Snowflake (NYSE:SNOW) surpassed expectations with its fourth-quarter fiscal 2024 earnings, reporting non-GAAP earnings of 35 cents per share, beating the Consensus Estimate of 17 cents per share. This marked an increase from 14 cents per share in the year-ago quarter.
Revenues for the quarter were $774.7 million, surpassing the consensus estimate by 1.95% and showing a 31.5% increase year over year. The Americas, EMEA, and APJ regions contributed 80%, 15%, and 5% to revenues, respectively.
Snowflake added 83 customers in the fourth quarter, with product revenues exceeding $5 million in the trailing 12 months, up from 75 customers in the previous quarter.
The company’s stock has outperformed the Computer & Technology sector, returning 15.6% compared to the sector’s 7.9% growth.
Product revenues accounted for 95.3% of total revenues, reaching $738.1 million, a 32.9% increase year over year. Professional Services and other revenues made up the remaining 4.7%, totaling $36.6 million, an 8.7% increase year over year.
Snowflake reported a net revenue retention rate of 131% for existing customers, down from 135% in the previous quarter. The company also saw a 21.9% year-over-year increase in the number of customers, reaching 9,437 in the quarter.
Snowflake’s non-GAAP gross margin expanded by 380 basis points year over year to 74.7%, driven by product improvements, favorable cloud agreement pricing, and a growing enterprise customer base.
As of January 31, 2024, Snowflake had cash, cash equivalents, and short-term investments of $3.84 billion, compared with $3.55 billion as of October 31, 2023.
For the first quarter of fiscal 2025, Snowflake expects product revenues in the range of $745-$750 million, indicating year-over-year growth of 26-27%. The operating margin is expected to be 3% for the quarter.
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Author Stephanie Bédard-Châteauneuf 