Snowflake Inc.

Good afternoon. Thank you for attending today's Snowflake Q3 fiscal year 2026 earnings call. My name is Jayla, and I'll be your moderator for today. All lines will be muted in the presentation portion of the call with an opportunity for questions and answers at the end. At this time, I'd like to pass the conference over to our host, Katherine McCracken. Please proceed.

Good afternoon, and thank you for joining us on Snowflake's Q3 fiscal 2026 earnings call. Joining me on the call today are Sridhar Ramaswamy, our Chief Executive Officer, and Brian Robbins, our Chief Financial Officer. During today's call, we will review our financial results for the third quarter fiscal 2026 and discuss our guidance for the fourth 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 a reconciliation of gap to non-gap 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, Catherine. And hi, everyone. Thank you all for joining us today. As every company transforms to embrace the AI era, Snowflake remains at the center of today's AI revolution. We have delivered yet another strong quarter thanks to the hard work and dedication across our team to help our customers realize value throughout their end-to-end data lifecycle and effectively harness AI's potential every step of the way. Our continued focus on operational rigor And close-knit product and go-to-market execution has helped us maintain strength across our core business and innovate rapidly to bring new capabilities to market. We are executing with urgency and focus and maintaining deep partnerships with our customers that enable us to capture the opportunity in front of us and sustain durable momentum. Product revenue in Q3 was $1.16 billion, up 29% year-over-year. Remaining performance obligations totaled $7.88 billion, with year-over-year growth accelerating to 37%. Our net revenue retention remained stable at a very healthy 125%, and we added a record 615 new customers this quarter. As we continue to deliver strong revenue growth and healthy results, we are increasing our growth expectations for the year and reiterating our margin target. As I've shared, Snowflake is on a mission to empower every enterprise to achieve its full potential through data and AI. And we are making incredible progress against that mission every day. We continue to double down on what makes Snowflake unique. delivering an AI data cloud that's truly enterprise ready with a radical focus on our customers. Snowflake is intuitive and easy to use, seamlessly connected for collaboration and built with the security and governance that enterprises trust as their foundation. That's why customers like Coca-Cola consolidated, PayPal and thousands more are transforming their businesses with Snowflake. And it's why more organizations than ever are going all in on Snowflake as their foundational data and AI platform. Already, Snowflake is the cornerstone for our customers' AI strategy. In Q3, more than 7,300 accounts are using our AI capabilities every week. Just recently, Morgan Stanley named Snowflake its Strategic Partner of the Year. recognizing how our AI data cloud is accelerating their transformation and driving AI innovation across one of the world's leading financial institutions. And with the general availability of Snowflake Intelligence, we are seeing the fastest ramp in product adoption in our company history. Already, 1,200 customers are harnessing next-generation agentic AI capabilities to drive real business impact at scale. Snowflake Intelligence is transforming how businesses interact with their data, turning natural language into real-time, actionable intelligence. For example, TS Imagine, a global SaaS platform for financial services, used Snowflake Intelligence to build an AI agent that now handles tasks equal to eight and a half full-time employees. The agent helps users manage and query data, make faster trading and risk management decisions, and automate customer case resolution, increasing transparency across teams and with clients. And Fanatics, the global leader in sports merchandise and e-commerce, uses Snowflake Intelligence to connect billions of fan data points across shopping, collectibles, and gaming platforms for more than 100 million fans worldwide. This unified data foundation helps Fanatics better understand its customers, boost sales, and grow its advertising business. following the launch of new Fanatics advertising audience network this year. This momentum has enabled us to achieve a major milestone, $100 million in AI revenue run rate, achieved one quarter earlier than anticipated, thanks to our pace of innovation, cross-functional collaboration, and early adoption among many of our marquee customers. Because we operate as a consumption-based business, this number reflects real-world enterprise usage. It's a direct signal of how customers are using our AI capabilities in production to create value today. What's more, our AI capabilities are strengthening our customer relationships and expanding the value we deliver across every stage of the data lifecycle. AI is a key driver of the strength that we see in our core business. In Q3, we landed a record number of new logos and continue to build strong momentum with AI influencing 50% of the bookings signed this quarter. We also deepen relationships with existing customers as 28% of all use cases deployed during the quarter incorporated AI. Being enterprise ready is not just about innovation, it's also about reliability. When a major cloud service provider experienced an outage this quarter, our disaster recovery capabilities seamlessly transferred more than 300 mission-critical workloads to backup systems, ensuring business continuity for our customers when it mattered the most. Our commitment to making business-critical capabilities just work continues to resonate with our customers. And so we've built on the strength by expanding not only our product capabilities, but our ecosystem. This quarter alone, we announced new partnerships with Workday, Splunk, Palantir, UiPath, and more to deepen integration, enable secure and seamless data access across the systems our customers use every day, and unblock new innovations like agent-to-agent collaboration. More recently, we announced a landmark partnership with SAP to unite mission-critical business data with the Snowflake AI Data Cloud. We are already supporting customers like AstraZeneca to access and analyze real-time data. These partnerships amplify our ability to deliver value to joint customers and extend our go-to-market reach. Our progress is clearly resonating with our global community. During Snowflake's annual world tour, over 40,000 customers, partners, and prospects joined us across 23 events, a record-breaking turnout representing a more than 40% year-on-year increase in participation from last year. More recently, our annual Build Developer Summit saw a 43% increase in attendance year-over-year, underscoring the growing excitement and engagement across our global audience. Behind this incredible momentum is our relentless focus and continued delivery against our product strategy. Throughout the quarter, Snowflake maintained a rapid pace of innovation, bringing our total GA product capabilities to 370 year-to-date, a 35% increase over last year, with AI being front and center. As I shared, Snowflake Intelligence continues to set the tone for enterprise-grade agentic AI. Just recently, we announced that Snowflake is the official data cloud provider for USA Bob's Lead Skeletons, powering their journey to the upcoming Olympic Games. The team is using Snowflake Intelligence to unify and analyze data across its performance ecosystem to optimize push performance and equip coaches with data-driven insights to create a competitive edge on the ice for a medal-worthy performance. At the core of our AI philosophy is customer choice and flexibility, empowering organizations to leverage the world's leading models securely on their own enterprise data. As you may have seen a few weeks ago, we announced a partnership with Google Cloud to make the latest Gemini models available to our 12,600-plus customers within Cortex AI and Snowflake Intelligence, further enhancing access and customer choice. To drive even more tailored innovation, we introduced Cortex AI for financial services. a comprehensive suite of AI capabilities and partnerships that empower financial services companies to unify their financial data ecosystems, deploy AI models, applications, and agents securely, and meet the rigorous security and compliance standards for regulated industries. Even as we supercharge the data lifecycle with AI, we remain committed to strengthening our core data foundations. to ensure that Snowflake will continue to deliver the trusted, performant, and scalable data platform our customers rely on every day. Key capabilities like Snowflake OpenFlow are making it easier than ever to bring in structured, unstructured, batch, or streaming data into Snowflake. Take EVgo, which is using OpenFlow to simplify and speed up how it ingests data across its EV charging network. By consolidating multiple data pipelines into Snowflake, EVGO has reduced latency, improved reliability, and gained a more complete view of its customers and charging stations. And we are continuing to extend our value through strategic acquisitions. We recently acquired the technology behind Datometry's software migration solution, which will enable our customers to move from legacy data warehouses to Snowflake at lower cost and with minimal disruption further simplifying their journey to our ai data cloud we've also agreed to acquire select star to enhance our horizon catalog and deliver a more complete view of an enterprise's data estate we believe this richer context will empower agent tki experiences like snowflake intelligence to better understand enterprise data and uncover deeper insights As we scale the breadth and depth of our product capabilities, we continue to maintain tight integration across sales, marketing, product, and engineering to effectively launch and scale new offerings and deepen our customer relationships. This alignment is driving tangible results. Q3 marked a strong bookings quarter, underscored by accelerating RPO growth and healthy customer retention. At the same time, we're investing in and strengthening our strategic go-to-market partnerships. In addition to those I've already mentioned, today, we've announced an expanded partnership with Anthropic. This brings native model availability into Snowflake and also introduces a new joint go-to-market motion design to accelerate enterprise AI adoption. We also continue to build our strong relationships with major cloud providers. In fact, Snowflake has already surpassed $2 billion in sales through AWS Marketplace in a single calendar year and was just recognized with 14 AWS Partner Award wins more than any other ISV provider. This underscores the extraordinary demand for Snowflake's AI data cloud. Momentum is also accelerating with our global systems integrators. Accenture just launched a Snowflake business group committing to train over 5,000 professionals on Snowflake solutions to help joint customers realize AI value faster. Already, Accenture and Snowflake are helping customers like Caterpillar unlock the full value of their operational data. This collaboration is improving quality in manufacturing, providing timely insights for finance, and helping teams share knowledge and solve complex challenges faster. As you can see, there's a milestone quarter for Snowflake defined by exceptional advances in product innovation and incredible customer momentum. As we deepen our strategic partnerships with the world's leading cloud service providers, AI model developers, SaaS providers, and global system integrators, they're unlocking new levels of performance, accessibility, and AI-driven insight for our customers while expanding the value and impact of the Snowflake platform across industries. I'm incredibly proud of our teams for the efficiency and discipline they continue to demonstrate across the business. Our operational rhythm remains strong, and as we invest strategically for long-term growth, we are building the foundation for sustained scale and high, durable growth. To help lead us through this next phase, I'm pleased to introduce Brian Robbins as our new Chief Financial Officer. Brian brings extensive experience as a CFO across high-growth software companies and a deep understanding of scaling financial operations with discipline. Brian, why don't you take us through some of the financial details?