Snowflake Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Q4 FY21 Snowflake Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Jimmy Sexton, Head of Investor Relations. Thank you.

Please go ahead, sir. Good afternoon, and thank you for joining us on Snowflake's Q4 fiscal 2021 earnings call. Joining me are Frank Slootman, our Chairman and Chief Executive Officer, and Mike Starpelli, our Chief Financial Officer. During today's call, we will review our financial results for fourth quarter fiscal 2021 and discuss our guidance for the first quarter and full year fiscal 2022. During today's call, we will make forward-looking statements, including statements related to the expected performance of our business, future financial results, strategy, products and features, long-term growth, and overall future prospects. These statements are subject to risks and uncertainties, which could cause them to differ materially from actual results. Information concerning those risks is available in our earnings press release distributed after market closed today and in our SEC filings, including our most recently filed Form 10-Q and the Form 10-K for the fiscal year ended January 31st, 2021, that we will file with the SEC. We caution you to not place undue reliance on forward-looking statements and undertake no duty or obligation to update any forward-looking statements as a result of new information, future events, or changes in our expectations. We'd also like to point out that on today's call, we will report both GAAP and non-GAAP results. We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are presented in addition to and not as a substitute for financial measures calculated in accordance with GAAP. To see the reconciliations of these non-GAAP financial measures, please refer to our earnings press release distributed earlier today and our investor presentation, which are posted at investors.snowflake.com. A replay of today's call will also be posted on the website. With that, I would now like to turn the call over to Frank.

Thanks, Jimmy, and good afternoon, everybody. We finished our fiscal year with strong consumption across our customer base. with 116% growth year-on-year to $178 million in fourth quarter product revenue. Remaining performance obligations of $1.3 billion grew 213% year-on-year, reflecting strength in sales across the board. Coupled with this rapid growth, we saw improving operating efficiency while onboarding over 800 new employees for the year. Our growth is driven by long-term secular trends in data science and analytics, and enabled by cloud-scale computing and Snowflake's cloud-native software architecture. With the onslaught of digital transformation, data operations become the beating heart of the modern enterprise. Customers realize that to survive and thrive, they need to step up their data gain, given what is now possible with technology. The Snowflake Data Cloud enables breakthrough data strategies. Capacity limitations are a thing of the past. There are virtually no constraints anymore on the number of workloads. that can execute at the same time against the same data. The performance of individual workloads has increased by orders of magnitude, while latency has been reduced by similar proportions. The only constraints left are budgets and our customers' imagination, and we believe those boundaries are shifting quickly as well. The Snowflake Data Cloud also breaks new ground in terms of data access, which is increasingly critical for data science, artificial intelligence, and machine learning workloads. The days of mostly in-silo analytics are numbered. The promise of data science is to discover and mobilize data relationships that can be glimpsed across a broad diversity of data sources and data types. Physical boundaries between data sets dictated by technology legacies have no meaning or significance in data science. Science sees the world's data as a single universe that is easily, seamlessly, and frictionlessly traversed as if it's one giant database. That is the essence of the Snowflake Data Cloud, world-class workload execution coupled with practically unfettered data access across clouds, cloud regions, and geographies. BlackRock, the world's largest asset manager, has adopted the Snowflake Data Cloud to help make the best investment decisions for their clients. Last week, we announced a strategic partnership to launch the Aladdin Data Cloud, powered by Snowflake. Now, Aladdin clients can combine Aladdin portfolio data with non-Aladdin data to analyze faster and create custom applications and dashboards. Clients will have a single control plane to make data-driven decisions around portfolio management, trade execution, investment operations, analysis, and risk management. With Aladdin becoming a strategic part of the Snowflake data cloud, our shared goal with BlackRock is to create a cutting-edge industry standard for accessing, governing, and and acting on data in a unified and governed data environment. The data cloud is inspiring more new conversations with customers and prospects, and it leads them to a different view of their data strategies going forward. Active data sharing relationships in the Snowflake data cloud are growing by leaps and bounds, increasing 51% quarter-on-quarter. We're seeing rapid adoption of the Snowflake marketplace as well, with consumption attributable to data for marketplace providers up 48% quarter over quarter, and new listings growing 10x year on year to a total of 380 as of the end of the fiscal year. Newly added to the marketplace in Q4 are data providers such as ZoomInfo, Western Union, and Foursquare. Our continued push to campaign the largest enterprises in the world is proving to be successful. We added 19 Fortune 500 customers in Q4, including MasterCard, Genuine Parts, and Northern Trust. While customers choose to partner with Snowflake because of the data cloud, we still must meet customers wherever they are on their technology journey. Often engagements begin with a migration of legacy data warehouse platforms. We have engaged in over 75 legacy migrations last year, and we have identified many more for this year. Our global system integration partners, or GSIs, have seen their backlogs multiply and are rushing to staff, train, and provision the resources to meet the demand head on. While we team up with our GSIs, our strategy is to rely on our implementation partners for much of this work. we were pleased to welcome Infosys to Snowflake Elite Partner status during the quarter. A Fortune 100 technology company has deployed Snowflake across numerous lines of business since migrating their on-premise data warehouse platform to Snowflake. Because of Snowflake, their marketing department touts a more informed decision-making process with 20 times faster support for their customers. For fiscal 2022, our focus is to turbocharge our Snowflake data cloud with massive workload execution expansions and refinements, as well as expand our data federation with numerous new additions to the Snowflake marketplace. While our selling motions address some of the world's smallest as well as largest data estates in the world, we will have continued emphasis on landing and expanding in the largest enterprises and institutions, not just in the Americas, but also in EMEA and Asia Pacific. To that end, we have announced new leadership in the latter region to accelerate and scale the Snowflake campaign there. A new global initiative we began last year and are now accelerating is a vertical industry focus, which is permeating our sales, marketing, alliances, product, and service organizations. We have long sold almost exclusively on architectural distinction, which has served us well, and we will continue to do so in situations that warrant it. But our large enterprise focus has informed an evolution to a go-to-market motion that is industry-specific and outcome-oriented. We view this as a maturation of Snowflake in the large enterprise. We also now have so much critical mass in our target verticals, coupled with industry-specific data marketplaces, that this strategy will further differentiate Snowflake. We are super excited about the new year. We have the technology, the talent, and the organization to fully pursue our opportunity. With that, I will now turn the call over to Mike.