Snowflake (SNOW) 1 Dec 222023 Q3 Earnings call transcript

Good afternoon, and thank you for attending today's Snowflake Q3 Fiscal 2023 Earnings Conference Call. My name is Austin, and I will be your moderator for today. [Operator Instructions] I would now like to pass the conference over to our host, Jimmy Sexton, Head of Investor Relations with Snowflake. Jimmy, please go ahead.

Good afternoon, and thank you for joining us on Snowflake's Q3 fiscal 2023 earnings call. Vice in Officer; Frank Financial the Mike Christian our both and our Officer; Q&A and who Kleinerman, Executive Product, Chief Scarpelli, Senior session. me Montana us Slootman, are Chairman and will With join of for President our Chief

quarter fourth discuss During call, quarter year XXXX and third and fiscal review discuss XXXX our results for our full today's XXXX, financial guidance our outlook. will the we fiscal for the fiscal

as XXXX, for including call, We for available statements to financial prospects. to after XXXX, on strategy, Form will undertake results. growth and are we performance to will quarter substitute financial non-GAAP comparisons. cause to concerning the will ended today any calculated With our are update changes like today's recently our most call products with are long-term risks measures, risks release statements both financial of release posted these forward-looking During distributed non-GAAP Frank. our which actual could that close information, expected means for filed financial obligation which our the Information or out also today would investor those related or in distributed future them XX, earlier make period-to-period in features, the in undue in and forward-looking of new place statements subject our addition that, as not statements refer will no results. our To not today's to see you of These forward-looking in the press measures SEC. and please today's to evaluate also October to purposes replay uncertainties, to Non-GAAP operational events the a XX, A non-GAAP GAAP. market decision-making fiscal including for website. press internally statements file accordance We GAAP as future presented the earnings of differ business, on to I report quarter results, expectations. financial result posted to ended in from is and and reconciliations filings, future the we and presentation, overall measures and and and call Form our with point over XX-Q on caution at turn a to we SEC reliance investors.snowflake.com. a measures July duty financial like and these call, use the earnings XX-Q be now We'd materially

Thanks, and coupled Jimmy, and cash good afternoon, growth economics, scale, strong everybody. drive free operating unit strengthening profit Snowflake continues flow. to with at

ingrained growing reporting resilient in importance to will anecdotal product the institutions. strategy Relying in While we increasingly and how revenue, global is context, terms data million this take seat of $XXX is company observations Data resilience our believe enterprises think, on of back operations. The XX% act, decide data-driven and year-on-year. a strategize. we in We weakening enterprises results. reflects global macro the deeply modern in becoming acknowledge remain

whole, customers company In the XX appeal. of Global we the the of modern outpaced and data public [XX%] The maximizes [XX%] power basis, Cloud growing limited Our XXXX now XXXX cash customers. free the or Global and the cloud enterprise. margin quarter-over-quarter. priority added Data obligations, margin a getting remaining large On institutions. billion. again in XX%. flow came XX% of $X grew over at as revenue. XX%, idea X% data intelligence, Cloud holds resonates stack Product science XXXX high quarter, a artificial siloed adjusted margin non-GAAP product performance Snowflake's RPO, at promise in operating Global the and revenue in to enterprises a in Data represent year-on-year at and your gross strongly from

Our Customers single more data intelligence. of than our have data geographies, analytics analytics XX-month regions, in at edge, deployments. Year-over-year, XX% are of over at sources, stable mission of XX% listings footprint we've clouds compute Snowflake's across year operates and universe XX%. by inquiry, Cloud, now expanded up and Today, least a Data least Snowflake regional embracing grew cloud revenue one marketplace the from sciences, listings. edge. across $X of data XX% division. point and data have stable than million a XX with X,XXX XX% quarter-over-quarter, one ago. is single with intelligence, the trailing a maximum customers customers enablement more product

global to applications and Communications, cities Energy of of needs We of next processing. recently seen in will we habit and moving unlimited Our hosted offer for XX,XXX is over helping function traveled our XX work. to With in announcements we kickoff Since audience. more applications availability XX Charter enabling product Earlier bring the data user are to countries, engineering with coupled in data integration developers Developer across announced a for data EDF and This and to general the Tour, a in BUILD, strategy science workloads build Data the cities Snowpark. from the a for our World workloads and the training to and virtual customers data a foundational X,XXX to network, public optimized private brought Northern year, Snowpark our adopted preview. approximately we're you've countries. Trust to with many have compute-intensive attendees find Global in preview. work at recent has has science to progress XX% its we ML Python. warehouses, Snowflake. Python the way global data warehouses Snowflake. the than for Cloud to hosted workloads XX customers, breakouts acquisition, spectrum Streamlit XXXX Streamlit, community historical transaction native developers. -- data warehousing now We and XX,XXX and QX, into Optimized engineers Streamlit We're in of data data the November, which Work In now types. allow Snowflake sharing In announcements from across our is instead Much XX workload in workload work years reflects enablement. attendees. Conference Snowflake over data step houses across improvement grown and Annual scheduled represent local reached

to enable high scale data greater Snowflake course, created new become Aside institutions focus applications. with Snowflake enterprise-grade operations. differentiates and have from world-class challenges largest and performance security on the and years and and implementation, economics, most and use challenges enterprises compliant the compliance, a critical recent worldwide for for of relentless far cases deploy trust and Privacy capabilities in

its room example, of orientation. the to industries. data which spreading in clean deepen operations, For other to vertical originated role and now strengthen our advertising, continues industry Snowflake are

its amount DTCC clients, market better & understand has We settlement allows challenges, The announced Trust their services, clients and engage retail entertainment, and Corporation, goods, XX% followed packaged expect services technology sentiment. Marketplace. consumer with quarter-over-quarter. industry training the From media our In financial data. clearing and solve to by liquidity leading to our a customer Depository language, for industries to healthcare problems advertising, from sciences. services, Snowflake grew services financial and revenue their Clearing DTCC data use vast of Providing and investor or access Snowflake product recently life of and to and financial Snowflake through DTCC, understand are QX,

by investment Hub, and announced Warner industry clean advertising advanced accelerate for the week, television Paramount of will Data solution the cross-publisher transforming the of validates made quarter, commitment the company. we the NBCUniversal, Discovery the industry. cross-platform During OpenAP, is a This at Snowflake an TV room Snowflake. ad to the new in FOX, have development advertising Bros OpenAP which and Addition

Customer our execute and In We through QX, we approach. our aware ability investment are different behavior the demonstrated macro of weakening to environments. economic outlook informs economy.

focus on free Our cash generation. flow balanced growth with remains revenue

which and Mike Mike. massive to ahead With positioned The years discuss that, to turn will well over will will opportunity efficient the and are is call drive unfold. further. We to growth, take I durable

remaining the as QX in This estimate $X expect year. last $X and million, obligations XX% Thank the to $XXX of XX% next in our increase we grew same billion revenue revenues year-over-year compared represents XX% XX the a RPO, representing were recognized you, growth, XX% totaling quarter as product Of billion. be to Frank. year-over-year our approximately performance months.

includes Our the customers five with retention new our XXX% growth durable in a reflects quarter, customers. $X and rate the added quarterly in addition revenue of Global product periods. net in last focus XXXX growth of XX customers among acquisition With XX our largest XX-month and million revenue world, we enterprises the the in largest largest trailing on the

customers This represent in over customers in $X.X million confidence an accounts have average these average. compares million opportunity our product million GXK revenue product We of $X.X in because among only of revenue. trailing to $X XX-month growth on

workload through enablement. continue value these to grow will and We accounts selling

We grew faster Quarter-over-quarter, this company customers accounts largest six than our in XX the are overall. seeing our today. top of

We our business. business weakness and consistent are the leading making we impacting challenging believe the key which to metrics, identify are our of indicators In strength we economy varying macro a worldwide, saw of degrees monitoring quarter, it trend.

slower, grew Each companies overall as specific headwind always in North than strength the technology the EMEA Internet quarter, sector America model. to quarter. faster segments, the we services, SMB resiliency will operations. which and and underperformed grew with at mentioned this largest results of America QX shows as media closer consumption said, the the data entertainment the Taking includes a consumer had and that Snowflake our reflect the financial consumption North earlier continue geography With overall. while vertical, This Our from being look year. strong largest vertical in unique a circumstances company prioritize in the advertising enterprises outperformed APJ, and happen industries,

the evaluate quarter, exchange in business is basis currency immateriality. experience than on the other did given we the than of foreign our At the moment, headwind revenue we do revenue invoiced dollar. While constant U.S. a not our a X% currencies in less

to Now basis. non-GAAP a margins turning on

in Operating marketing favorability headcount year-over-year outperformance Our our margin was growth gross and Scale in was and gross to revenue improvement. X%, public contributed margin accounts product continued customer spend. benefiting XX%. cloud data large margin centers and on from

equivalents free XX%, investments. positively in flow cash the strong cash, long-term quarter ended and cash cash adjusted strong impacted collections. a was short-term and by with margin billion Our position in $X.X We

turn committed We let's to driving profitability. guidance. our towards Now to greater remain

margins. growth flow free revenue expanding and on focused are cash We operating through

seen SMB we and in weeks, six APJ have past the segment. weaker Over consumption

recent and grow. patterns that However, continue will largest give most our customers strategic consumption us to confidence

with flow. conservative we committed and XXXX. with growth, more With the slower-than-expected how holidays QX for to we we are customers taking meaningful believe free cash operate, as generating fiscal uncertainty will approach and Even responsible plan is a approaching resource

product XX%. growth between year-over-year we representing $XXX expect For and between the fourth revenue XX% million, million and quarter, $XXX

Turning to margins.

outstanding. shares We margin, and operating expect basis, expect X% on average XXX a million weighted non-GAAP we diluted

For year fiscal the revenues XX%. and year-over-year growth billion, $X.XXX $X.XXX expect product XX% XXXX, billion representing full between we and between

Turning to profitability.

For margin the outstanding. on margin margin, favorable we flow for shares gross the XX% operating product, we've new XXXX, sales. free Year-to-date, employees. We million adjusted Snowflake average basis, full a and XX% hiring and fiscal non-GAAP cash expect, diluted we year to and XXX and over current as expect weighted engineering focus approximately X,XXX in view market product continue added hiring net we'll X%

While we cycle, currently growth are planning would we on consumption seeing our the to we today. next outlook based like discuss are in year's

product in margin. adjusted evaluate flow we XX% of new For adding monthly includes XXXX, slowdown net basis, expect XX% X,XXX full of hiring, but growth the a and revenue non-GAAP over expansion This year a on margin approximately operating employees. outlook assumes of continued we which and cash free fiscal

opportunity you look line for the to open forward long-term can now executing. questions. operator, that, and up we remains Our strong, With

from [Operator Instructions] first with Raimo Lenschow Our Barclays. question is

in the with cetera. people willingness gotten in about olden as the existing It adds. customers' stay would just seems we year, think incumbent customer and hatches, What normally of in was, you be You in different to for a seeing tough about obviously new new next versus do how question you. customers days it My had the et you like think record are terms times customers? to should

you're what customers expecting guidance? you could customers in were speak existing a new little of So bit that

very get -- most customers. focused It's as private on Yes. into said, revenue not perspective, much one from too. the tend XXXX up But new it's and their We the really metrics our of the of very a revenue that It's XXXX, that as quality large Raimo, still big data driven enterprises with Global really of well ramp the existing companies the focus world a the customers of customers. just to give. we're sector Global production. as new is well, we lot to in it and not terms by public But largest because clients is takes Snowflake it's landing on quantity. time the in Well, much of customers

continue they're And to can see new bring so -- that. we're still vendors. the you in do to going willing And by as to do Global XXXX,

is Our next with Materne from Kirk Evercore. question

to Mike, those that you starting services of in you industry. locked faster despite more across financial It's functionalities the like. I given mentioned interesting And just with are verticals just doing out grow out are guys expect are you that those perhaps I geographies. network are up. in just effects different was able because that verticals you've that there to industry-specific and Are number talk entire playing well macro to customers along weren't the Can that your verticals backdrop. do decipher the across they're stable built and patterns verticals curious just you a that? Snowflake But the really and helping about really like are well, to where come the see those any note edges

we I'll concentration network important, in Well, which effect see sharing data biggest it's the And edges. of are financial driving is and the stable and that is let in of one that the see is Frank. the things clearly, financial we the that do of you services, then that. effect definitely, network and really that Yes. the can outperformance But Well, start services. have I'll things -- really seeing

Yes.

has other Kirk, things that of relationships unique that between driving entities. its thing, words, set dynamics in are industry The calling networking other we're data is every own

consumer between For enormous payers media entertainment. goods, advertisers, the relationships providers of example, through packaged sharing healthcare, There's and and in and of going on data it's in on. in retailers amount there so terms

So they're all a little different.

financial management night and in institutions much said, financial single by to subsectors Mike destinations, of driven like especially services that. all these data fact every very that pumping the massive asset amounts As is around are historically different in

data we of what a there's but -- in So differently see really of benefits I like subsector, and that every out view enormously. that mean, in become and we starts is verticals it really plays industry sector call network the -- gravity they lot happen pronounced lowers you that new services. access accounts, financial It getting to us to data very friction in

Morgan Our Stanley. next question Weiss Keith is from with

in be next for out draw of that to XX% year sort year, framework Sanjit Mike, is is high fiscal XX%. to to that into with the you of the for exit the end; then Singh talked think you're guiding go for way respect to can bridge QX at for wanted particularly confidence us, Keith. This year 'XX, us I of rate to What back, guidance and approximately growth. you next going next any I you XX% sort terms some quarter think durable growth full going the year? your about the gives you laid of about Is there

a lived is it COVID big -- we've is QX There through it, in a think traveling well, say as people lot I'll and component holidays more. we are a is quarter Well, do of human Sure. that that too. has

we're But going Python, XXXX all the QX, traction year along So we on we'd signed with we starting see of also well, Snowpark impact significant number next forecasting customers but of with to things been Snowflake up the that a ramping have be of doing that that we well impact. as some that, in we we're of as that them see more have as up, too. have that's we see to a think

they're of bit And if a Makes could the us total sense. and consumption, wondering of of sort cohorts sense was behaving. the how you then little I give

gotten quarter as and contribute in talked for core customers the has the customers of you've if top about top those of what just positively over some the that though that's past of customers the outside we how and quarter customers, the underlying customer But of the are business obviously, October core clip. a expansion trends into XX? XX don't new quite the the November, even fast we've So top trends materializing coming at the new and base, very XX sort December, underlying out strip

something corporate that are the when the six to see And but space. or and definitely I see do the early But didn't financial down Yes. really services, that that them I RPO, I in knew see with those in customers. consumption. bookings sequentially Well, to in I clarify has we if some company. see said do the in you wouldn't the we we is see the have then consumption consumption stress, of less growing as the actually but some We definitely have we those accounts, companies surprise names. the FX Where see are all particular, We the but in in and their out let they weakness, the the didn't quarter, media that on but year, which of weakness fact do call actually it pace is and about technology in me they see do sector added our SMB I see continue of in weakness that more say will XXX lot of a faster employees the is APJ them. that did these advertising I three need bookings -- want do top what of impacting you XX, in were than and was and they're expected, the to we are strength, talked weakness you

Our next from Research. Alex is Zukin Wolfe with question

lot riskier there you're next us some sizes and Walk guiding linearity If next a the trends. guidance through a prudent geographies. -- Is of and takes across more where for if that for mentioned the are or continuing first the So the guide are for a a more of puts different you next a to prudent to continuation customer it we better there's worse? quarter, a What assuming the you sounds think half get guess assuming it's I scenario and to macro than assume about guidance around of year, of -- year? half nuance lot you or I second like industries around trajectory.

that's planning as the you change. not probably we're factoring we're maybe And I we know to going consistent of all expecting continue that really we're right do as now, things are just is turn things right sense, in around, I to a what this through now if us. the can next don't doing for where we but today. I'm And see balance said, I And stay year. and based better upon to forecast is have upside

a And it. Got or we're they're with them sequentially these out customers of new start Like do are and around cohorts like basically, see you're of for market kind to when in that there like some kind growing you're optimization baseline? these seeing and where some the you of the of in declining, others Streamlit areas with? some of starting that rebase patterns new working

what And of that them been would placing pretty been three I that's I the their as that public. I Well, have think why businesses to reasons say underperformed. X in said, is had they've unique has technology these challenges the are customers with or

or three customers, headcount that definitely are but think kind in some are at business we'll their of looking and now. baseline either the stabilize to them, and I But see is a this as hiring seeing in you're long these factoring quarter. we're out grow, growth particular, then of in I'm freezing, as they're cutting them cost. optimize any companies right growth not And news hearing their We on of lot technology

Zelnick with Deutsche is Our question Brad Bank. next from

with question will Moskowitz Mizuho. Gregg Our next from be

macro in revenue product a product reflection healthy very relates how a where below APJ consensus in over environment. other? towards to guidance Would uncertainty. said, conservatism of the obviously or in you the it's QX, curious, embedding was this moderation the of versus one existing delivering last across month and on of where November opposed amid to this And My in consumption Mike as the I'm as more Congratulations question six say weeks, tilted the revenue is much SMB you the was. more

is not and way backdrop will number definitely we in of we the I upon a week-over-week typically we we and performance, pretty October, the where November now. we and factored of based see that right dramatic, tick historical do starting the up weeks forecast Well, is was slowdown back a but again, that's month into would given growth guidance our saw flat. did to it macro all have see say the

Leopold with from Raymond Our next is James. question Simon

groups has confirm. seems Simon. that expecting still you is weaker This out a Chiu commentary the that the what, seemed be around customer observing versus macro Is the your imply guess, that are in would your still just of And Previously, case. slowing Victor What expectations concentrated I you more previously? in are in kind falling want to of that case? for to environment verticals. that's I past? consumption It or what changed trends were kind of

Financial be of well being what to from all been well, that months I verticals services there not doing driven by we as a only as thing is one there top mentioned, piece it's by changed to APJ. that small and that was growth. it customer hasn't very, as same is will would day. that year. sector were it's deal really in consumption where mentioned ramp of doing performing said, ago. the But we and year in our clear, much like extremely expecting that I lot doing XX clean going of just what large the media advertising the the half overall slowdown with are certain enterprises, at revenue that, seeing that's Actually, that, quarter, meaningful be are one is our and the the six we not technology very we're Well, too. It's customer, expect that well, doing them as will space, and of continue. it from And pace technology the segment, nice U.S. well, we've I And be very financial this other a those SMB room And is second not will in area verticals, the of a very and whole landed but growing customers. next a extremely a away, customer you're services say well. a changed really

That's helpful. like initiatives? can an give Okay. data update And you I some traction around of you're your just and initiatives guess and the kind and progress of new just Snowpark us unstructured those having with

Christian a very POCs, Kleinerman rate. here. of November saw evaluating in are premigration because Snowpark it's doing GA technology, that percentage And planning customers The not X. they're as yet has the et healthy a consumption materialized Frank it's interesting we which but promising. have And year, private will customers. the preview use cases to in also be Streamlit beginning our good a think as of cetera, quite at of mentioned, number will the

is question next Blair. with William Our Kamil from Mielczarek

the given to you're hires hiring the seems to in for expect contribute great time investments? in will you incremental Can pace begin new And of done these takes impact Or we the in come this about around? accelerated to sales to revenue? new growing 'XX where have customers You've to force XX job year, quarter. the focusing fiscal it the XX talk to a should months,

U.K. go force and the particular, Japan see while those hiring into a and deeper you markets. contributing new really France verticals, be our before ramp many from year, to year of we Well, customers. lag in, APJ. America on takes up. markets, we're it's second believe and sales go six-month Generally, but year. people the in opening Germany, it We're really they as both do a and well booking revenue very core much not existing And comes these this to half more before remember, to in next territories to when North a it's start bookings as and meaningful Australia into our will focused And this really

product particularly just That's on any environment? helpful. And update the seeing on you Are side? changes, follow-up. Can Python you quick us a

quite didn't that. on what? I get Sorry, Update

environment? competitive The

Frank. competitive balance versus the marginally It's period partnership I next. shifts unchanged. from is I say that We're dynamic substantially the would the X think -- of to competition

incrementally publicly I that and with you been we've true continues. been been that's dominated time and of public our that cloud will, less set been is really with same. the has as GCP healthy Most has has as think we've competitive companies, Amazon stronger Google our here. by competitive long reality, about and for Microsoft AWS over been and partnership the if

next question Cowen Company. Wood from Our is with Derrick &

Great. I average like guys highlight that it said the you I million. you think always $X.X was spend, GXK

could any you as out look companies scale pickup mature customer migration anything add, an five revenue quarters. have Are larger look down the seeing average the strength other longer-term own strongest you mature, that are quarter, level in And more more road? your GXK strong As at or do out terms quarter? this activity even guess, you then I specific the think you what or spend at GXK more be in customers, of to to you of a call did have in of

$XXX customers know there's north sign relationships. a Snowflake really is on are to take the in running $XXX plus with a I that starting customer quarter this contract with in to million long lock out million take GXK, a time there. to But and term. the conservative see well a did a will This spend customer customers, can't it on QX credits we no say an large have We contracts we sprint will and renewal, time. and number. want existing year $XX a of just that's again, I'll GXK will And marathon. reason on are it of million for for get Yes. It's why and our very quarter, in not

to So it's customers. these grow take just going time to

get old get Just like to to of it was XX. it trend largest we customer. is X.X, question. And Most of -- take taken into where sorry, that customers long One X.X top of us, the now. think Capital our And part with our second Derrick, of I is will will customers, continue those ramp one It's to then years in years that are XX our took the what X exception to that we to them get think your customers that top to sizes. X

strength adds the in if perhaps legacy in kind activity. and seeing out, you're of was in the quarter GXK pickup the migration Just anything a if to there call

I you, event. XXXX are not though, want too, one to is into to is Global cycles. remind a a one two-quarter What two-year sales selling or No. These

really of of wasn't they'll for all like to been quite we if them, just have takes hard focused months for next quarter and we all landed it we year. to So that reps them. we are, these know those, What on I But surprising nine these. land they is to to land on time, We've assigned some and them. X very healthy have say. it very six, ramp pipeline us we're in But working me a who even

Our next SVB. from Auty question is with Sterling

of with the macro were and ingestion if wondering doing they're some just data changes of maybe type the they reduce you're any modify seeing uncertainty, they of or terms if previously? customer that the I'm that in even behavior data ingesting

really seeing that. This is Frank. Not

years. adopter of behind, we're acquired mention one quarter of the whatever, We is bleeding the And in their we of of inside last, lot sentiment And outside have they're help sense the think customers And based skills on like us are six, that now can't and -- the overriding somewhat of around a country. their And is seven people a left that a ability I into challenges technology a expertise. missing and sort the earlier the us harness terms catch up. past traveling I up And sort five, sentiments out. that the times, lot we're the that didn't of early want at of edge have to done looking during of we the sign to over fear class on. that the be

of to terms overriding lean So to is this clearly in gap They words, to important how want help other tools up to anything they that left them And they there. want is of to behind. to what sentiment they address mix think they getting are is be in, faster. really literally accelerate in because afraid going want our holding move is. of we're This identifying they is evolve customers

Stifel. next is Our Brad with question from Reback

Mike, as we for the to expect an any, if impact on we have RPO macro think in to what, backdrop, -- about that should XQ?

left QX just of and X pipeline of the question see impact should don't the I big are multiyear of big whether RPO, knowing upon is a or know environment based deals deals running number will I out do in for having this a current from the customers choose I customers to renew say, on based that And do year, it credits. know QX months two said, will now calls which But addition RPO. still I there's that largest pretty all right option to I our that quarter. we're too. as they where about with be have, upon have the feel But the good in always well, obviously, And to we sales the sitting.

Our next Will is with question from Power Baird.

pretty looks it guess free longer-term the the conservative, anticipating. Mike, of year. flow it were upside guess, the I key just great guidance, kind see that, to be was light I higher in get this but kind of of what initial for And relative on guess drivers target you to would to great previously there year perspective expectations next I cash

part timing is with gross wait improvement, we seeing next year in some think But we're the But coupled the going are customers guide next upon our going with until it preliminary consumption year margin down I year. just we now gross very is do And guided knowing we're pretty to discussions thought by improvements. I more a customer it for where there's the hiring half year, the some planning of Well, just on things they opportunity we margin was are get billed. with positive This driven largest what based right but we is it when come going of lot that in of to to. RPO slowing have fact our second and next the things our year. good those and cloud providers. about to in come those the of for for sitting of here numbers feel that

Our Company. Cikos & Mike next Needham from question is with

I newer cohorts given it to the seeing is that customers about in current it onboarded and think maybe the fair the had to from macro customers trends a here. relates the question backdrop, optimization who we're that were But slower far nine you perspective? from more or the cohorts? months six a and growth versus demonstrating recent at growth all a recent previous that most Can on elaborate as are are as really, rate they trajectory? at Are what cohorts

actually and really making use people a Snowflake. looked they starting that it that more customers with Snowflake Christian, they will Snowflake on spend Snowflake a it's sure -- that, lot over are the more are more lot on efficiently, to lot them that at our I today, haven't efficient I'll who we use growing experience have out how with customers. I that in were say talks a is to of think but much, -- I'm much today not But there's I time what customers turn

on it material, grow, training go optimize, our with along. that a explaining seeing optimize, of is, and new all we're not both a Yes. customers We're of focused existing said, being grow, also other with just expectation helping do type and and but through smoother And but setting, customers. very behavior, cycle product Mike enhancement curve as

the that Got it. have sorry, but can cleaning, remind house revenue more standpoint segment just you housekeeping, contribution I from could, we us But I And a called exposure could. SMB if that from one what out? is if

-- than it's less XX%. It's XX% right around

be Our from SMBC. from Steve question Koenig next will

Great.

year-on-year to negative quarter. short-term flattish long-term go may very in a quarter-on-quarter revenue QX XX% kind I'm ability strong product next if more your wondering in on it's at look year-on-year But and So environment of speaks basis, revenue grow trends. this gone I additions, adoption think to we

about all you have. additions do how about curious your maintaining wondering, I'm I That's process I'm think sales sales thought and your planning productivity? there. So

has say meaningful customers as quarter-over-quarter And doing because are consumption specific tied Yes. as also tied jobs. our is their business. is scheduled I will of I what not by a remember, in revenue and said, QX, about additions higher XX% is of really people times XX% seasonally at model, in consumption the our of system, much to so with that -- number taking holidays is is one to human driven with interaction

remind improvements in and has that is doing you an stuff to stuff hardware I impact. we've of around also, lot really hitting So QX. been that the a want us But

Piper Sandler. question Our from final shall be Bracelin Brent with

squeezing for cases. hear the be curious could and curious how slow given me use challenges expanding headwinds. number offset is of of get some I in consumption, consumption to the in these Thanks to which totally here here. just verticals, recessionary I'd more obviously,

customers' or recessionary either appetite new in expand So how visibility into sights departments or expand to have a do you science. the environment, data any into

on drive the Some two, hiring that data Snowflake of our job I'd or for year here love to to consumption? there see postings get suggests and cases offset how the aggressively you data are quickly over could next view use people science an scenarios.

Yes.

with visited a having of to on applications driving and our a lot end, of from is though as high we our lot of customers. when Cloud to during interest. tour, definitely see a cyber use later interest science, store we And in it's our for well bit data as the see pretty unit build even security materialize new lots Snowpark Snowflake intercept a of engineering ability data Just customers cases, on new a Data world number workload, is little

by So broader use the the expand the willingness cases context. unaffected seems to

call. today's concludes That participation. for Thank you your

disconnect lines. now your may You