Snowflake Inc.

Good afternoon, thank you for attending the snowflake Inc second quarter fiscal year 26 earnings call my name is Cameron and i'll be your moderator for today. 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 followed by one on your telephone keypad and during the Q amp a session, we ask that you please limit your questions to one question. Again during the Q amp a session, we please ask that you limit your questions to one question. And I would now like to pass the conference over to your host, Jimmy Sexton, the Head of Investor Relations. You may proceed.

Good afternoon, and thank you for joining us on Snowflake's Q2 Fiscal 2026 Earnings Call. Joining me on the call today are Sridhar Ramaswamy, our Chief Executive Officer, Mike Scarpelli, our Chief Financial Officer, and Christian Kleinerman, our Executive Vice President of Product, who will participate in the Q&A. During today's call, we will review our financial results for the second quarter fiscal 2026 and discuss our guidance for the third quarter and full year fiscal 2026. 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 our actual results. 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, see our investor presentation for reconciliation of GAAP to non-GAAP measures and business metric definitions, including adoption. The earnings press release and 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 Sridhar.

Thanks, Jimmy. And hi, everyone. Thank you all for joining us today. Snowflake has delivered yet another strong quarter, and I'm proud of the incredible work across our team and the deep partnerships with our customers to deliver these results. Our core business remains very strong, and we continue to deliver product innovation to market at a rapid pace while strengthening our go-to-market motion for growth. We are executing with intensity and alignment and continue to see an enormous opportunity ahead. Snowflake remains laser-focused on our mission to empower every enterprise to achieve its full potential through data and AI. We're delivering our more than 12,000 customers tremendous value throughout their entire data lifecycle with an AI data cloud that's designed to enable faster innovation and remove friction from business operations. We remain disciplined in driving operational rigor across our business, gaining greater efficiency, even as we continue to invest aggressively in growth. We continue to execute with urgency and focus to capture the opportunities ahead and sustain durable momentum. Product revenue for Q2 was $1.09 billion, up a strong 32% year-over-year, demonstrating an acceleration in growth from last quarter. Remaining performance obligations totaled $6.9 billion, with year-over-year growth of 33%. Our net revenue retention rate was a very healthy 125%. Our non-GAAP operating margin increased to 11%, reflecting our focus on efficiency and operational rigor. As you can see, we have continued to deliver strong revenue growth and healthy results this quarter. And as a result, we are increasing our growth expectations for the year. At Snowflake, we believe that great technology is defined by the experience of making something complex feel effortless. And we put simplicity at the center of not just our product design, but our entire customer experience. We are committed to delivering a cohesive product with fast time to value, and it's that differentiator that leads customers to choose Snowflake again and again. It's why enterprise leaders like Booking.com and the Intracontinental Exchange use Snowflake. Our platform is easy to use, connected to enable fluid access to data wherever it sits, and trusted by companies of all sizes and industries. And global hospitality icon Hyatt Hotels uses Snowflake to simplify data management and ensure unified governance. By consolidating enterprise data into a single environment, Hyatt empowers its teams with fast, secure access to information, enabling them to make informed decisions that enhance customer experiences and drive operational efficiency. This quarter, we delivered on our product strategy, introducing incredible new innovations to drive value at each stage of our customers' data journey. Of course, AI is front and center. We are continuing to advance our leadership in enterprise AI with Snowflake Intelligence, now in public preview. This platform enables every user to talk to their enterprise data, turning structured and unstructured data into actionable insights through natural language. and it powers the creation of intelligent agents directly on enterprise data. Early adoption is underway with customers like Cambria Health Solutions, which serves 2.6 million members in the Pacific Northwest. They leverage Snowflake Intelligent to create its first intelligence agent to assist their teams in improving health outcomes for its Medicare members. This intelligence agent Helps Cambia Medicare teams quickly analyze vast amounts of both point-in-time and longitudinal data, enabling them to scale their ability to deliver differentiated, personalized healthcare experiences and ensure members receive the right care at the right time. Then there's Duck Creek Technologies, a leader in insurance core systems and analytics, who is leveraging Snowflake to drive innovation with AI and agentic workflows. They're using Snowflake Intelligence to power internal teams and increase efficiency across finance, sales, and HR, ultimately setting the standard for the insurance industry. Alongside Snowflake Intelligence, we introduced Cortex AI SQL, bringing AI natively into SQL. Customers can now invoke AI models directly within Snowflake, eliminating data movement and unifying analytics and AI in a single step. We've also made great strides to deliver faster, more seamless performance with the launch of Gen2 Warehouse. Already, they're helping our customers deliver up to 2x faster performance and greater efficiency, automatically optimizing resources to accelerate insights and simplify data management without increasing costs, strengthening the value that our customers see from Snowflake. With our introduction of Snowflake Postgres, we have reinforced our commitment to developers. enabling our customers with enterprise-grade PostgreSQL to build and run their most critical AI-powered applications on PostgreSQL right inside the Snowflake AI Data Cloud. And we have extended our connectivity platform with Snowflake OpenFlow, making it easy to bring in structured, unstructured, batch, or streaming data. Built on our acquisition of DataVolo, OpenFlow provides seamless access to all enterprise data and now supports change data capture from Oracle through a strategic partnership. With customers already using OpenFlow to unlock new value from their data architectures, OpenFlow expands our reach into the $17 billion data integration market. It's also now easier to bring your workloads into Snowflake with Snowpark Connect for Apache Spark, now in public preview. This enables our customers to bring their Spark workloads directly into Snowflake, eliminating the burden of managing and tuning separate Spark environments. Customers can now run Spark DataFrame and Spark SQL natively on Snowflake's high-performance engine, simplifying operations and accelerating time to value. Overall, it was an amazing quarter for product innovation. In the first half of the year alone, we launched approximately 250 capabilities to general availability, demonstrating both the pace of our innovation and the breadth of our platform expansion. But we aren't stopping there. As we innovate, we are continuing to strengthen our platform and help our customers do more with their data to deliver great business outcomes. As more companies face the challenge of data spread across different places, we are helping them effectively share data and collaborate. As of this quarter, 40% of our customers are now data sharing on Snowflake, driving powerful network effects that strengthen our ecosystem and expand customer value. We are continuing to see strong adoption of open data formats, especially truly open modern table formats like Apache Iceberg. We now have over 1,200 accounts using Iceberg, underscoring our leadership in bringing truly open standards to the enterprise. Our progress with AI has been remarkable. Today, AI is a core reason why customers are choosing Snowflake, influencing nearly 50% of new logos won in Q2. And once they're on our platform, AI becomes a cornerstone of their strategy, powering 25% of all deployed use cases, with over 6,100 accounts using Snowflake's AI every week. We have embedded AI across the data lifecycle to accelerate analytics, transform workflows, and even power migration. For example, SnowConvert AI uses AI-driven automation to speed up large-scale migration, minimize manual recoding, and reduce risk. helping customers move faster and with greater confidence. Cortex AI continues to play a foundational role in enterprise AI strategies. For example, Thomson Reuters is transforming how its business users easily access information by deploying AI-powered agents built on Snowflake, Cortex Search, and LLM observability. This enables real-time insights, seamlessly handles RAG and text-to-SQL, and significantly reduces time-to-insights and cost across functions. like finance and HR. Then there's BlackRock, which is leveraging Snowflake Cortex AI to help its team serve their clients more effectively and at a much larger scale. Our technology allows them to pull together every piece of information they have on a client, from their past portfolio to notes from a recent call, and get instant insight. It's like a superpower that helps them understand exactly what each client needs so they can provide the best possible service. We have furthered our AI leadership by integrating the world's leading models in Cortex, ensuring day one availability of OpenAI's new open source as well as advanced GPT-5 models, providing our customers with choice and flexibility to leverage their model of choice for their enterprise AI applications. Beyond what's possible with AI today, we are also making Snowflake the destination for building the next generation of cutting-edge applications such as Semaphore.ai's agentic AI platform, which helps customers automate workflows for tasks like supply chain and regulatory compliance. As we strengthen our platform and introduce new capabilities, we remain committed to scaling efficiently. Our go-to-market teams are demonstrating renewed focus and rigor, as evidenced by our healthier retention rate and our addition of 533 customers including 15 global 2000 companies this quarter. This year's Snowflake Summit was a clear marker of our momentum. The event, our biggest yet, drew record numbers of over 22,000 customers, partners, and developers from around the world. It underscored the scale of our community and the excitement around the AI Data Club. We are also investing in our partnership Today, more than 12,000 global partners, including leading cloud providers, technology innovators, and system integrators, are part of our ecosystem. We're scaling our gold market engine while staying tightly aligned across engineering, product, marketing, and sales. This collaboration enables us to deliver greater value to existing customers, but also win new ones with speed and precision. It's a truly exciting time at Snowflake. And I'm proud of the discipline, efficiency, and innovation we've built across the business. We've got a strong operational rhythm. We're investing strategically for growth, and we're laying the groundwork for continuous scale. Mike, why don't you take us through some of the financial details?