Snowflake

SNOW Q4 2022 Earnings

Reported Mar 2, 2022 at 4:06 PM ET · SEC Source

Q4 22 EPS

$-0.43

MISS 1,533.33%

Est. $0.03

Q4 22 Revenue

$383.8M

BEAT +3.00%

Est. $372.6M

vs S&P Since Q4 22

-97.0%

TRAILING MARKET

SNOW -31.6% vs S&P +65.4%

Full Year 2022 Results

FY 22 EPS

$-2.26

FY 22 Revenue

$1.22B

Market Reaction

Did SNOW Beat Earnings? Q4 2022 Results

Snowflake posted a sharply mixed fourth quarter, doubling its top line while falling well short of profit expectations, as the cloud data platform reported Q4 fiscal 2022 revenue of $383.77 million, a 101.5% year-over-year gain that edged past the $3… Read more Snowflake posted a sharply mixed fourth quarter, doubling its top line while falling well short of profit expectations, as the cloud data platform reported Q4 fiscal 2022 revenue of $383.77 million, a 101.5% year-over-year gain that edged past the $372.59 million consensus by 3.00%, yet GAAP earnings per share came in at -$0.43, a steep miss against the $0.03 consensus estimate. The earnings shortfall reflected $167.77 million in stock-based compensation charges that widened the gap between GAAP results and the underlying business momentum; on a non-GAAP basis, Snowflake actually swung to operating profitability with an 18 million dollar gain. The consumption-based model showed its strength through a 178% net revenue retention rate and $2.60 billion in remaining performance obligations, up 99% year-over-year. The company also completed its $800 million acquisition of Streamlit, expanding into data application development. Looking ahead, management guided full-year fiscal 2023 product revenue of $1.88 billion to $1.90 billion, representing 65-67% growth, with a 1% non-GAAP operating income margin.

Key Takeaways

  • 102% year-over-year product revenue growth driven by consumption-based model
  • Net revenue retention rate of 178% driven by continued growth from largest customers
  • Remaining performance obligations of $2.6 billion representing 99% YoY growth
  • Non-GAAP product gross margin improvement to 75% from 70% year-over-year
  • Customer base grew to 5,944 total customers
  • 184 customers with trailing 12-month product revenue greater than $1 million
24/7 Wall St

SNOW YoY Financials

Q4 2022 vs Q4 2021, source: SEC Filings

24/7 Wall St

SNOW Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 22 Q4 26

“Snowflake finished fiscal 2022 with record-breaking consumption and bookings results, including triple-digit product revenue growth. Remaining performance obligations were $2.6 billion, representing year-on-year growth of 99%. Our net revenue retention rate reached 178% driven by continued growth from our largest customers.”

— Frank Slootman, Q4 2022 Earnings Press Release