Snowflake Inc. · NYSE:SNOW

Snowflake — Q3 FY2021 Earnings Presentation

25 slides from Snowflake's earnings presentation, December 2020

  1. Slide 1: Investor Presentation Third Quarter Fiscal 2021

    Investor Presentation Third Quarter Fiscal 2021 © 2020 Snowflake Inc. All Rights Reserved.

  2. Slide 2: Safe Harbor and Statement Regarding Use of Non-GAAP Financial Measures

    Safe Harbor and Statement Regarding Use of Non-GAAP Financial Measures Other than statements of historical fact, all information contained in this presentation, including statements This presentation contains statistical data, estimates, and forecasts that are based on independent industry regarding

  3. Slide 3: Rise of the Data Cloud

    RISE OF THE 2014 2019 2020 DATA CLOUD © 2020 Snowflake Inc. All Rights Reserved. 2

  4. Slide 4: A Cloud Native Architecture Is Required

    A CLOUD NATIVE ARCHITECTURE IS REQUIRED © 2020 Snowflake Inc. All Rights Reserved. 3

  5. Slide 5: Snowflake's Architecture

    SNOWFLAKE’S ARCHITECTURE © 2020 Snowflake Inc. All Rights Reserved. 4

  6. Slide 6: Snowflake's Platform

    SNOWFLAKE’S PLATFORM © 2020 Snowflake Inc. All Rights Reserved. 5

  7. Slide 7: Growing Market Opportunity

    GROWING MARKET OPPORTUNITY DATA WAREHOUSE DATA CLOUD DATA $14B PLATFORM1 CLOUD ~$81B 1 Based on the Company’s own estimate as of January 31, 2020. © 2020 Snowflake Inc. All Rights Reserved. 6

  8. Slide 8: Expanding Ecosystem

    EXPANDING ECOSYSTEM BUILD DATA SERVICES TECHNOLOGY © 2020 Snowflake Inc. All Rights Reserved. 7

  9. Slide 9: Q3 Financial Highlights

    Q3 FINANCIAL HIGHLIGHTS Rapid Growth at Scale 115% YOY PRODUCT REVENUE GROWTH Significant Expansion with Existing Customers 162% NET REVENUE RETENTION Strong Large Customer Momentum 65 $1M+ PRODUCT REVENUE CUSTOMERS Improving Product Gross Margin 70% NON-GAAP PRODUCT GROSS MARGIN Note: Fiscal year e

  10. Slide 10: We Are Not a SaaS Model

    WE ARE NOT A SAAS MODEL 93% of revenue is consumption-based1 Revenue recognized variably only as consumption occurs In many cases, rollover of unused capacity permitted Contract durations increasing along with larger customer commitments Primarily billed annually in advance with some on-demand in ar

  11. Slide 11: We Focus on Product Revenue and RPO

    WE FOCUS ON PRODUCT REVENUE AND RPO Product Revenue Remaining Performance Billings Obligations (RPO) Why it matters: Why it matters: Why it’s less relevant: Substantial majority of our revenue Represents contracted future revenue Billings reflect the timing of the cash flows not yet recognized negot

  12. Slide 12: Strong Combination of Scale & Growth

    STRONG COMBINATION OF SCALE & GROWTH ANNUAL REVENUE (MILLIONS) QUARTERLY REVENUE (MILLIONS) 174% $265 119% YOY Growth YOY Growth $13 $160 $133 $11 $109 $8 $252 $88 $7 $97 $73 $5 $148 $1 $4 $125 $102 $96 $69 $82 FY19 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Product Revenue Professional Services a

  13. Slide 13: Significant Customer Commitments

    SIGNIFICANT CUSTOMER COMMITMENTS REMAINING PERFORMANCE OBLIGATIONS1 (MILLIONS) 240% YOY Growth $928 $688 $468 $426 $273 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Note: Fiscal year ends January 31. Numbers are rounded for presentation purposes. © 2020 Snowflake Inc. All Rights Reserved. 1 Represents th

  14. Slide 14: Large Customer Momentum

    LARGE CUSTOMER MOMENTUM TOTAL CUSTOMERS¹ CUSTOMERS OVER $1M PRODUCT REVENUE2 84% 3,554 110% YOY Growth YOY Growth 65 3,117 56 2,720 48 2,392 41 1,934 31 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Note: Fiscal year ends January 31. 1 We count the total number of c

  15. Slide 15: Landing Strategic Customers

    LANDING STRATEGIC CUSTOMERS FORTUNE 500 CUSTOMERS 56% 165 YOY Growth 153 143 126 106 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Note: Our Fortune 500 customer count is subject to adjustments for annual updates to the Fortune 500 list by Fortune, as well as acquisitions, consolidations, spin-offs, and o

  16. Slide 16: World-Class Retention Rate

    WORLD-CLASS RETENTION RATE DOLLAR-BASED NET REVENUE RETENTION RATE1 189% 169% 171% 158% 162% Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Note: Fiscal year ends January 31. 1 To calculate this metric for any given period, we first specify a measurement period consisting of the trailing two years from the

  17. Slide 17: Improving Product Gross Margin

    IMPROVING PRODUCT GROSS MARGIN NON-GAAP PRODUCT GROSS MARGIN1 68% Expansion Drivers Cloud agreement pricing 63% Scale Better discipline over discounting 58% 10 Percentage Points Non-GAAP Product Gross Margin Expansion FY19 FY20 FY21 YTD Note: Fiscal year ends January 31. FY21 YTD represents the nine

  18. Slide 18: Operating Leverage While Investing in Growth

    OPERATING LEVERAGE WHILE INVESTING IN GROWTH NON-GAAP OPERATING EXPENSES ADJUSTED FREE CASH FLOW AS % OF REVENUE1 AS % OF REVENUE1 Significantly Improved Leverage Drivers Operating Leverage (22%) Larger renewal mix leading to lower commissions 30% 26% (75%) 41% Larger customer 34% relationships 18%

  19. Slide 19: Hiring to Address Our Opportunity

    HIRING TO ADDRESS OUR OPPORTUNITY EMPLOYEE HEADCOUNT BY FUNCTION 2,253 2,037 282 1,854 218 1,676 188 354 1,522 294 165 248 139 211 440 178 384 336 311 298 1,141 1,177 1,082 989 907 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 S&M R&D G&A COGS © 2020 Snowflake Inc. All Rights Reserved. 18

  20. Slide 20: Expanding Internationally

    EXPANDING INTERNATIONALLY REVENUE MIX BY GEOGRAPHY 2% 3% 3% 3% 3% 9% 10% 10% 11% 11% 89% 88% 87% 87% 86% Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Americas EMEA APAC © 2020 Snowflake Inc. All Rights Reserved. Note: Numbers are rounded for presentation purposes. 19

  21. Slide 21: Fiscal 2021 Guidance

    FISCAL 2021 GUIDANCE FY21 GUIDANCE % OF REVENUE FY19 FY20 FY21 YTD MIDPOINT YOY PRODUCT REVENUE GROWTH NA 164% 121% 114% NON-GAAP PRODUCT GROSS PROFIT1 58% 63% 68% 68% NON-GAAP OPERATING LOSS1 (136)% (105)% (45)% (40)% NON-GAAP ADJUSTED FREE CASH FLOW1 (152)% (75)% (22)% (18)% Note: Fiscal year ends

  22. Slide 22: Appendix

    APPENDIX © 2020 Snowflake Inc. All Rights Reserved.

  23. Slide 23: GAAP to Non-GAAP Reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS PRODUCT GROSS PROFIT AND SALES & MARKETING Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 FY19 FY20 FY21 YTD Product revenue $ 69,213 $ 82,432 $ 101,817 $ 125,216 $ 148,473 $95,683 $252,229 $375,506 Professional service and other revenue 3,799 5,260 6,998 7,929 11,151 983 1

  24. Slide 24: GAAP to Non-GAAP Reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS RESEARCH & DEVELOPMENT AND GENERAL & ADMINISTRATIVE Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 FY19 FY20 FY21 YTD Product revenue $ 69,213 $ 82,432 $ 101,817 $ 125,216 $ 148,473 $95,683 $252,229 $375,506 Professional service and other revenue 3,799 5,260 6,998 7,929 11,

  25. Slide 25: GAAP to Non-GAAP Reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS OPERATING LOSS, FREE CASH FLOW, AND ADJUSTED FREE CASH FLOW Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 FY19 FY20 FY21 YTD Product revenue $ 69,213 $ 82,432 $ 101,817 $ 125,216 $ 148,473 $95,683 $252,229 $375,506 Professional service and other revenue 3,799 5,260 6,998 7

Snowflake — Q3 FY2021 Earnings Presentation on 6ix