"The combination of our incredibly strong data cloud, now powerfully boosted by AI, is the strength and story of Snowflake."
— Sridhar Ramaswamy
03Detailed Report
SNOW
Snowflake Inc
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 5, 2026
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Executive Summary
Snowflake Inc (SNOW) showcased impressive performance in Q1 2025 with a product revenue growth of 34% year-over-year, reaching $790 million. This growth trajectory is driven by strong demand for its data platform, especially with the integration of AI technologies. Management emphasized the importance of customer engagement and innovative product delivery within their growth strategy. Despite facing challenges like rising operational costs, particularly related to GPU investments for AI initiatives, Snowflake remains well-positioned due to its strong cash reserves and a growing customer base. Looking ahead, the company forecasts a product revenue range of $805 million to $810 million for Q2 2025 and expects to increase its annual revenue outlook, indicating strong momentum in a competitive market.
Key Performance Indicators
Revenue
Increasing
828.71M
QoQ: 6.97% | YoY: 32.89%
Gross Profit
Increasing
556.19M
65.71% margin
QoQ: 4.37% | YoY: 34.29%
Operating Income
Decreasing
-348.57M
QoQ: -26.52% | YoY: -27.57%
Net Income
Decreasing
-316.99M
QoQ: -87.18% | YoY: -40.49%
EPS
Decreasing
-0.95
QoQ: -86.27% | YoY: -35.71%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $828.7 million, up 34% YoY. Gross Profit: $556.2 million, with a gross margin of 65.7%. Operating Income: -$348.6 million, reflecting continued investment in growth strategies, particularly in AI. Net Income: -$317.0 million, driven by increased operating expenses and R&D investment. Cash Flow: Net cash provided by operating activities totaled $355.5 million with a free cash flow of $331.5 million. Liquidity Ratios: Current ratio of 1.67 and quick ratio of 1.67 reflect strong liquidity position.
Management stated that the strong inter-quarter performance of $790 million was supported by substantial growth from existing and new customers, specifically noting significant contributions from larger Global 2000 firms, which have indicated increased consumption patterns with their core offerings.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
828.71M
32.89%
6.97%
Gross Profit
556.19M
34.29%
4.37%
Operating Income
-348.57M
-27.57%
-26.52%
Net Income
-316.99M
-40.49%
-87.18%
EPS
-0.95
-35.71%
-86.27%
Key Financial Ratios
Gross Profit Margin
Excellent
65.70%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Weak
-0.42%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.38%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.04%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.07%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.67
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
0.06
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Negative
-40.83x
Negative earnings make P/E ratio not meaningful
Price to Book
High Premium
11.36x
Very high premium suggests asset-light business model or lofty expectations
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