“`html

“`

Snowflake’s Q3 Performance: Simplifying Data Management and Driving Revenue Growth

Customer Insights: Technology Adoption and Cost Savings

Our customers consistently provide feedback about three key aspects of our technology: its user-friendliness, the speed at which they see real value, and the lower total cost of ownership it offers. In contrast, we often hear that competing technologies are complex and demand costly engineering resources.

Complexity introduces risk. For example, achieving one task in Snowflake may take ten steps on other platforms, increasing the risk of mistakes. Such complexity isn’t scalable.

The strength of Snowflake lies in its immediate usability. Customers have reported significant cost reductions, with Snowpark driving efficiencies in data engineering processes. Many have claimed they saved at least 50% by switching to Snowflake from other providers.

This self-sustaining technology helps Snowpark gain traction, projected to account for around 3% of our revenue. Snowflake excels in simplifying the implementation of popular enterprise data architecture patterns, whether in data warehousing, lakehouse, or data mesh configurations. We empower our customers to make architectural decisions without sacrificing enterprise capabilities, which they greatly appreciate.

For instance, one client is using Snowflake to unify data across streaming, gaming, news, and studio operations, enabling personalized entertainment recommendations for millions. Similarly, Hyatt is leveraging Snowflake to understand guest preferences better, enhancing the overall travel experience.

Innovations Driving Growth and Engagement

Our commitment to innovation remains strong. Recently, over 10,000 attendees participated in our BUILD developer summit, where we announced exciting developments like the general availability of Unistore and the internal marketplace, alongside innovations such as Snowflake Intelligence, a platform for creating data agents. Interest in AI continues to surge.

As of the end of Q3, we have managed over a thousand deployed use cases, which represent the individual projects utilizing our AI and ML products. More than 3,200 accounts are now engaging with these advanced features. Momentum is also building around our latest engineering capabilities, particularly in data interoperability, which has become a vital differentiator for our customers.

As a result, our new features are achieving a run rate exceeding $200 million as of Q3. Collaborations with Microsoft and ServiceNow aim to enhance data interoperability, facilitating quicker application development and deployment.

New product launches like Unistore and Snowflake Open Catalog are supported by a go-to-market strategy that integrates engineering, product development, marketing, and sales to efficiently scale initiatives. These efforts are significantly broadening our customer base and deepening relationships with existing clients.

Financial Performance and Future Outlook

Our product innovations align with our partnerships in cloud infrastructure. Thanks to collaboration with AWS, we have secured over $3.9 billion in bookings over the past four quarters, marking a 68% increase compared to previous periods. Analyzing our Q3 results, it’s clear that these strategic shifts are yielding positive outcomes, fostering multi-product adoption, and reinforcing our market position.

In the broader data landscape, we observe substantial uptake of open data formats, particularly Apache Iceberg. We take pride in supporting and investing in Iceberg under Snowflake Open Catalog, which is quickly gaining traction among developers and enterprises. Additionally, we recognize AI’s potential to reshape data consumption, enhancing the interchangeability between structured and unstructured data and influencing business intelligence practices.

Strategic Enhancements with Datavolo Acquisition

Our planned acquisition of Datavolo aims to fortify our capabilities in providing a flexible data connectivity platform that accommodates both structured and unstructured data. This change will simplify data engineering tasks for our customers. With the general availability of Snowflake Notebooks and the success of products like Cortex AI, we are well-prepared to leverage the new possibilities that AI will unlock.

Recently, we have partnered with Anthropic to integrate their powerful models into our offerings via Snowflake Cortex AI. This collaboration enables enterprises to build advanced AI applications with a choice of models while benefiting from Snowflake’s built-in security and governance features. Our cost-effective, flexible solutions are why renowned brands like Accor, Chipotle, Comcast, Hyatt, Kraft Heinz, NBC Universal, Sanofi, and Toyota have chosen Snowflake as their data partner.

As we look ahead, we have a considerable opportunity to expand our AI capabilities throughout the data lifecycle. Our vision is supported by our significant customers who appreciate the ease and efficiency we offer. They are eager to deepen their reliance on Snowflake to manage more aspects of their data journey, aiming for a future where we fully power that lifecycle.

Our core competitive advantages—an easily navigable, efficient, and integrated product backed by comprehensive governance—will continue to distinguish us in the market. We anticipate sharing more progress in the future.

Mike Scarpelli — Chief Financial Officer

Thank you, Sridhar. Q3 demonstrated significant achievements in revenue, bookings, and margins, with growth in our core business exceeding expectations. Our net revenue retention rate stabilized at an impressive 127%. Notably, new product initiatives are beginning to contribute positively to our growth.

As Sridhar pointed out, Snowpark is on pace to represent 3% of product revenue while also attracting about 500 accounts that are adopting Iceberg. With storage costs remaining at 11% of our consumption, we are experiencing limited challenges from customers transitioning to Iceberg. We expect contributions from data engineering features like Snowpark, dynamic tables, connectors, and Snowpipe Streaming to counterbalance any potential drop in storage revenue. Booking performance was robust, with three contracts exceeding $50 million in total value signed this quarter, indicating continued momentum into Q4. We welcomed 18 Global 2000 customers during this time. Assessing our Q3 margins, our non-GAAP product gross margin stabilized at an encouraging 76%.

Our non-GAAP operating margin reached 6%, exceeding guidance, aided by revenue gains, R&D efficiencies, and the deferral of some Bay Area office-related expenses to Q4. Furthermore, our non-GAAP adjusted free cash flow…

“`html

Snowflake Reports Strong Financial Performance and Adjusts Revenue Forecast for FY ’25

Snowflake Inc. announced a solid financial performance with a product revenue margin of 9%, spurred by robust bookings. Approximately 80% of Snowflake’s customers continue to pay for services annually in advance. In the third quarter, the company issued $1.15 billion worth of 0% convertible senior notes, due in both 2027 and 2029.

The proceeds from these offerings were allocated towards capped calls and concurrent share repurchases. Remaining funds will be directed towards additional stock buybacks, future acquisitions, and general corporate use. Year-to-date, Snowflake has repurchased 14.8 million shares for $1.9 billion, with a weighted average price of $130.87 per share. The company retains an authorization of $2 billion for share repurchases, valid through March 2027.

The company’s guidance does not consider the impact of potential future stock buybacks. Ending the quarter, Snowflake reported $5 billion in cash, cash equivalents, and investments, both short-term and long-term. Looking forward to the fourth quarter, the company projects product revenue between $906 million and $911 million, representing a 23% year-over-year growth.

Furthermore, Snowflake is raising its fiscal year 2025 product revenue guidance to around $3.43 billion, indicating a 29% year-over-year increase. This adjustment reflects contributions from new product features despite facing product efficiency challenges, which the company regards as a standard aspect of its operations moving forward.

When discussing margins, Snowflake is updating its fiscal year 2025 non-GAAP product gross margin guidance to 76%, with a non-GAAP operating margin now expected at 5%. The planned non-GAAP adjusted free cash flow margin is approximately 26% for the year. As noted by CEO Sridhar Ramaswamy, the company is actively evaluating its cost structure.

The strategic aim is to invest significantly in growth opportunities while also enhancing operational efficiency. Snowflake intends to strengthen its innovation and revenue-generating efforts to ensure sustainable growth and operating leverage over the years. At this point, we will take questions.

Operator

[Operator instructions] The first question is from Mark Murphy with JPMorgan. Your line is open.

Mark Murphy — Analyst

Thank you. Mike, it’s impressive to see strength in both consumption revenue and bookings this quarter, particularly with this year’s focus on consumption incentives. Do you attribute this to Iceberg tables or has Snowpark also contributed significantly?

Mike Scarpelli — Chief Financial Officer

We’re noticing a positive trend from Iceberg as several customers start utilizing new workloads through both Snowflake and Iceberg tables. However, the demand is broad-based across various sectors, with significant activity in technology, financial services, and healthcare, along with a rise in data engineering tasks, which includes Snowpark.

Mark Murphy — Analyst

Excellent. Sridhar, you mentioned repeatedly displacing competitors, which caught my attention. Have you seen an uptick in competitive displacement this past quarter, and do you think your recent AI-related product launches have influenced this?

Sridhar Ramaswamy — Chief Executive Officer

The products we’ve introduced inspire confidence in the platform’s future capabilities. The ease of use, faster results, and minimal team requirements for setup and maintenance play a crucial role in attracting customers to switch to Snowflake. Integration features like those in Cortex AI Search reinforce user trust.

Christian Kleinerman — Executive Vice President, Product

Importance in governance remains strong. We continue to invest further in security, privacy, and compliance, enhancing what Sridhar highlighted.

Mark Murphy — Analyst

Thank you, and congratulations.

Sridhar Ramaswamy — Chief Executive Officer

Thank you, Mark.

Operator

Thank you for your question. Next up is Keith Weiss from Morgan Stanley. Your line is open.

Keith Weiss — Analyst

Thank you for taking my question. Congratulations on a solid quarter. Mike, I’d like to discuss the strong results, particularly in core data warehousing. Can you provide insight into the growth trajectory for your new AI products like Cortex compared to initial trends seen with Snowpark?

Mike Scarpelli — Chief Financial Officer

The core business remains focused on data warehousing and engineering, which performed well. The newer data engineering features are driving growth. Cortex is beginning to thrive, though still in early stages with promising potential, while Snowpark is also tracking positively. It’s expected to constitute 3% of our revenue this year and will continue to grow. On the efficiency front, we are identifying performance improvements, particularly within our sales organization, alongside ongoing hiring in that area.

“““html

Snowflake CEO Sridhar Ramaswamy Discusses Strategic Innovations and Future Growth

Operating Savings and Workforce Management Considerations

We’re experiencing delays in backfill replacements, which directly contributes to our operational savings. However, it’s vital to clarify that there aren’t any mass layoffs underway—this is simply part of our usual performance management. We’re being deliberate about staffing and placement.

Keith Weiss — Analyst

Thank you for that clarification.

Operator

Our next question comes from Kash Rangan at Goldman Sachs. Your line is open.

Kash Rangan — Analyst

Thanks. I have two questions, one for Sridhar and one for Mike. First, Sridhar, there are concerns that the core of the Snowflake data platform, particularly structured data, may not thrive in the generative AI landscape. Can you share evidence from this quarter that addresses these worries? And Mike, given that storage headwinds aren’t impacting as much as expected, can we anticipate a stable product revenue growth of 29% for the year? Additionally, could Snowpark container services remove three points from this figure, signaling a stable outlook for core products next year? Thank you and congrats on the quarter.

Sridhar Ramaswamy — Chief Executive Officer

Thank you, Kash. Regarding our core business, analytics remains essential. Companies that successfully integrate data into their operations, particularly real-time analysis, tend to outperform. In the last couple of decades, industry-leading firms have relied heavily on data integration. Our clients, such as Hyatt and Disney, illustrate the power of analytics in enhancing customer experiences at scale.

Looking to the future, the seamless integration of analytics with machine learning positions us well. Products like Cortex AI allow for smooth transitions from unstructured to structured data, which enhances functionality. Recent announcements from BUILD exemplify this; imagine running SQL queries on PDFs to extract structured insights—this revolutionizes analytics as we know it.

Moreover, with over a thousand AI use cases deployed, our commitment to driving business value, rather than engaging in mere experiments, stands strong. Initiatives like our TruEra acquisition further demonstrate our focus on ensuring trust and observability in AI applications. We’re confident that as we continue this work, the lines between structured and unstructured data will blur.

We have numerous success stories, including Siemens and Bayer, who have publicly shared their positive experiences with our AI products.

Mike Scarpelli — Chief Financial Officer

In response to your question about business stability, our core business remains robust. Our net retention rate has held steady at 127% over the last two quarters, and we’re guiding for 23% growth this year.

It’s important to consider that Q4 often includes seasonal fluctuations. However, I feel positive about our position heading into next year. We’ve strengthened our sales capabilities, particularly in identifying new workloads that will be ready for deployment, ensuring a solid backlog of opportunities for both next quarter and beyond.

Kash Rangan — Analyst

It’s great to see this positive turnaround. Thank you and congrats.

Operator

Thank you for your insights. Our next question comes from Raimo Lenschow at Barclays. Your line is open.

Raimo Lenschow — Analyst

Thank you, Sridhar. Can you discuss today’s acquisition? Historically, you’ve mentioned wanting to improve ETL capabilities, but there are numerous players in this field. How do you view Snowflake’s positioning amidst this landscape? And then I have a follow-up for Mike.

Sridhar Ramaswamy — Chief Executive Officer

Absolutely, this space is immense. Our vision highlights Snowflake’s potential to help clients utilize all their data, not solely the structured data intended for analytics. Many customers possess vastly more data in cloud storage compared to what they funnel into structured platforms. Ownership of data is increasingly important to them.

As organizations shift towards integrating application data more effectively, tools for data transformation and engineering become critical. This acquisition, particularly Datavolo, is significant as it offers over a hundred connectors and seamlessly integrates into Snowflake. It enables data processing from locations we couldn’t previously access.

We anticipate the data engineering market to expand substantially, potentially reaching several hundred billion dollars over the next decade. Our added value lies in creating an integrated, efficient platform for our customers, with solutions like Datavolo being a key component of this strategy.

Christian Kleinerman — Executive Vice President, Product

…

“`

New Innovations and Strong Growth Highlight Snowflake’s Latest Developments

Data Integration Takes Center Stage

Raimo Lenschow, Analyst, expressed his appreciation for the improved performance this quarter. He posed a critical question regarding the factors influencing this success. “Is it the economy improving, or is the company simply executing better?”

Positive Economic Outlook and Strategic Execution

Mike Scarpelli, Chief Financial Officer, responded by acknowledging that the economic conditions resemble those from the previous quarter. “It’s not a boom, but things are looking good,” he noted. Scarpelli emphasized that the company is executing its strategies effectively, especially in identifying new areas of growth rather than focusing solely on initial bookings. This customer-centric approach is reportedly benefiting sales teams, who are becoming more engaged with their clients.

Interest in Autonomous Agents

Kirk Materne from Evercore ISI joined the conversation, commending Snowflake for a strong quarter. He raised an important point about the emerging interest in autonomous agents and how they might affect data consumption on Snowflake’s platforms. He asked Sridhar Ramaswamy, CEO, to elaborate on this trend.

Focusing on Customer Value

Sridhar Ramaswamy replied that customer value remains the primary focus, as it drives consumption. He highlighted the simplicity of using their product Cortex Search for creating chatbots, which could be implemented at a low cost. Emphasizing the importance of trust and reliability, he described how their AI initiatives are designed to provide effective solutions while enhancing customer assurance in the data they receive. Ramaswamy illustrated how Snowflake Intelligence, coupled with partnerships like Anthropic, enables seamless integration of functions, potentially transforming how customers manage data tasks.

International Expansion Opportunities

Materne shifted the discussion to international markets, asking about Snowflake’s positioning in Europe and Asia-Pacific regions as they look toward 2025. Scarpelli responded that the company is strategically targeting higher-end markets in Europe while also planning to focus on the mid-market segment. He noted encouraging growth in specific countries such as Japan and India, with Australia and New Zealand also showing promising market potential.

Unique Government Collaboration in New Zealand

Ramaswamy shared an interesting fact about their operations in New Zealand, noting how the company supports most government agencies there. He remarked on the high level of data sharing among agencies compared to their U.S. counterparts. This efficient collaboration underscores the effectiveness of their platform.

Leveraging Innovations from Cortex

Brad Zelnick from Deutsche Bank joined the conversation to congratulate Snowflake on its innovation and performance. He inquired about how customers are implementing Cortex within their organizations and whether this is leading to new consumption opportunities.

Breaking New Ground with AI in Data Analysis

Ramaswamy conveyed that the use cases enabled by Cortex AI significantly differ from traditional SQL capabilities. He recounted a recent experience where the company utilized its own product to gain insights from sales team notes, something that would have otherwise been unmanageable. This anecdote illustrated how Cortex can facilitate tasks that were previously too complex or time-consuming, emphasizing the creation of additional customer value.

Expanding Beyond Conventional Methods

Christian Kleinerman, Executive Vice President of Product, was invited to elaborate further, promising that the focus would remain on what additional values customers can derive from these innovations.

Snowflake’s Growth Momentum: Key Insights from Recent Analyst Call

Expanding Horizons in Data Analytics

During a recent analyst call, Snowflake’s leadership discussed their growing focus on analytics beyond just text. They aim to enhance capabilities in image, audio, and video analytics, reflecting a significant shift in how data is processed.

Democratizing Data Access

New features like Cortex Search and Cortex Analyst are gaining traction, aimed at making data more accessible. The ongoing interest indicates strong momentum in this area, beneficial for both developers and end users.

Brad Zelnick — Analyst

Mike, as we talk about Iceberg, will you be adjusting your annual guidance to account for less headwind? And what are customers saying about the location of their stored data?

Mike Scarpelli — Chief Financial Officer

I won’t comment on specific performance improvements right now. However, we believe our new data engineering features will offset any storage revenue losses from customers shifting data away from Snowflake. In fact, this transition opens more opportunities, especially with the amount of data not yet in our ecosystem.

Brad Zelnick — Analyst

Thanks for clarifying, Mike.

Operator

Next, we’ll hear from Brent Thill with Jefferies. Your line is open.

Brent Thill — Analyst

Sridhar, you mentioned New Zealand’s advancements in federal services. Can you provide an update on your progress in the federal sector? Recent events have raised concerns about government efficiency. What’s your outlook for the next few years?

Sridhar Ramaswamy — Chief Executive Officer

We recently acquired Night Shift, which strengthens our position in the federal market. We view this sector as a large opportunity for growth. Increased efficiency, in particular, is advantageous for Snowflake, as we excel at processing vast datasets for our clients, including federal agencies. While I can’t provide further details right now, our focus remains on expanding this part of our business.

Mike Scarpelli — Chief Financial Officer

To add, the federal space currently accounts for a small portion of our overall business. However, we are optimistic about growth in this segment over the coming years.

Brent Thill — Analyst

Thank you, Mike. Speaking of larger deals, you noted three contracts over $50 million last quarter following a significant $250 million deal. Can you comment on the landscape for larger transactions? Are smaller deals on the rise, or are the bigger deals becoming more frequent?

Mike Scarpelli — Chief Financial Officer

I anticipate a strong bookings quarter in Q4, as is typical for us. We’re working on several large renewal deals that include opportunities for growth.

Brent Thill — Analyst

Great. Thank you.

Operator

Next, we have Mike Cikos from Needham and Company. Your line is open.

Matt Calitri — Needham and Company — Analyst

Thank you. It appears we’ve had a significant quarter-over-quarter growth in RPO and CRPO during October, possibly a record third quarter for Snowflake. Can you shed light on what drove this strong performance? Did any of the two major customers mentioned previously commit during this quarter?

Mike Scarpelli — Chief Financial Officer

Those customers did not secure major commitments this quarter. The robust RPO growth mainly stems from larger customers as they approach renewals or realize they need additional capacity. This strong performance is mirrored in our revenue and future guidance.

Sridhar Ramaswamy — Chief Executive Officer

Additionally, many of my discussions with customers highlight a strong desire for increased efficiency and revenue generation. The hard work from our sales team over the past several quarters is evident, reflecting positively in renewals.

Matt Calitri — Needham and Company — Analyst

That’s encouraging. Regarding customer additions, trends appear mixed. With recent changes in our go-to-market strategy, when do you anticipate seeing a shift here—perhaps more of a FY ’26 target?

Mike Scarpelli — Chief Financial Officer

I expect to see a good number of net additions in Q4, leading to more favorable trends in 2026.

Matt Calitri — Needham and Company — Analyst

Awesome. Thank you.

Operator

Next, we have Michael Turrin with Wells Fargo. Your line is now open.

Michael Turrin — Analyst

Thank you for taking my questions. Can you discuss the stability of expansion rates in light of the shift toward consumption-based models? Are there common strategies driving expansion across customers, and do you feel comfortable with current retention rates?

Mike Scarpelli — Chief Financial Officer

While I won’t provide specific forecasts on revenue retention, it appears stable based on our observations. This stability is largely driven by our core business, with older customers utilizing newer features. We’ll continue to monitor these dynamics closely.

“`html

Snowflake CEO Discusses New Opportunities and Sales Strategies Amid Storage Trends

Michael Turrin — Analyst

Thank you for your insights. I would like to follow up on the storage challenges related to Iceberg. Could you clarify how quickly we might see benefits from your recent efforts to alleviate these storage issues? Will these adjustments immediately counteract any potential storage impacts, or are they more of a longer-term strategy tied to customer spending patterns?

Mike Scarpelli — Chief Financial Officer

At this moment, I don’t view Iceberg as a significant storage challenge. Should any customers decide to transfer data off, the expansion in data engineering and new features will more than compensate for that. We are also starting to see Iceberg’s positive effects with new workloads previously absent from Snowflake.

Now, clients are utilizing Snowflake with open file Iceberg formats.

Sridhar Ramaswamy — Chief Executive Officer

I want to emphasize that customers typically have from hundreds to thousands of times more data in cloud storage. Initiatives like our advanced data engineering capabilities and Cortex AI—considered extensions of SQL—allow for efficient data pipeline operations. For instance, upcoming features will enable techniques such as analyzing video transcripts and sentiment detection through simple SQL queries. These scenarios would have been unimaginable before the introduction of Iceberg and AI technologies. Snowflake’s strength lies in translating these complex technologies into accessible applications for many users.

Thus, the primary opportunity lies not in merely shifting some data to an Iceberg format, but in a broader potential for data utilization.

Michael Turrin — Analyst

Thank you for the clarification.

Operator

Next, we have a question from Alex Zukin with Wolfe Research. Your line is now open.

Alex Zukin — Analyst

Hi everyone. I’d like to revisit the Iceberg topic. Sridhar, can you share insights about how first mover clients are leveraging Snowflake to enhance their data usage? What changes in data volume are you observing as these clients transition from storage-focused operations to broader services?

Sridhar Ramaswamy — Chief Executive Officer

As I mentioned earlier, this represents a significant opportunity. Many customers now recognize that with our Iceberg support, they can utilize Snowflake’s computing power to analyze historical data that was previously inaccessible. These new applications are contributing to what’s termed data sharing, which we’ve discussed in depth. The integration of Iceberg with our AI features and data pipelining options is cultivating exciting new potential for growth. Christian, do you have any additional thoughts?

Christian Kleinerman — Executive Vice President, Product

I’ll add that we’re observing a notable trend where customers prefer using Snowflake data already sitting in cloud storage. This aligns with our initiatives, leading to a marked increase month-over-month in data availability via Iceberg tables, thereby driving additional consumption and mitigating any storage concerns.

Sridhar Ramaswamy — Chief Executive Officer

Would you like to elaborate on Polaris and its significance here?

Christian Kleinerman — Executive Vice President, Product

A relevant trend is the introduction of Polaris catalog at our recent summit, which was donated to the Apache Software Foundation for self-hosting. We also provide a Snowflake-hosted version known as Snowflake Open Catalog. The response has been strong from global organizations eager to use this open-source catalog, as it enhances data availability in Snowflake while ensuring compatibility with other systems.

Alex Zukin — Analyst

Great, thank you for that. Mike, can you discuss any changes in sales strategies, particularly concerning performance management? Should we prepare for a more cautious approach as we model our expectations for next year, despite promising budget outlooks for key sectors such as FinServ and Tech?

Mike Scarpelli — Chief Financial Officer

Our sales leaders have shifted toward continuous performance management rather than waiting until year-end. We began implementing this in Q3, hiring individuals with the necessary skills. While I won’t comment on specific conservatism or guidance for the upcoming quarter, I feel optimistic about next year. Keep in mind that we will not benefit from a leap year in Q1, which will affect year-over-year growth calculations.

Sridhar Ramaswamy — Chief Executive Officer

Additionally, I want to note that our sales teams are developing a new approach to converting activities into use cases and deployments. This evolution in performance management underlines an enhanced understanding of effective strategies for promoting business growth. The results reflect this improvement and contribute to my positive outlook on our team’s performance.

Alex Zukin — Analyst

Thank you all. Congratulations on the progress.

Operator

Thank you for your inquiry. Moving on, our next question comes from Brad Sills with Bank of America. Your line is now open.

Brad Sills
“`

Snowflake Shows Positive Growth Trends Through Partnerships and Innovations

CEO Discusses Strong Ties with Hyperscalers

Sridhar Ramaswamy — Chief Executive Officer

Thank you for your question. We have a strong relationship with AWS and Azure, and this collaboration is yielding positive outcomes. Our partnership with AWS and Snowflake offers excellent solutions, and the same goes for Azure. Additionally, we are making headway with Google Cloud Platform (GCP), aiming to expand our cooperation there. The data platform industry is set to grow significantly in the next decade, and there is a clear opportunity for all involved. However, the challenge remains in coordinating teams across these large organizations. We’re committed to overcoming this and expect more developments in our partnerships.

Collaboration Around Data Standards

Christian Kleinerman — Executive Vice President, Product

We’ve found common ground with hyperscalers through collaboration on Apache Iceberg. This is shaping up to be the standard representation of data for improved interoperability.

Sridhar Ramaswamy — Chief Executive Officer

Indeed, there’s significant excitement in the industry about Iceberg because it is viewed as a true standard that no single company controls. Unlike earlier formats, Iceberg is perceived as stable and reliable. I liken it to the VHS format, while older formats seem more like Betamax. This is beneficial for our customers and enhances our offerings at Snowflake.

New Products Lead to Revenue Growth

Brad Sills — Analyst

Thank you, Sridhar. Mike, may I ask you about the recent success with new products like Snowpark and Cortex? How do you anticipate this will affect revenue heading into next year?

Mike Scarpelli — Chief Financial Officer

While I can’t provide guidance for next year, I can say that these new offerings are becoming more significant contributors to our revenue. Earlier this year, we projected that Snowpark could account for about 3% of our revenue. We’re also seeing rapid growth in dynamic tables, which is positively impacting consumption. Notebooks is another promising feature for data scientists that we expect will enhance usage of Snowflake, especially alongside Cortex.

Closing Remarks from the CEO

Sridhar Ramaswamy — Chief Executive Officer

As we conclude, I want to highlight the momentum we are experiencing. I’m proud of our execution and the impressive growth rates we are achieving. Our foundation is strong, and our new products are contributing meaningfully to our revenue. Our operational discipline will support both growth and profitability moving forward. Thank you for joining us today.

Operator

Thank you for your participation. This wraps up the conference call.

Participants in the Call:

Jimmy Sexton — Head of Investor Relations

Sridhar Ramaswamy — Chief Executive Officer

Mike Scarpelli — Chief Financial Officer

Mark Murphy — Analyst

Christian Kleinerman — Executive Vice President, Product

Keith Weiss — Analyst

Kash Rangan — Analyst

Raimo Lenschow — Analyst

Kirk Materne — Analyst

Brad Zelnick — Analyst

Brent Thill — Analyst

Matt Calitri — Needham and Company — Analyst

Michael Turrin — Analyst

Alex Zukin — Analyst

Brad Sills — Analyst

This article is a transcript of the conference call produced for The Motley Fool. While we aim for accuracy, there may be errors or inaccuracies in the transcript. The Motley Fool does not take responsibility for your use of this content and encourages independent research, including listening to the call and reviewing SEC filings. Please see our Terms and Conditions for more details.

The Motley Fool has positions in and recommends Snowflake. The Motley Fool has a disclosure policy.

The views expressed here are those of the author and do not necessarily reflect those of Nasdaq, Inc.