Data-analytics specialist Snowflake (NYSE:SNOW) has had a high bar to live up to. The company went public last year at an incredible $70 billion valuation.
Some media outlets speculated that the frothy initial public offering (IPO) was a sign of a bubble. But Snowflake has continued to report incredible financial results ever since, helping justify the growth stock’s high valuation.
Here’s a look at six must-see metrics from Snowflake’s just-reported first quarter of fiscal 2022.
1. Triple-digit revenue growth
Snowflake’s revenue more than doubled, rising 110% year over year to $228.9 million. This growth was primarily driven by a 110% increase in product revenue, or revenue recognized based on customer consumption of its platform. This includes revenue from compute, storage, and data-transfer resources — all used by customers on a single, integrated platform.
2. Remaining performance obligations soared
Remaining performance obligations (RPO) increased 206% year over year. As management explained in its first-quarter press release, this highlights “strength in sales across the board,” but it’s not a direct indicator of demand. While RPO represents the amount of future expected revenue that has not yet been recognized, it doesn’t specify the timing of customers’ consumption or potential consumption that exceeds their contracted capacity.
3. 393 new customers
Snowflake had 4,532 total customers, up from 4,139 just three months earlier.
4. Over 100 $1 million customers
Snowflake now has 104 customers generating $1 million or more in revenue over the trailing 12 months. This is up from just 77 three months ago.
“We are hyper-focused on penetrating the largest enterprises globally as we believe these organizations provide the last — largest opportunity for account expansion,” explained Snowflake CFO Mike Scarpelli in the company’s fiscal first-quarter earnings call. “We are already benefiting from our maturing enterprise sales efforts.”
5. A mouthwatering net revenue retention rate
After Snowflake’s net revenue retention rate accelerated in the fourth quarter of fiscal 2020, it wouldn’t have been surprising for it to come back down. But it remained at its elevated level from the previous quarter: 168%.
As a measurement of expanding spend from existing customers, a high net revenue retention rate suggests that Snowflake’s customers are using Snowflake’s platform more. Going forward, management said it expects to maintain a net revenue retention rate above 160% for the full fiscal year.
6. Robust guidance
For Snowflake’s second quarter of fiscal 2022, management said it expects product revenue to be between $235 million and $240 million, translating to year-over-year growth of 88% to 92%.
While Snowflake still has a lot to prove to live up to its sky-high valuation, its first few quarters as a public company have certainly set a high precedent.
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