Snowflake Inc.

Good day and welcome to the second quarter FY27 Snowflake earnings presentation. Today's conference is being recorded. At this time, I would like to turn the conference over to Katherine McCracken.

Please go ahead. Good afternoon and thank you for joining us on Snowflake's second 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 second quarter fiscal 2027 and discuss our guidance for the third 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 10K and 10Q, 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 definition of the non-gap financial measures and a reconciliation of gap to non-gap 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. We're in the midst of a once-in-a-lifetime technology shift, and Snowflake remains at the center of the enterprise AI revolution. AI is fundamentally changing how enterprises build, operate, and make decisions. To stay competitive, every organization faces a new imperative, become an agentic enterprise, and do it quickly, safely, and cost-efficiently. Snowflake is making this transformation a reality. We bring together the core elements of an agentic enterprise, a governed data foundation, access to leading AI models, deep application workflows, and a unifying agentic control plane that orchestrates across these elements to turn intent into governed action. By putting intelligence to work at scale, our customers are building faster, executing more efficiently, and reimagining their businesses in ways that weren't possible before. Put simply, the agentic enterprise runs on snowflake. Undertraction is translating into strong business performance as evidenced by our Q2 results. Product revenue came in at $1.49 billion with growth accelerating to 37% year-over-year, marking our second consecutive quarter of record sequential dollar growth. After exiting Q4 of last fiscal year at 30% year-over-year growth, we have now added seven points of acceleration in just two quarters. And with our continued focus on executing the discipline and operational rigor, our Q2 non-GAAP operating margin expanded by more than 400 basis points year-over-year to 15%. Thank you to all of our snowflakes for the hard work and dedication that made this performance possible. As these results convincingly demonstrate, AI is compounding Snowflake's advantage across three reinforcing dynamics. First, AI is bringing new workloads onto the platform. To power their AI initiatives, enterprises need a governed, unified foundation for data and context, and companies across industries are turning to Snowflake to power that foundation. Second, our first-party AI products, Cocoa and Cowork, continue to see rapid adoption, As customers build and deploy agents on Snowflake, we are expanding our role into the agentic control plane and creating new opportunities for growth. Third, AI activation continues to lift overall platform consumption. Customers using AI on Snowflake consume more across the data platform, creating a structural multiplier for our business. Together, these dynamics show how the agentic enterprise has created a powerful flywheel across our business.