.

Speaker Change: I'm honored to have been chosen to lead this great company.

Speaker Change: The success Snowflake has achieved is a testament to the great customers employees and partners contribute it along the way.

Speaker Change: And of course, Frank has been a huge part of getting us here.

Speaker Change: Hatefully acknowledge.

Speaker Change: Snowflake is a once in a generation company.

Speaker Change: Evolution is the world with its cloud data platform.

Sridhar Ramaswamy: This has become more true in the past year with the rapid technological innovations we have seen. Genitive AI is at the forefront of my customer conversations. This drives a renewed emphasis on data strategy in preparation for these new technologies. You've heard the team say this many times.

Speaker Change: It will become more true in the past year with the rapid technology innovations we have seen.

Speaker Change: Generative AI is at the forefront of my customer conversations.

Speaker Change: This drives renewed emphasis on data strategy in preparation of these new technologies.

Speaker Change: You heard the team said many times there is no strategy without a data strategy.

Sridhar Ramaswamy: There's no AI strategy without a data strategy, and this has opened a massive opportunity for Snowflake to... Deliver on the opportunity ahead. We must have clear focus and move even faster to bring innovation on the Snowflake platform to our customers and partners.

Speaker Change: And this has opened a massive opportunity for snowflake to address.

Sridhar Ramaswamy: To deliver on the opportunity ahead, we must have clear focus and move even faster to bring innovation on the Snowflake platform to our customers and partners. This will be my focus. I look forward to working with the team, and I'm extremely excited for the opportunity. With that, I'll pass it over to Mike.

Sridhar Ramaswamy: To deliver on the opportunity ahead, we must have clear focus and move even faster to bring innovation on the Snowflake platform to our customers and partners. This will be my focus. I look forward to working with the team and I'm extremely excited for the opportunity. With that, I'll pass it over to Mike.

Speaker Change: To deliver on the opportunity ahead.

Speaker Change: We must have a clear focus and move even faster to bring innovation on the snowflake platform to our customers and partners.

Speaker Change: This will be my focus.

Michael P. Scarpelli: I look forward to working with the team, and I'm extremely excited for the opportunity. With that, I'll pass it over to Mike. Thank you, Sridhar.

Speaker Change: I look forward to working with the team.

Speaker Change: I'm extremely excited for the opportunity.

Speaker Change: With that I'll pass it over to Mike. Thank you Schreder Q4 marked a strong finish to a challenging year product revenue was 738 million growing 33% year over year similar to prior years, we experienced significant holiday impacts in December and January holidays make it difficult to discern meaningful.

Michael Scarpelli: Thank you, Sridhar. Q4 marked a strong finish to a challenging year. Product revenue was $738 million, growing 33% year-over-year. Similar to prior years, we experienced significant holiday impacts in December and January. Holidays make it difficult to discern meaningful consumption trends. In the quarter, younger customers led revenue growth. These accounts are adding new workloads and migrating from legacy vendors. Financial services and retail were our largest revenue contributors, and we are seeing emerging momentum from the EMEA region and technology vertical. Customer optimizations returned to a normal level, with eight of our top 10 accounts growing sequentially. We proactively engage with customers to help them optimize their Snowflake usage, and we'll continue to do so. History has shown that optimizations expand our long-term opportunity. We now have 83 customers with trailing 12-month product revenue greater than $5 million, up from 75 in Q3.

Michael P. Scarpelli: Q4 marked a strong finish to a challenging year. Product revenue was $738 million, growing 33% year over year. Similar to prior years, we experienced significant holiday impacts in December and January. Holidays make it difficult to discern meaningful consumption trends.

Michael P. Scarpelli: Consumption trends in the quarter younger customers led revenue growth. These accounts are adding new workloads and migrating from legacy vendors financial services and retail were our largest revenue contributors and we are seeing emerging momentum from the EMEA region and technology vertical.

Michael P. Scarpelli: In the quarter, younger customers led revenue growth. These accounts are adding new workloads and migrating from legacy vendors. Financial services and retail were our largest revenue contributors, and we are seeing emerging momentum from the EMEA region and the technology vertical. Customer optimizations returned to a normal level, with eight of our top 10 accounts growing sequentially.

Michael P. Scarpelli: Customer optimizations returned to a normal level with eight of our top 10 accounts growing sequentially.

Michael P. Scarpelli: We proactively engage with customers to help them optimize their Snowflake usage, and we'll continue to do so. History has shown that optimizations expand our long-term opportunity. We now have 83 customers with trailing 12-month product revenue greater than $5 million, up from 75 in Q3. Q4 was an exceptional booking quarter for us. However, bookings are not a leading indicator of revenue.

Michael P. Scarpelli: Proactively engaged with customers to help them optimize their snowflake usage and we'll continue to do so history has shown that optimization expand our long term opportunity. We now have 83 customers with trailing 12 months product revenue greater than $5 million up from 75 in Q3.

Michael Scarpelli: Q4 was an exceptional booking quarter for us. Bookings are not a leading indicator of revenue. They do signal an improving macro environment. Remaining performance obligations grew 41% year-over-year to $5.2 billion. Of the $5.2 billion in RPO, we expect approximately 50% to be recognized as revenue in the next 12 months. We signed our largest deal ever in Q4, a five-year $250 million contract with an existing customer. Our international territories returned to meaningful growth, outperforming expectations for the first time in a year. We made significant progress in delivering margin expansion. Non-GAAP product margin of 78% was up approximately 300 basis points year-over-year. Improved terms from the cloud service providers have contributed to margin expansion. Non-GAAP operating margin of 9% was ahead of expectations. Operating margin benefited from increased hiring scrutiny. Non-GAAP adjusted free cash flow margin was 42%. Bookings outperformed increased collections.

Michael P. Scarpelli: Q4 was an exceptional bookings quarter for us bookings are not leading indicator of revenue. They do signal an improving macro environment remaining performance obligations grew 41% year over year to $5 2 billion.

Michael P. Scarpelli: They do signal an improving macro environment. Remaining performance obligations grew 41% year over year to $5.2 billion. Of the $5.2 billion in RPO, we expect approximately 50% to be recognized as revenue in the next 12 months. We signed our largest deal ever in Q4, a five-year $250 million contract with an existing customer. Our international territories returned to meaningful growth, outperforming expectations for the first time in a year.

Michael P. Scarpelli: Of the $5 2 billion in <unk>, we expect approximately 50% to be recognized as revenue in the next 12 months, we signed our largest deal ever in Q4.

Michael P. Scarpelli: Five year $250 million contract with an existing customer or international territories return to meaningful growth outperforming expectations for the first time in a year, we made significant progress in delivering margin expansion.

Michael P. Scarpelli: We made significant progress in delivering margin expansion. Non-GAAP product margin of 78% was up approximately 300 basis points year-over-year. Improved terms from the cloud service providers have contributed to margin expansion. Non-GAAP operating margin of 9% was ahead of expectations. Operating margin benefitted from increased hiring scrutiny. Non-GAAP adjusted free cash flow margin was 42%. Bookings outperformed increased collections. We ended the quarter with $4.8 billion in cash and cash equivalents in short-term and long-term investments. We did not repurchase any shares in Q4.

Michael P. Scarpelli: non-GAAP product margin of 78% was up approximately 300 basis points year over year improved terms from a cloud service providers have contributed to margin expansion.

Michael P. Scarpelli: non-GAAP operating margin of 9% was ahead of expectations operating margin benefit from increased hiring scrutiny.

Michael P. Scarpelli: non-GAAP adjusted free cash flow margin was 42% bookings outperformance increased collections.

Michael Scarpelli: We ended the quarter with $4.8 billion in cash, cash equivalents, and short-term and long-term investments. We did not repurchase any shares in Q4. We have approximately $1.4 billion remaining under our original authorization of $2 billion. Now, let's turn to Outlook. Consumption trends have improved since the beginning of last year but have not returned to pre-FY24 patterns. We have evolved our forecasting process to be more receptive to recent trends. For that reason, our guidance assumes similar customer behavior to fiscal 2024. We are forecasting increased revenue headwinds associated with product efficiency gains, tiered storage pricing, and the expectation that some of our customers will leverage Iceberg Tables for their storage. We are not including potential revenue benefits from these initiatives in our forecast. These changes in our assumption impact our long-term guidance. Internally, we continue to march towards $10 billion in product revenue.

Michael Scarpelli: We ended the quarter with $4.8 billion in cash, cash equivalents, and short-term and long-term investments. We did not repurchase any shares in Q4. We have approximately $1.4 billion remaining under our original authorization of $2 billion. Now, let's turn to Outlook. Consumption trends have improved since the beginning of last year but have not returned to pre-FY24 patterns. We have evolved our forecasting process to be more receptive to recent trends. For that reason, our guidance assumes similar customer behaviour to fiscal 2024. We are forecasting increased revenue headwinds associated with product efficiency gains, tiered storage pricing, and the expectation that some of our customers will leverage Iceberg Tables for their storage. We are not including potential revenue benefits from these initiatives in our forecast. These changes in our assumption impact our long-term guidance. Internally, we continue to march towards $10 billion in product revenue.

Michael P. Scarpelli: We ended the quarter with $4 $8 billion in cash cash equivalents and short term and long term investments we did not repurchase any shares in Q4, we have approximately one 4 billion remaining under our original authorization of 2 billion now lets turn to outlook consumption trends have improved since the b.

Michael P. Scarpelli: We have approximately $1.4 billion remaining under our original authorization of $2 billion. Now, let's turn to the outlook. Consumption trends have improved since the beginning of last year but have not returned to pre-FY24 patterns. We have evolved our forecasting process to be more receptive to recent trends. For that reason, our guidance assumes similar customer behavior to fiscal 2024. Additionally, we are forecasting increased revenue headwinds associated with product efficiency gains, tiered storage pricing, and the expectation that some of our customers will leverage iceberg tables for their storage. We are not including potential revenue benefits from these initiatives in our forecast.

Michael P. Scarpelli: <unk> of last year, but have not returned to pre FY 'twenty four patterns. We have evolved our forecasting process can be more receptive to recent trends for that reason our guidance assumes similar customer behavior to fiscal 2024.

Mike Scarpelli: We are forecasting increased revenue headwinds associated with product efficiency gains tiered storage pricing and the expectation that some of our customers will leverage iceberg tables for their storage, we are not including potential revenue benefits from these initiatives and our forecast. These changes in our assumptions impact our long term guide.

Michael P. Scarpelli: These changes in our assumptions impact our long-term guidance. Internally, we continue to march towards $10 billion in product revenue. Externally, we will not manage expectations to our previous targets until we have more data.

Mike Scarpelli: <unk> internally, we continue to March towards $10 billion in product revenue externally, we will not manage expectations to our previous targets until we have more data. We are focused on executing at FY 'twenty four to ensure long term durable growth.

Michael Scarpelli: Externally, we will not manage expectations to our previous targets until we have more data. We are focused on executing at FY24 to ensure long-term durable growth. Now, turning to FY25 guidance. For Q1, we expect product revenue between $745 and $750 million, representing year-over-year growth between 26% and 27%. For Q1, we expect non-GAAP operating margin of 3% and 366 million diluted weighted average shares outstanding. For the full year, we expect product revenue of approximately $3.25 billion, representing 22% year-over-year growth. We expect Snowpark to contribute 3% of product revenue. We are not including any other new products in our forecast at this time. For the full year, we expect non-GAAP product gross margin of 76%, non-GAAP operating margin of 6%, non-GAAP adjusted free cash flow margin of 29%, and diluted weighted average shares outstanding of 368 million.

Michael P. Scarpelli: We are focused on executing FY24 to ensure long-term durable growth. Now turning to FY25 guidance. For the first quarter, we expect product revenue between $745 and $750 million, representing year-over-year growth between 26% and 27%. For the first quarter, we expect a non-GAAP operating margin of 3% and $366 million diluted weighted average shares outstanding.

Mike Scarpelli: Now turning to FY 'twenty five guidance for the first quarter, we expect product revenue between 745 and $750 million representing year over year growth between 26 and 27%.

Mike Scarpelli: For the first quarter, we expect non-GAAP operating margin of 3% and 366 million diluted weighted average shares outstanding.

Michael P. Scarpelli: For the full year, we expect product revenue of approximately $3.25 billion, representing 22% year-over-year growth. We expect Snowpark to contribute 3% of product revenue. We are not including any other new products in our forecast at this time. For the full year, we expect a non-GAAP product gross margin of 76%, a non-GAAP operating margin of 6%, a non-GAAP adjusted free cash flow margin of 29%, and diluted weighted average shares outstanding of $368 million.

Mike Scarpelli: For the full year, we expect product revenue of approximately $3 25 billion, representing 22% year over year over year growth, we expect snow part to contribute 3% of product revenue, we are not including any other new products in our forecast at this time.

Mike Scarpelli: For the full year, we expect non-GAAP product gross margin of 76% non-GAAP operating margin of 6% non-GAAP adjusted free cash flow margin of 29% and diluted weighted average shares outstanding of $368 million.

Michael Scarpelli: We plan to add approximately 1,000 employees this year, inclusive of M&A. For expenses, our forecast assumes meaningful investments in our AI initiatives. We expect approximately $50 million of GPU-related costs in fiscal year 2025, approximately $10 million flowing through cost of product revenue. For the purpose of forecasting, we are not including any incremental revenue associated with these features. We have also evolved our go-to-market motion. As we compensate more reps on a consumption quota, we will see increased commission expense. Consumption-based commissions are expensed immediately rather than amortized over a five-year period. This has no impact on cash flows but is expected to have approximately $30 million impact to P&L. Lastly, I would like to acknowledge Frank's retirement. Working with Frank for the past 17 years has been an incredible learning experience, and I'm grateful for our time together.

Michael P. Scarpelli: We plan to add approximately 1,000 employees this year, inclusive of M&A. For expenses, our forecast assumes meaningful investments in our AI initiatives. We expect approximately $50 million of GPU-related costs in fiscal year 2025, with approximately $10 million flowing through cost of product revenue. For the purpose of forecasting, we are not including any incremental revenue associated with these features.

Mike Scarpelli: We plan to add.

Mike Scarpelli: 1000 employees this year inclusive of M&A.

Mike Scarpelli: For expenses, our forecast assumes meaningful investments in our AI initiatives, we expect approximately $50 million of GPU related costs in fiscal year 2005, approximately 10 million flowing through cost of product revenue for the purpose of forecasting we are not including any incremental revenue.

Mike Scarpelli: So stated with these features we've also evolved our go to market motion as we compensate more reps on a consumption quarter. We will see increased commission expense consumption based commissions are expensed immediately rather than amortized over a five year period. This has no impact on cash flows but is expected to have approximately.

Michael P. Scarpelli: We've also evolved our go-to-market strategy. As we compensate more reps on a consumption quota, we will see increased commission expense. Consumption-based commissions are expensed immediately rather than amortized over a five-year period. This has no impact on cash flows, but is expected to have approximately $30 million impact on P&L.

Mike Scarpelli: $30 million impact to P&L lastly, I would like to acknowledge Franks retirement, working with Frank for the past 17 years has been an incredible learning experience and I am grateful for our time together Franks contributions to snowflake to set the company up for long term success and I look forward to being part of that journey.

Michael P. Scarpelli: Lastly, I would like to acknowledge Frank's retirement. Working with Frank for the past 17 years has been an incredible learning experience, and I am grateful for our time together. Frank's contributions to Snowflake have set the company up for long-term success, and I look forward to being part of that journey. I've committed to Sridhar and the board that I will be with Snowflake for at least the next three years. Before closing, we will host our Investor Day on June 4th in San Francisco in conjunction with Data Cloud Summit, our annual users' conference. If you are interested in attending, please email ir at snowflake.com.

Michael Scarpelli: Frank's contributions to Snowflake have set the company up for the long-term success, and I look forward to being part of that journey. I've committed to Sridhar and the board that I will be with Snowflake for at least the next three years. Before closing, we will host our Investor Day on 4 June in San Francisco in conjunction with Data Cloud Summit, our annual users' conference. If you are interested in attending, please email ir@snowflake.com. With that, operator, you can now open up the line for questions.

Mike Scarpelli: I have committed to schrader in the board that I will be with snowflake for at least the next three years before closing we will host our Investor day on June 4th in San Francisco in conjunction with data cloud summit, our annual users conference if you're interested in attending please email IR at Snowflake Dot com.

Speaker Change: That operator, you can now open up the line for questions.

Operator: Thank you. As a reminder, if you'd like to ask a question, you can press star followed by 1 on your telephone keypad. If you'd like to remove your question, you may press star followed by 2. Our first question for today comes from Mark Murphy of J.P. Morgan. Your line is now open. Please go ahead.

Speaker Change: Thank you.

Mike Scarpelli: Wonder if you'd like to ask a question you can press star followed by one on your telephone keypad.

Unknown Executive: As a reminder, if you'd like to ask a question... Star, followed by one on the telephone. Our first question for today comes from Mark Murphy of J.P. Online is now open, please go ahead. Thank you very much.

Mike Scarpelli: To repeat your question you May press Star two.

Mike Scarpelli: Our first question for today comes from Mark Murphy of Jpmorgan.

Mark Ronald Murphy: Your line is now open. Please go ahead.

Mark Ronald Murphy: Yeah.

Christian Kleinerman: Thank you very much. So, Mike, I think with the understanding that bookings are not a perfect forward indicator of revenue, it's hard not to notice the total bookings performance is quite spectacular. And even the short-term backlog number looks good. I think we're trying to bridge from that growing closer to 30% and then to arrive at the revenue growth in the low 20s. I understand it's mechanically more complicated than that, but on the surface, it looks like you're guiding with a lot more conservatism than a year ago. And so I'm just wondering, does that part of this feel a little more comfortable to you, or do you think it could take a little longer to convert bookings to consumption this year?

Mark Murphy: Thank you very much. So, Mike, I think with the understanding that bookings are not a perfect forward indicator of revenue, it's hard not to notice the total bookings performance is quite spectacular. And even the short-term backlog number looks good. I think we're trying to bridge from that growing closer to 30% and then to arrive at the revenue growth in the low 20s. I understand it's mechanically more complicated than that, but on the surface, it looks like you're guiding with a lot more conservatism than a year ago. And so I'm just wondering, does that part of this feel a little more comfortable to you, or do you think it could take a little longer to convert bookings to consumption this year?

Mark Ronald Murphy: Thank you very much so Mike I think we the understanding that bookings are not a perfect forward indicator of revenue.

Michael P. Scarpelli: So Mike, with the understanding that bookings are not a perfect forward indicator of revenue, you know, it's hard not to notice the total bookings performance is quite spectacular. And, you know, even the short-term backlog number looks good. I think we should try to bridge that gap, growing closer to 30%, and then to arrive at revenue growth in the low 20s, although I understand it's mechanically more complicated than that. But on the surface, it looks like you're guiding with a lot more conservatism than a year ago. So I'm just wondering, does that part of this feel a little more comfortable to you?

Mark Ronald Murphy: It's hard not to notice the total bookings performance is quite spectacular.

Mark Ronald Murphy: And even the short term backlog number looks good I think.

Speaker Change: We're trying to bridge from that.

Speaker Change: Growing closer to 30% and then to arrive at the revenue growth in the low twenties I understand it's mechanically more complicated than that but on the surface. It looks like you're guiding with a lot more conservatism than a year ago. So I'm. Just wondering does it feel does that part of this feel a little more.

Speaker Change: Comfortable to you or do you think it could take a little longer to convert bookings to consumption. This year.

Michael Scarpelli: I think we are definitely being more conservative this year given the consumption patterns we saw in 2024. And as we said at our analysts' day last year, we needed to see consumption patterns more in line with what we saw pre-2024 to get to our longer-term goal. And as a result, we've decided to forecast this year based upon the consumption patterns we saw in 2024. And as you know, we forecast based upon historical consumption of our products. There's a lot of new products coming into GA in public preview this year that we have not taken into account in our forecast. And we will do so once we start to see that consumption. And so we will take this quarter by quarter for the year.

Speaker Change: I think we are definitely being more conservative this year given the consumption patterns. We saw in 'twenty four and as we said at our analyst day last year, we needed to see consumption patterns more in line, what we saw pre 24 to get to our longer term goal and as a result.

Sridhar Ramaswamy: Or do you think it could take a little longer to convert bookings to consumption this year? I think we are definitely being more conservative this year, given the consumption patterns we saw in 24, and as we said at our Analyst Day last year, we needed to see consumption patterns more in line with what we saw pre-24 to get to our longer-term goal. And as a result, we've decided to forecast this year based upon the consumption patterns we saw in 24. And as you know, we forecast based upon historical consumption of our products. There are a lot of new products coming into GA in public preview this year that we have not taken into account in our forecast, and we will do so once we start to see that consumption. And so we will take this quarter by quarter for the year.

Speaker Change: We've decided to forecast this year based upon the consumption patterns, we saw in 'twenty four and as you know we forecast based upon historical consumption of our products. There's a lot of new products coming into Georgia and public preview. This year that we have not taken into account in our forecast and we will do.

Speaker Change: So once we start to see that consumption.

Speaker Change: So we will take this quarter by quarter for the year.

Christian Kleinerman: Okay. And then as a quick follow-up, Frank, I wanted to thank you for everything and wish you all the best. And Sridhar, I wanted to ask you, because of your background in Generative AI, do you envision any changes in the technology roadmap, perhaps relating to Snowpark or perhaps your role in LLMs or how heavily you'd steer the go-to-market in those areas? I'm just wondering if you foresee any change in philosophy or approach.

Mark Murphy: Okay. And then as a quick follow-up, Frank, I wanted to thank you for everything and wish you all the best. And Sridhar, I wanted to ask you, because of your background in Generative AI, do you envision any changes in the technology roadmap, perhaps relating to Snowpark or perhaps your role in LLMs or how heavily you'd steer the go-to-market in those areas? I'm just wondering if you foresee any change in philosophy or approach.

Speaker Change: Okay.

Speaker Change: As a quick follow up Frank I wanted to thank you for everything.

Speaker Change: And wish you all the best and so.

Speaker Change: Just wanted to ask you because of your background and generative AI do you envision any changes in the technology roadmap, perhaps related to snow park or perhaps your role in LLS or <unk>.

Sridhar Ramaswamy: Okay, and then as a quick follow-up, Frank, I wanted to thank you for everything and wish you all the best. And Sridhar, just wanted to ask you, because of your background in generative AI, do you anticipate any changes in the technology roadmap, perhaps related to Snowpark, or perhaps your role in LLMs, or, you know, how heavily you'd steer the go-to market in those areas? I'm just wondering if you foresee any change in philosophy or approach. Yeah, I've had over 100 conversations with customers over the past year about generative AI in particular. And the product announcements that we've already made, things in private preview, including Snowflake Cortex, which is our managed AI and search layer, combined with applications like Document AI for extracting structured data, or our co-pilot, have been very well received.

Speaker Change: How heavily it's clear that go to market in those areas I'm just wondering if there's if you foresee any change in philosophy or approach.

Frank Slootman: Yeah. I've had over 100 conversations with customers over the past year about Generative AI in particular. And the product announcements that we've already made, things in private preview, including Snowflake Cortex, which is our managed AI and search layer, combined with applications like Document AI for extracting structured data or our Copilot, these have been very well received. Document AI, for example, has hundreds of customers waiting for it to hit GA that are on our waitlist. So I would say it is a matter of executing to the roadmap that we have already laid out. Cortex will hit public preview soon. To Mike's point, getting this to GA, getting this in the hands of our customers, and having them realize value is the top priority. I don't think this is needing a new strategy.

Speaker Change: Yes.

Speaker Change: 100 conversations with customers over the past year about generative AI in particular.

Speaker Change: And the product announcements that we've already made in private preview.

Speaker Change: Including Snowflake cortex, which is our managed AI and.

Speaker Change: And search layer combined with applications like document AI on extracting structured data.

Speaker Change: Our co pilot. These are been very well received document AI. For example has hundreds of customers waiting for it to hit.

Speaker Change: At our on our waitlist.

Speaker Change: So I would say it is a matter of executing to the roadmap that we have already laid out.

Unknown Executive: Document AI, for example, has hundreds of customers waiting for it to hit GA that are on our wait list. So I would say it is a matter of executing on the roadmap that we have already laid out. Cortex will hit public preview soon. To Mike's point, getting this to GA, getting this in the hands of our customers, and having them realize value is the top priority. [inaudible] Thank you very much. Our next question... The line is now open; please go ahead. Excellent. This is Dion for Keith.

Speaker Change: Cortex will hit public preview soon.

Speaker Change: Mike's point getting the CGA getting this in the hands of our customers and having them realize value is the top priority I don't think of this as needing a new strategy.

Christian Kleinerman: Thank you very much.

Mark Murphy: Thank you very much.

Speaker Change: Thank you very much.

Speaker Change: Yeah.

Operator: Thank you. Our next question comes from Keith Weiss of Morgan Stanley. Your line is now open. Please go ahead.

Speaker Change: Thank you.

Speaker Change: Next question comes from Keith Weiss.

Keith Weiss: Morgan Stanley.

Keith Weiss: Your line is now open. Please go ahead.

Keith Weiss: Excellent. This is Theo for Keith. Maybe we should start off with one question on your consumption. I was wondering if you could give us a sense for where the consumption was softer as it is impacting your guidance. I think last quarter, you gave us a good sense for digital natives seemed to stabilize, enterprise seemed to get better. So can you just kind of double-click where the consumption is softening now versus your expectations and where maybe stronger?

[Analyst] (Morgan Stanley): Excellent. This is Theo for Keith. Maybe we should start off with one question on your consumption. I was wondering if you could give us a sense for where the consumption was softer as it is impacting your guidance. I think last quarter, you gave us a good sense for digital natives seemed to stabilize, enterprise seemed to get better. So can you just kind of double-click where the consumption is softening now versus your expectations and where maybe stronger?

Keith Weiss: Excellent deal on for Keith.

Keith Weiss: Maybe to start off with one question on your consumption.

Keith Weiss: I was wondering if you could give us a sense for where the consumption was softer as it is impacting your guidance I think last quarter, you gave us a good sense for digital native seem to stabilize enterprise seem to get better. So can you just kind of double click where the consumption is softening now versus your expectations and where may be stronger.

Unknown Executive: Maybe I should start off with one question on your consumption. I was wondering if you could give us a sense for where the consumption was softer, as it is impacting your guidance. I think last quarter you gave us a good sense for digital natives seem to stabilize, and enterprise seems to get better. So can you just kind of double click where the consumption is softening now versus your expectations and where it is maybe stronger? Well, as I said, the strength was in financial services in retail; we are seeing the technology vertical do well. And I wouldn't say it's soft; we did beat the last quarter.

Michael Scarpelli: Well, as I said, the strength was in financial services. In retail, we are seeing the technology vertical do well. And I wouldn't say it's soft. We did beat the last quarter. But what I would say is it's improving, but it's not back to the pre-2024 levels, as I mentioned. And we've revised our model to look at more recent history rather than going back too far in history for forecasting consumption patterns.

Speaker Change: Well as I said the strength was in financial services and retail we are seeing the technology vertical do well.

Speaker Change: And I wouldn't say, it's soft we did beat the last quarter.

Speaker Change: But what I would say is it's improving but it's not back to the pre 2024 levels.

Speaker Change: I mentioned and Thats. The we're basing we've revised our model to look at more recent history, rather than going back to far in history for forecasting consumption patterns.

Michael P. Scarpelli: But what I would say is it's improving, but it's not back to the pre-2024 levels, as I mentioned, and that's why we're basing our revised our model to look at more recent history, rather than going back too far in history for forecasting consumption patterns. Got it. That's very helpful. And then one more follow up on sort of the existing customer business and your net retention rate. That seemed to be on top of the bookings and other KPIs that are at least getting better on a rate of change basis. Is there any level that you would guide us to in terms of where that net retention rate could stabilize? Is that informing your guide aside from the kind of consumption you're seeing in any meaningful way? Any call you can give us would be helpful too.

Keith Weiss: Got it. That's very helpful. Then one more follow-up on sort of the existing customer business and your net retention rate. That seemed to be, on top of the bookings, another KPI that is at least getting better on a rate of change basis. Is there any level that you would guide us to in terms of where that net retention rate could stabilize? Is that informing your guide aside from kind of the consumption you're seeing in any meaningful way? Any color you can give us on that would be helpful too.

[Analyst] (Morgan Stanley): Got it. That's very helpful. Then one more follow-up on sort of the existing customer business and your net retention rate. That seemed to be, on top of the bookings, another KPI that is at least getting better on a rate of change basis. Is there any level that you would guide us to in terms of where that net retention rate could stabilize? Is that informing your guide aside from kind of the consumption you're seeing in any meaningful way? Any color you can give us on that would be helpful too.

Speaker Change: Got it that's very helpful. And then one more follow up on sort of the existing customer business and net retention rate that seem to be on top of the bookings in other kpis that is at least getting better on a rate of change.

Speaker Change: Basis.

Speaker Change: Is there any level that you would guide us to in terms of where that net retention rate could stabilize.

Speaker Change: Is that informing your guide aside from kind of the consumption youre seeing in any meaningful way any color you can give us some that would be helpful too.

Michael Scarpelli: Well, as we've said before, over time, net revenue retention will converge with our revenue growth rate. And as I've said before, I'm not going to guide to net revenue retention.

Speaker Change: Well as we've said before over time net revenue retention will.

Michael P. Scarpelli: Well, as we've said before, over time, net revenue retention will converge with our revenue growth rate, and as I've said before, I'm not going to guide you to net revenue retention. Got it, thanks. Next question comes from Raimo Lenschow of Barclays, out open. Thank you, Frank.

Speaker Change: Converge with our revenue growth rate.

Speaker Change: And as I've said before I'm not going to guide to net revenue retention.

Keith Weiss: Got it. Thanks.

[Analyst] (Morgan Stanley): Got it. Thanks.

Speaker Change: Got it thanks.

Operator: Thank you. Our next question comes from Raimo Lenschow of Barclays. Your line is now open. Please go ahead.

Speaker Change: Thank you.

Speaker Change: Our next question comes from Raimo <unk> of Barclays.

Raimo: Your line is now open. Please go ahead.

Raimo Lenschow: Thank you, Frank. All the best from me as well. Question for Sridhar. If you think about the customer conversations with AI, and people will think differently about the data and the data platform, can you speak a little bit about how do you see that playing out for you guys from a Snowflake perspective in terms of the one part that you have is the data warehouse, but also then more on the lake side? What do you see in what are you hearing customer conversations, and how are you positioned now, and what would be the push for you there? And then I have one follow-up for Mike.

Raimo: Thank you.

Raimo: All the best from me as well Chris.

Sridhar Ramaswamy: All the best for me as well. Question for Sridhar: if you think about customer conversations with AI, and you know, people will think differently about the data and the data platform. Speaking of Snowflake, how do you see them playing out for you guys from a Snowflake perspective in terms of, you know, the one part that you have is the data warehouse, but also then more on the lake side? What are you hearing in customer conversations and how are you positioned now and what would be the push for you there? Yeah, on Snowflake Cortex, we are implementing it as a core platform layer. It ships with every deployment.

Raimo: Christopher.

Raimo: If you think about the customer conversations with.

Raimo: <unk>.

Raimo: People will think differently about the data and the data platform can you just speak a little bit about how do you see that playing out for you guys from a snowflake perspective in terms of.

Raimo: One part of it you have the data warehouse, but also then more on the <unk> side.

Raimo: What are you seeing what are you in customer conversations and how you're positioned now and what would be the push for you. There and then I have one follow up for Mike.

Christian Kleinerman: Yeah. On Snowflake Cortex, we are implementing it as a core platform layer. It ships with every deployment. And it makes AI readily accessible from SQL so that even an analyst that's not an LLM expert or a Python expert can simply write SQL for things like summarization or sentiment detection data that is already in Snowflake. Our overall aspiration here is to make AI really, really simple for our customers to use. And in some sense, the prototypical AI application is a chatbot over a specialized corpus using what's called RAG, Retrieval-Augmented Generation. But the idea is basically you are able to, say, talk to your documentation or talk to the support cases that you have and get answers back in natural language but with things like citations so you can actually believe the answers that are coming back from the chatbot.

Speaker Change: Yeah on on on Snowflake cortex, we are implementing it as a core platform layer.

Raimo: Chips that every deployment.

Sridhar Ramaswamy: And it makes AI readily accessible from SQL, so even an analyst that's not a, you know, an LLM expert or a Python expert can simply write SQL for things like summarization or sentiment detection data that is already in Snowflake. Our overall aspiration here is to make AI really, really simple for our customers to use. And in some sense, the prototypical AI application is a chatbot on a specialized corpus using what's called RAG, Retrieval Augmented Generation.

Raimo: It makes AI readily accessible from from sequel, so that even an analyst that's not.

Raimo: LLM expert on a Python expert can simply right sequel are things like summarization, our sentiment detection data that is already in snowflake. Our overall aspiration here is to make AI really really simple for our customers to use.

Raimo: And in some sense deep prototypical application is a chat bot or a specialized carpet.

Raimo: Let's call it lagged retrieval augmented generation, but the idea is basically you are able to talk to your documentation or talk to the support cases that you have and get answers back in natural language, but with things like citations. So you can actually believed.

Sridhar Ramaswamy: But the idea is basically that you're able to, say, talk to your documentation or talk to the support cases that you have, and get answers back in natural language, but with things like citations, so you can actually believe the answers that are coming back from the chatbot. So both of these are ready-made applications that our customers are excited about. But I would say the big, big unlock is being able to get at the structured data that is in Snowflake and have that be accessed by many, many more people. Today, people go through an elaborate process of getting the data ready, using BI tools, going through a pretty slow cycle.

Raimo: The answers that are coming back from from the chatbot.

Christian Kleinerman: So both of these are ready-made applications that our customers are excited about. But I would say the big, big unlock is being able to get at the structured data that is in Snowflake and have that be accessed by many, many more people. Today, people go through an elaborate process of getting the data ready, using BI tools, going through a pretty slow cycle. And so the thing that we are driving towards is creating easy ways for people to be able to talk to subsets of data, like Mike to be able to talk to finance data or other things like that. I would say that that is the thing that is truly, truly exciting for our customers. And with respect to where data is sitting, as you know, we support things like Iceberg formats. It's getting more and more popular.

Raimo: So both of these already made applications that our customers are excited about but I would say the big big unlock is being able to get at the structured data that is in snowflake and have that be accessed by many many more people.

Raimo: Today people will go through an elaborate process of getting the data already using bi tools going through a pretty slow cycle.

Raimo: So the thing that we're driving towards is.

Raimo: Creating easy ways for people to be able to talk to subsets of data like Mike to be able to talk to finance data.

Sridhar Ramaswamy: And so the thing that we are driving towards is, you know, creating easy ways for people to be able to talk to subsets of data, you know, like Mike, to be able to talk to finance data or other things like that. I would say that that is the thing that is truly, truly exciting for our customers. And with respect to where data is sitting, as you know, we support things like iceberg formats. It's getting more and more popular.

Raimo: Other things like that I would say that that is the thing that is truly truly exciting flawed.

Raimo: Our customers.

Raimo: And with respect to where data is sitting as you know we support things like iceberg formats is getting more and more popular so data and profitability is very much a thing and.

Christian Kleinerman: So data interoperability is very much a thing. And our AI products can generally act on data that is sitting in cloud storage as well. So the solutions that we are offering as part of Snowflake are broadly applicable both to data within Snowflake but also data that's sitting in cloud storage.

Raimo: And our AD products can generally act on data that is sitting in cloud storage.

Raimo: Well so the solutions that we're offering as part of a snowflake are broadly applicable both to data within snowflake, but also data that's sitting in cloud storage.

Sridhar Ramaswamy: So data interoperability is very much a thing, and our AI products can generally act on data that is sitting in cloud storage as well. So the solutions that we are offering as part of Snowflake are broadly applicable, both to data within Snowflake but also to data that's sitting in cloud storage.

Raimo Lenschow: Okay. Perfect. Thank you. And then, Mike, a quick question for you on the gross margin side. Congrats on the amazing improvement there. Did I understand you correctly? Is that just one hyperscaler where the contract terms kind of got improved? And is that something that we could kind of hope for others, or is the level now the level? Thank you.

Speaker Change: Okay perfect. Thank you Mike.

Speaker Change: Question for you on the gross margin side.

Speaker Change: Congrats on the amazing improvement here.

Speaker Change: Did I understand you correctly that just one hyperscale area with the contract terms kind of got improved and is that something that you could kind of hopeful for other stories the level now that level. Thank you.

Michael P. Scarpelli: Perfect. Thank you. And then, Mike, a quick question for you. On the gross margin side, you know, congrats on the amazing improvement there. Is that, was that, did I understand you correctly?

Michael Scarpelli: So as a reminder, we did AWS and Azure before our Investor Day last year. We just did our Google contract last quarter as well. So all three of those contracts now, and those are where we are running in those three clouds, are current. And I don't expect any changes to those terms in any meaningful way in the short term.

Raimo: So as a reminder, we did AWS and.

Raimo: Azure.

Raimo: For our Investor Day last year, we just did our Google contract last quarter as well. So all three of those contracts now and those are where we are running in those three clouds are current and I don't expect any changes to those terms in any meaningful way in the short term.

Michael P. Scarpelli: Is that just one high-pressure scaler where the contract terms kind of got improved? And is that something that we could kind of hope for others? Or is it the level now? The level. So, as a reminder, we did AWS and Azure before our Investor Day last year. We just did our Google contract last quarter as well. So all three of those contracts now, and those are where we are running in those three clouds, are current, and I don't expect any changes to those terms in any meaningful way in the short term at Ancestor.

Raimo Lenschow: Perfect. That answers it. Thank you.

Raimo: Perfect.

Speaker Change: Thank you.

Operator: Thank you. Our next question comes from Kirk Materne from Evercore. Your line is now open. Please go ahead.

Speaker Change: Thank you.

Speaker Change: Our next question comes from Doug <unk> from Evercore your.

Doug: Your line is Nathan Please go ahead.

Christian Kleinerman: Yeah. Thanks very much. And Frank, congrats on a great run at Snowflake and before. Mike, maybe for you, every year, you've told us that you always include technology advancements that you pass back to your customers in your guidance. It seems like there's a higher level of conservatism around that, just given the lack of visibility on that. Can you try to, I guess, qualitatively give us some idea of how much bigger a headwind that is than prior years, just to go along with some of the conservatism around consumption trends?

Kirk Materne: Yeah. Thanks very much. And Frank, congrats on a great run at Snowflake and before. Mike, maybe for you, every year, you've told us that you always include technology advancements that you pass back to your customers in your guidance. It seems like there's a higher level of conservatism around that, just given the lack of visibility on that. Can you try to, I guess, qualitatively give us some idea of how much bigger a headwind that is than prior years, just to go along with some of the conservatism around consumption trends?

Doug: Hi, yes, thanks, very much and Frank Congrats on a great run that snowflake in before.

Doug: Mike maybe for you every year, you've told us that Youre always include.

Unknown Executive: Thank you. Our next question comes from Kirk Materne from Abbotton. Please go ahead.

Doug: Technology advancements that you passed back to your customers and your guidance. It seems like there is a higher level of conservatism around that just given the lack of visibility on that can you try to.

Michael P. Scarpelli: Oh, yeah, thanks very much. And Frank, congrats on a great run at Snowflake. And before, you know, Mike, maybe for you, you know, every year, you've told us that you always include technology advancements that you pass back to your customers and your guidance. It seems like there's a higher level of conservatism around that, just given the lack of visibility on that. Can you try to, I guess, qualitatively give us some idea of how much bigger a headwind that is than prior years, just to go along with some of the conservatism around consumption trends? It's about a six point, to 6.3% impact this year, but coupled with that too, in revenue, we rolled out tiered storage pricing in Q4. So the amount of revenue associated with storage is coming down, but on top of that, we do expect a number of our large customers are going to adopt Iceberg formats and move their data out of Snowflake, where we lose that storage revenue and also the compute revenue associated with moving that data into Snowflake.

Doug: Qualitatively give us some idea of how much bigger are headwind that as in prior years just to go along with some of the conservatism around consumption trends.

Michael Scarpelli: It's about a 6.2, 6.3% impact this year. But coupled with that, too, in the revenue, we rolled out in Q4 tiered storage pricing. So the amount of revenue associated with storage is coming down. But on top of that, we do expect a number of our large customers are going to adopt Iceberg formats and move their data out of Snowflake where we lose that storage revenue and also the compute revenue associated with moving that data into Snowflake. We do expect, though, there'll be more workloads that will move to us. But until we see that incremental revenue on workloads, we're not going to forecast that. I will say, last year, we saw a 62% increase in the number of jobs running on Snowflake year-over-year with a corresponding 33% increase in revenue.

Doug: It's about a six point.

Doug: 263% impact this year.

Doug: And but coupled with that too and the revenue we rolled out in Q4 tiered storage pricing.

Doug: The amount of revenue associated with storage is coming down but on top of that we do expect a number of our large customers are going to adopt iceberg formats.

Doug: <unk> move their data out of Snowflake, where we lose that storage revenue and also the compute revenue associated with moving that data into snowflake.

Doug: We do expect though there'll be more workload, so we'll move to us, but until we see that incremental revenue on workloads.

Doug: We're not going to we're not going to forecast that.

Doug: We'll say.

Doug: Last year, we saw a 62% increase in the number of jobs running on snowflake year over year with a corresponding 33% increase in revenue and that's because we continue to show our customers that we become cheaper and cheaper to them every year and when we do that it opens up new workload opportunity.

Michael P. Scarpelli: We do expect, though, there'll be more workloads that will move to us, but until we see that incremental revenue from workloads, we're not going to forecast that. I will say, last year, we saw a 62% increase in the number of jobs running on Snowflake year over year with a corresponding 33% increase in revenue. And that's because we continue to show our customers that we are becoming cheaper and cheaper to them every year. And when we do that, it opens up new workload opportunities for us, and we'll continue to do that. That's right.

Michael Scarpelli: And that's because we continue to show our customers that we become cheaper and cheaper to them every year. And when we do that, it opens up new workload opportunities for us. And we'll continue to do that.

Doug: For us and we will continue to do that.

Christian Kleinerman: That's great. I'll leave it there. Sridhar, congrats on the new position. Thanks, guys.

Speaker Change: Okay, that's great I'll leave it there to treat our congrats on the new position. Thanks guys.

Speaker Change: Okay.

Operator: Thank you. Our next question for today comes from Brent Thill of Jefferies. Your line is now open. Please go ahead.

Speaker Change: Thank you.

Speaker Change: Next question for today comes from Brent Thill of Jefferies.

Brent John Thill: Your line is now open. Please go ahead.

Brent Thill: Thanks. Mike, I just want to reconcile a really good RPO close, acceleration in Q4, and then how you marry that with the guide. I think there's a lot of questions about the acceleration you saw and perhaps why that may not flow through into next year.

Brent John Thill: Thanks, Mike I, just wanted to reconcile really good RP O close acceleration in Q4, and then how you marry that with the guide I think Theres a lot of questions about the acceleration you saw on perhaps why why that may not flow through into next year.

Michael P. Scarpelli: All the way there, Sridhar. Congratulations on the new position. Thanks. Our next question for today comes from Brent Thill of Jeffreys. Your line is now open, please go ahead. Thanks, Mike. I just want to reconcile, you know, really good RPO closed acceleration in Q4 and then how you marry that with the guide. I think there are a lot of questions about the acceleration you saw and perhaps why why that may not flow through into next. Well, I would say we signed a lot of large multi-year deals in Q4. I mentioned the one that was a five-year, $250 million deal.

Michael Scarpelli: Well, I would say we signed a lot of large multi-year deals in Q4. I mentioned the one that was a 5-year, $250 million deal. So what that really shows is the commitment customers are making to Snowflake. From a customer's perspective, as long as they use those credits up within their contract period, they're fine. There is a lot of pent-up demand for a lot of our new products that are coming out. Sridhar talked about Document AI, but we have a lot of customers that want Cortex and Snowpark Container Services. So I think it's going to be more back-end loaded this year. Until we see that consumption by our customers, it's hard to forecast that. So stay tuned.

Michael P. Scarpelli: Well I would say, we signed a lot of large multiyear deals in Q4 I mentioned, the one that was a five year $250 million deal. There is and so what customers would that really shows is the commitment customers are making to snowflake and from a customer's perspective.

Brent John Thill: As long as they use that those credits up within their contract period Theyre fine. There is a lot of pent up demand for a lot of our new products that are coming out.

Michael P. Scarpelli: There is, and so when customers, what that really shows is the commitment customers are making to Snowflake. And from a customer's perspective, as long as they use that, those credits up within their contract period, they're fine. There is a lot of pent-up demand for a lot of our new products that are coming out. Sridhar talked about Document AI.

Brent John Thill: Schrader talked about document AI, but we have a lot of customers that want cortex, and snow Park container services. So I think it's going to be more backend loaded this year and until we see that.

Brent John Thill: Yes.

Brent John Thill: Consumption by our customers it is hard to forecast that so.

Brent John Thill: They tuned.

Brent Thill: Okay. And Mike, just on linearity in Q4, I know the holidays were the holidays, but did you see things bounce back similar to what you've seen historically in Q4s, or was there anything unique closing out the quarter?

Speaker Change: Okay, and Mike just on linearity in Q4.

Michael P. Scarpelli: But we have a lot of customers that want Cortex and Snowpark container services, so I think it's going to be more back-end heavy this year. And until we see that consumption by our customers, it's hard to forecast that. So stay tuned. Okay, and Mike, just on linearity in Q4. I know the holidays were the holidays, but, you know, did you see things bounce back similar to what you've seen historically in Q4s or not? Was there anything unique closing out the quarter? Are you talking from a revenue perspective, or are you talking about bookings?

Speaker Change: I know the holidays, where the holidays.

Speaker Change: Did you did you see things bounce back similar to what you've seen historically in Q4s or.

Speaker Change: Was there anything unique.

Speaker Change: Closing closing out the quarter.

Michael Scarpelli: Are you talking from a revenue, or are you talking about bookings? Bookings was very strong in January. I would say from a revenue consumption pattern, I think there was a little bit more of a prolonged holiday that went into mid-January. Coming out of January, consumption's good, but once again, and through today, but it's more in line with 2024 consumption versus the pre-2024 consumption patterns.

Michael P. Scarpelli: Are you talking from a revenue or are you talking about bookings.

Michael P. Scarpelli: Bookings was very strong in January.

Michael P. Scarpelli: I would say from a revenue consumption pattern I think there was a little bit more of a prolonged holiday that went into mid January.

Michael P. Scarpelli: Coming out of January consumption is good, but once again and through today, but it's more in line with 2020 for consumption versus the pre 2000.

Michael P. Scarpelli: Bookings were very strong in January. I would say from a revenue consumption perspective, I think there was a little bit more of a prolonged holiday that went into mid-January. Coming out of January, consumption is good, but once again, and through today, it's more in line with 2024 consumption versus the pre-2024 consumption pattern. Okay, great. Our next question comes from Aleks Zukin of Wolf Research. Your line is now open; please go ahead. Hey guys, this is Al-Anon.

Michael P. Scarpelli: For consumption patterns.

Brent Thill: Okay. Great. Thank you.

Speaker Change: Okay, great. Thank you.

Operator: Thank you. Our next question comes from Alex Zukin of Wolfe Research. Your line is now open. Please go ahead.

Speaker Change: Thank you. Our next question comes from Alex Zukin of Wolfe Research.

Aleksandr J. Zukin: Your line is now open. Please go ahead.

Alex Zukin: Hey, guys. This is Allan on. Mike, just as a follow-up about consumption in the quarter, I'd love to maybe get a comparison on February. I know we got a day left, but maybe how this month shaped out compared to February of last year. And then I got a quick follow-up. That's from a consumption perspective.

Aleksandr J. Zukin: Hey, guys. This is allen on.

Aleksandr J. Zukin: Mike just as a follow up about consumption in the quarter love to maybe get a comparison on February and now we got a day left but maybe how this month shaped out compared to February of last year, and then I've got a quick follow up.

Aleksandr J. Zukin: And thats from a consumption perspective.

Michael Scarpelli: Consumption is tracking where we are, and I just gave guidance for the quarter. So I don't know what else you want me to tell you.

Aleksandr J. Zukin: The consumption is tracking where we are and I just gave guidance for the quarter.

Michael P. Scarpelli: So I don't know what else you want me to tell you.

Alex Zukin: Okay. And as a follow-up, I guess, you talked about some of the free cash flow impacts from the go-to-market change around pushing consumption more. Is there any way we should be thinking about maybe the top-line impacts as a result of that with the guide? Thanks.

Michael P. Scarpelli: Okay.

Michael P. Scarpelli: Mike, just as a follow-up about... Or I'd love to maybe get a comparison of February. I know we have a day left, but maybe how this month shaped out compared to February last year, and then I got a quick follow-up, and that's from a. The consumption is tracking where we are, and I just gave guidance for the quarter, so I don't know what else you want me to tell you. Okay. And as a follow-up, I guess, to what we talked about in the GoToMarketChange around pushing consumption more. Is there any way we should be thinking about maybe the top line impacts as a result of that with the guys? What I was talking about was cash flow with the switch in the comp plan from paying people on consumption versus booking, and it doesn't really change the free cash, the cash flow associated with it because we're still doing the payments the same, and it has a $30 million P&L impact, but no cash flow impact is what I was referring to.

Speaker Change: And as a follow up I guess.

Speaker Change: You talked about some of the free cash flow impact.

Michael P. Scarpelli: They go to market changed around pushing consumption more is there any way we should be thinking about maybe the top line impacts as a result of that what the guidance. Thanks.

Michael Scarpelli: What I was talking about was cash flow with the switch in the comp plan from paying people on consumption versus the booking. It doesn't really change the cash flow associated because we're still doing the payments the same. And it has a $30 million P&L impact, but no cash flow impact is what I was referring to. Obviously, one of the reasons why we switched to paying reps more on consumption is because we want reps to be driving revenue more rather than bookings necessarily. Our reps are heavily compensated on two things this year. You have approximately 35% of our reps are focused just on initial new customers. 55% are just paid on existing customers with driving consumption, identifying new workloads within customers. And you have about 10% that are in a hybrid, a mix of new customers and consumption.

Michael P. Scarpelli: What I was talking about was cash flow with the switch in the comp plan from paying people on consumption versus the booking.

Michael P. Scarpelli: It doesn't really change the free cash flow associated because we're still doing the payments the same.

Michael P. Scarpelli: And it has a $30 million P&L impact, but no cash flow impact is what I was referring to and obviously one of the reasons why we switched to paying reps more on consumption, because we want reps to be driving revenue more rather than bookings necessary and our reps are heavily compensated on two things. This year you have.

Michael P. Scarpelli: Approximately 35% of our reps are focused just on initial new customers.

Michael P. Scarpelli: And obviously, one of the reasons why we switched to paying reps more in consumption is because we want reps to be driving revenue more rather than bookings necessarily. And our reps are heavily compensated for two things this year. You have approximately 35% of our reps are focused just on initial new customers. 55% are just paid on existing customers, driving consumption, and identifying new workloads within customers. You have about 10% that are in a hybrid, a mix of new customers and consumption. And those are more in emerging territories or territories where maybe the installed base of customers isn't as high. Our next question comes from Brent Bracelin of Piper's Hand. Your lines are now open, please go ahead.

Michael P. Scarpelli: 55% are just paid on existing customers with driving consumption identifying new workloads within customers you have about 10% that are in a hybrid mix of new customers and consumption and those are more of an emerging territories or territories, where maybe the installed base of customers isn't as high.

Michael Scarpelli: Those are more in emerging territories or territories where maybe the installed base of customers isn't as high.

Operator: Thank you. Our next question comes from Brent Bracelin of Piper Sandler. Your line is now open. Please go ahead.

Speaker Change: Thank you.

Michael P. Scarpelli: The next question comes from Brent <unk> of Piper Sandler. Your line is now open. Please go ahead.

Christian Kleinerman: Thank you. Good afternoon. Frank, I'll wish you well in retirement. I'll forever remember working with you on the first IPO and the last one here. It's been an amazing 17-year journey. Mike, glad to know you'll be with us for another three years. My question here is for Sridhar. As we think about driving more AI workloads to the Snowflake platform, what's the tip of the spear going forward? Is it Cortex? Is it Snowpark? Help us understand what you're focused on accelerating AI workloads to Snowflake.

Brent Bracelin: Thank you. Good afternoon. Frank, I'll wish you well in retirement. I'll forever remember working with you on the first IPO and the last one here. It's been an amazing 17-year journey. Mike, glad to know you'll be with us for another three years. My question here is for Sridhar. As we think about driving more AI workloads to the Snowflake platform, what's the tip of the spear going forward? Is it Cortex? Is it Snowpark? Help us understand what you're focused on accelerating AI workloads to Snowflake.

Brent: Thank you good afternoon Frank.

Brent: <unk> is here and the retirement all forever remember you're working with you on our first IPO and the last one here. It's been amazing 17 year journey, Mike glad to do Youll be with us for another three years. My question here is for sure. There are as we think about driving more AI workloads to this.

Sridhar Ramaswamy: Thank you. Good afternoon, Frank. Well wishes in retirement. I'll forever remember working with you on the first IPO and the last one here. It's been an amazing 17 year journey.

Michael P. Scarpelli: Mike, glad to know you'll be with us for another three years. My question here is for Sridhar, as we think about driving more AI workloads to the Snowflake platform, what's the tip of the spear going forward? Is it Cortex? Is it Snowpark?

Brent: <unk> Lake platform.

Brent: What's the tip of the spear going forward is it cortex is it snow Park help us understand what you are focused on accelerating workloads to the snowflake.

Christian Kleinerman: Yeah. When it comes to AI, as I was outlining, first of all, simplifying it so that it is easy for our customers to use via Cortex is the very first thing. And a lot of things that you and I, like analysts, do with text now become so much easier to do with language models of different sizes. But I would say the applications that truly drive customer excitement, that there is incredible demand for, are on the Document AI side and on the Copilot offering. They're different, but they use the same underlying technologies. Document AI is about extracting structured information from unstructured documents like PDFs that every enterprise has boatloads of.

Sridhar Ramaswamy: Help us understand what you're focused on accelerating AI workloads to Snowflake. Yeah, when it comes to AI, as I was outlining, first of all, simplifying it so that it is easy for our customers to use via Cortex is the very first thing. And a lot of things that you and I, like, you know, analysts do with text now become so much easier to do with language models of different sizes. But I would say the applications that truly drive customer excitement and that there is incredible demand for are on the Document AI side and on the Copilot offering. They're different, but they use the same underlying technologies. Document AI is about extracting structured information from unstructured documents like PDFs that every enterprise has boatloads of.

Speaker Change: Yes, when it comes to AI as it was outlining first of all simplifying it.

Speaker Change: So that it is easy for our customers to use.

Speaker Change: Cortex is the very first thing and a lot of things that you and I like analysts do with tax now becomes so much easier to do with language models of different different sizes.

Speaker Change: But I would say the.

Speaker Change: The obligations that truly drive customer excitement that there is incredible demand far.

Brent: Our on the document AI side.

Brent: And on the co pilot offering there.

Brent: They are different but they use the same underlying technology as document AI is about extracting structured information from unstructured documents like pdfs that every enterprise.

Christian Kleinerman: And then on the other side, Copilot finally makes real the possibility of being able to just talk to your data, ask questions in natural language, and for that to get translated underneath to SQL, for that SQL to be run against Snowflake, and for you to get back a tabular answer, and then soon visualizations as well. It's that kind of fluid access that customers are really, really excited by. And what you get from Snowflake is that this comes out of the box. This is very easy. You can build a Streamlit app with it. And so it avoids all of the complicated exfiltration of data using other tools, needing to stitch things together as an IT project in order to get something done. And that's the power of our platform where we know the data. We know the schema.

Brent: As boatloads off.

Sridhar Ramaswamy: And then, on the other side, Copilot finally makes the possibility of, like, being able to just talk to your data, ask questions in natural language, and for that to get translated underneath to SQL, for that SQL to be run against Snowflake, and for you to get back, you know, get back a tabular answer, and then soon visualizations as well. It's that kind of fluid access that customers are really, really excited about. And what you get from Snowflake is that this comes out of the box. This is very easy.

Brent: And then on the other side.

Brent: Co pilot.

Brent: Finally make three all the possibility of like being able to just talk to your data ask questions and natural natural language and for that to get translated underneath the <unk>.

Brent: Sequel for that's equal to be it on again against Snowflake.

Brent: For you to get back get back a tabular answer and then soon visualizations as well.

Brent: Kind of fluid access that customers are really really excited by and what you get from Snowflake is that this comes out of the box. This is very easy can build a stream lit up with it.

Sridhar Ramaswamy: You can build a streamlined app with it, and so it avoids all of the complicated exfiltration of data using other tools needing to stitch things together as an IT project in order to get something done. And that's the power of our platform, where we know the data, we know the schema, we know all the previous queries that have been run against it, and are therefore able to create a very effective Copilot solution. So hopefully, that gives you a flavor for the kinds of conversations that we've been having with customers and what they're looking for. Very helpful there. And then Mike, if I just look at the guide on a per customer basis, it does look like consumption per customer could be slower this year than last year. What's the delta like there?

Brent: And so why is all of the complicated exploration of data using other tools needing to stitch things together as an it project in order to get something done.

Brent: And that's the power of our platform, where we know the data the schema when all the previous studies that have been drawn against it and are therefore able to create a very effective co pilot.

Christian Kleinerman: We know all the previous queries that have been run against it and are therefore able to create a very effective Copilot solution. So hopefully, that gives you a flavor for the kinds of conversations that we've been having with customers and what they're looking forward to.

Brent: Hopefully that gives you a flavor for the kinds of conversations have you been having customers on what they are looking forward.

Christian Kleinerman: Very helpful there. And then, Mike, if I just look at the guide on a per-customer basis, it does look like consumption per customer could be slower this year than last year. What's the delta there? Is the primary delta the assumption that tiered storage pricing and Iceberg will put more pressure on consumption growth? Is that the primary delta, or is there something else I'm missing?

Brent Bracelin: Very helpful there. And then, Mike, if I just look at the guide on a per-customer basis, it does look like consumption per customer could be slower this year than last year. What's the delta there? Is the primary delta the assumption that tiered storage pricing and Iceberg will put more pressure on consumption growth? Is that the primary delta, or is there something else I'm missing?

Speaker Change: Very helpful. There and then Mike if I just look at the guide on a per customer basis. It does look like consumption per customer could be slower this year than last year. What's the delta. There is the primary delta the assumption that tiered storage.

Speaker Change: <unk>.

Speaker Change: Pricing an iceberg.

Michael P. Scarpelli: Is the primary delta the assumption that tiered storage pricing and icebergs will put more pressure on consumption growth? Is that the primary delta? Or is there something else I'm, Now there's a lot of new performance enhancements being rolled out on our software this year that are going to have an impact. There's also, Well, I'll tell you, but I really don't want to because I know you're going to ask a lot of questions. We're also rolling out the ARM chip in Azure. It's not as big as AWS, but it has an impact that will impact that as well, too. And clearly, we do expect customers will begin to adopt the iceberg table format. Huffleculler.

Speaker Change: Put more pressure on consumption growth is that the primary delta or is there something else I'm missing.

Michael Scarpelli: No. There's a lot of new performance enhancements being rolled out on our software this year that are going to have an impact. Well, I'll tell you, but I really don't want to because then I know you're going to ask a lot of questions. We're also rolling out the Armship. The Azure, it's not as big as AWS has an impact. That will impact that as well, too. Clearly, we do expect customers will begin to adopt Iceberg table format.

Michael P. Scarpelli: No. There's a lot of new performance enhancements being rolled out on our software. This year that are going to have an impact theres also.

Michael P. Scarpelli: Well I'll tell you, but I really don't want to because I know youre going to ask follow up questions.

Michael P. Scarpelli: Also rolling out with the arm chip in the Azure, it's not as big as AWS has an impact that will impact that as well too.

Speaker Change: And clearly we do expect.

Speaker Change: Customers will begin to adopt.

Speaker Change: Iceberg table format.

Christian Kleinerman: Couple of color. Thank you.

Brent Bracelin: Couple of color. Thank you.

Speaker Change: Helpful color. Thank you.

Operator: Thank you. Our next question comes from Kash Rangan from Goldman Sachs. Your line is now open. Please go ahead.

Speaker Change: Thank you.

Speaker Change: Question comes from Kash Rangan from Goldman Sachs.

Michael P. Scarpelli: Thank you. Thank you. Our next question comes from Kasthuri Rangan from Godden. Alliance now open, please. Thank you very much.

Kasthuri Gopalan Rangan: Your line is now open. Please go ahead.

Kash Rangan: Thank you very much. Mike, one for you and one for you, Sridhar. Mike, how much of the conservatism is due to the transition at the CDMO's level? And one for you, Sridhar. Congratulations. What are the biggest challenges and opportunities facing Snowflake, in your opinion? Thank you so much once again.

Kasthuri Gopalan Rangan: Thank you very much Mike one for you and one for you Mike how much of the conservatism is due to the transition at the senior most level of non <unk> III congratulations.

Unknown Executive: Mike, one for you, and one for you, Sridhar. Mike, how much of the conservatism is due to the transition at the senior most level? And one for you, Sridhar, congratulations. What are the biggest challenges and opportunities facing Snowflake, in your opinion? Thank you so much once again.

Kasthuri Gopalan Rangan: The biggest challenges and opportunities facing snowflake in your opinion. Thank you so much once again.

Michael Scarpelli: I don't know how to answer that question, Kash, but what I would say is I'd like to set the company up to be successful throughout the year as we progress with Sridhar coming on board.

Speaker Change: I don't know how to answer that question cash, but what I would say is I'd like to set the company up to be successful drove the year as we progress with Schrader coming onboard.

Sridhar Ramaswamy: I don't know how to answer that question, Cash, but what I would say is I'd like to set the company up to be successful throughout the year as we progress with Sridhar coming on board. Yeah, and to answer your question. Yeah, to answer your question, Kash. As you know, like Frank, our founders have built Snowflake to be the trusted, efficient, and cost-effective platform for enterprises. So I'm standing on the shoulders of giants to take us to the next chapter.

Christian Kleinerman: Yeah. To answer your question, Kash, as you know, Frank, our founders, have built Snowflake to be the trusted, efficient, and cost-effective platform for enterprises. So I'm standing on the shoulder of giants to take us to the next chapter. And we already have a pretty ambitious plan, for example, to be able to write applications on top of Snowflake. And those underlying technologies, native applications, container services, are rolling out to GA this year. And then I would add what is unique about this moment in technology, of course, is AI and its power to democratize access to enterprise data. I think this sort of dramatically changes our understanding and notions of what an application is, how things can be stitched together.

Speaker Change: Yes.

Speaker Change: To answer your question.

Speaker Change: Yes to answer your question cost.

Speaker Change: Like Frank our founders.

Speaker Change: Have built snowflake to be the trusted efficient and cost effective platform.

Speaker Change: Enterprises, so im standing on the shoulder of Giants to take us to the next chapter.

Speaker Change: And we already have a pretty ambitious plans for example to be able to write applications on top of Snowflake and those underlying technologies native applications container services are rolling out two <unk> this year.

Sridhar Ramaswamy: And we already have a pretty ambitious plan, for example, to be able to write applications on top of Snowflake, and those underlying technologies, native applications, container services, are rolling out to GA this year. And then I would add that what is unique about this moment in technology is AI and its power to democratize access to enterprise data. I think this sort of dramatically changes our understanding and notions of what an application is, and how things can be stitched together.

Speaker Change: And then I would add what.

Speaker Change: <unk> is unique about this moment in technology of course is AI and its power to Democratic is access to enterprise to enterprise data.

Speaker Change: I think this.

Speaker Change: Dramatically changes.

Speaker Change: Understanding our notions of what an application is all things can be stitched together.

Christian Kleinerman: I think it is that a data platform combined with applications, with AI powering things like interoperability, that I think is the biggest opportunity in front of us. And we have a ton of investments. As I said, many of them are coming to GA. Getting them out quickly and driving adoption is easily my highest priority. And in terms of challenges, some of these were deep platform surgeries. Unistore, as you folks know, is an incredibly ambitious project that has never been done before, but it will roll out. So I think you're going to see us realize a lot of benefits of the investments that we've been making in the core technology platform over the last two years. But as you know, AI is also moving at lightning speed. We have an amazing team that's at work on it.

Sridhar Ramaswamy: I think it is that data platform combined with applications, with AI powering things like interoperability, that I think is the biggest opportunity in front of us. And we have a ton of investments, as I said, many of them are coming to GA. Getting them out quickly and driving adoption is easily my highest, you know, highest priority. And, you know, in terms of challenges, some of these were deep platform surgeries. Unistore, as you folks know, is an incredibly ambitious project that has never been done before.

Speaker Change: It is it is that.

Speaker Change: Data platform combined with obligations with AI powering things like interoperability that I think is the biggest opportunity in front of us and we have a ton of investments I said many of them are coming to.

Speaker Change: Getting them out quickly and driving adoption.

Speaker Change: Is easily my highest highest priority.

Speaker Change: And on.

Speaker Change: And in terms of challenges some of these better deep platform surgeries unit store as you folks know is an incredibly ambitious project.

Speaker Change: Never been done before.

Speaker Change: But it will.

Speaker Change: It will rollout so I think you're going to see us realize a lot of benefits of the investments that we've been making.

Sridhar Ramaswamy: But it will, it will roll out. So I think you're going to see us realize a lot of benefits of the investments that we've been making in the core technology platform over the last two years. But, as you know, AI is also moving at lightning speed.

Speaker Change: In the core technology platform or the over the last two years.

Speaker Change: As you know is also moving at Lightning speed, we have an amazing team that is at work on it.

Christian Kleinerman: I think there's just lots more disruption to the software landscape to come. That's why acting with speed and urgency is especially important for us.

Speaker Change: But I think theres, just lots more disruption to the software landscape to come and.

Sridhar Ramaswamy: We have an amazing team that's at work on it, but I think there's just lots more disruption to the software landscape to come. And that's why acting with speed and urgency is especially important for us. Awesome. Excited to be on this journey with you, Sridhar.

Speaker Change: And Thats why acting with speed and urgency is especially important for us.

Kash Rangan: Awesome. Excited to be on this journey with you, Sridhar. Congratulations. Thank you, Mike.

Speaker Change: Awesome et cetera to be on this journey with you congratulations and thank you Mike.

Christian Kleinerman: Thank you, Kash.

Speaker Change: Thank you.

Operator: Thank you. Our next question comes from Patrick Colville of Scotiabank. Your line is now open. Please go ahead.

Speaker Change: Thank you. Our next question comes from Patrick Colville of Scotiabank. Your line is now open. Please go ahead.

Sridhar Ramaswamy: Congratulations and thank you, Mike. Thank you. Our next question... Patrick Colville of Scotiabank, Lansdowne Open, please go ahead. Alright, thank you for taking my question. I mean, under Frank's leadership, Snowflake's undoubtedly been a bit of a rocket ship. So, Frank, I want to ask you, why leave now?

Michael Scarpelli: All right. Thank you for taking my question. I mean, under Frank's leadership, Snowflake's undoubtedly been a bit of a rocket ship. So, Frank, I want to ask you, why leave now? And then Sridhar, I'm going to ask you one as well, looking forward to you being in charge for exciting next steps. How are you thinking about your strategy for Snowflake and changes you want to make now that you're in the CEO position? I've got a quick follow-up. If that's all right.

Patrick Colville: All right. Thank you for taking my question. I mean, under Frank's leadership, Snowflake's undoubtedly been a bit of a rocket ship. So, Frank, I want to ask you, why leave now? And then Sridhar, I'm going to ask you one as well, looking forward to you being in charge for exciting next steps. How are you thinking about your strategy for Snowflake and changes you want to make now that you're in the CEO position? I've got a quick follow-up. If that's all right.

Patrick Edwin Ronald Colville: Alright, Thank you for taking my question.

Patrick Edwin Ronald Colville: I mean under Frank's leadership snowflakes undoubtedly been a bit of a rocket ship. So frankly, what else you why leave now and then treat all I can ask you one as well looking forward to being in charge for exciting next steps. How are you thinking about dual strategy for snowflake and changes you want to make.

Speaker Change: Now that you own the CEO position, we've got a quick follow up that's right.

Frank Slootman: Yeah. The important thing that I tried to highlight in the prepared remarks was that we haven't run succession as a time-based process. And I said, "Why ask now?" It's not a timing issue. It is, do we have the person that we think is going to be an incredible win for the company going forward? And you can't dictate that or mandate that. It's just based on opportunities that will or will not present themselves. So we feel incredibly fortunate that we crossed paths with Sridhar through the acquisition of Neeva. If I think of myself, not just as the former CEO of Snowflake, but also as an individual shareholder in Snowflake, this is the move I want to make at this time. And I cannot tell you, as an investor, how strongly you should feel about succession. This is not just about changing the guard.

Speaker Change: Yes.

Speaker Change: The important thing that I tried to highlight in the prepared remarks was that we haven't grown succession as a.

Frank Slootman: And then Sridhar, I can ask you on as well, you know, looking forward to you being in charge of exciting next steps. How are you thinking about your strategy for Snowflake and changes you want to make now that you're in the CEO position? Quick Pull Off.

Speaker Change: Time based process Cys now, it's not a timing issue. It is do we have the person.

Speaker Change: We think there's going to be an incredible win for the company going forward and Thats not.

Frank Slootman: That's right. Yeah. The important thing that I tried to highlight in my prepared remarks was that we haven't run succession as a time-based process, and I said, "Why ask now?" It's not a timing issue. It is, you know, do we have the person that we think is going to be an incredible win for the company, you know, going forward? And that's not, you can't dictate that or mandate that

Speaker Change: You can't dictate that our mandate.

Speaker Change: Based on opportunities that will or will not present themselves. So.

Speaker Change: We feel incredibly fortunate that we cross paths was treat our <unk> acquisition.

Speaker Change: Of of NEVA.

Speaker Change: If I think of myself.

Speaker Change: This is the former CEO of Snowflake, but also as an individual shareholder and snowflake.

Frank Slootman: That is just based on opportunities that will or will not present themselves. So, we feel incredibly fortunate that we crossed paths with Trader through the acquisition of Niva. You know, if I think of myself, not just as the former CEO of Snowflake but also as an individual shareholder in Snowflake, this is the move I want to make at this time. And, you know, I cannot tell you as an investor how strongly you should feel about succession. This is not about just changing the guard.

Speaker Change: I want to make at this time.

Speaker Change: I cannot tell you.

Speaker Change: Industrial how strongly you should feel.

Speaker Change: About the succession. This is not about just about changing of the guard. This is also about positioning the company.

Frank Slootman: This is also about positioning the company really, really well for the challenges that are coming at us.

Speaker Change: Really really well for the challenges that are coming at us.

Christian Kleinerman: Yeah. And just adding on to what Frank said just now, our short-term goals are very clear. As I said, we have a slew of product enhancements in everything from transactional systems like Unistore to interoperable storage to making applications on top of our Data Cloud possible with native applications, container services, and, of course, AI on top of that. So I think the short-term and the need to react pretty quickly to a very quicksilver AI landscape is what I'm going to be focused on. But I would almost say that that actually translates pretty well into a longer-term strategy. Our belief is that a cloud that starts with data at the center, combined with our product philosophy of creating a tightly integrated, easy-to-use product, is the long-term winning strategy.

Speaker Change: Yeah, and just adding onto what.

Speaker Change: Hank said just now.

Speaker Change: Short term goals are very clear as I said, we have a.

Speaker Change: A slew of product enhancements and everything from.

Speaker Change: Like transactional systems like unit store to interoperable storage.

Sridhar Ramaswamy: This is also about positioning the company really, really well for the challenges that are coming at us. Yeah, and just adding on to what Frank said just now. Our short-term goals are very clear. As I said, we have a slew of product enhancements and everything from, you know, transactional systems like Unistore, to interoperable storage, to making applications on top of our data cloud possible with native applications and container services, and of course, AI on top of that. So I think the short term and the need to react pretty quickly to a very quick silver AI landscape is what I'm going to be focused on. But I would almost say that, you know, that actually translates pretty well into a longer-term strategy.

Speaker Change: Two making applications on top of our data cloud possible with native applications and container services and of course AI on top of that so.

Speaker Change: So I think the short term.

Speaker Change: And the need to react pretty quickly too.

Speaker Change: A very quick silver AI landscape.

Speaker Change: I am going to be focused on but I would almost say that.

Speaker Change: Actually translates pretty well into our longer term strategy. Our belief is that a cloud that starts with data center combined with our product philosophy of creating a tightly integrated easy to use product is the long term winning strategy, yes. They are.

Christian Kleinerman: Yes, there are going to be details that are different about which are the applications that we are going to be developing, what are ones that we are going to be doing in partnership. But that combination of the data cloud applications built on top of it with AI as an orchestrator is actually a pretty solid long-term strategy as well. Of course, as I said, we have to be adaptive because the world of AI and its capabilities are changing by the month. And so we have to be receptive to that kind of change. But I feel very good about the path that we have set out for ourselves in how effective it's going to be both in the short term and the long term.

Speaker Change: We're going to be details that are different about which are the applications that we.

Sridhar Ramaswamy: Our belief is that a cloud that starts with data at the center, combined with our product philosophy of creating a tightly integrated, easy to use product, is the long-term winning strategy. Yes, there are going to be details that are different about, you know, which are the applications that we are going to be developing and which are ones that we are going to be doing in partnership. But that combination of the data cloud applications built on top of it, with AI as an orchestrator, is actually a pretty solid long-term strategy as well. Of course, as I said, we have to be adaptive because the world of AI and its capabilities are changing by the month.

Speaker Change: We are going to be Delta thing what are once that we are going to be doing in partnership.

Speaker Change: But that combination of the data cloud applications built on top of it with AI as an ARCUS trader is actually a pretty solid long term strategy as well of course as I said, we have to be active because the world of AI and its capabilities are changing by the month and so.

Speaker Change: We have to be receptive to that kind of change, but I feel very good about the path that we have set out for ourselves.

Speaker Change: And how effective it's going to be both in the short term and the long term.

Michael Scarpelli: Terrific. Thank you, Frank and Sridhar. Mike, can I just one quick one for you? You gave the guidance about 3 points of product revenue will be from Snowpark in Q1. Thanks for that color.

Patrick Colville: Terrific. Thank you, Frank and Sridhar. Mike, can I just one quick one for you? You gave the guidance about 3 points of product revenue will be from Snowpark in Q1. Thanks for that color.

Speaker Change #105: Perfect. Thank you Brian.

Speaker Change: Mike can I just one quick one for you you gave the guidance of about three points of product revenue.

Sridhar Ramaswamy: And so we have to be receptive to that kind of change. But I feel very good about the path that we have set out for ourselves and how effective it's going to be both in the short term and the long term. Terrific. Thank you, Frank and Sridhar.

Michael P. Scarpelli: We will be from Snow Park and <unk>.

Operator: For the year.

Michael Scarpelli: For the year.

Michael P. Scarpelli: Thanks for that color of the year guess my question for the year when for the year fiscal.

Michael Scarpelli: I guess my question is.

Patrick Colville: I guess my question is.

Operator: For the year.

Michael Scarpelli: For the year.

Michael Scarpelli: For the year. Okay. Fiscal 2025. Okay. When might Snowpark hockey stick? It's been a product you guys have been talking about and invested pretty heavily in. It's seen terrific momentum. But can we expect a hockey stick at some point?

Patrick Colville: For the year. Okay. Fiscal 2025. Okay. When might Snowpark hockey stick? It's been a product you guys have been talking about and invested pretty heavily in. It's seen terrific momentum. But can we expect a hockey stick at some point?

Michael P. Scarpelli: Fiscal 'twenty five okay when Mike.

Speaker Change: Snow Park hockey stick.

Speaker Change: Been a product you guys have been talking about.

Michael P. Scarpelli: Mike, can I just ask you one quick question for you? You gave the guidance that about three points of product revenue will be from Snowpark in 1Q. Thanks for that color.

Speaker Change: <unk> invested pretty heavily in.

Sam: It's Sam.

Sam: Terrific momentum, but.

Speaker Change #108: Can we expect a hockey stick at some point.

Michael P. Scarpelli: For the year. I guess my question is, when, for the year, okay. Fiscal 25. When might Snowpark Hockey Stick, you know, it's been a product you guys have been talking about and invested pretty heavily in. It's, you know, terrific momentum, but, and we expect a hockey stick at some point.

Operator: Anything's possible. What I would say is we did about mid-$30 million in revenue. I think $35, $36 million in revenue last year associated with Snowpark. Clearly, when I'm saying 3%, it's going to be just under $100 million, $95 million or so this year. I think that is pretty phenomenal growth. And if we can get it to grow faster, we obviously will.

Michael Scarpelli: Anything's possible. What I would say is we did about mid-$30 million in revenue. I think $35, $36 million in revenue last year associated with Snowpark. Clearly, when I'm saying 3%, it's going to be just under $100 million, $95 million or so this year. I think that is pretty phenomenal growth. And if we can get it to grow faster, we obviously will.

Speaker Change: Anything is possible what I would say is we did about mid $30 million in revenue I think $35 $36 million in revenue last year associated with Snow Park, clearly, what im saying, 3%, it's going to be just under 100 million $95 million or so this year I think that is pretty phenomenal growth.

Michael P. Scarpelli: Anything is possible. What I would say is we did about mid $30 million in revenue, I think $35, $36 million in revenue last year associated with Snowpark. Clearly, what I'm saying 3% is going to be just under $100 million, $95 million or so this year. I think that is pretty phenomenal growth. And if we can get it to grow faster, we obviously will.

Sam: And if we can get it to grow faster, we obviously will.

Michael Scarpelli: All right. Keep up the good work. Thank you.

Patrick Colville: All right. Keep up the good work. Thank you.

Speaker Change: Alright, good luck. Thank you.

Operator: Thank you. Our next question comes from Brad Sills of Bank of America. Brad, your line is now open. Please go ahead.

Speaker Change: Thank you.

Speaker Change: Next question comes from Brian sales of Bank of America.

Brian: Your line is now open. Please go ahead.

Keith Weiss: Hi. Thank you for taking the question. This is Carly Liu for Brad. I guess first question, just want to ask on your guide for the full year, fiscal year 2025. I think you assumed a number of large customers going to adopt Iceberg Tables. So some expectation on data moving out of Snowflake, losing some storage revenue and some compute revenue there. Can you just double-click on that, why some of the existing large customers are going to choose Iceberg Tables rather than their original?

Brad Sills: Hi. Thank you for taking the question. This is Carly Liu for Brad. I guess first question, just want to ask on your guide for the full year, fiscal year 2025. I think you assumed a number of large customers going to adopt Iceberg Tables. So some expectation on data moving out of Snowflake, losing some storage revenue and some compute revenue there. Can you just double-click on that, why some of the existing large customers are going to choose Iceberg Tables rather than their original?

Brian Sales: Alright, Thank you for taking the question carley on for Brad.

Brian Sales: I guess first question just wanted to add on.

Brian Sales: Guide for the full year fifth for 25, I think your sand.

Michael P. Scarpelli: All right, keep up the good work. Thank you. [inaudible] Our next question... Brad, Sales at Bank of America, This is Carly, I'm for Brad. I guess the first question I just want to ask you about your guide for the full year, fiscal year 25, I think you're Jobs, Iceberg, Table, so some expectations on data. Outer. News, https://www.youtube.com.au, Avenue. Can you just double click on that Y?

Brian Sales: A number of large customer going to adopt iceberg table. So some expectation our data.

Speaker Change: Moving out of.

Speaker Change: Mike.

Speaker Change: Losing some storage revenue I'm compute revenue there can you just double click on that why some of the large customers are going to.

Speaker Change: Iceberg table rather than their original.

Michael Scarpelli: A lot of big customers want to have open file formats and to give them the options. And by the way, this is not necessarily customers moving all of their storage out of Snowflake, but a lot of the growth in their storage will be put into Iceberg tables, is what we think is going to happen. So you're just not going to see the growth associated with the storage in many of those customers. As a reminder, about 10% to 11% of our overall revenue is associated with storage.

Speaker Change: A lot of big customers wanted to have open file formats.

Speaker Change: To give them the options and by the way this is not necessarily customers moving all of their storage out of the out of snowflake, but a lot of the growth in their storage will be put into iceberg tables as what we think is going to happen.

Michael P. Scarpelli: A lot of big customers want to have open file formats and give them options. And by the way, this is not necessarily customers moving all of their storage out of the day out of Snowflake, but a lot of the growth in their storage will be put into iceberg tables, which is what we think is going to happen. So you're just not going to see the growth associated with storage and many of those customers. As a reminder, about 10 to 11 percent of our overall revenue is associated with storage. Okay, and then just a follow-up on... I guess on the, it's like encouraging to know, you know, 3%. Hart, and then at the same time, you, Iceberg.

Speaker Change: So you're just not going to see the growth associated with the storage and many of those customers as a reminder, about 10% to 11% of our overall revenue is associated with storage.

Speaker Change: Yeah.

Keith Weiss: Got it. Okay. And then just a follow-up on that, I guess. It's encouraging to know 3% of the contribution will be from Snowpark. And then at the same time, you guys are expecting some headwinds from Iceberg and also the tiered storage pricing. Can you just quantify for us what's the headwinds for the storage pricing and the Iceberg table for the full year?

Brad Sills: Got it. Okay. And then just a follow-up on that, I guess. It's encouraging to know 3% of the contribution will be from Snowpark. And then at the same time, you guys are expecting some headwinds from Iceberg and also the tiered storage pricing. Can you just quantify for us what's the headwinds for the storage pricing and the Iceberg table for the full year?

Speaker Change: Got it Okay, and then just a follow up.

Speaker Change: Hi, guys.

Speaker Change: Yes.

Speaker Change: Encouraging to hear you.

Noel Parks: <unk> contribution will be from Noel parks.

Noel: And then at the same time, you guys are expecting some headwinds from.

Speaker Change: Iceberg tier storage pricing can you just quantify for us.

Michael P. Scarpelli: Can you just quantify it for us? What's it, Ford? [inaudible] Well, it's built into our guidance. I'm not going to break them out all separately.

Speaker Change: <unk>.

Speaker Change: Uh huh.

Speaker Change: For storage pricing, an iceberg table.

Speaker Change: Alright.

Speaker Change: Yeah.

Michael Scarpelli: Well, it's built into our guidance. I'm not going to break them out all separately. I would say the performance improvements, which have nothing to do with that, are around 6.2, 6.3%.

Speaker Change: While it is built into our guidance.

Speaker Change: Yeah.

Speaker Change: I'm not going to break them out separately.

Michael P. Scarpelli: I would say the performance improvements, which have nothing to do with that, are around 6.2-6.3%. Um, and then I think you, we're forecasting consumption patterns similar to what we saw in 24. Our next question comes from Matt Hedberg of RPC. Go ahead. Gray, thanks for taking my questions, guys.

Speaker Change: I would say the performance improvements, which have nothing to do with that around 626, 3%.

Keith Weiss: Got it. Okay. And then I think you said the consumption's going to be similar to fiscal year 2024.

Brad Sills: Got it. Okay. And then I think you said the consumption's going to be similar to fiscal year 2024.

Speaker Change: Okay.

Speaker Change: And then I think you said that consumption is going to be.

Speaker Change: Similar to Q4.

Michael Scarpelli: We're forecasting consumption patterns similar to what we saw in 2024.

Speaker Change: Sure.

Speaker Change: We're forecasting consumption patterns similar to what we saw in 'twenty four.

Keith Weiss: Okay. Thank you.

Brad Sills: Okay. Thank you.

Speaker Change: Okay. Thank you.

Operator: Thank you. Our next question comes from Matt Hedberg of RBC. Your line is now open. Please go ahead.

Speaker Change: Thank you. Our next question comes from Matt Hedberg of RBC.

Matt Hedberg: Your line is now open. Please go ahead.

Raimo Lenschow: Great. Thanks for taking my questions, guys. And I guess following up on the Snowpark conversation, it feels like $35 million going to $100 million is, like you said, Mike, that is good growth. Could you talk a little bit more about sort of what the customer feedback has been? It feels like pipeline. It feels like every check you do, Snowpark's in the conversation. So maybe just double-click on what that customer feedback has been and how encouraged you are with the pipeline growth there.

Matt Hedberg: Great. Thanks for taking my questions, guys. And I guess following up on the Snowpark conversation, it feels like $35 million going to $100 million is, like you said, Mike, that is good growth. Could you talk a little bit more about sort of what the customer feedback has been? It feels like pipeline. It feels like every check you do, Snowpark's in the conversation. So maybe just double-click on what that customer feedback has been and how encouraged you are with the pipeline growth there.

Matt Hedberg: Great. Thanks for taking my questions guys.

Christian Kleinerman: And I guess following up on the snow park conversation, it feels like, um, 35 million going to 100 million is, like you said, Mike, good growth. Could you talk a little bit more about sort of, you know, what the customer feedback has been? It feels like a pipeline. It's like every check you do snow parks in the conversation. So maybe just double click on it, you know what that customer feedback has been, and you know how encouraged you are with the pipeline growth there. Yes, hi Christian here.

Matt Hedberg: And I guess following up on the snow part conversation it feels like.

Matt Hedberg: 35 million go into $100 million like you said, Mike that has good growth could you talk a little bit more about sort of what the customer feedback has been it feels like pipeline. It's really every check you do snow parks in the conversation so maybe just double click on.

Matt Hedberg: What that.

Matt Hedberg: Customer feedback has been and how encourage you are with the pipeline growth there.

Christian Kleinerman: Yes. Hi. Christian here. The feedback has been very strongly positive. What we hear more often is better economics and better performance. But probably more important, more simplicity into how data doesn't have to be moved between systems and it's just an integrated solution. Some of the enhancements that you see apply not only to data engineering but also to traditional machine learning, which we see an increasing number of use cases also being deployed. So the sentiment is very positive.

Matt Hedberg: Yes, Hi, Christian here the feedback has been very strongly positive while we hear more often is.

Christian Kleinerman: The feedback has been very strongly positive. What we hear more often is better economics and better performance, but probably more important, more simplicity in how data doesn't have to be moved between systems, and it's just an integrated solution. Some of the enhancements that you see apply not only to data engineering but also to traditional machine learning, which we see an increasing number of use cases also being deployed. So the sentiment is very positive. I got it.

Christian: Better economics and better performance.

Christian: The more important more simplicity into hard data doesn't have to be moved between systems and as Jos and integrated solution. Some of the enhancement that you see.

Christian: Apply only to data engineering, but also the traditional machine learning, which we see an increasing number of use cases also being deployed so that sentiment is very positive.

Raimo Lenschow: Got it. Thanks. And Mike, maybe just one other. Just to double-click on the guidance, Sridhar, you said consumption patterns from 2024 is what's influencing your 2025 guide. I'm curious. And it feels like consumption has improved as 2024 progressed. Are you sort of weighting it more towards what you saw in the first half of the year or more sort of some of the better trends you saw in the second half? Or just maybe double-clicking a little bit on kind of what those fiscal 2024 assumptions look because it feels like things have gotten better as the year progressed.

Matt Hedberg: Got it. Thanks. And Mike, maybe just one other. Just to double-click on the guidance, Sridhar, you said consumption patterns from 2024 is what's influencing your 2025 guide. I'm curious. And it feels like consumption has improved as 2024 progressed. Are you sort of weighting it more towards what you saw in the first half of the year or more sort of some of the better trends you saw in the second half? Or just maybe double-clicking a little bit on kind of what those fiscal 2024 assumptions look because it feels like things have gotten better as the year progressed.

Speaker Change: Got it thanks, and Mike maybe just one other just real quick on the guidance philosophy said consumption patterns through 'twenty. Four is influencing your 25 guide I'm curious and it feels like consumption has improved as 24 progressed are you sort of way to get more towards like what you saw in the first half of the year.

Michael P. Scarpelli: Mike, maybe just one other, just to double-click on the guidance philosophy, it said consumption patterns from 24 are what's influencing your 25 guide. I'm curious, when it feels like consumption has improved as 24 progressed, are you sort of weighting it more towards what you saw in the first half of the year, or more sort of like some of the better trends you saw in the second half?

Michael P. Scarpelli: Or more sort of like some of the better trends you saw in the second half or just just maybe double.

Michael P. Scarpelli: Or just maybe double-clicking a little bit on, you know, kind of those fiscal 24 assumptions, because it feels like things have gotten better as the year progressed. I would say it's more the average of 24 and that we saw stability happen in our customer base. I'm not.

Matt Hedberg: Double clicking a little bit on kind of what those fiscal 'twenty four assumptions. Thanks, So it feels like things have gotten better as the year progressed.

Michael Scarpelli: I would say it's more the average of 2024, which we saw stability happen in our customer base. I'm not forecasting any type of recovery inside there.

Matt Hedberg: I would say, it's more of the average of 24.

Matt Hedberg: <unk>, which we saw stability happen.

Matt Hedberg: And our customer base.

Sridhar Ramaswamy: Forecasting any type of recovery inside there. Got it. Thanks guys, on it. Tyler Radke, the line is now open. Please go ahead. Yeah, thanks for taking the question. And I wanted to direct this question at Sridhar, and maybe Christian can jump in.

Matt Hedberg: Not forecasting any type of recovery inside there.

Raimo Lenschow: Got it. Thanks, guys.

Matt Hedberg: Got it. Thanks, guys.

Speaker Change: Got it thanks guys.

Operator: Thank you. Our next question comes from Tyler Radke of Citi. Your line is now open. Please go ahead.

Matt Hedberg: Thank you all next question comes from Tyler Radke of Citi.

Tyler Radke: Your line is now open. Please go ahead.

Brent Thill: Yeah. Thanks for taking the question. I want to direct this question at Sridhar, and maybe Christian can jump in. But just as we think about the product roadmap for FY25, you talked a little bit about Unistore, Container Services, Cortex. Can you just provide an update on when you expect these products to go GA, what you're seeing in terms of customer momentum, any customer statistics you can call out? And then how do you just kind of think about the maturity of these products, Sridhar, now that you've had time to look at the progress of these? Are you still expecting these to be contributors by year-end? Thank you.

Tyler Radke: Yes, thanks for taking the question I wanted to direct this question at <unk> and maybe Christian can jump in but just as we think about the product roadmap for FY 'twenty five you talked a little bit about Uni store container services cortex can you just provide an update on when.

Sridhar Ramaswamy: But just as we think about the product roadmap for FY25, you talked a little bit about Unistore, Container Services, and Cortex. Can you just provide an update on when you expect these products to go GA, what you're seeing in terms of, you know, customer momentum, any customer statistics you can call out. And then how do you just kind of think about the maturity of these products, Sridhar, now that you've had time to look at their, you know, progress? Are you still expecting these to be contributors by year end? Thank you. I'll give a brief initial answer and then have Christian take over from there.

Speaker Change: Do you expect these products to go GA, what youre seeing in terms of customer momentum any any customer.

Speaker Change: Statistics, you can call out and then how do you just kind of think about the maturity of these products treat or now that you've had.

Speaker Change: <unk> had time to look at that.

Speaker Change: The progress of these or are you still expecting needs to be contributors.

Speaker Change: Contributors by year end. Thank you.

Christian Kleinerman: I'll give a brief initial answer and then have Christian take over from that. One of the things that the Snowflake team is very, very good at doing is making sure that everything that we ship is tightly integrated with everything else. There's just fluid interoperability between our various features, and that is also rock solid. I think that culture of integrated and well-built features is a hallmark of Snowflake. Of course, in areas like AI, which is moving at lightning speed, we want the stable infrastructure, but we also need to be flexible enough, whether it's new models that we put inside Cortex or other functionality that we need to develop on top of it.

Speaker Change: I'll give a brief initial answer and then have Christian take over from that.

Sridhar Ramaswamy: One of the things that the Snowflake team is very, very good at doing is making sure that everything that we ship is tightly integrated with everything else. There is, you know, just fluid interoperability between our various features. And that is also rock solid.

Christian: One of the things that.

Speaker Change: Snowflake team is very very good at doing.

Speaker Change: Is making sure that everything that we ship is tightly integrated with everything else there that is.

Christian: Theres just fluid interoperability between our various features and that is also a rock solid.

Sridhar Ramaswamy: I think that that culture of integrated and well-built features is a hallmark of Snowflake. Of course, in areas like AI, which is moving at lightning speed, we want a stable infrastructure, but we also need to be flexible enough, whether it's new models that we put inside Cortex or other functionality that we need to develop on top of it. But a lot of the core investments that the team has made to allow for this kind of extensibility is what is coming in handy for us in terms of being able to ship things with speed. I'll hand it off to Christian to talk about when he expects different things to hit GA. Christian? Yeah, so as both Sridhar and Mike mentioned, we expect a number of meaningful GA milestones this fiscal year, starting with generative AI. Core text will be in public preview very soon. And we expect it to be generally available in and around the summit timeframe. And, as Sridhar said, we expect all sorts of interesting use cases of generative AI coming to data and preserving privacy and security. Snowpark Container Services is already in public preview on AWS.

Speaker Change: <unk>.

Speaker Change: That culture.

Speaker Change: Integrated unveiled build features is a is a hallmark of snowflake.

Speaker Change: Of course in areas like AI, which is moving at lightning speed, we want the stable infrastructure, but we also need to be flexible enough.

Speaker Change: But it's new models that we put inside cortex or other functionality that we need to double up on top of it.

Christian Kleinerman: But a lot of the core investments that the team has made to allow for this kind of extensibility is what is coming in handy for us in terms of being able to ship things with speed. I'll hand it off to Christian to talk about when he expects different things to hit GA. Christian?

Speaker Change: But a lot of the investments that the team has made for this kind of extensibility is what is coming in handy thought us in terms of being able to ship things with <unk>.

Speaker Change: <unk>.

Speaker Change: I'll hand, it off to Christian to talk about when you expect different things to hit <unk> Christian.

Christian Kleinerman: Yeah. So as both Sridhar and Mike mentioned, we expect a number of meaningful GA milestones this fiscal year, starting with Generative AI. Cortex will be in public preview very soon, and we expect it to be generally available on and around the summit timeframe. And as Sridhar said, we expect all sorts of interesting use cases of Generative AI coming to the data and preserving privacy and security. Snowpark Container Services is already in public preview in AWS, and we expect it to be generally available in that same timeframe, give or take a couple of months from summit, and is the ultimate extensibility capability for bringing computation into Snowflake. Iceberg Tables is already on public preview across all three clouds and will be generally available, again, also in the Data Cloud Summit timeframe.

Speaker Change: Yes.

Christian: As both <unk> and Mike mentioned, we expect a number of meaningful milestones this fiscal year.

Christian: Starting with generative AI core tax will be in poly preview very soon and we expect it to be generally available on and around the summit timeframe and as we just said we expect all sorts of interesting use cases of generally by coming to the data and preserving privacy and security.

Christian: No Franklin painters Horizon is already in polyp with you in AWS and we expect it to be generally available in that same timeframe give or take a couple of months from summit and is the ultimate extensibility capability for bringing competition into snowflake.

Christian Kleinerman: And we expect it to be generally available in that same timeframe, give or take a couple of months from the summit, and is the ultimate extensibility capability for bringing computation into Snowflake. Iceberg Tables is already on public, and we're continuing to round out the enhancements. So this is imminent, and we expect a strong showing of product capabilities at the data cloud. Great, thanks. And a follow-up for Mike, just in terms of what you've seen so far in February, and I know you're talking about FY25 consumption assumptions consistent with a year ago, but have you seen February trends improve relative to January? Does February feel similar to February a year ago?

Christian: Payables is already on public review.

Christian: Across all three clouds and will be generally available again also in the data cloud some its timeframe.

Christian Kleinerman: Unistore, which enables combining transactional and analytical capabilities in single applications, went very recently into public preview in AWS and will be generally available in the second half of the year. And native apps, which is how we accelerate time-to-value for both partners and customers, is currently GA on AWS and Azure, and we're continuing to round up the enhancements. So this is imminent, and we expect a strong showing of product capabilities at the Data Cloud Summit.

Christian: Unit store, which enables combining transactional and analytical capabilities and single obligations went very recently into public preview in AWS and we will be in generally generally available in the second half of the year and native apps, which is how we accelerate time to value for both partners and customers is currently.

Christian: On AWS and Azure and we're continuing to round up the enhancement. So this is imminent and we expect.

Christian: A strong showing of product capabilities.

Christian: Data cloud summit.

Brent Thill: Great. Thanks. And a follow-up for Mike. Just in terms of what you've seen so far in February, and I know you're talking about FY25 assumptions consistent with a year ago, but have you seen February trends improve relative to January? Does February feel similar to February a year ago, or is it closer to the strong growth that you saw in consumption towards the end of last year?

Speaker Change: Great. Thanks, and a follow up for Mike just in terms of what you've seen so far in February and I know youre talking about FY 'twenty five consumption assumptions consistent with a year ago, but have you seen February trends improve relative to January.

Michael P. Scarpelli: February feel similar to February a year ago or is it is it closer to the strong growth that you saw in consumption.

Michael P. Scarpelli: Or is it closer to the strong growth that you saw in consumption, you know, towards the end of last year? Well, I just guided for February and for the quarter, and that reflects the consumption trends we've been seeing through yesterday. So I would say it's more in line with what we saw coming out last year. Throat on average for the year.

Christian: Towards the end of last year.

Michael Scarpelli: Well, I just guided for February, well, for the quarter, and that reflects the consumption trends we've been seeing through yesterday. So I would say it's more in line with what we saw coming out last year throughout, on average, for the year.

Michael P. Scarpelli: Well I just guided for February.

Michael P. Scarpelli: For the quarter and that reflects the consumption trends, we've been seeing through yesterday. So.

Michael P. Scarpelli: I would say it's.

Michael P. Scarpelli: In line with what we saw coming out last year.

Michael P. Scarpelli: Throat on average for the year.

Brent Thill: Thank you.

Michael P. Scarpelli: Thank you. Thank you. Our next question comes from... Cross of Need. [inaudible] Hey, thanks for getting me on here, guys.

Speaker Change: Thank you.

Operator: Thank you. Our next question comes from Mike Cikos of Needham & Co. Your line is now open. Please go ahead.

Speaker Change: Thank you. Our next question comes from Mike <unk> of Needham and Cowen.

Michael P. Scarpelli: Line is now open. Please go ahead.

Raimo Lenschow: Hey. Thanks for getting me on here, guys. And I did just want to follow up. I guess one of the dominant messages from management, if I just go back a quarter ago, really seemed to be this theme about the growing use of unstructured data by your customers. And I don't know if it's just my read here, but it feels like it's a more muted message today. Maybe I'm missing something. But can you just put some finer points here as far as the trends that Snowflake's seeing, specifically around unstructured data in Q4? And then I did have a follow-up.

Mike Cikos: Hey. Thanks for getting me on here, guys. And I did just want to follow up. I guess one of the dominant messages from management, if I just go back a quarter ago, really seemed to be this theme about the growing use of unstructured data by your customers. And I don't know if it's just my read here, but it feels like it's a more muted message today. Maybe I'm missing something. But can you just put some finer points here as far as the trends that Snowflake's seeing, specifically around unstructured data in Q4? And then I did have a follow-up.

Michael P. Scarpelli: Hey, Thanks for getting me on here guys and I did just want to follow up I guess, one of the dominant messages from management, if I just go back a quarter ago.

Unknown Executive: And I did just want to follow up. I guess one of the dominant messages from management, if I just go back a quarter ago, really seemed to be this theme about the growing use of unstructured data by your customers. And I don't know if it's just my reading here, but it feels like it's a more muted message today. Maybe I'm missing something.

Michael P. Scarpelli: Really seem to be the theme about the growing use of unstructured data by your customers.

Speaker Change: I don't know if its just my read here, but it feels like it's a more muted message today, maybe I'm missing something.

Christian Kleinerman: But can you just put some finer points here as far as the trends that Snowflake's seeing specifically around unstructured data in Q4? And then I did have a follow-up question, Great question here. The momentum that we shared in the last quarter has carried forward to this quarter, so there's no change in pace or interest. And if anything, the document AI that Sridhar mentioned earlier in the call, where we have hundreds of customers lined up to be able to leverage the technology, is all about extracting value and signals from unstructured documents. So the fact that it was not mentioned is not anything that should be read into it; it is still a topic of high interest among many of our customers.

Speaker Change: Can you just put some finer points here as far as the trends that <unk> seen specifically around unstructured data in Q4, and then I did have a follow up.

Christian Kleinerman: Great. Christian here. The momentum that we shared in the last quarter has carried forward onto this quarter. So there's no change in pace or interest. And if anything, the Document AI that Sridhar mentioned earlier in the call, where we have hundreds of customers lined up to be able to leverage this technology, is all about extracting value and signal from unstructured documents. So the fact that it was not mentioned is not anything that should be read into it. It's still a topic of high interest among many of our customers.

Speaker Change #109: Great question here.

Speaker Change: Momentum that we shared in the last quarter has carried forward onto this quarter. So there is no.

Speaker Change: Change in pace or interest and if anything the document AI, that's what I mentioned earlier in the call, but we have hundreds of customers lined up to be able to leverage technology is all about extracting value and signal from unstructured document so.

Speaker Change: The fact that it was not mentioned is not anything that can be read into it is still a topic of high interest among many of our customers.

Christian Kleinerman: And I know that you guys have these assumptions as well in the guidance around potential headwinds from some of your larger customers adopting or moving data to Iceberg. Maybe to go through that a little bit, can you talk about what you've seen thus far as far as customers' behavior, or are they already doing this with Iceberg, or is it just an assumption that you guys have? I'm trying to get a sense as far as the behavior customers have exhibited, as well as how much you guys are peppering into your guidance today when we think about that headwind as well as the rollout of tiered. Yeah, Iceberg is not GA yet. So customers are not going to roll that into production until it's GA. And we do think it will be a gradual process if they're going to move data out.

Raimo Lenschow: Got it. And I know that you guys have these assumptions as well in the guidance around the potential headwinds from some of your larger customers adopting or moving data to Iceberg. Maybe to walk us through that a little bit, can you talk about what you've seen thus far as far as customers' behavior? Are they already doing this with Iceberg, or is it just an assumption that you guys have? I'm trying to get a sense as far as the behavior customers have exhibited as well as how much you guys are baking into your guidance today when we think about that headwind as well as the rollout of tiered storage.

Mike Cikos: Got it. And I know that you guys have these assumptions as well in the guidance around the potential headwinds from some of your larger customers adopting or moving data to Iceberg. Maybe to walk us through that a little bit, can you talk about what you've seen thus far as far as customers' behavior? Are they already doing this with Iceberg, or is it just an assumption that you guys have? I'm trying to get a sense as far as the behavior customers have exhibited as well as how much you guys are baking into your guidance today when we think about that headwind as well as the rollout of tiered storage.

Speaker Change #110: Got it and I know that you guys have these assumptions as well in the guidance around.

Speaker Change: Potential headwinds from some of your larger customers adopting or moving data too.

Speaker Change: Iceberg may.

Speaker Change: Maybe the horse through that a little bit can you talk about what you've seen thus for as far as customers behavior or are they already doing this with iceberg or is it just an assumption that you guys have.

Speaker Change: I'm trying to get a sense as far as the behavior of customers have exhibited as well as how much you guys are peppering into your guidance today, when we think about that headwind as well as the rollout of tiered storage.

Michael Scarpelli: Yeah. Iceberg's not GA yet, so customers are not going to roll that into production until it's GA. And we do think it'll be a gradual process of if they're going to move data out. But as soon as it's GA, new data can go into Iceberg table. And we don't expect that to be GA until sometime around June timeframe.

Speaker Change: Yes, icebergs that Gi yet so customers are not going to roll that into production until this year and we do think it will be a gradual process of if theyre going to move data out but as soon as this new data can go into iceberg table, and we don't expect that to be gea until <unk>.

Christian Kleinerman: But as soon as it's GA, new data can go into the Iceberg table, and we don't expect that to be GA until sometime around June timeframe. Okay, and so just to put a finer point on that, though, the headwind we're expecting from Iceberg, this is, this is theoretical. You have not seen that behavior from customers just yet. Correct. It is what we are expecting.

Speaker Change: Sometime around June timeframe.

Raimo Lenschow: Okay. And so just to put a finer point on that, though, the headwind we're expecting from Iceberg, this is theoretical. You have not seen that behavior from customers just yet.

Mike Cikos: Okay. And so just to put a finer point on that, though, the headwind we're expecting from Iceberg, this is theoretical. You have not seen that behavior from customers just yet.

Speaker Change: Okay, and so just to put a finer point on that though the headwind we're expecting from iceberg. This is this is theoretical you have not seen that behavior from customers just yet.

Michael Scarpelli: Correct. It is what we are expecting. I know the new tiered storage pricing that we rolled out; we're seeing that today. And I'll let Christian add some to that as well, too.

Speaker Change: Correct. It is what we are expecting.

Michael P. Scarpelli: I know the new tiered storage pricing that we're seeing today, and I'll let Christian add some to that as well. Yeah, I would add that for many of our large customers, we have been in touch with them on their plans for adoption on Iceberg. So some of what you see in our guidance has factored in those. Terrific. Thank you. Thank you. Michael Turrin of Wales Fargo, Go ahead.

Speaker Change: I know the tiered the new towards tiered storage pricing that we're seeing that.

Speaker Change: And then I'll, let Christian add some to that as well too.

Christian Kleinerman: Yeah. I would add that for many of our large customers, we have been in touch on their plans for adoption on Iceberg. So some of what you see in our guidance has factored in those intentions.

Christian: Yes, I would add that for many of our large customers. We have been in touch on their plans for adoption on iceberg. So some of what you see in our guidance has factored in those intentions.

Raimo Lenschow: Terrific. Thank you.

Mike Cikos: Terrific. Thank you.

Speaker Change #111: Terrific. Thank you.

Operator: Thank you. Our next question comes from Michael Turrin of Wells Fargo. Your line is now open. Please go ahead.

Speaker Change: Thank you. Our next question comes from Michael Chairman of Wells Fargo. Your.

Michael: Your line is now open. Please go ahead.

Michael P. Scarpelli: Hey, thanks. Appreciate you taking the time to answer the question. Maybe one on hiring. I think you mentioned 1000 net new heads you're expecting to add in the coming year. How are you balancing adding to R&D given all the new product efforts and AI interest with bringing on sales capacity if the market does start to turn? And on the FedRAMP high authorization, any commentary around that, what that could open up, and if that's an area of potential here as well? Thank you. I would say a lot of our expensive hiring is in the R&D area, and it will continue to be more in the AI and ML space. These engineers are very expensive.

Alex Zukin: Hey. Thanks. Appreciate you taking the question. Maybe one on hiring. I think you mentioned 1,000 net new heads you're expecting to add in the coming year. How are you balancing adding to R&D given all the new product efforts and AI interest with bringing on sales capacity if the market does start to churn? And on the FedRAMP High authorization, any commentary around what that could open up and if that's an area of potential investment as well? Thank you.

Michael Turrin: Hey. Thanks. Appreciate you taking the question. Maybe one on hiring. I think you mentioned 1,000 net new heads you're expecting to add in the coming year. How are you balancing adding to R&D given all the new product efforts and AI interest with bringing on sales capacity if the market does start to churn? And on the FedRAMP High authorization, any commentary around what that could open up and if that's an area of potential investment as well? Thank you.

Michael: Hey, Thanks appreciate you taking the question maybe one on hiring I think you mentioned 1000 net new adds you're expecting to add in the coming year.

Michael: How are you balancing adding to R&D given all the new product efforts.

Michael: Interest that bringing on sales capacity, if the market does start to turn and on the fed ramp high authorization any commentary around that what that could open up in if that scenario potential about sorry as well. Thank you.

Michael Scarpelli: I would say a lot of our expensive hiring is in the R&D area, and there will continue to be more in the AI/ML space. These engineers are very expensive. With that said, we're still adding in the sales organization. And if we see an uptick in new customers and consumption patterns with our customers, we can easily dial that up just like we've dialed back our hiring in the past. But we are not going to sacrifice on R&D.

Michael: Okay.

Speaker Change #101: I would say.

Michael: A lot of our expensive hiring is in the R&D area and that will continue to be more in the AI ml space. These engineers are very expensive.

Michael P. Scarpelli: With that said, we're still adding to the sales organization. And if we see an uptick in new customers and consumption patterns with our customers, we can easily dial that up, just like we've dialed back our hiring in the past, but we are not going to sacrifice R&D. Got it. Thanks. Derek Wood of TD Co-ed. Thanks, Mike.

Michael: With that said, we're still adding in the sales organization and if we see an uptick in <unk>.

Michael: New customers in.

Michael: Consumption patterns with our customers, we can easily dial that up just like we've dialed back our hiring in the past, but we are not going to sacrifice on R&D.

Alex Zukin: Got it. Thanks.

Michael Turrin: Got it. Thanks.

Speaker Change: Got it thanks.

Operator: Thank you. Our next question comes from Derek Wood of TD Cowen. Your line is now open. Please go ahead.

Speaker Change: Thank you. Our next question comes from Derrick Wood of TD Cohen your.

James Derrick Wood: Your line is now open. Please go ahead.

Alex Zukin: Thanks, Mike. Most other cloud consumption vendors are talking about stabilizing growth. You guys are still modeling pretty sharp deceleration over the next year. So this certainly sticks out and may bring about questions on maybe company-specific challenges. So first, are there any notable customer or workload losses that could be weighing on growth this year? And generally, how are you feeling about sales productivity and competitive win rates in the current environment?

Derek Wood: Thanks, Mike. Most other cloud consumption vendors are talking about stabilizing growth. You guys are still modeling pretty sharp deceleration over the next year. So this certainly sticks out and may bring about questions on maybe company-specific challenges. So first, are there any notable customer or workload losses that could be weighing on growth this year? And generally, how are you feeling about sales productivity and competitive win rates in the current environment?

James Derrick Wood: Thanks, Mike.

Michael P. Scarpelli: Most other cloud consumption vendors are talking about stabilizing growth, but you guys are still modeling pretty sharp deceleration over the next year. So this certainly sticks out and may bring about questions on maybe company-specific challenges. So first, are there any notable customer or workload losses that could be weighing on growth this year? And generally, how are you feeling about sales productivity and competitive win rates in the current environment? Absolutely no big competitive losses or workloads moving up that I'm aware of.

James Derrick Wood: Most other cloud consumption vendors are talking about stabilizing growth you guys are still modeling pretty sharp deceleration over the next year. So that certainly sticks out in may bring about questions on maybe company specific challenges. So first are there any notable customer workload losses that could be weighing on growth this year and generally.

James Derrick Wood: How are you feeling about sales productivity and competitive win rates in the current environment.

Michael Scarpelli: Absolutely no big competitive losses or workloads moving off that I'm aware of. This is all related to our model, where a lot of the performance improvements that we have in our software go directly to the customer. And that's why I was pointing out you saw there was a 62% year-over-year growth in jobs on a daily basis run on Snowflake versus only a 33% revenue growth. And we know there's a lot of performance improvements coming into play this year, coupled with Iceberg, coupled with tiered storage pricing that we rolled out. And I was able to roll out the tiered storage pricing because we were getting much better pricing out of the cloud vendors to us.

Speaker Change #103: Absolutely no big competitive losses, or workloads moving off that I am aware of this is all related to our model where a lot of the performance improvements that we have in our software get direct go directly to the customer and that's why I was pointing out you saw there was a 62.

Michael P. Scarpelli: This is all related to our model where a lot of the performance improvements that we have in our software go directly to the customer. And that's why I was pointing out you saw there was a 62% year-over-year growth in jobs run on Snowflake versus only a 33% revenue growth. And we know there's a lot of performance improvements coming into play this year, coupled with Iceberg, coupled with tiered storage pricing that we rolled out. And I was able to roll out the tiered storage pricing because we were getting much better pricing out of the cloud vendors for us to use, to use, to use, to use, to use, to use, to use, to use, to use, to use, to use, to use, to use

Speaker Change #103: <unk> year over year growth in jobs on a daily basis, Ron on snowflake versus only a 33% revenue growth.

James Derrick Wood: And we know there's a lot of performance improvements coming into play this year, coupled with iceberg, coupled with tiered storage very soon that we rolled out.

James Derrick Wood: And I was able to rollout a tiered storage pricing because we are getting much better pricing out of the cloud vendors to us.

Alex Zukin: Yeah. Okay. It would be interesting to kind of see what the growth rates on just the workloads related to compute is relative to the storage drag. Maybe that's something you could give. But just how do you feel about ultimately kind of getting back to 30% growth longer term, and kind of what's the top one or two critical things that need to take place to get you there?

Derek Wood: Yeah. Okay. It would be interesting to kind of see what the growth rates on just the workloads related to compute is relative to the storage drag. Maybe that's something you could give. But just how do you feel about ultimately kind of getting back to 30% growth longer term, and kind of what's the top one or two critical things that need to take place to get you there?

Speaker Change #104: Yes, okay.

Michael P. Scarpelli: It would be interesting to kind of see what the growth rates on just the workloads related to compute are relative to the storage drag. Maybe that's something you could give. But just how do you feel about ultimately kind of getting back to 30% growth longer term? And kind of what are the top one or two critical things that need to take place to get you there?

James Derrick Wood: It would be interesting to see what the growth rates on just the workloads related to compute.

James Derrick Wood: Relative to the storage drag maybe thats something you could give but just.

Speaker Change #100: How do you feel about ultimately kind of getting back to 30% growth longer term and kind of what's the top one or two critical things that need to take place to get you there.

Michael P. Scarpelli: I'd say the biggest thing is the uptick in consumption associated with all the new enhancements we have in our product and, in particular, what we can see coming out of Cortex, what we can see coming out of Snowpark Container Services, and ultimately, what we can see in native app development on our platform. Thank you. Our next speaker is Gray Powell of BTO. The line is now open; please go ahead. Okay, great. Thank you for taking the question. I've got a quick follow-up on snow, called out Snowpark at a 70 million annual run rate one day back in. I know that was just sort of like a one day statistic, but I'm just trying to think through that. I mean, the guide of 3% of revenue, or that consumption in snow park is growing 45% quarter over quarter last quarter. Um, just how should we think about the level of conservatism on that, you know, assumption within your. Well, what I'm saying is we're guiding it to be 3% of product revenue this year, and you can infer what you want from the guidance.

Michael Scarpelli: I would say the biggest thing is the uptick in consumption associated with all the new enhancements we have in our product, in particular what we could see coming out of Cortex, what we could see coming out of Snowpark Container Services, and ultimately, what we could see in native app development on our platform.

James Derrick Wood: I would say the biggest thing is the uptick in consumption associated with all the new.

James Derrick Wood: Enhancements, we have in our product in particular, what we could see coming out of cortex, we could see coming out of <unk>.

James Derrick Wood: No part container services and ultimately the.

James Derrick Wood: We could see a native app development on our platform.

Alex Zukin: Okay. Thank you.

Derek Wood: Okay. Thank you.

Speaker Change #106: Okay. Thank you.

Operator: Thank you. Our next question comes from Gray Powell of BTIG. Your line is now open. Please go ahead.

Speaker Change #106: Thank you.

Speaker Change #106: Our next question comes from Gray Powell of <unk> your.

Gray Wilson Powell: Your line is now open. Please go ahead.

Gray Powell: Okay. Great. Thank you for taking the question. I just had a quick follow-up on Snowpark. I think you called out Snowpark at a $70 million annual run rate one day back in December. I know that was just sort of like a one-day statistic, but I'm just trying to think through that. I mean, the guide of 3% of revenue for fiscal 2025, that's like $95 to 100 million. I guess it just seems kind of conservative given that Snowpark was or that consumption on Snowpark was growing 45% quarter-over-quarter last quarter. Just how should we think about the level of conservatism on that assumption within your guidance?

Gray Wilson Powell: Okay.

Gray Wilson Powell: Okay, great. Thank you for taking the question.

Gray Wilson Powell: I just had a quick follow up on Snow Park.

Gray Wilson Powell: I think you called out Snow Park at a $70 million annual run date run run rate one day back in December.

Gray Wilson Powell: That was just sort of like a one day statistic.

Gray Wilson Powell: But I'm just trying to think through that.

Gray Wilson Powell: <unk> of 3% of revenue for fiscal 'twenty, five thats like $95 million to $100 million.

Speaker Change #102: I guess, it just seems kind of conservative given that stope arc.

Speaker Change #102: That consumption on Snow park was growing 45% quarter over quarter last quarter.

Speaker Change #102: Just how should we think about the level of conservatism on that.

Speaker Change #102: Assumption within your guidance.

Michael Scarpelli: Well, what I'm saying is we're guiding it to be 3% of product revenue this year, and you can infer what you want from the guidance.

Speaker Change #113: Well, what I'm, saying is we're guiding it to be 3% of product revenue. This year and you can infer what you want from the guidance.

Michael P. Scarpelli: Well, all right, then. Thank you very much. [inaudible] So that concludes today's program. Thank you all for joining us. You may now disconnect your lines.

Gray Powell: Well, all right then. Thank you very much.

Speaker Change #112: Alright, then.

Speaker Change: Very much.

Operator: Thank you. We will take no further questions for today. So that concludes today's conference call. Thank you all for joining. You may now disconnect your lines. So that concludes today's conference call. Thank you all for joining. You may now disconnect your lines.

Speaker Change #114: Thank you we will take no further questions for today. So that concludes today's conference call. Thank you all for joining you may now disconnect your lines.

Speaker Change:

Speaker Change #115: So that concludes today's conference call. Thank you all for joining you may now disconnect your lines.

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