Q2 2025 Snowflake Inc Earnings Call Transcript
Key Points
- Product revenue for Q2 was $829 million, up 30% year over year.
- Remaining performance obligations totaled $5.2 billion, with year-over-year growth accelerating to 48%.
- Strong adoption of new AI capabilities, with more than 2,500 accounts using Snowflake AI weekly.
- Significant customer wins, including Capital One, NBCU, Petco, Pfizer, Snapchat, and Western Union.
- Successful Snowflake Summit with 15,000 on-site attendees, showcasing new products like Cortex AI and Iceberg.
- Non-GAAP product gross margin of 76% was down slightly year over year.
- Non-GAAP operating margin of 5% is lower year over year due to increased R&D and go-to-market investments.
- Cybersecurity incidents involving customers, although not Snowflake's fault, created marketing headwinds.
- Challenges in GPU availability affecting some deployments, particularly in Asia and Europe.
- Storage revenue, which is 11% of total revenue, is expected to face headwinds in the second half of the year due to Iceberg.
Good afternoon. Thank you for attending today's Snowflake Q2 and fiscal year 2025 earnings call.
My name is Cole, and I'll be the moderator for today's call. (Operator Instructions) I'd now like to pass the call over to Jimmy Sexton, Head of Investor Relations. Please go ahead.
Good afternoon. And thank you for attending today's Snowflake Q2 and fiscal 2025 earnings call. Joining me on the call today is Sridhar Ramaswamy, our Chief Executive Officer; Mike Scarpelli, our Chief Financial Officer; and Christian Kleinerman, our Executive Vice President of Product who will participate in the Q&A session.
During today's call, we will review our financial results for the second-quarter fiscal 2025 and discuss our guidance for the third quarter and full year fiscal 2025.
During today's call, we will make forward-looking statements, including statements related to our business operations and financial performance. These statements are subject to risks and uncertainties, which could
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