Snowflake Inc.

School Year 24 Snowflake Earnings Call. My name is Alex. I'll be coordinating the call today. If you'd like to ask a question at the end of the presentation, you can press star followed by one on your telephone keypad. I'll now hand it over to your host, Katherine McCracken, Senior Manager, Investor Relations. Please go ahead.

Good afternoon, and thank you for joining us on Snowflakes Q4, fiscal 2024 earnings call. With me in Bozeman, Montana, are Sridhar Ramaswamy, our Chief Executive Officer, Frank Slootman, our Chairman, Mike Scarpelli, our Chief Financial Officer, and Christian Kleinerman, our Executive 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 fourth quarter fiscal 2024 and discuss our guidance for the first quarter and full year fiscal 2025. During today's call, we will make forward-looking statements, including statements related to our business operations, and financial performance. These statements are subject to risks and uncertainties, which could cause them to differ materially from actual interest. Information concerning these risks and uncertainties is available in our earnings press release, our most recent forms 10-K and 10-Q, and our other SEC reports. All our statements are made as of today based on information currently available to us. Except as required by law, we assume no obligation to update any such statements. During today's call, we will also discuss certain non-GAAP financial measures. Reconciliation of GAAP to non-GAAP measures is included in today's earnings press release. The earnings press release and an accompanying investor presentation are available on our website 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, Katherine. Welcome and good afternoon. By now you've heard the great news about StreetArt becoming our next CEO. Before we get to that, I would like to highlight our fiscal 2024 results. FY24 product revenue grew 38% year-over-year to reach $2.67 billion. Non-GAAP product gross margin expanded to 77.8%. Non-GAAP adjusted free cash flow was $810 million, representing 56% year-over-year growth. We continue to pair high growth with efficiency. The year began against an unsettled macroeconomic backdrop. We witnessed lackluster sentiment and customer hesitation due to lack of visibility in their businesses. Customers preferred a wait-and-see posture versus leaning in to longer-term contract expansions. This reversed in the second half of the year, and we started seeing larger multi-year commitments. Q4 was an exceptionally strong bookings quarter. We reported $5.2 billion of remaining performance obligations, representing accelerated year-on-year growth of 41%. Our international theaters outperformed the company as a whole. We continued to see success in our effort to campaign the largest enterprises globally. We added 14 global 2000s in the quarter, and eight of our top 10 customers grew sequentially. Meanwhile, Snowflake has announced many new technologies that let customers mobilize AI. Streamlit and Snowflake, Snowpark ML modeling API, and Cortex ML functions are all generally available. We also received FedRAMP high authorization on the AWS GovCloud. This enables Snowflake to protect some of the federal government's most sensitive, unclassified data. Now, on the topic of CEO transition, I was brought to Snowflake five years ago to help the company break out and scale. I wanted to grow the business fast, but not at all costs. It had to be efficient and establish a foundation for long-term growth. I believe the company succeeded on that mission. The board has run a succession process that wasn't based on an arbitrary timeline, but instead looked for an opportunity to advance the company's mission well into the future. The arrival of Sridhar Ramaswamy through the acquisition of Neva last year represented that opportunity. Since joining us, Sridhar has been leading Snowflake's AI strategies, bringing new products and features to market at an incredible pace. He led the launch of Snowflake's Cortex, Snowflake's new fully managed service that makes AI simple and secure. Prior to Neva, Sridhar led all of Google's advertising products. During his 15-year tenure at Google, he helped grow AdWords and Google's advertising business from 1.5 billion to over 100 billion. With the onslaught of generative AI, Snowflake needs a hard-driving technologist to navigate the challenges the new world represents. Sridhar's vision for the future and his proven ability to execute at scale made it clear to us as a board that he is the right executive at the right time to lead Snowflake. This marks my retirement from an operating role. I will remain on duty as chairman of the board and look forward to working with Sridhar and the team going forward. With that, I will pass it over to Sridhar. Thank you, Frank.