Snowflake Inc. · NYSE:SNOW

Snowflake — Investor Day (June 2023)

84 slides from Snowflake's investor day presentation, Jun 27, 2023

Slide 3: Safe Harbor
SAFE HARBOR Other than statements of historical fact, all statements contained in this presentation and accompanying oral Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to commentary (collectively, the “Materials”) are forward-looking
Slide 4: Agenda
Mobilizing The World’s Data Snowflake + Neeva AGENDA Frank Slootman Chairman and Chief Executive Officer Christian Kleinerman Senior Vice President of Product Sridhar Ramaswamy Snowflake + Microsoft 2.0 Neeva Founder Frank Slootman Chairman and Chief Executive Officer Customer Q&A with Disney Satya
Slide 6: AI Strategy Requires a Data Strategy
AI Strategy Requires a Data Strategy All Data Single Engine Governed Globally Connected Self-Managing Programmable Marketplace & Monetization Note: Visualization based on actual Data Cloud sharing activity as of April 30, 2023. © 2023 Snowflake Inc. All Rights Reserved 6
Slide 7: Snowflake Manages Exabytes of Proprietary Enterprise Data
Snowflake Manages Exabytes of Proprietary Enterprise Data EBs Exabytes of data 3.1B Average daily 59% Y/Y growth in average under management queries1 in May 2023 daily queries1 in May 2023 599 Forbes Global 2000 40 Regional Customers1 deployments Note: As of May 31, 2023. 1. See definitions provided
Slide 8: Customers Are Bringing Work to Their Data
Customers Are Bringing Work to Their Data Average Daily Queries1 +7x FY21 FY22 FY23 FY24 Note: Fiscal year ends January 31. 1. See definitions provided in the Appendix. © 2023 Snowflake Inc. All Rights Reserved
Slide 9: AI Has Requirements Beyond Your Enterprise Boundary
AI Has Requirements Beyond Your Enterprise Boundary Snowflake Marketplace Data Providers Cloud Service Providers GPUs © 2023 Snowflake Inc. All Rights Reserved
Slide 10: Snowflake + Microsoft 2.0
SNOWFLAKE + MICROSOFT 2.0 FRANK SLOOTMAN Chairman and Chief Executive Officer SATYA NADELLA Chairman and Chief Executive Officer Microsoft © 2023 Snowflake Inc. All Rights Reserved
Slide 12: Innovation Themes
Innovation Themes SINGLE DEPLOY, DISTRIBUTE, PROGRAMMABILITY PLATFORM MONETIZE APPS WITHOUT TRADEOFFS Break down silos and Deliver leading apps Develop ML models, simplify architectures at scale & unlock new pipelines, & apps while maintaining revenue streams governance © 2023 Snowflake Inc. All Rig
Slide 14: 3.1B Average Daily Queries, 50T+ Rows, 177 PB
3.1B Average daily queries1 in May 2023 50T+ The number of rows in the largest customer table 177 PB The aggregate amount of compressed data stored in Snowflake for the five largest customers by data volume Note: As of April 30, 2023, unless noted otherwise. 1. See definitions provided in the Append
Slide 15: Iceberg Tables
In Dev Private Public GA SOON Iceberg Tables New table type that brings the choice of Apache Iceberg to Snowflake Description NATIVE Iceberg Tables converge Native and External Tables for Iceberg into a single table object CREATE ICEBERG TABLE Value Support data architectures requiring interoperabil
Slide 16: Document AI
In Dev Private Public GA Document AI Analyze and extract value from unstructured data Description A new interface to easily extract content from documents via a built-in large language model Pipelines Value Easier to extract analytical value from documents without requiring machine learning expertis
Slide 17: ML-Powered Functions
In Dev Private Public GA ML-Powered Functions Description SQL functions that abstract complexity of ML frameworks with algorithms for Forecasting, CREATE my_forecast( Anomaly Detection, and Contribution Explorer input_data => ‘TABLE’ Value timestamp_colname => ‘date’, Empower analysts to enhance dec
Slide 18: Unistore
In Dev Private Public GA Unistore Bringing together transactional and analytical data for modern app development Description Enables developers to build applications that Preview customers include: integrate transactional and analytical data on a single, unified platform. Value Simplifies architectu
Slide 20: Marketplace Capacity Drawdown Program
In Dev Private Public GA* Marketplace Capacity Drawdown Program Description Use Snowflake Capacity commitment to buy data & Capacity Commitment Snowflake Native Apps seamlessly from across clouds on Snowflake Marketplace App 1 Value Spend more time augmenting your analytics App 2 and less time on pr
Slide 21: Snowflake Native App Framework
In Dev Private Public GA AWS Snowflake Native App Framework Provider What is it? Build, distribute, deploy, operate, and monetize apps natively in the Data Cloud How it works: Build & test Publish & monetize App Snowflake Native App on Snowflake Marketplace ● Build apps using Snowflake functionaliti
Slide 22: Snowflake Native Apps
In Dev Private Public GA Snowflake Native Apps Data Clean Rooms Data Curation & Enrichment Identity & Transcoding Advanced Analytics Cost & Governance Connectors Marketplace listings displayed herein are provided for illustrative purposes only. Access to and use of Marketplace listing data remains s
Slide 24: Snowpipe Streaming
In Dev Private Public GA SOON Snowpipe Streaming Description Serverless auto-ingest of streaming data Value Simplify architectures by ingesting streaming data directly into Snowflake, without complexity Functionality Standard ingestion framework that supports rowset ingestion. Leveraged by Snowpipe,
Slide 25: Dynamic Tables
In Dev Private Public GA Dynamic Tables Description Declarative approach to Stores Results transformations and simple data pipeline creation CREATE DYNAMIC TABLE <name> Value Automatic Refreshes LAG = <duration> Automate incremental data refresh with low latency using easy-to-use AS <select> declara
Slide 26: Streamlit in Snowflake
In Dev Private Public GA SOON Streamlit in Snowflake What is it? Streamlit is an open-source Python library for app development natively integrated into Snowflake for scalable, reliable, and secure deployment Value Use Python to turn data and ML models into interactive applications that empower stak
Slide 29: Snowpark ML Modeling API
In Dev Private Public GA Snowpark ML Modeling API What is it? ML MODELING API FOR SNOWPARK Use popular ML frameworks for feature engineering Preprocessing Model Training and training directly in Snowpark Client Side Libraries ONE_HOT_ENCODER.FIT(DF) XGBREGRESSOR.FIT(DF) Value Feature Engineering: Im
Slide 30: Snowpark Model Registry
In Dev Private Public GA Snowpark Model Registry What is it? Unified, governed repository for an organization’s ML models to help streamline and scale MLOps Value ● Publish, discover, and share models with central MODEL REGISTRY and governed view of model artifacts and metadata ● Effortlessly deploy
Slide 31: Snowpark Container Services
In Dev Private Public GA Snowpark Container Services Internally-developed Container services/jobs/functions What is it? Additional Snowpark runtime that helps developers register and deploy container images in Snowflake SNOWPARK CONTAINER SERVICES SNOWFLAKE NATIVE APP … Value Image Registry ● Langua
Slide 32: Snowpark Container Services Launch Partners
In Dev Private Public GA Snowpark Container Services Launch partners AI / ML Databases Applications Custom Languages GPUs Orchestration © 2023 Snowflake Inc. All Rights Reserved
Slide 33: Vision: Platform for Generative AI & Assistants
Vision: Platform for Generative AI & Assistants LLM-POWERED EXPERIENCES STREAMLIT STREAMLIT Document AI * COMMUNITY Front-End for LLMs Text-to-Code ** Semantic Search ** SNOWFLAKE NATIVE APPS * EXTERNAL EXTERNAL LLMS FUNCTIONS OR OPEN SOURCE LLMS PARTNER LLMS SNOWFLAKE LLMS SNOWPARK EXTERNAL ACCESS
Slide 37: Customer Q&A with Disney
CUSTOMER Q&A WITH DISNEY CHRIS DEGNAN Chief Revenue Officer ROB SMEDLEY Vice President, Data Technology Disney Parks, Experiences and Products © 2023 Snowflake Inc. All Rights Reserved
Slide 39: FY23 Execution Highlights
FY23 Execution Highlights 70% Grew product $1.9B Crossed $1.9B in revenue 70% Y/Y product revenue 700 Expanded non-GAAP $500M+ Generated +$500 operating margins by million in non-GAAP 700 basis points adjusted FCF Note: Fiscal year ended January 31, 2023. Please see the Appendix for a definition of
Slide 41: Large and Growing Market
Large and Growing Market Snowflake Platform TAM +2x ~$290B $140B CY22 CY23 CY24 CY25 CY26 CY27 Note: Calendar year ends December 31. Charts/graphics created by Snowflake based on Gartner research. Source: Gartner, Forecast: Enterprise Infrastructure Software, Worldwide, 2021-2027, 1Q23 Update, March
Slide 42: Landing the Largest Organizations
Landing the Largest Organizations Forbes Global 2000 Penetration1 16% 30% Q1 FY21 Q1 FY24 Note: Fiscal year ends January 31. Percentage is calculated as of the end of the corresponding fiscal quarter. 1. See definitions provided in the Appendix. © 2023 Snowflake Inc. All Rights Reserved
Slide 43: Adding Quality Customers
Customers >$20M TTM Product Revenue Adding Quality Customers Customers >$10M TTM Product Revenue Customers >$5M TTM Product Revenue Customers >$1M TTM Product Revenue 1 Customers Over $1M Product Revenue 330 185 80 60 31 13 20 1 3 3 9 10 FY21 FY22 FY23 Note: Fiscal year ends January 31. 1. See defin
Slide 44: Customers Start Small
Customers Start Small Median Initial Capacity Contract Size for Customers Over $1M Product Revenue1 $150K $150K $100K FY19 FY20 FY21 Note: Fiscal year ends January 31. Customers Over $1M Product Revenue as of April 30, 2023. 1. See definitions provided in the Appendix. © 2023 Snowflake Inc. All Righ
Slide 45: Investment in Migration
Investment in Migration GSI Snowflake Services Revenue1 +58% $1,341M Y/Y $847M FY22 FY23 Note: Fiscal year ends January 31. 1. See definitions provided in the Appendix. © 2023 Snowflake Inc. All Rights Reserved
Slide 46: Customers Take Time To Migrate
Customers Take Time To Migrate Dollar-Weighted Average Time From Start Date To Contract Consumption Run Rate (Days)1 273 240 244 243 240 240 232 234 210 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY21 FY22 FY23 Cohort Note: Fiscal year ends January 31. 1. See definitions provided in the Appendix. © 2023 Snowflake I
Slide 47: Strong Expansion Patterns
Strong Expansion Patterns Net Revenue Retention Rate1 176% 174% 171% 171% 171% 165% 165% 167% 165% 156% 159% 158% 151% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY21 FY22 FY23 FY24 Note: Fiscal year ends January 31. 1. See definitions provided in the Appendix. © 2023 Snowflake Inc. All Rights Reserved
Slide 48: Stable Expansion in the G2K
Stable Expansion in the G2K Forbes Global 2000 Customers Net Revenue Retention Rate1 174% 171% 168% 169% 169% 168% 161% 163% 159% 160% 159% 154% 150% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY21 FY22 FY23 FY24 Note: Fiscal year ends January 31. 1. See definitions provided in the Appendix. Forbes Glob
Slide 49: Significant Growth Opportunity
Forbes Global 2000 Customers1 Significant Growth Opportunity $1M+ Product Revenue Customers1 Top 25 Product Revenue Customers1 Average Trailing Twelve Month Product Revenue for Largest Customers ($ Millions) $18.0 $12.0 $6.9 $3.4 $3.5 $3.7 $0.9 $1.4 $0.6 FY21 FY22 FY23 Note: Fiscal year ends January
Slide 51: GTM Structure
GTM Structure Theaters Industries Workloads Financial Healthcare & Us Verticals Services Life Sciences AI / ML Applications Retail / Cpg Manufacturing Collaboration Cybersecurity Enterprise Corporate Advertising, Media Data Data EMEA & Entertainment Technology Engineering Warehouse APJ Public Sector
Slide 54: Migrations by Year
Migrations1 Migrations by Year Vendors Replaced1 2,860 3,000 2,520 2,410 2,280 1,930 FY21 FY22 FY23 Note: Fiscal Year ends January 31. Numbers are rounded for presentation purposes. 1. See definitions provided in the Appendix. © 2023 Snowflake Inc. All Rights Reserved
Slide 57: Snowpark Is Taking Share
Snowpark Snowpark Is Taking Share Spark #1 Spark #2 Snowflake Consumption: Snowpark vs. Data Engineering & AI/ML Competitors Feb Apr Jun Aug Oct Dec Feb Apr Jun FY23 FY24 Note: Fiscal year ends January 31.The graphical presentations above represent the trailing seven day average from February 1, 202
Slide 58: Early Signs of Adoption
Early Signs of Adoption Total Customers1 95% Data Warehousing 35% Snowpark 20% AI / ML 25% Data Sharing¹ Customers Over $1M Product Revenue¹ 100% 85% Data Warehousing Snowpark 65% AI / ML 70% Data Sharing¹ Note: As of April 30, 2023. Numbers are rounded for presentation purposes, and are based on wh
Slide 59: M&A Accelerates Product Roadmap
M&A Accelerates Product Roadmap Generative AI Based Search Time Series Forecasting Acqui-Hire Pragmatists Acqui-Hire LLM Based Document Understanding Enabling Snowflake Migrations Acqui-Hire App Development Differential Privacy Platform FY22 FY23 FY24 YTD Note: Fiscal year ends January 31. © 2023 Sn
Slide 61: Customers Book Based on Trailing Consumption and Grow Beyond Their Contracts
Product Revenue Customers Book Based on Trailing Consumption ACV1 by Quarter and Grow Beyond Their Contracts A Top Ten Customer Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Note: Excludes co-term deals. 1. See definitions provided in the Appendix. © 2023 Snowflake Inc. All Rights Reserved
Slide 62: Customers Book Based on Trailing Consumption and Grow Beyond Their Contracts
Product Revenue Customers Book Based on Trailing Consumption ACV1 by Quarter and Grow Beyond Their Contracts Quarterly Product Revenue A Top Ten Customer above ACV Quarterly Product Revenue below ACV Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Note: Excludes co-term deals. 1. See definitions provided in the
Slide 63: Customers Book Based on Trailing Consumption and Grow Beyond Their Contracts
Product Revenue Customers Book Based on Trailing Consumption ACV1 by Quarter and Grow Beyond Their Contracts A Top Ten Customer Product Revenue/ACV 1.4x Product Revenue/ACV 0.7x Product Revenue/ACV Product Revenue/ACV 0.7x 1.4x Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Note: Excludes co-term deals. 1. See
Slide 64: Optimizations
Optimizations CSP Snowflake Customer Hardware Improvements Software Improvements Account-Driven Optimizations Graviton Ongoing product improvements Customer specific initiatives driven (e.g. Warehouse Scheduling Service) by account teams and RSAs (e.g. warehouse sizing) 5% Net Revenue Headwind Sales
Slide 66: Long-Term Operating Model
Long-Term Operating Model FY24 Prior FY29 FY22 FY23 Guidance FY29 Target Target Product Revenue ($M) $1,140 $1,939 $2,600 ~$10,000 ~$10,000 Non-GAAP 74% 75% 76% ~78% ~78% Product Gross Margin1 Non-GAAP (3%) 5% 5% ~20% ~25% Operating Margin1 Non-GAAP 12% 25% 26% ~25% ~30% Adjusted FCF Margin1 Note: F
Slide 67: FY24 Retention Rates Diverge from History
FY23 FY24 Retention Rates Diverge from History FY24 Estimate FY24 Estimate △ vs. FY23 Net Revenue Retention Rate By Maturity Cohort1 Cohort Year 2 Year 3 Year 4 Year 5 Year 6 ~(45%) ~(20%) ~(15%) ~(25%) ~(15%) Note: Fiscal year ends January 31. 1. See definitions provided in the Appendix © 2023 Snow
Slide 68: FY29 Assumes Slower Ramp and Stable Expansion
FY23 FY29 Assumes Slower Ramp FY24 Estimate and Stable Expansion FY25-FY29 Avg. Estimate FY25-FY29 Avg. Estimate △ vs. FY23 Net Revenue Retention Rate By Maturity Cohort1 Cohort Year 2 Year 3 Year 4 Year 5 Year 6 ~(70%) ~flat ~flat ~(5%) ~(5%) Note: Fiscal year ends January 31. 1. See definitions pr
Slide 69: Maturing Product Gross Margin Profile
Maturing Product Gross Margin Profile Non-GAAP Product Gross Margin1 74% 75% 69% FY21 FY22 FY23 Note: Fiscal year ends January 31. 1. Please see the Appendix for a definition of non-GAAP product gross margin and a reconciliation to its nearest GAAP equivalent and for the calculation of certain other
Slide 70: Productivity Dictates Investment
Productivity Dictates Investment Productivity (Net New ACV1 in Millions / Number of Sales AEs as of Fiscal Year End) 1.1x 0.9x 0.9x FY21 FY22 FY23 Note: Fiscal year ends January 31. 1. See definitions provided in the Appendix © 2023 Snowflake Inc. All Rights Reserved
Slide 71: Payment Terms Impact Free Cash Flow
Payment Terms Impact Free Cash Flow ACV1 by Payment Frequency 22% 18% 20% Other 78% 82% 80% Annual-in- Advance FY21 FY22 FY23 Note: Fiscal year ends January 31. 1. See definitions provided in the Appendix © 2023 Snowflake Inc. All Rights Reserved
Slide 72: Modeling Considerations
Modeling Considerations PRODUCT NON-GAAP ADJUSTED REVENUE FREE CASH FLOW ● Snowpark ● Interest Income ● Iceberg ● Cash Taxes ● Streamlit ● Unistore ● Public Sector ● China © 2023 Snowflake Inc. All Rights Reserved
Slide 74: New Hires and R&D Drive Equity Grants
New Hires and R&D Drive Equity Grants % OF TOTAL FY23 EQUITY GRANT DOLLARS Existing R&D R&D Employees 19% represented 61% of FY23 Total Equity Net New R&D Grant Dollars Employees 42% Other Existing Employees New Hires 25% represented 56% Other of FY23 Total Equity Net New Grant Dollars Employees 14%
Slide 76: While Intentionally Investing in R&D
While Intentionally Investing in R&D R&D Net New Employees as a % of Total Net New Employees 50% 31% 21% FY22 FY23 FY24E Note: Fiscal year ends January 31. © 2023 Snowflake Inc. All Rights Reserved
Slide 77: Dilution Target
Dilution Target Annual Net Dilution1 3% ~2% Annual Dilution Target 1% FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 Note: Fiscal year ends January 31. 1. See definitions provided in the Appendix © 2023 Snowflake Inc. All Rights Reserved
Slide 80: Statement Regarding Use of Non-GAAP Financial Measures
Statement Regarding Use of Non-Gaap Financial Measures This presentation also includes certain non-GAAP financial measures, which have not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). These non-GAAP financial measures are in addition to, and
Slide 81: Definitions
Definitions Forbes Global 2000 Customers: Our Forbes Global 2000 customer count is a subset of our customer count based on the 2022 Forbes Global 2000 list. Our Forbes Global 2000 customer count is subject to adjustments for annual updates to the list by Forbes, as well as acquisitions, consolidatio
Slide 82: Definitions
Definitions Migrations and Vendors Replaced: To determine (i) whether and when a customer has engaged with Snowflake to begin a migration and (ii) the number of vendors replaced, or to be replaced, due to a migration, we look to the customer’s, or end-customer’s in the case of a reseller arrangement
Slide 83: GAAP to Non-GAAP Reconciliations
GAAP to NON-GAAP Reconciliations Product Gross Profit, Operating Income (Loss), Free Cash Flow and Adjusted Free Cash Flow FY21 FY22 FY23 Product revenue $553,794 $1,140,469 $ 1,938,783 Professional services and other revenue 38,255 78,858 126,876 Revenue $592,049 $1,219,327 $ 2,065,659 Gross Profit

Snowflake — Investor Day (June 2023) on 6ix

Snowflake — Investor Day (June 2023)

Slide 1: © 2023 Snowflake Inc. All Rights Reserved

Slide 2: Snowflake Investor Day 2023

Slide 3: Safe Harbor

Slide 4: Agenda

Slide 5: Mobilizing the World's Data

Slide 6: AI Strategy Requires a Data Strategy

Slide 7: Snowflake Manages Exabytes of Proprietary Enterprise Data

Slide 8: Customers Are Bringing Work to Their Data

Slide 9: AI Has Requirements Beyond Your Enterprise Boundary

Slide 10: Snowflake + Microsoft 2.0

Slide 11: Product Innovation

Slide 12: Innovation Themes

Slide 13: Single Platform

Slide 14: 3.1B Average Daily Queries, 50T+ Rows, 177 PB

Slide 15: Iceberg Tables

Slide 16: Document AI

Slide 17: ML-Powered Functions

Slide 18: Unistore

Slide 19: Deploy, Distribute, Monetize Apps

Slide 20: Marketplace Capacity Drawdown Program

Slide 21: Snowflake Native App Framework

Slide 22: Snowflake Native Apps

Slide 23: Programmability Without Tradeoffs

Slide 24: Snowpipe Streaming

Slide 25: Dynamic Tables

Slide 26: Streamlit in Snowflake

Slide 27: Why Snowpark?

Slide 28: AI/ML Lifecycle Snowpark

Slide 29: Snowpark ML Modeling API

Slide 30: Snowpark Model Registry

Slide 31: Snowpark Container Services

Slide 32: Snowpark Container Services Launch Partners

Slide 33: Vision: Platform for Generative AI & Assistants

Slide 34: LLM Partnerships

Slide 35: The Next Wave of Innovation

Slide 36: Snowflake + Neeva

Slide 37: Customer Q&A with Disney

Slide 38: Financial Overview

Slide 39: FY23 Execution Highlights

Slide 40: Growth Opportunity

Slide 41: Large and Growing Market

Slide 42: Landing the Largest Organizations

Slide 43: Adding Quality Customers

Slide 44: Customers Start Small

Slide 45: Investment in Migration

Slide 46: Customers Take Time To Migrate

Slide 47: Strong Expansion Patterns

Slide 48: Stable Expansion in the G2K

Slide 49: Significant Growth Opportunity

Slide 50: Go-to-Market Strategy

Slide 51: GTM Structure

Slide 52: Migrate Legacy Silos

Slide 53: Migrate Legacy Silos

Slide 54: Migrations by Year

Slide 55: Snowpark Unlocks New Workloads

Slide 56: Snowpark Unlocks New Workloads

Slide 57: Snowpark Is Taking Share

Slide 58: Early Signs of Adoption

Slide 59: M&A Accelerates Product Roadmap

Slide 60: Forecast Visibility

Slide 61: Customers Book Based on Trailing Consumption and Grow Beyond Their Contracts

Slide 62: Customers Book Based on Trailing Consumption and Grow Beyond Their Contracts

Slide 63: Customers Book Based on Trailing Consumption and Grow Beyond Their Contracts

Slide 64: Optimizations

Slide 65: FY29 Targets

Slide 66: Long-Term Operating Model

Slide 67: FY24 Retention Rates Diverge from History

Slide 68: FY29 Assumes Slower Ramp and Stable Expansion

Slide 69: Maturing Product Gross Margin Profile

Slide 70: Productivity Dictates Investment

Slide 71: Payment Terms Impact Free Cash Flow

Slide 72: Modeling Considerations

Slide 73: Dilution

Slide 74: New Hires and R&D Drive Equity Grants

Slide 75: Slowing Pace of Hiring

Slide 76: While Intentionally Investing in R&D

Slide 77: Dilution Target

Slide 78: Q&A

Slide 79: Appendix