Snowflake Inc. Reports $1.042 Billion Revenue with 26% Growth, Net Loss of $430 Million

Snowflake Inc. reported significant financial results for the three months ending April 30, 2025, with total revenue reaching $1.042 billion, a 26% increase from $828.7 million in the same period last year. The company's product revenue, which constitutes the majority of its income, rose to $996.8 million, up from $789.6 million, driven by increased consumption of its platform. However, the company also reported a net loss of $430 million, compared to a loss of $317.8 million in the prior year, reflecting higher operating expenses and asset impairment charges.

The company's operating expenses surged to $1.141 billion, up from $904.8 million, largely due to increased costs in sales and marketing, research and development, and general administrative expenses. Notably, general and administrative expenses spiked by 125% to $209.6 million, primarily due to $106.5 million in asset impairment charges related to the closure of its San Mateo office. This increase in expenses contributed to an operating loss of $447.3 million, compared to a loss of $348.6 million in the previous year.

Snowflake's customer base expanded to 11,578 as of April 30, 2025, up from 11,127 at the end of January 2025. The company reported a net revenue retention rate of 124%, indicating strong growth in existing customer consumption. Additionally, the number of customers generating over $1 million in product revenue over the trailing twelve months increased to 606, up from 479 a year earlier. This growth reflects the company's strategy to deepen engagement with existing customers while also attracting new ones.

In terms of strategic developments, Snowflake continues to invest in its platform, particularly in artificial intelligence and machine learning capabilities. The company has also expanded its geographic footprint, with deployments across 48 regions globally. As of April 30, 2025, Snowflake's remaining performance obligations stood at approximately $6.7 billion, with expectations that about 50% will be recognized as revenue in the next twelve months, contingent on customer consumption patterns.

Looking ahead, Snowflake remains focused on scaling its operations and enhancing its product offerings. The company anticipates continued investment in research and development to drive innovation and maintain its competitive edge. Despite the challenges posed by macroeconomic conditions, including inflation and fluctuating market dynamics, Snowflake is optimistic about its growth trajectory and the potential for increased adoption of its AI Data Cloud platform.