Snowflake, a data cloud analytics provider, has revealed its financial result and main achievements during the second-quarter of 2024.
Snowflake now has 510 customers (up 28 percent) with trailing 12-month product revenue greater than $1 million. Snowflake is growing its large customer base as the number of customers with more than $1 million billing revenue was 484, 458, 433 and 399 in the previous quarters.
Snowflake said the total number of customers has reached 10,249 from 9,809 in the previous quarter.
Snowflake has 736 Forbes Global 2000 customers as compared with 734, 720 and 700 in the previous quarters.
Snowflake says its retention rate has dropped to 127 percent from 128 percent, 131 percent, 135 percent and 142 percent in the previous quarters.
Snowflake’s product revenue for the quarter reached $829 million (up 30 percent), driven by demand in the financial services and technology verticals. Snowflake is increasing its product revenue outlook for the year. Snowflake expects product revenue of $3.36 billion for fiscal 2025, up from its prior forecast of $3.30 billion.
Snowflake said remaining performance obligations totaled $5.2 billion with year-over-year growth accelerating to 48 percent from $4,988 million in the previous quarter.
Snowflake signed 2 9-figure deals in the quarter. Earlier this year, Snowflake announced FY 2025 sales incentives that would prioritize consumption and new customer acquisitions.
Snowflake’s sales reps prosecute new use cases and sell new product features to drive consumption.
Snowflake said approximately 80 percent of its customers are paying annually in advance.
Companies like Capital One, NBCU, Petco, Pfizer, Snapchat and Western Union are relying on Snowflake to help them fuel their businesses.
Snowflake has 15,000 on-site SMBs (up 28 percent).
Snowflake generated 79 percent of its sales revenue from Americas, 16 percent from Europe, the Middle East and Africa, and 5 percent from Asia Pacific.
Snowflake is targeting revenue of $3.356 billion in fiscal 2025 against $2.667 billion in fiscal 2024, $1.939 billion in fiscal 2023 and $1.140 billion in fiscal 2022.
Penske Logistics, a provider of transportation and warehousing solutions, has developed innovative use cases involving Cortex AI. In one example, Penske plans to use Cortex to consume various performance metrics related to its transportation business. Cortex analyses will help provide feedback to Penske’s operations managers with the goal of improving performance and enhancing truck driver retention.
Snowflake says more than 400 accounts are using Iceberg as of the end of Q2.
As of the end of Q2, more than 2,500 accounts were using Snowflake AI on a weekly basis.
More than 1,600 accounts are using Notebooks offering. Cortex Search and Cortex Analyst are expected to be generally available in Q3.
Snowflake was the victim of a data breach earlier this year which saw large amounts of customer data stolen from firms like TicketMaster-parent Live Nation and telecom operator AT&T. The company said the cybersecurity incident did not have an impact on product consumption.
Snowflake has seen a rise in demand for its Data Cloud platform as AI integration has helped enterprises streamline their data quickly and efficiently.
Snowflake has been actively pursuing AI by creating its own large language model called Snowflake Arctic, and partnering with Facebook-parent Meta to use its Llama models and boost the appeal of the company’s cloud platform.
Baburajan Kizhakedath
