Sales boom for Snowflake in Q2

Snowflake has announced financial results for Q2 2023, ended July 31, 2022, topping estimates with an 83 percent year-on-year revenue increase to $497.2m.

Product revenue for the quarter was $466.3m, also representing growth of 83 percent, whilst remaining performance obligations totalled $2.7bn – a 78 percent rise.

As of July 31, 2022, Snowflake’s net revenue retention rate was 171 percent. The company now has 6,808 total customers and 246 customers with trailing 12-month product revenue greater than $1m.

Snowflake stated it expects Q3 product revenue in a range of $500m and $505m, up 60 to 62 percent.

For the full year 2023, the company anticipates product revenue of between $1.905bn to $1.915bn, a growth of between 67 and 68 percent, and a product gross profit margin of 75 percent.

Frank Slootman, Snowflake chairman and CEO, said: “During Q2, product revenue grew 83 percent year-over-year to $466m. Our non-GAAP product gross margin exceeded 75 percent, and we continue to generate non-GAAP operating income and free cash flow. Snowflake’s next frontier of innovation is aimed at transforming how cloud applications are built, deployed, sold, and transacted. We look forward to executing against this growth opportunity.”