Shulou(Shulou.com)11/24 Report--

On the morning of March 2, Beijing time, Snowflake, an American cloud data warehouse company, today released its results for the fourth quarter and full year of fiscal 2023. According to the report, Snowflake's total revenue in the fourth quarter was $589 million (CTOnews.com Note: currently about 4.088 billion yuan), up 53% from $383.8 million in the same period last year (CTOnews.com Note: currently about 2.664 billion yuan). The net loss was $207.5 million (CTOnews.com Note: about RMB 1.44 billion), which was larger than the net loss of $132.2 million in the same period last year (CTOnews.com Note: about RMB 917 million). The basic loss per share and diluted loss per share attributable to common shareholders were both $0.64, compared with $0.43 per share for the same period last year.

Snowflake's fourth-quarter and full-year revenue and adjusted diluted net profit per share beat Wall Street analysts' expectations, but the outlook for product revenue for the first quarter of fiscal 2024 fell short of expectations, causing its shares to fall nearly 6 per cent in after-hours trading.

Summary of fourth quarter results:

For the quarter ended January 31, 2023, Snowflake posted a net loss of $207.5 million, up from a net loss of $132.2 million in the same period last year. The net loss attributable to Snowflake was $207.2 million, compared with a net loss of $132.2 million attributable to Snowflake in the same period last year. Snowflake's basic loss per share and diluted loss per share were both $0.64 per share for the fourth quarter, compared with $0.43 per share for the same period last year.

Excluding certain one-time items (not in accordance with US GAAP), the adjusted net profit attributable to Snowflake in the fourth quarter was $48.7 million and the adjusted net profit margin was 8 per cent, compared with $36 million and 10 per cent in the same period last year. Excluding certain one-time items (not in accordance with US GAAP), adjusted net profit per diluted share attributable to Snowflake common shareholders was 14 cents per share in the fourth quarter, compared with 10 cents per share adjusted for Snowflake common shareholders in the same period last year, which exceeded analysts' expectations. On average, 34 analysts had expected Snowflake to earn four cents a share in the fourth quarter, according to data provided by Yahoo Finance.

Snowflake's fourth-quarter revenue was $589 million, up 53% from $383.8 million a year earlier and exceeding analysts' expectations. On average, 35 analysts had expected Snowflake's fourth-quarter revenue to reach $575.72 million, according to Yahoo Finance.

Snowflake's remaining performance obligations were $3.7 billion, an increase of 38 per cent compared with the same period last year. As of January 31, 2020, Snowflake's net revenue retention rate was 158 per cent.

By business unit:

-Snowflake's fourth-quarter product revenue was $555.3 million, up 54% from $359.6 million in the same period last year; product revenue accounted for 94% of total revenue, unchanged from the same period last year.

-Snowflake's revenue from professional services and other businesses was $33.7 million in the fourth quarter, up from $24.2 million in the same period last year. Professional services and other businesses accounted for 6% of total revenue, unchanged from the same period last year.

Snowflake currently has a total of 7828 customers, including more than $1 million in 12-month product revenue.

Snowflake's fourth-quarter gross profit was $383.4 million, compared with $249.6 million a year earlier; gross profit margin was 65%, unchanged from a year earlier. Of this total, the gross profit of Snowflake products in the fourth quarter was $396.8 million, with a gross profit margin of 71%, compared with a gross profit of $257.2 million and a gross profit margin of 72% in the same period last year. The gross loss of professional services and other businesses was $13.4 million, with a gross profit margin of-40%, compared with a gross loss of $7.6 million and a gross profit margin of-31% for professional services and other businesses in the same period last year.

Excluding certain one-time items (not in accordance with GAAP), Snowflake's adjusted gross profit for the fourth quarter was $417.3 million, compared with $272.6 million in the same period last year, and the adjusted gross profit margin was 71%, unchanged from the same period last year. Of this total, the adjusted gross profit of Snowflake in the fourth quarter was $416.4 million, compared with $269.6 million in the same period last year; the adjusted gross profit margin was 75%, unchanged from the same period last year; the adjusted gross profit of professional services and other businesses was $900000, compared with $3 million in the same period last year; and the adjusted gross profit margin was 3%, compared with 12% in the same period last year.

Snowflake's total revenue cost in the fourth quarter was $205.7 million, accounting for 35 per cent of total revenue, compared with $134.2 million in the same period last year and 35 per cent of total revenue. Of this total, the revenue cost of products was $158.6 million, accounting for 27% of the total revenue, compared with $102.4 million in the same period last year, accounting for 27% of the total revenue. The revenue cost of professional services and other businesses was $47.1 million, accounting for 8% of the total revenue, compared with $31.8 million in the same period last year, accounting for 8% of the total revenue.

Snowflake's total operating expenses were $623.1 million in the fourth quarter, accounting for 106 per cent of total revenue, compared with $401.6 million in the same period last year and 105 per cent of total revenue. Of this total, sales and marketing expenditure was $303.5 million, accounting for 52% of the total revenue, compared with $203.3 million in the same period last year, accounting for 53% of the total revenue; R & D expenditure was $242.1 million, accounting for 38% of the total revenue and $123.1 million in the same period last year, accounting for 39% of the total revenue General and administrative expenses were $77.5 million, accounting for 13 per cent of total revenue, compared with $75.2 million in the same period last year and 20 per cent of total revenue.

Snowflake posted an operating loss of $239.8 million in the fourth quarter, compared with an operating loss of $152 million a year earlier. Snowflake's operating loss rate was 41% in the fourth quarter, compared with 40% in the same period last year. Excluding certain one-time items (not in accordance with GAAP), Snowflake's adjusted operating profit was $32.8 million in the fourth quarter, compared with $18.1 million in the same period a year earlier. Excluding certain one-time items (not in accordance with US GAAP), Snowflake's adjusted operating margin was 6 per cent in the fourth quarter, compared with 5 per cent in the same period a year earlier.

Cash flow information:

Snowflake's net cash from business operations was $217.3 million in the fourth quarter, compared with $78.9 million in the same period last year.

Without GAAP, Snowflake's free cash flow in the fourth quarter was $496.5 million, accounting for 24% of revenue. Without GAAP, Snowflake's adjusted free cash flow was $520.4 million in the fourth quarter, accounting for 25 per cent of revenues.

Summary of annual results:

Snowflake's revenue for the entire 2023 fiscal year was $2.066 billion, compared with $1.219 billion in the previous fiscal year, beating Wall Street analysts' expectations. On average, 42 analysts had expected Snowflake's full-year revenue to reach $2.05 billion, according to Yahoo Finance. Snowflake's full-year product revenue was $1.9388 billion, up 70 per cent from the previous fiscal year.

Snowflake had a full-year gross profit of $1.3912 billion and a gross margin of 72 per cent. Excluding certain one-time items (not in accordance with US GAAP), Snowflake's full-year adjusted product gross profit was $1.457 billion and the adjusted gross profit margin was 75 per cent.

Snowflake's full-year operating loss was $842.3 million, with an operating loss rate of 41 per cent. Excluding certain one-time items (not in accordance with US GAAP), Snowflake's full-year adjusted operating profit was $95.3 million and the adjusted operating margin was 5 per cent.

Snowflake's net cash from business operations for the full year was $217.3 million, compared with $110.2 million in the previous fiscal year.

Snowflake's full-year free cash flow is $496.5 million, accounting for 24% of revenue. Without GAAP, Snowflake's adjusted free cash flow for the full year was $520.4 million, accounting for 25 per cent of revenues.

Snowflake posted a full-year net loss of $797 million, compared with a net loss of $680 million in the previous fiscal year, while the basic loss per share and diluted loss per share attributable to common shareholders were both $2.50 and $2.26 each.

Excluding certain one-time items (not in accordance with GAAP), Snowflake's adjusted net profit for the full year was $90 million, compared with $2.1 million for the previous fiscal year; adjusted diluted net profit per share for common shareholders was 28 cents, compared with $0.01 for the previous fiscal year, beating analysts' expectations. On average, 31 analysts had expected Snowflake to lose 23 cents a share for the full year, according to data provided by Yahoo Finance.

Performance outlook:

Snowflake expects product revenue to reach between $568 million and $573 million in the first quarter of fiscal 2024, up 44% to 45% from a year earlier, a performance outlook that falls short of the average Wall Street analyst estimate of $582.1 million.

Snowflake also expects revenue from its products to reach between $2.705 billion in fiscal 2024, up 40 per cent from a year earlier; gross profit margins for products that do not comply with GAAP are expected to be 76 per cent; operating margins that do not comply with GAAP are expected to be 6 per cent; and adjusted free cash flow is expected to account for 25 per cent of revenue without GAAP.

Changes in stock prices:

On the day, Snowflake shares rose 12 cents, or 0.08 percent, to close at $154.50 in regular Nasdaq trading. Subsequently, Snowflake shares fell 5.83 per cent, or $9.00, to $145.50 in after-hours trading as of 04:45 est (05:45 Beijing time, March 3). In the past 52 weeks, the highest price for Snowflake is $268.50 and the lowest price is $110.26.

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