Snowflake Inc.

Before attending today's Q3FY2024 Snowflake Earnings Conference Call, my name is Hannah and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star 1. I would now like to pass the conference over to our host, Jimmy Sexton, Head of Investor Relations at Snowflake. You may go ahead.

Good afternoon, and thank you for joining us on Snowflake's Q3 fiscal 2024 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, who will join us for the Q&A session. During today's call, we will review our financial results for the third quarter fiscal 2024 and discuss our guidance for the fourth quarter and full year fiscal 2024. 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, our stock repurchase program, 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 close today and in our SEC filings, including our most recently filed Form 10-Q for the fiscal quarter ended July 31, 2023. and the Form 10-Q for the quarter ended October 31, 2023 that we will file with the SEC. We cause 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. Welcome and good afternoon. Q3 product revenue grew 34% year-over-year to reach $698 million. Non-GAAP adjusted free cash flow was $111 million, representing 70% year-over-year growth. Results reflect strong execution in a broadly stabilizing macro environment. While Snowflake's global revenue mix is highly diverse in terms of industries and geographies, the company derives an ever larger revenue share from mainstream enterprises and institutions. This as compared to a newer crowd of digital natives who've made up many of Snowflake's early adopters. We added 35 $1 million plus customers during the quarter. Nine of our top 10 customers grew sequentially. Generative AI is at the forefront of customer conversations, which in turn drives renewed emphasis on data strategy in preparation of these new technologies. We've said it many times, there's no AI strategy without a data strategy. The intelligence we're all aiming for resides in the data, hence the quality of that underpinning is critical. Meanwhile, Snowflake has announced and showcased a plethora of new technologies that let customers mobilize AI. We've introduced Snowflake Cortex to leverage AI and machine learning on Snowflake. Cortex is a managed service for inferencing large language models. This opens up direct access to models and specialized operations like translation, sentiment, and vector functions. Business analysts and data engineers can now use AI functionality without the fractured, highly technical challenges of the AI landscape. Last summer, we introduced Snowpark Container Services, which also serves as the second pillar of our AI enablement strategy. Developers can access any language, any library, and flexible hardware inside the governance boundary of Snowflake. More than 70 customers are already using container services in preview, with many more waiting in line. Snowflake makes the common AI use cases easy and the advanced use cases possible. We are well positioned for AI based on the scale and scope of our data cloud programmability and governance framework. There are hurdles challenging enterprise adoption of AI and ML. The first is broad access to quality data. Snowflake addresses this challenge through its data sharing architecture. 28% of all our customers share data up from 22% a year ago, and 73% of our $1 million-plus customers are data sharing up from 67% a year ago. AI models can only be as smart as the data they are trained on. Security and governance present another challenge for enterprise adoption of AI in the now. Snowflake Horizon offers a unified security and governance solution built for AI. Horizon strictly and consistently enforces user privileges on data across use cases, including large language model applications, traditional ML models, and ad hoc queries. As part of Horizon, we introduced universal search, which enables customers to search the data cloud. Customers can now discover data and metadata that exists across their accounts and in the Snowflake marketplace. Snowflake continues to win new workloads outside of its traditional scope. Snow Park consumption grew 47% quarter over quarter. Consumption in October was up over 500% since last year. Over 30% of customers used Snowflake to process unstructured data in October. Consumption of unstructured data was up 17x year over year. Our newest streaming capability, dynamic cables, entered public preview earlier this year. Approximately 1,500 customers are using the feature, and initial adoption is outpacing expectations. We have a number of major new capabilities becoming broadly available in Q4. Our native apps framework will go GA, Unistore for transaction processing, Snowpark Container Services, and Apache Iceberg Tables will all enter public preview. These products unlock substantial new workload expansion opportunities. We are campaigning globally to expand our audience. This fall, our Data Cloud World Tour traveled to 26 cities worldwide. In-person attendance at these events reached 23,000, nearly double from last year. Next up is our Build developer conference in early December, where we anticipate 35,000 registrations. Build is focused on building apps, data pipelines, and AI ML workflows. We hope to see you there. With that, I will turn the call over to Mike.