What changed in this filing

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Item 1. Business

2024-03-26 compared with 2023-03-29 · 58 added, 59 removed, 344 unchanged (25% of the section changed)

We believe in a data connected world where organizations have seamless access to explore, share, and unlock the value of data.

We believe that a cloud computing platform that puts data and AI at its core will offer great benefits to organizations by allowing them to realize the value of the data that powers their businesses.

By offering rich primitives for data and applications, we believe that we can create a data connected world where organizations have seamless access to explore, share, and unlock the value of data.

To realize this vision, we deliver the Data Cloud, a network where Snowflake customers, partners, developers, data providers, and data consumers can break down data silos and derive value from rapidly growing data sets in secure, governed, and compliant ways.

Our platform is the innovative technology that powers the Data Cloud, enabling customers to consolidate data into a single source of truth to drive meaningful business insights, build data applications, and share data and data products.

Our platform is the innovative technology that powers the Data Cloud, enabling customers to consolidate data into a single source of truth to drive meaningful insights, apply AI to solve business problems, build data applications, and share data and data products.

We provide our platform through a customer-centric, consumption-based business model, only charging customers for the resources they use.

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These deployments are generally interconnected to deliver the Data Cloud, enabling a consistent, global user experience.

Our platform supports a wide range of workloads that enable our customers’ most important business objectives, including data warehousing, data lakes, and Unistore, as well as collaboration, data engineering, cybersecurity, data science and machine learning, and application development.

Our platform supports a wide range of workloads that enable our customers’ most important business objectives, including data warehouse, data lake, data engineering, AI/ML, applications, collaboration, cybersecurity and Unistore.

From January 1, 2024 to January 31, 2024, we processed an average of approximately 4.2 billion daily queries across all our customer accounts, up from an average of approximately 2.6 billion daily queries during the corresponding month of the prior fiscal year.

We are committed to expanding our platform’s use cases and supporting developers in building their applications and businesses.

In 2021, we launched Snowpark for Java to allow developers to build in the language of their choice, and in 2022 we added support for Python.

We continue to invest in our Powered by Snowflake program to help companies build, operate, and market applications in the Data Cloud by supporting developers across all stages of the application journey.

As of January 31, 2023, we had over 820 Powered by Snowflake registrants.

In 2021, we launched Snowpark for Java and Scala to allow developers to build in the language of their choice, and in 2022 we added support for Python.

In 2023, we launched Snowpark Container Services, a fully managed container platform designed to facilitate the deployment, management, and scaling of containerized applications and AI/ML models within our ecosystem.

We continue to invest in our Native Application program to help companies build, operate, and market applications in the Data Cloud by supporting developers across all stages of the application journey.

We have an industry-vertical focus, which allows us to go to market with tailored business solutions.

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We believe this network effect will help us drive our vision of the Data Cloud.

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Our platform is used globally by organizations of all sizes across a broad range of industries.

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The number of customers that contributed more than $1 million in trailing 12-month product revenue increased from 331 to 461 as of January 31, 2023 and 2024, respectively.

We have achieved significant growth in recent periods.

For the fiscal years ended January 31, 2023, 2022, and 2021, our revenue was $2.1 billion, $1.2 billion, and $592.0 million, respectively, representing year-over-year growth of 69% and 106%, respectively.

For the fiscal years ended January 31, 2024, 2023, and 2022, our revenue was $2.8 billion, $2.1 billion, and $1.2 billion, respectively, representing year-over-year growth of 36% and 69%, respectively.

Our net loss was $838.0 million, $797.5 million, and $679.9 million for the fiscal years ended January 31, 2024, 2023, and 2022, respectively.

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Data exists everywhere, but is often held hostage in silos by machines, applications, networks, and clouds.

In order to access the value of this data, organizations are undergoing massive digital transformation initiatives, and data is driving operations for many modern enterprises.

To access the value of this data, organizations are undergoing massive digital transformation initiatives, and data is driving operations for many modern enterprises.

In an effort to mobilize data, companies have invested billions of dollars in disparate on-premises systems, infrastructure clouds, and application clouds.

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As the Data Cloud grows through broad adoption and increasing usage, there are enhanced benefits from greater data availability.

Moving forward, we are continuing to foster these benefits through industry-specific Data Clouds and the Powered by Snowflake program.

Moving forward, we are continuing to foster these benefits through industry-specific Data Clouds and the Native Application Framework.

Our platform is built on a cloud-native architecture that leverages the massive scalability and performance of the public cloud.

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Organizations can adjust their consumption to precisely match their needs, always optimizing for price-performance.

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• Easy to use.

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This provides customers with the confidence to share their data inside their organizations, as well as with their partners, customers, and suppliers, to unlock new insights and build new applications.

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Our Growth Strategies

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We intend to continue making significant investments in research and development and hiring top technical talent to enable new use cases, strengthen our technical lead in our platform’s architecture, and increase our differentiation through enhanced collaboration capabilities.

For example, in 2021 we launched Snowpark for Java to allow developers to build in the language of their choice, and we continue to expand Snowpark’s capabilities and supported languages, most recently with Python in 2022.

During the fiscal year ended January 31, 2024, capabilities like Marketplace Listing Auto-Fulfillment & Monetization, account replication & failover, Query Acceleration Service, geospatial analytics, and Snowpipe Streaming became generally available, while capabilities like Iceberg tables, Hybrid tables, and Cortex LLM and ML-powered functions became available in public preview and are expected to become generally available in the fiscal year ending January 31, 2025.

• Drive growth by acquiring new customers.

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• Expand data content and collaboration across our global ecosystem.

Our platform provides an innovative way for organizations to collaborate and connect with data and data products, including through our Marketplace.

Our platform provides an innovative way for organizations to collaborate and connect with data and data products, including through the Snowflake Marketplace.

We plan to continue investing in adding new customers, partners, data providers, data consumers, and forms of sharing to connect on our platform, and to drive market awareness of the Data Cloud.

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For example, we launched our Powered by Snowflake program in 2021 to help customers and partners build, operate, and grow their applications built using Snowflake, and we continue to invest in expanding the program.

Our platform unifies data and supports a growing variety of workloads, including data warehousing, data lakes, and Unistore, as well as collaboration, data engineering, cybersecurity, data science and machine learning, and application development.

Our platform unifies data and supports a growing variety of workloads, including data warehouse, data lake, data engineering, AI/ML, applications, collaboration, cybersecurity and Unistore.

Customers can leverage our platform for any one of these workloads, but when taken together, it provides an integrated, end-to-end solution that delivers greater insights, faster data transformations, improved data sharing, and accelerated application development.

Delivered as a service, our platform is deployed across multiple public clouds and regions, is easy to use, and requires near-zero maintenance.

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Organizations use our platform to power the following workloads:

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◦ Generate comprehensive data insights.

Customers can run queries on structured, semi-structured, and unstructured data to capitalize on a more comprehensive view of their data to drive maximum insights.

Run queries on structured, semi-structured, and unstructured data to capitalize on a more comprehensive view of their data to drive maximum insights.

◦ Simplify data governance.

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Simplify data governance and provide rich security and controls to ensure data is managed and accessed according to regulatory and corporate requirements.

• Data Engineering.

Our platform enables data engineers, IT departments, data science teams, and business analytics teams to efficiently build and manage both batch and streaming data pipelines using SQL, Python, or other programming languages to transform raw data for downstream consumers like data science teams, analytics teams, and business applications.

For Data Engineering, our platform enables organizations to:

◦ Drive faster decision making.

Ingest data and transform it in real time to ensure access to up-to-date information to drive better business outcomes.

◦ Dynamically meet peak business demands .

Meet fluctuating business demands by instantly scaling resources up and down.

Our platform enables organizations to securely build and deploy large language models (LLMs) and machine learning (ML) models.

For AI/ML, our platform enables organizations to:

◦ Bring generative AI and LLMs to enterprise data.

Quickly and securely analyze data and build AI applications using Snowflake Cortex (in private preview), a managed service that serves LLMs and vector functions.

◦ Build and deploy ML models.

Use Snowpark ML (in public preview) to quickly build features, train models and deploy them into production using familiar Python syntax without having to move or copy data outside the organization’s governance boundary.

◦ Fine-tune LLMs securely in our platform.

Deploy, manage, and scale containerized models and fine tune open-source and other third-party LLMs using secure, Snowflake-managed infrastructure with graphics processing units, or GPUs, all within the boundary of the organization’s Snowflake account.

◦ Turn models into interactive applications.

Manage resources for data transformation and use leading data science tools, with the support of Scala, R, Java, and Python, to build machine learning algorithms in a single cloud platform.

• Applications.

Our platform can power new applications as well as enable existing applications with capabilities for reporting and analytics.

For Applications, our platform enables organizations to:

◦ Develop analytical applications.

Build data applications with our platform serving as the analytical engine to provide massive scalability and insights with minimal operational overhead.

◦ Embed Snowflake into existing applications.

Feed data and analytics directly into business applications in the context of daily workstreams.

◦ Develop and distribute Snowflake-native applications.

Build, scale, and deploy applications that run securely within the boundary of the end customers’ Snowflake accounts with Snowflake’s Native Application Framework.

• Collaboration .

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◦ Acquire data sets to enrich analytics .

Leverage public data sets on our Marketplace to enrich insights, augment analysis, and inform machine learning algorithms.

Leverage public data sets on the Snowflake Marketplace to enrich insights, augment analysis, and inform machine learning algorithms.

◦ Monetize new data sets and data products .

List data sets or data products to our Marketplace and tap into new monetization streams.

List data sets or data products to the Snowflake Marketplace and tap into new monetization streams.

◦ Invite external parties to access governed data .

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Our platform allows for easy replication of data, accounts, policies, and pipelines for multiple users across multiple public cloud providers and regions without compromising data integrity and governance, enabling our customers and their users to rely on a single source of truth and achieve cross-cloud business continuity.

• Data Engineering.

Our platform enables data engineers, IT departments, data science teams, and business analytics teams to efficiently build and manage data pipelines using SQL, Python, or other programming languages to transform raw data into actionable data for business insights.

For Data Engineering, our platform enables organizations to:

◦ Drive faster decision making.

Ingest data and transform it in real time to ensure access to up-to-date information to drive better business outcomes.

◦ Dynamically meet peak business demands .

Meet fluctuating business demands by instantly scaling resources up and down.

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• Cybersecurity .

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◦ Leverage customized resources .

Access dynamically updated threat intelligence from our Marketplace and a wide network of connected applications that provide out-of-the-box integrations, content, and visualizations to enable initiatives such as threat detection and response.

• Data Science and Machine Learning.

A majority of data science efforts involve transforming massive amounts of raw data at scale to enable advanced analytics, such as advanced statistical analysis and machine learning techniques.

For Data Science and Machine Learning, our platform enables organizations to:

◦ Accelerate transformations across massive data sets.

Store and transform data at scale with the massive scalability and performance of the public cloud.

◦ Integrate with leading data science tools and languages.

Manage resources for data transformation and use leading data science tools, with the support of Scala, R, Java, and Python, to build machine learning algorithms in a single cloud platform.

• Application Development.

Our platform can power new applications as well as enable existing applications with capabilities for reporting and analytics.

For Application Development, our platform enables organizations to:

◦ Develop analytical applications.

Build data applications with our platform serving as the analytical engine to provide massive scalability and insights with minimal operational overhead.

◦ Embed Snowflake into existing applications.

Feed data and analytics directly into business applications in the context of daily workstreams.

Access dynamically updated threat intelligence from the Snowflake Marketplace and a wide network of connected applications that provide out-of-the-box integrations, content, and visualizations to enable initiatives such as threat detection and response.

Our platform enables organizations to simplify development by uniting transactions and analytical data using hybrid tables (in public preview), a new type of Snowflake table that enables fast, single-row operations.

For Unistore, our platform enables organizations to:

◦ Unlock transactional use cases with hybrid tables .

Use hybrid tables to develop lightweight transactional use cases like serving data or storing an application’s state, all within our platform.

◦ Analyze transactional and historical data fast .

Immediately act on data from across the organization’s ecosystem, build new and better customer experiences, and get deeper insights by integrating transactional and analytical data in a single data set.

Our platform was built from the ground up to take advantage of the cloud, and is built on an innovative multi-cluster, shared data architecture.

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These deployments are generally interconnected through our Snowgrid technology to deliver the Data Cloud, enabling a global and consistent user experience.

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Our Technology

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This enables a variety of customer use cases such as making copies of production data for data scientists, creating custom snapshots in time, or testing data pipelines.

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• Compute Model.

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Our platform exposes compute clusters as a core concept.

Our customers are able to create as few or as many compute clusters as they want and specify compute capacity at tiered levels.

Our customers can create as few or as many compute clusters as they want and specify compute capacity at tiered levels.

These clusters can be configured to run only when needed, with cluster instantiation operations typically completed in seconds.

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It also supports customer-managed keys, where an additional layer of encryption is provided by keys controlled by customers, giving them the ability to control access to the data.

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Sales and Marketing

We sell our platform primarily through our direct sales team, which consists of field sales and inside sales professionals segmented by customer industry, size, and region.

Our direct sales team is primarily focused on new customer acquisitions and driving increased usage of our platform by existing customers.

Our direct sales team is primarily focused on new customer acquisitions and driving increased use of our platform by existing customers.

The breadth of our platform allows us to engage at every level of an organization, including data analysts and data engineers through our self-service model and senior executives through our direct sales team.

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Our system integrator partners help make the adoption of and migration to our platform easier by providing implementations, value-added professional services, managed services, and resale services.

Our technology partners provide strategic value to our customers by providing software tools, such as data loading, business intelligence, machine learning, data governance, and security, as well as data sets on our Marketplace, to augment the capabilities of our platform.

Our technology partners provide strategic value to our customers by providing software tools, such as data loading, business intelligence, artificial intelligence and machine learning, data governance, and security, as well as data sets and applications on the Snowflake Marketplace, to augment the capabilities of our platform.

We continue to invest in formal alliances with the leading consulting, data management, and implementation service providers to help our customers migrate their legacy database solutions to the cloud.

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• new or emerging entrants seeking to develop competing technologies.

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We believe we compete favorably based on the following competitive factors:

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Historically, we have received a higher volume of orders from new and existing customers in the fourth fiscal quarter of each year.

As a result, we have historically seen higher non-GAAP free cash flow in the first and fourth fiscal quarters of each year, and our sequential growth in remaining performance obligations has historically been highest in the fourth fiscal quarter of each year.

As a result, we have historically seen higher net cash provided by operating activities and non-GAAP free cash flow in the first and fourth fiscal quarters of each year, and our sequential growth in remaining performance obligations has historically been highest in the fourth fiscal quarter of each year.

In addition, while historically revenue has been higher in our fourth fiscal quarter, it is also the most negatively impacted by reduced holiday consumption.

For more information, including a definition of non-GAAP free cash flow and a reconciliation of free cash flow to the most directly comparable financial measure calculated in accordance with U.S.

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We recruit and hire employees in jurisdictions around the world based on a range of factors, including the available talent pool, the type of work being performed, the relative cost of labor, regulatory requirements and costs, and other considerations.

Some of our employees continue to work remotely following the COVID-19 pandemic, but the majority of our workforce has returned to physical offices.

The majority of our personnel work from physical offices.

Culture and Engagement

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Our culture is driven by our core company values:

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• Put Customers First :

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We also held 178 issued patents in foreign jurisdictions.

Our issued patents are scheduled to expire between January 2024 and July 2042.

Our issued patents are scheduled to expire between September 2024 and July 2043.

As of January 31, 2024, we held 33 registered trademarks in the United States, and also held 506 registered or protected trademarks in foreign jurisdictions.

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Although we rely on intellectual property rights, including patents, copyrights, trademarks, and trade secrets, as well as contractual protections to establish and protect our proprietary rights, we believe that factors such as the technological and creative skills of our personnel, creation of new services, features and functionality, and frequent enhancements to our platform are more essential to establishing and maintaining our technology leadership position.

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We control access to and use of our proprietary technology and other confidential information through the use of internal and external controls, including contractual protections with employees, contractors, customers, and partners.

We control access to and use of our proprietary technology and other confidential information through the use of internal and external controls, including technical controls and contractual protections with employees, contractors, customers, and partners.

We require our employees, consultants, and other third parties to enter into confidentiality and proprietary rights agreements, and we control and monitor access to our software, documentation, proprietary technology, and other confidential information.

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Compliance with these laws, rules, and regulations has not had a material effect on our capital expenditures, results of operations, and competitive position as compared to prior periods.

Nevertheless, compliance with existing or future governmental regulations, including, but not limited to, those related to global trade, business acquisitions, consumer and data protection, environmental or related requirements or disclosures, and taxes, could have a material impact on our business in future periods.

Nevertheless, compliance with existing or future governmental regulations, including, but not limited to, those related to global trade, business acquisitions, consumer and data protection, AI Technology, environmental or related requirements or disclosures, and taxes, could have a material impact on our business in future periods.

For more information on the potential impacts of government regulations affecting our business, see the section titled “Risk Factors.”

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We make available on our website at www.snowflake.com, free of charge, copies of these reports and other information as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business