Snowflake earnings OUTSTANDING

BLOWOUT!
https://www.snowflake.com/news/snowflake-reports-financial-r…

Beat estimates by 12%
ACCELERATED revenue

They have product revenue and overall revenue. Product revenue is like 95% of total revenue

Product revenue up 111% YoY. their aQoQ (annualized QoQ) is 126%
overall revenue is very close to that. 109% & 128%
net retention rate accelerated again. 173%

RPO that was heavily discussed here as an area of concern.
aQoQ at 107%, up from the past 2 Q’s of 30% range

Total customers aQoQ down from 46% to 38% but TTM > 1M up aQoQ from 54% to 164%!!

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TTM > 1M up aQoQ from 54% to 164%!!

I used Snowflake and familiar with their product.

It is important to understand how the Snowflake’s “recurring” revenue for snowflake works.

Once the enterprise adopts Snowflake, the revenue from that customer in most cases is going in only one direction - Up.

Think of an infinitely deep and wide pond. Once you turn on the faucet, the data streams build and build.
Once the core data is there, enterprises bring additional data - more streams.
Your analytics and AI (compute) by design is now going against new incremental data that came in today and all the previously accumulated data from all the streams.
Rinse and repeat.

This means that even if Snowflake does not win another customer, the revenue from existing customers is going up.
In earlier stages of adoption the revenue is going up exponentially and later on rise somewhat linearly. This all is very sticky as well.

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