Snowflake (SNOW) investor relations material

Strategic vision, AI transformation, and market opportunity

• AI is positioned as a transformative force, automating workflows and boosting productivity, with internal deployment of agents like CoCo and CoWork enabling non-technical users to leverage data.

• The company targets a total addressable market of $225B in FY26, projected to double to $460B by FY31, driven by AI and data workloads.

• Focus on building an easy, connected, and trusted data platform, with robust governance, security, and interoperability across clouds and data sources.

• Differentiation centers on managed, adaptive platforms that enable frictionless data sharing and empower organizations to leverage AI.

• Product development is driven by rapid iteration, cross-functional teams, and a back-to-basics approach to innovation.

Product innovation, AI acceleration, and ecosystem expansion

• Launch of CoCo and CoWork as core AI-driven platforms, with features like CoCo Desktop, VS Code and Excel integration, and Cloud Code marketplace plugin.

• Cortex Sense provides runtime business context, improving agent accuracy and reducing costs, with rapid deployment and cross-agent compatibility.

• Enhanced interoperability with Apache Iceberg and virtualization, enabling secure, governed access to any data engine and reducing data movement.

• Introduction of Datastream for low-latency, managed data streaming, and expanded multi-party data collaboration.

• Enhanced governance and security through Natoma acquisition and Horizon platform, supporting policy, audit, and agent management.

Financial performance, outlook, and operational efficiency

• Product revenue growth rates ranged from 26% to 34% year-over-year between Q2 FY25 and Q1 FY27.

• Non-GAAP operating margin expanded from 6.4% in FY25 to 10.5% in FY26, with guidance to over 13.5% in FY27; non-GAAP product gross margin consistently above 75%.

• GAAP profitability is targeted for Q4 FY28, driven by disciplined headcount, operating leverage, and AI-driven efficiency.

• Top 25 customers' average spend increased from $22M to $34M over two years, with strong net revenue retention and cohort expansion.

• Sales compensation model incentivizes new customer acquisition and AI-driven expansion, with AI tools reducing sales cycles and accelerating migrations by 40%.