Snowflake Inc.

Ladies and gentlemen, thank you for standing by and welcome to the third quarter fiscal year 2022 Snowflake Earnings Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session. And if you would like to ask a question during that time, simply press the star 1 on your telephone keypad. If anyone should require assistance during the conference, please press the star 0. I would now like to turn the conference over to your speaker today, Jimmy Sexton, Head of Investor Relations. Please go ahead.

Good afternoon, and thank you for joining us on Snowflake's Q3 Fiscal 2022 Earnings Call. With me in Bozeman, Montana, are Frank Slootman, our Chairman and Chief Executive Officer, Mike Scarpelli, our Chief Financial Officer, and Christian Kleinerman, our Senior Vice President of Product, will join us for the Q&A session. During today's call, we will review our financial results for third quarter fiscal 2022 and discuss our guidance for the fourth 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 for the fiscal quarter ended July 31st, 2021, and the Form 10-Q for the quarter ended October 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'll 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 both 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. Good afternoon, everybody. We saw momentum accelerate in Q3 with product revenues growing 110% year-on-year to $312 million and remaining performance obligations growing to $1.8 billion. The net revenue retention rate expanded to 173%, and we recorded our first positive non-GAAP operating income in the company's history. Our Q3 Fortune 500 customer count totaled 223, increasing by 8 in the quarter, and we now have 148 customers with trailing 12-month product revenue greater than $1 million. Our growth is driven by a diverse mix of customers. The 10 largest consumers in Q3 include four Fortune 500 companies, four companies less than 10 years old, and a Powered by Snowflake program partner. We continued our international expansion with product revenue from EMEA and Asia Pacific outstripping the company's year-on-year growth, up 174% and 219% respectively. We recently launched operations in three new countries, Israel, Korea, and the United Arab Emirates. Vertical industry focus is an important evolution of our selling motion, especially in global enterprise accounts. During the quarter, we announced two industry data clouds – The Financial Services Data Cloud brings together the Snowflake platform, partner solutions, and industry data to help financial services organizations mobilize their data. Customers can launch products, build fintech platforms, and accelerate their compliance on top of Snowflake. Industry-leading customers Allianz, BlackRock, Capital One, New York Stock Exchange, Refinitiv, Square, State Street, and the Western Union are all part of the Financial Services Data Cloud. We also launched a media data cloud, which enables media and advertising companies to share data for audience insights and measurements. With data clean rooms enabled by Snowflake, advertisers, agencies, and publishers can design their own collaborative environments. The media data cloud includes industry leaders like Disney Advertising Sales, Experian, Horizon Media, and the Trade Desk. We're teaming up with Disney Advertising Sales to provide the infrastructure underlying their new data clean room solution. Together, Snowflake and Disney Advertising Sales enable data collaboration for compliant and secure advertising. We launched our Powered by Snowflake program in June to help companies build and promote applications in the data cloud. Powered by Snowflake is designed to accelerate the delivery of cloud applications on Snowflake. To date, there are over 175 Powered by Snowflake companies who have access to technical resources to design their applications. Most recently, we announced Securonics, UiPath, VideoAmp, and ZoomInfo as powered by Snowflake partners. In October, we held the Snowflake Build Summit, which focuses on software developers, data scientists, and data engineers. The event received over 20,000 registrations, which was three times last year's build event. Attendees got a closer look at new applications leveraging Snowpark, which brings programmability to Snowflake and is in public preview. Developers explored how new Java user-defined functions are expanding what is possible with Snowflake. Updates to the Snowpark Accelerator program were also announced at Build. Snowpark Accelerator provides partners with access to technical experts and market exposure to Snowflake customers. Snowpark provides programming language choice to Snowflake's data cloud. Customers can access pre-built partner capabilities and integrations. It is leveraged by companies such as DataIQ, DataRobot, and H2O.ai. At our recent Snow Day event with more than 23,000 registrations, we announced that our customers can now use Python natively within Snowflake. With Snow Park for Python, developers will be able to easily program with a widely popular language. They can also leverage the security, governance, and performance of Snowflake. Snowpark for Python is currently in private preview. During the quarter, Snowflake invested in Anaconda to bring enterprise-grade Python capabilities to the data cloud. Together, we enabled the Python community to build secure data pipelines and machine learning capabilities. The Anaconda partnership will enhance the Snowpark experience to extend programmability with Snowflake. Last year, we issued our first startup challenge. 700 companies from 56 countries competed to build a data application with Snowflake. We announced our second Snowflake startup challenge and built with an opportunity for up to $1 million in total investment. Snowflake's data marketplace grew 41% this quarter, now with more than 900 datasets from over 200 providers. We also saw more than 130% annual increase in so-called stable edges. Stable edges are ongoing snowflake data networking relationships between providers and consumers. One of the featured data sets is FactSet's tick history data feed. It provides asset managers real-time data from over 200 exchanges. ZoomInfo is another featured data set. It provides company and contact data with no additional integration or ETL required. The overarching backdrop for Snowflake is the inexorable march towards direct-to-consumer operations and full-blown digital transformation. Enterprises and institutions have grown acutely aware how much they will end up relying on data operations, data analytics, and data science. Data is becoming the beating heart of the modern enterprise. So, the race is on to lay the foundation for a digital, data-driven infrastructure. Snowflake is and will be a critical enabler of this journey. With that, I will now turn the call over to Mike.