Snowflake Q1 Earnings Call Highlights

Key Points:

• Snowflake raised its fiscal 2027 product revenue guidance to $5.84 billion, reflecting 31% year-over-year growth, up from the prior 27% forecast, driven in part by a new five-year, $6 billion contract with Amazon Web Services (AWS).
• The company expects Q2 product revenue between $1.415 billion and $1.42 billion, a 30% increase year over year, and raised its full-year non-GAAP operating margin guidance to 13.5%, maintaining a 23% free cash flow margin forecast.
• AI products like Snowflake Intelligence and Cortex Code are significantly boosting platform usage and customer adoption, with Cortex Code being one of the fastest-adopted products in company history and driving much of the updated revenue outlook.
• Snowflake added 616 net new customers in the quarter, a 38% year-over-year increase, and saw strong expansion among large accounts, with eight customers exceeding $10 million in trailing 12-month revenue, totaling 64 such customers.
• The company announced the intended acquisition of Natoma to enhance AI agent capabilities within business applications, alongside expanded partnerships with AWS, OpenAI, and SAP, while also reporting internal productivity gains from its AI tools.