Snowflake Announces Financial Results for Q4 and Full-Year of Fiscal 2025

Snowflake Inc. (NYSE: SNOW), a leader in AI Data Cloud solutions, announced its financial results for the fourth quarter and the full year of fiscal 2025, ending January 31, 2025. The company reported impressive growth and robust customer engagement, marking a significant milestone for the fiscal year.

Quarterly Financial Performance

In the fourth quarter, Snowflake generated revenue of $986.8 million, which is a strong 27% increase compared to the same period last year. The product revenue for this quarter was approximately $943.3 million, reflecting a notable year-over-year growth of 28%. Additionally, the net revenue retention rate stood at a remarkable 126%, highlighting the company's ability to expand its business with existing customers.

Customer Milestones

As of the end of January 2025, Snowflake reported having 580 customers with trailing 12-month product revenue exceeding $1 million, an increase of 27% from the previous year. The company proudly serves 745 customers from the Forbes Global 2000 list, which represents a growth of 5% year-over-year.

Remaining Performance Obligations

Snowflake's remaining performance obligations totaled $6.9 billion, a significant increase of 33% compared to last year. This figure indicates the company's strong future revenue potential as it continues to sign new contracts and expand existing ones.

CEO's Remarks

CEO Sridhar Ramaswamy expressed satisfaction with the results, emphasizing the company's position as a pivotal player in the AI and data industry. He noted, "Snowflake is the most consequential data and AI company in the world. Our platform is being embraced by over 11,000 customers, and we see tremendous opportunities to support them throughout their end-to-end data lifecycle."

Full-Year Financial Overview

For the full fiscal year 2025, Snowflake achieved product revenue of $3.46 billion, which translates to a 30% increase compared to the prior fiscal year. The product gross profit margin remained strong at 71%, maintaining its efficiency even amid rapid growth. Despite the increase in expenses, the non-GAAP operating income for the year reached $231.7 million, representing 6% of total revenue.

Future Guidance

Looking ahead, Snowflake provided guidance for the first quarter of fiscal 2026, expecting product revenue to be between $955 million and $960 million, indicating an anticipated growth of approximately 21% to 22%. The company plans to utilize its robust market position to further enhance its offerings and customer relationships.

Conclusion

Snowflake’s solid financial performance for the fourth quarter and throughout fiscal 2025 showcases its strong market presence and dedication to growth. With significant revenue retention and a growing base of high-value customers, the company is well-positioned to continue its trajectory of success in the ever-evolving landscape of data and AI.

Snowflake, Revenue, Growth, Earnings, AI