Snowflake Inc (SNOW) Q3 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic AI ...

GuruFocus.com11-21 15:04

Product Revenue: $900 million, up 29% year-on-year. Remaining Performance Obligations: $5.7 billion, with 55% year-over-year growth. Non-GAAP Operating Margin: Improved to 6%. Net Revenue Retention ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSnowflake Inc (SNOW) Q3 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic AI ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-21 15:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/snowflake-inc-snow-q3-2025-070417828.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Product Revenue: $900 million, up 29% year-on-year.\nRemaining Performance Obligations: $5.7 billion, with 55% year-over-year growth.\nNon-GAAP Operating Margin: Improved to 6%.\nNet Revenue Retention ...</p>\n\n<a href=\"https://finance.yahoo.com/news/snowflake-inc-snow-q3-2025-070417828.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SNOW","symbol_name":"Snowflake","start_time":0,"source_url":"https://finance.yahoo.com/news/snowflake-inc-snow-q3-2025-070417828.html","article_id":"2485459400","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/0n4O4tZacxAg..nduMd4vw--~B/aD01Mzt3PTIyMDthcHBpZD15dGFjaHlvbg--/https://media.zenfs.com/en/us.finance.gurufocus/779f8f91dc9517cceb07ad3d9d34bfc2"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2485459400","pubTimestamp":1732172657,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Remaining Performance Obligations: $5.7 billion, with 55% year-over-year growth.Convertible Senior Notes Issued: $1.15 billion due in 2027 and $1.15 billion due in 2029.Share Repurchase: $1.9 billion used to repurchase 14.8 million shares at $130.87 average price per share.Cash and Investments: $5 billion in cash, cash equivalents, short-term and long-term investments.Q4 Product Revenue Guidance: Between $906 million and $911 million, representing 23% year-over-year growth.FY25 Product Revenue Guidance: Approximately $3.43 billion, representing 29% year-over-year growth.FY25 Non-GAAP Adjusted Free Cash Flow Margin Guidance: 26%.GuruFocus has detected 4 Warning Signs with SNOW.Snowflake Inc  reported a strong third quarter, with product revenue reaching $900 million, marking a 29% year-on-year increase.Snowflake Inc  is seeing significant adoption of its AI feature family, Snowflake Cortex, with over 1,000 deployed use cases.The federal government sector remains a very small part of Sno","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"SNOW":"Snowflake"},"translate_title":"Snowflake Inc(SNOW)2025年第三季度收益看涨期权亮点：强劲的收入增长和战略人工智能……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SNOW":1},"content_text":"Product Revenue: $900 million, up 29% year-on-year.\nRemaining Performance Obligations: $5.7 billion, with 55% year-over-year growth.\nNon-GAAP Operating Margin: Improved to 6%.\nNet Revenue Retention Rate: Stabilized at 127%.\nNon-GAAP Product Gross Margin: 76%.\nNon-GAAP Adjusted Free Cash Flow Margin: 9%.\nConvertible Senior Notes Issued: $1.15 billion due in 2027 and $1.15 billion due in 2029.\nShare Repurchase: $1.9 billion used to repurchase 14.8 million shares at $130.87 average price per share.\nCash and Investments: $5 billion in cash, cash equivalents, short-term and long-term investments.\nQ4 Product Revenue Guidance: Between $906 million and $911 million, representing 23% year-over-year growth.\nFY25 Product Revenue Guidance: Approximately $3.43 billion, representing 29% year-over-year growth.\nFY25 Non-GAAP Product Gross Margin Guidance: 76%.\nFY25 Non-GAAP Operating Margin Guidance: 5%.\nFY25 Non-GAAP Adjusted Free Cash Flow Margin Guidance: 26%.\n\n\nWarning! GuruFocus has detected 4 Warning Signs with SNOW.\n\nRelease Date: November 20, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nSnowflake Inc (NYSE:SNOW) reported a strong third quarter, with product revenue reaching $900 million, marking a 29% year-on-year increase.\nThe company increased its fiscal 2025 product revenue guidance, reflecting confidence in continued growth.\nSnowflake Inc (NYSE:SNOW) is seeing significant adoption of its AI feature family, Snowflake Cortex, with over 1,000 deployed use cases.\nThe company has improved its go-to-market strategy, leading to increased new product adoption and customer expansion.\nPartnerships with major cloud providers like AWS and Microsoft are enhancing data interoperability and driving revenue growth.\n\n Negative Points \n\nDespite strong performance, Snowflake Inc (NYSE:SNOW) faces potential headwinds from customers moving to open data formats like Iceberg, which could impact storage revenue.\nThe company is undergoing cost management initiatives, including centralizing teams and removing redundant management layers, which may indicate previous inefficiencies.\nThere is a noted seasonality in Q4 due to holidays, which could affect revenue growth during this period.\nSnowflake Inc (NYSE:SNOW) is still in the early stages of AI product adoption, with Cortex AI described as being in the 'early innings'.\nThe federal government sector remains a very small part of Snowflake Inc (NYSE:SNOW)'s business, indicating limited penetration in this potentially lucrative market.\n\n Q & A Highlights \nQ: What factors contributed to the strong performance in consumption revenue and bookings, and did Iceberg Tables or Snowpark play a role? A: Michael Scarpelli, CFO, explained that the positive impact of Iceberg is starting to show as customers bring new workloads to Snowflake. The demand is broad-based across various verticals, including technology, financial services, and healthcare. Snowpark is also contributing to this growth.\nQ: Have you seen an increase in competitive displacements, and what might be triggering this? A: Sridhar Ramaswamy, CEO, noted that the ease of use, faster time to value, and reduced need for large teams are key factors in displacing competitors. The integration of AI products like Cortex AI also plays a role in attracting customers.\nQ: How is the ramp of new AI products like Cortex compared to Snowpark, and how are you managing headcount and investments? A: Michael Scarpelli, CFO, stated that Cortex is in the early stages but showing promise. Snowpark is expected to be 3% of revenue. The company is managing headcount by combining teams and not replacing backfills quickly, focusing on performance management.\nQ: How does Snowflake plan to address the narrative that structured data has limited runway in the AI era? A: Sridhar Ramaswamy, CEO, emphasized that analytics and the ability to act on data quickly are crucial. AI accelerates the transition from unstructured to structured data, and products like Cortex AI are designed to leverage this shift.\nQ: Can you elaborate on the recent acquisition and its impact on Snowflake's strategy? A: Sridhar Ramaswamy, CEO, explained that the acquisition of Datavolo enhances Snowflake's ability to handle both structured and unstructured data. It brings over 100 connectors and allows Snowflake to process data from various sources, expanding its data engineering capabilities.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2485459400"}