The following is a summary of the Snowflake Inc. (SNOW) Q2 2025 Earnings Call Transcript:
Financial Performance:
- Snowflake reported Q2 FY 2025 product revenue of $829 million, a 30% increase year-over-year.
- Non-GAAP product gross margin was 76%, slightly down year-over-year.
- Non-GAAP operating margin exceeded expectations at 5%.
- Non-GAAP adjusted free cash flow margin was reported at 8%.
- Remaining performance obligations (RPO) grew 48% year-on-year to reach more than $5.2 billion.
Business Progress:
- Launched significant product innovations including Snowflake Cortex AI and Iceberg.
- Executed two nine-figure deals emphasizing robust customer expansion.
- Over 2,500 accounts are using Snowflake AI weekly, highlighting increased product adoption.
- Expanded presence and adoption in international markets with strategic customer engagements.
Opportunities:
- Accelerated adoption of AI and machine learning tools, alongside broad product expansion and enhancements.
- Strategic focus on increasing customer base and product usage, particularly through new product features like Snowpark.
Risks:
- Continued challenges from cybersecurity threats impacting both the industry and customer perceptions.
- Potential financial impact and customer perception issues from data security incidents involving external cybersecurity events.