Summary
Snowflake's first quarter of fiscal 2025 showed strong top-line growth paired with a wider GAAP loss. Revenue was $828.7 million, up 32.9% year over year. Gross profit was $556.2 million, up 34.3%, and gross margin was 67.1%, up 0.7 percentage points. The operating loss widened to $348.6 million, and operating margin was -42.1%, up 1.8 percentage points. The net loss attributable to Snowflake Inc. widened to $317.0 million. Diluted EPS loss widened to $0.95. Operating cash flow was $355.5 million, up 18.7%. Capital expenditures were $16.5 million, up 137.0%. Current deferred revenue was $1.94 billion, up 24.0%.
Operational metrics pointed to continued expansion. Product revenue grew 34% year over year. Net revenue retention rate was 128% as of April 30, 2024, down from 131% as of January 31, 2024. Snowflake had 485 customers with trailing 12-month product revenue greater than $1 million, up from 373 as of April 30, 2023, and 709 Forbes Global 2000 customers, up 8% year over year. Total customers reached 9,822 as of April 30, 2024, compared with 9,455 as of January 31, 2024. The 485 large customers represented approximately 65% of product revenue for the trailing 12 months ended April 30, 2024, and the company had 85 customers with product revenue greater than $5 million and 31 with greater than $10 million. Existing customers under capacity arrangements represented approximately 98% of revenue. Remaining performance obligations were $5.0 billion, up 47.1%. Management expects approximately 51% of that RPO to be recognized as revenue in the twelve months ending April 30, 2025, and the weighted-average remaining life of capacity contracts was 2.1 years. The company also announced its intent to acquire certain technology assets and hire key employees from TruEra, an AI observability platform.
Non-GAAP results framed a different profitability picture. Non-GAAP operating income was $36.2 million, a 4% margin. Non-GAAP product gross margin was 77%. Non-GAAP net income was $51.4 million. Non-GAAP net income attributable to Snowflake Inc. was $52.2 million, and non-GAAP diluted net income per share attributable to Snowflake Inc. common stockholders was $0.14. Free cash flow was $331.5 million, and adjusted free cash flow was $365.7 million. Free cash flow margin was 40%, and adjusted free cash flow margin was 44%. The gap between GAAP and non-GAAP results continued to reflect large stock-based compensation-related charges, which are excluded from the non-GAAP figures. Those charges remain a major reason GAAP operating and net losses are much wider than the non-GAAP profits.
Guidance for the second quarter of fiscal 2025 calls for product revenue growth of 26% to 27% year over year. The company also guided second-quarter non-GAAP operating income margin of 3%. For the full fiscal year 2025, management guided product revenue growth of 24%, a non-GAAP product gross margin of 75%, a non-GAAP operating income margin of 3%, and an adjusted free cash flow margin of 26%. The company guided weighted-average diluted shares of 362 for the second quarter and 363 for the full year. The full-year outlook frames the company's plan for product revenue growth, non-GAAP margins, and cash flow.
Risks remain tied to the consumption model and macro conditions. Snowflake cited adverse macroeconomic conditions, customer budget rationalization, cash flow prioritization, shortened contract durations, and consumption optimization, including reducing storage through shorter data retention policies. The company said its net revenue retention rate may decrease over the long term as long-time customers become a larger portion of the base and their growth comes from existing use cases. RPO is not necessarily indicative of future product revenue growth because it does not account for the timing of customer consumption or consumption above contracted capacity. It also flagged competition, the need to attract and retain customers, and the dependence of AI Technology adoption on evolving regulatory standards. During the quarter, Snowflake repurchased 3.0 million shares for $516.3 million at a weighted-average price of $173.14, leaving $891.9 million available under its stock repurchase program as of April 30, 2024. It also entered a new U.S. office lease with total commitments of approximately $96 million.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $828.7M | $774.7M | +7.0% | $623.6M | +32.9% |
| Gross profit | $556.2M | $532.9M | +4.4% | $414.2M | +34.3% |
| Gross margin | 67.1% | 68.8% | -1.7 pp | 66.4% | +0.7 pp |
| Research & development | $410.8M | $364.5M | +12.7% | $277.4M | +48.1% |
| Sales & marketing | $400.8M | $361.8M | +10.8% | $331.6M | +20.9% |
| General & administrative | $93.1M | $82.1M | +13.5% | $78.5M | +18.7% |
| Total operating expenses | $904.8M | $808.4M | +11.9% | $687.4M | +31.6% |
| Operating income (loss) | -$348.6M | -$275.5M | -26.5% | -$273.2M | -27.6% |
| Operating margin | -42.1% | -35.6% | -6.5 pp | -43.8% | +1.8 pp |
| Net income (loss) | -$317.8M | -$169.9M | -87.0% | -$226.1M | -40.6% |
| Net margin | -38.4% | -21.9% | -16.4 pp | -36.3% | -2.1 pp |
| Diluted EPS | -$0.95 | -$0.52 | -$0.43 | -$0.70 | -$0.25 |
Risks
Customers continue to rationalize budgets, prioritize cash flow management, and optimize consumption, including through shorter data retention policies and shortened committed contract durations. These conditions have contributed to a net revenue retention rate of 128% as of April 30, 2024, compared with 131% as of January 31, 2024, and may slow consumption growth.
The consumption-based model gives less visibility than subscription models because revenue depends on when and how much customers consume, and April 2023 and part of May 2023 saw consumption increase more slowly than expected. Deferred revenue was $1.94 billion as of April 30, 2024, up 24.0% versus the prior-year quarter, but management says it is not a meaningful indicator of future revenue.
Snowflake is investing significantly in AI Technology while competing with larger public cloud providers such as AWS, Azure, and GCP that also provide its underlying infrastructure and can bundle competing products. Successful AI development depends on access to GPUs, which are in high demand, and research and development expenses increased 48% for the quarter ended April 30, 2024, partly due to GPU-related cloud infrastructure costs.
A substantial majority of Snowflake's business runs on AWS, and AWS, Azure, and GCP are also primary competitors; they could embed competing capabilities, offer unfavorable pricing, or treat Snowflake differently. Support for open data formats may also reduce switching costs between Snowflake and competitors.
Net loss attributable to Snowflake Inc. widened to $317.0 million for FY2025 Q1 from $225.6 million in FY2024 Q1, and operating loss widened to $348.6 million from $273.2 million. The company had an accumulated deficit of $4.9 billion as of April 30, 2024, and expects costs to increase as it invests in AI and research and development.
Competition for engineers with cloud data platform and AI experience is intense, and the company had a CEO transition in February 2024. Stock-based compensation was $331.9 million for the quarter ended April 30, 2024, up from $264.5 million in the prior-year quarter, and $3.6 billion of unvested compensation cost remains to be recognized over 3.0 years, creating dilution and retention pressure.
Sales to federal, state, local, and foreign governments and heavily regulated organizations involve complex procurement, certifications, audits, bid protests, and termination rights. The company is also monitoring a global minimum tax framework approved by more than 140 countries, which could increase its worldwide effective tax rate.
The company has made several acquisitions and strategic investments and may face integration challenges, impairment charges, and dilution. For the quarter ended April 30, 2024, other expense, net included $18.753 million of impairments related to strategic investments in non-marketable equity securities.
SaaS KPIs
All quarters →Net Revenue Retention Rate
Total Customers
Remaining Performance Obligations
Non-GAAP Operating Margin
Adjusted Free Cash Flow Margin
Free Cash Flow Margin
Adjusted Free Cash Flow
Product Revenue
Customers with Trailing 12-Month Product Revenue Greater than $1 Million
Forbes Global 2000 Customers
Free Cash Flow
Non-GAAP Product Gross Margin
Customers with Trailing 12-Month Product Revenue Greater than $5 Million
Customers with Trailing 12-Month Product Revenue Greater than $10 Million
Non-GAAP Operating Income
Summary, forecast, risks and KPIs are extracted from Snowflake Inc.'s SEC filings for Q1 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 6, 2026.