Snowflake Inc. Reports $3.6 Billion Revenue for Fiscal Year 2025, Net Loss of $1.3 Billion

Snowflake Inc. reported revenue of $3.6 billion for the fiscal year ended January 31, 2025, a 29% increase year-over-year from $2.8 billion in fiscal 2024. The company's net loss for fiscal 2025 was $1.3 billion, compared to a net loss of $838 million in fiscal 2024. The increase in revenue was primarily driven by increased platform consumption from existing customers, reflected in a net revenue retention rate of 126% as of January 31, 2025. The number of customers contributing over $1 million in trailing twelve-month product revenue rose from 455 to 580 during the same period.

Significant changes compared to the previous fiscal year include a slowdown in revenue growth (from 36% in fiscal 2024 to 29% in fiscal 2025), attributed to increased competition, technological changes, and macroeconomic conditions. Customers are increasingly optimizing consumption and prioritizing cash flow management, potentially impacting future revenue. The company also experienced a decline in product gross margin from 74% to 71%, primarily due to newly launched products not yet achieving economies of scale. Snowflake's total customer count increased to 11,159 as of January 31, 2025, up from 9,384 on January 31, 2024.

Strategic developments during the fiscal year included several acquisitions, notably Datavolo, Inc., a dataflow infrastructure company for enterprise AI, acquired for $106.8 million. Other acquisitions were also completed, but their financial impact was not material. Product launches included Snowflake Intelligence, aimed at empowering business users to take data actions without coding, and Snowpark Container Services, a managed container platform for applications and AI models. The company also continued to invest in its Native Application program.

Operationally, Snowflake's global footprint expanded to 47 regional deployments across three major public clouds. The company employed 7,834 people across 34 countries as of January 31, 2025. Its research and development team consisted of 2,257 employees. The company highlighted its reliance on key personnel and the competitive landscape, noting that its competitors include major public cloud providers like AWS, Azure, and GCP. Snowflake also noted the risks associated with its consumption-based business model and the challenges of forecasting future results due to fluctuating customer consumption.

Looking ahead, Snowflake plans to continue investing in platform innovation, particularly in AI technology, and to expand its global reach. The company anticipates increased costs and expenses, but also expects sales and marketing expenses to decrease as a percentage of revenue over time. Snowflake cautions that its future results may differ materially from expectations due to various risks and uncertainties, including competition, macroeconomic conditions, and cybersecurity threats. The company also highlighted the risks associated with its convertible senior notes and stock repurchase program.