Snowflake Inc.

Please stand by. Good day, and welcome to the Q1 FY27 Snowflake Earnings Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Katherine McCracken, Head of Investor Relations. Please go ahead.

Good afternoon, and thank you for joining us on Snowflake's first quarter fiscal 2027 earnings call. Joining me on the call today are Sridhar Ramaswamy, our Chief Executive Officer, Brian Robbins, our Chief Financial Officer, and Christian Kleinerman, our Executive Vice President of Product, who will participate in the Q&A session. During today's call, we will review our financial results for the first quarter fiscal 2027 and discuss our guidance for the second quarter and full year fiscal 2027. 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 the definitions of the non-GAAP financial measures, and a reconciliation of GAAP to non-GAAP measures and business metric definitions, including customer count and 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.

Thank you, Catherine, and thank you all for joining us today. AI is fundamentally reshaping how work gets done, and Snowflake is at the center of the transformation. Across industries, organizations are moving toward a future where employees and intelligent agents work side by side to accelerate decisions, automate complex workflows, and unlock entirely new levels of productivity and innovation. With Snowflake, that future is already taking shape. Our platform brings together the four elements organizations need to become an agentic enterprise. A unified, governed data foundation, access to leading AI models, connectivity across enterprise applications and workflows, and a unifying agentic control plane that turns intent into governed action. That control plane is becoming real through Snowflake Intelligence and Cortex Code, or COCO, as it's affectionately known. Snowflake Intelligence gives business users a natural language interface to enterprise data, context, and actions, while COCO gives builders a natural language way to create applications, pipelines, agents, and workflows directly on Snowflake. Snowflake is uniquely positioned to help customers become agentic enterprises. as evidenced by our Q1 results. Product revenue came in at $1.334 billion, with growth accelerating to 34% year over year, up from 30% last quarter and 26% a year ago, marking our strongest sequential dollar growth in company history. Our net revenue retention rate increased to 126%. And with our continued focus on executing with discipline and operational rigor, our Q1 non-GAAP operating margin expanded over 300 basis points year-over-year to 12%. I want to take a moment to touch on our outlook. Based on a combination of strength in our core data platform business and meaningful uplift from AI capabilities, including COCO and Snowflake Intelligence, We are increasing our FY27 outlook from 27% to 31% year-over-year growth. Brian will share more details on our guidance in his remarks. Thank you to all of our snowflakes for the hard work and dedication to deliver these results. Across our business, AI is strengthening snowflakes on multiple levels simultaneously. First, AI is accelerating consumption in our core platform as customers migrate workloads to Snowflake faster in order to access the data, context, and governance needed to power AI securely and at scale. Second, Snowflake Intelligence and Cocoa are seeing the fastest adoption of any new products in our history, opening new opportunities for growth as the first major product surfaces of the agentic control plane. And third, Adoption of these AI products is increasing core platform consumption as customers move from questions to answers, from prompts to pipelines, and from ideas to production workflows on Snowflake. Customers adopting Cocoa are growing even faster, and we expect that momentum to continue as adoption expands. The strength of our Q1 results reflects the powerful flywheel effect of the agentic enterprise. Importantly, this momentum starts with the strengths of our core business. Our 13,912 customers turned to Snowflake because our AI data cloud is easy to use, seamlessly connected for collaboration, and trusted with enterprise-grade governance and security. In fact, 42% of our customers are data sharing on Snowflake with at least one stable edge. This underscores the power of the platform to connect organizations, partners, and applications around a single governed source of truth. That interconnected foundation becomes even more valuable in the age of AI. Snowflake isn't just software, it is this circulatory system connecting modern enterprises, enabling data applications and AI agents to move securely and seamlessly across organizations. This combination Of connectivity, governance, and ease of use is why enterprises continue to choose Snowflake as the cornerstone for their data and AI strategies again and again. Take Holiday Inn Club Vacations, a leading vacation ownership company. They choose Snowflake to power their data and AI modernization, citing our simplicity, built-in AI, and machine learning capabilities, and strong partnership as reasons for their selection. With Snowflake, they are now positioned to scale analytics and operations across their business. And Houzz, the leading AI-driven platform for construction and design, selected Snowflake to accelerate their next phase of growth, enabling faster access to insights across the business. With Snowflake, Houzz will significantly improve data processing performance, reduce pipeline maintenance, and free up engineering resources to focus on building new products. Going forward, they'll be investing in natural language query processing and self-serve analytics to make data more accessible across the organization. Our existing customers continue to go all in on Snowflake. After nearly two years and one of the most complex data warehouse migrations in financial services, one of the largest banks in the United States completed their Teradata migration onto Snowflake. This migration represents one of many legacy platforms they intend to move to Snowflake. Their teams are now building AI-powered regulatory intelligence, natural language analytics, and data discovery directly on top of a platform they already run at massive scale. Then there's Nestle, one of the world's largest consumer goods companies with more than 2,000 brands globally operating in 185 countries. They're expanding their use of Snowflake to power their enterprise digital transformation. As part of this, Nestle is reimagining its operations end-to-end with data and AI as key enablers, building enterprise data products used by over 50,000 users across 150 global capabilities. This enables a real-time, connected view of the business, allowing teams to make faster and more proactive decisions. And one of the world's largest wealth management firms built a Cortex-powered agent called AskYourData and deployed it to their entire executive leadership team. Over 60% of business inquiries that were previously routed to analysts for manual data pools are now answered instantly on demand, leveraging their existing data in Snowflake. We also saw global 2000 companies like Global Payments, Depository Trust and Clearing Corporation, DDCC, and Blue Yonder expand their use of Snowflake to support growing workloads, accelerate AI-powered insights, and drive further value for their end customers. This continued expansion is reflected in our large customer growth. In Q1, eight customers surpassed $10 million in trailing 12-month revenue. We now have 64 customers spending more than $10 million on a trailing 12-month basis. As AI strengthens demand for our core platform, it is also expanding Snowflake's opportunity to deliver a new generation of AI-powered products and experiences. Snowflake is uniquely positioned to lead in the next phase of enterprise AI because we already sit at the center of our customers' data, business context, AI models, and workflows. What customers increasingly want is simple, one place to get work done. A place where a business user can ask a question, understand the answer, and trigger the next step. And where a developer can turn an idea into an application, a pipeline, an agent, or a workflow without leaving snowflake. That is what we mean by the agentic control plane. It's the governed layer where intent becomes action, grounded in the customer's enterprise data, business context, model, applications, and security policies. Snowflake Intelligence is the business user surface of that control plane. Cocoa is the builder interface. Together, they help customers move from insight to action and from prompt to production, all within Snowflake's trusted governance model. In fact, accounts using Snowflake Intelligence more than doubled quarter over quarter as more organizations embrace a governed conversational way for business users to ask questions, get answers, and act on enterprise data. And Cocoa is already in use with more than 7,100 accounts, giving builders a natural language way to create applications, pipelines, agents, and workflows directly in Snowflake. Just recently, our partner Infinite Lambda was preparing for a major customer pitch. One of their engineers used Cocoa to build a true customer 360 application in just five hours. bringing together customer data, churn insights, recommended actions, and live dashboards into a single experience. And they showed it to the customer. The reaction was immediate. After the meeting, Infinite Lambda CEO called me and said, you are changing this industry. Providence, one of the largest health systems in the United States, is using Snowflake Cortex to surface insights from clinical notes and patient records in seconds. With COCO, they are now building these workflows directly in Snowflake, enabling care teams to access critical information faster while maintaining privacy standards. And Thomson Reuters, the global provider of legal, tax, and regulatory intelligence, uses Snowflake Cortex, including COCO, to power AI-driven legal and compliance workflows. By leveraging COCO, To build and deploy intelligent applications directly within Snowflake, its teams can turn complex regulatory data into actionable insights in seconds while accelerating product development. This approach maintains the fiduciary-grade governance and reliability required for high-stakes professional use. Cocoa is contributing meaningful AI revenue while also driving increased engagement across the broader platform. This tangible momentum together with continued strength in our core platform, is reflected in our increased FY27 outlook. Today, with the announcement of our intended acquisition of Natoma, we are extending the Snowflake Agentech control plane beyond data and development workflows into the everyday applications where work happens. With Natoma, users can do things like send emails, summarize Slack conversations, check calendars, and open JIRA tickets without ever leaving Snowflake Intelligence or Cocoa. The important point is not just convenience, it is control. These actions happen from a governed environment with enterprise security, permissions, observability, and policy enforcement built in. This will extend Snowflake's leadership in AI governance by ensuring companies can safely manage not just their data, but also the actions AI agents take across business workflows. As we continue to innovate to support our customers, We are also leading the AI transformation from within. With Snowflake Intelligence and Koko, our teams are revolutionizing how they work. Across our global support organization at Snowflake, Koko now analyzes incoming customer cases before an engineer engages, surfacing diagnostic insights and likely root causes upfront. Alongside the use of AI accelerated investigations, this has driven over 25% faster case resolution times and a 25% increase in trace throughput per engineer. By using Cocoa, engineering team that runs Snowflake Cloud deployment has freed up capacity and moved resources to product innovation. while reducing complex case resolution time by nearly 30% and cutting engineering time spent per ticket by roughly 40%. Across our data organization, COCO's double developer productivity as measured by pull requests and lines of code per engineer and has automated more than 100 workflows across finance, marketing, sales, and HR in just weeks. Through this operational transformation, Our teams are moving with greater speed and focus to capture the AI opportunity in front of us. In Q1, we delivered over 20% more product capabilities to market than we did a year ago, underscoring both the pace of our innovation and the breadth of platform expansion underway across Snowflake. We are also strengthening our go-to-market organization to support our next phase of growth. Following a seamless transition, our new Chief Revenue Officer, Jonathan Boullier, J.B., is positioning Snowflake to scale in the AI era. JB brings more than a decade of experience at Snowflake, deep knowledge of our customers and platform, and a strong operational focus as we continue to evolve our go-to-market motion. That strong execution is translating into continued customer momentum and broader product adoption of the platform. In the quarter, we added 616 net new customers, up 38% year-over-year. We're also seeing customers deploy and scale workloads at a faster pace. The number of use cases, individual projects managed on Snowflake, deployed in the quarter increased 114% year over year as customers moved more workloads into production on the platform. At the same time, the number of use cases won per account executive increased 86% year over year, underscoring both growing customer demand and improved sales execution. across the organization. We're also continuing to strengthen our ecosystem as we deepen our strategic partner relationships and extend the reach of our AI data cloud. Just today, we announced an expanded collaboration with AWS through a new $6 billion multi-year agreement to accelerate enterprise AI adoption globally, leveraging Graviton compute and AI services. The announcement comes as Snowflake surpassed $7 billion in lifetime AWS Marketplace sales, reflecting the growing demand for AI and data workloads running on Snowflake. During the quarter, we also announced an expanding $200 million partnership with OpenAI. And just recently, we brought the joint capabilities from our landmark partnership with SAP to general availability, enabling customers to unite mission-critical business data across their core data systems within our AI data cloud. Before I close, I want to acknowledge our co-founder and chief architect, Benoit Dageville, who will be stepping away from day-to-day operations in mid-June and continuing as a member of Snowflake's board of directors. Benoit is one of the greatest technical visionaries of our industry. His leadership and innovation helped invent the modern cloud data platform and laid the foundation for everything Snowflake has become today. The impact he's had on this company, our customers, and the broader technology landscape is extraordinary, and we are deeply grateful for his continued guidance as we enter this next chapter. Our product organization will continue to be led by Christian Kleinerman. For the past several years, we've seen AI emerge as a tailwind for our business. Q1 marks an important shift in this journey. The combination of Snowflake's trusted enterprise data, rich business context, leading AI models, and secure connectivity into enterprise applications creates a unique opportunity. Snowflake Intelligence and Cortex Code are the two primary ways customers experience that opportunity. One for business users, one for builders. Together, they allow customers to move from intent to action in a governed environment, positioning Snowflake to win a new market, the agentic control plane. We are benefiting from AI as a secular tailwind while also monetizing first-party AI capabilities. Through the combination of rapid innovation, strong go-to-market execution, and operational discipline, we are well-positioned to deliver accelerating growth and margin expansion. With that, I'll turn it over to Brian to walk through the financial details.