Snowflake delivered first quarter revenue growth of 26%. The company's data platform continues to see strong demand due to AI workloads.
The company reported first quarter non-GAAP earnings of 24 cents a share on revenue of $1.04 billion. Including stock compensation and other items, Snowflake reported a net loss of $430.1 million, or $1.29 a share.
Wall Street was expecting Snowflake to report non-GAAP earnings of 21 cents a share on revenue of $1.01 billion.
As for the outlook, Snowflake projected second quarter product revenue of $1.035 billion to $1.04 billion, up 25% from a year ago. "We see an enormous opportunity ahead as we extend this value throughout the full data lifecycle," said Snowflake CEO Sridhar Ramaswamy.
- Snowflake adds OpenAI models to Cortex AI via expanded Microsoft partnership, integration
- Snowflake Marketplace: The Future of Data Monetization and Enterprise AI
- Constellation ShortList™ Automated Cloud Data Warehouse Services
By the for numbers for the first quarter:
- Snowflake had 606 customers with trailing 12-month product revenue of more than $1 million.
- Remaining performance obligations of $6.7 billion, up 34% from a year ago.
- Research and development spending in the first quarter was $472.4 million, up from $410.8 million a year ago.
- The company has been hiring as expenses have crept higher.
Snowflake cited customers such as JPMorgan Chase, AstraZeneca, Dentsu, Kraft Heinz and Siemens. He noted that the company is focused on innovative use cases.
Here's what Snowflake CEO Sridhar Ramaswamy had to say on the earnings call:
- "Our core business is very strong, our product delivery remains on overdrive, and our go-to-market engine continues to get stronger and stronger. We are in the zone and there's still an enormous opportunity ahead."
- "We've made important progress in delivering an extensible and flexible connectivity platform, both unstructured as well as structured data. Snowflake connectors, which leverages the technology from our acquisition of Datavolo enables customers with seamless connectivity and data integration with key platforms like Google Drive, Workday, Slack, SharePoint and more to tap into critical data across the business."
- "This quarter alone, we have brought over 125 product capabilities to market, a 100% increase over what we delivered in Q1 of last year. We continue to see strong adoption of open data formats, especially truly open modern table formats like Apache Iceberg."
- On hyperscale cloud competition, the Snowflake CEO said: "The hyperscalers are formidable. They are amazing both from an engineering execution and business perspective, but they also work with Anthropic and OpenAI because they are the best -- among the best model makers in the world. Similarly, we are very uniquely positioned in terms of being the excellent data platform that is. And we've also learned how cooperating really leads to a better outcome, whether it is with AWS, which is our biggest partner, or more and more with Azure. There are many customers that Azure not play is just a better outcome for everybody that is involved."
Constellation Research analyst Holger Mueller said:
"Snowflake had a other great quarter, missing the $1 billion in product revenue by a hair. The question going forward is how will its customers adapt to AI. Snowflake has an ambitious agendas here, including its LLM, but the verdict is still out where enterprise data will live. The balance is slowly shifting from analytics vendors to AI automation vendors, and there the transactional vendors that are gaining momentum in product. The second half of 2025 will not only be different for Snowflake, but all analytics centric vendors."
