Hello, and welcome to the Q4 fiscal year 2024 Snowflake Earnings Call. My name is Alex, I'll be coordinating the call today. If you'd like to ask a question at the end of the presentation, you can press Star followed by one on your telephone keypad. I'll now hand it over to your host, Katherine McCracken, Senior Manager, Investor Relations. Please go ahead. Good afternoon, and thank you for joining us on Snowflake's Q4 fiscal 2024 earnings call. With me in Bozeman, Montana, are Sridhar Ramaswamy, our Chief Executive Officer, Frank Slootman, our Chairman, Mike Scarpelli, our Chief Financial Officer, and Christian Kleinerman, our Executive Vice President of Product, who will join us for the Q&A session. During today's call, we will review our financial results for the fourth quarter fiscal 2024, and discuss our guidance for the first quarter and full year fiscal 2025. During today's call, we will make forward-looking statements, including statements related to our business operations and financial performance. These statements are subject to risks and uncertainties, which could cause them to differ materially from actual results. Information concerning these risks and uncertainties is available in our earnings press release, our most recent Forms 10-K and 10-Q, and our other SEC reports. All our statements are made as of today, based on information currently available to us. Except as required by law, we assume no obligation to update any such statements. During today's call, we will also discuss certain Non-GAAP financial measures. A reconciliation of GAAP to Non-GAAP measures is included in today's earnings press release. The earnings press release and an accompanying investor presentation are available on our website at investor.snowflake.com. A replay of today's call will also be posted on the website. With that, I would now like to turn the call over to Frank. Thanks, Katherine. Welcome, and good afternoon. By now, you've heard the great news about Sridhar becoming our next CEO. Before we get to that, I would like to highlight our fiscal 2024 results. FY 2024 product revenue grew 38% year-over-year to reach $2.67 billion. Non-GAAP product gross margin expanded to 77.8%. Non-GAAP adjusted free cash flow was $810 million, representing 56% year-over-year growth. We continue to pair high growth with efficiency. The year began against an unsettled macroeconomic backdrop. We witnessed lackluster sentiment and customer hesitation due to lack of visibility in their businesses. Customers preferred a wait-and-see posture versus leaning in to longer-term contract expansions. This reversed in the second half of the year, and we started seeing larger multi-year commitments. Q4 was an exceptionally strong bookings quarter. We reported $5.2 billion of remaining performance obligations, representing accelerated year-on-year growth of 41%. Our international theaters outperformed the company as a whole. We continue to see success in our effort to campaign the largest enterprises globally. We added 14 Global 2000s in the quarter, and eight of our top 10 customers grew sequentially. Meanwhile, Snowflake has announced many new technologies that let customers mobilize AI, Streamlit in Snowflake, Snowpark ML Modeling API, and Cortex ML Functions are all generally available. We also received FedRAMP High authorization on the AWS GovCloud. This enables Snowflake to protect some of the federal government's most sensitive, unclassified data. Now, on the topic of CEO transition, I was brought to Snowflake five years ago to help the company break out and scale. I wanted to grow the business fast, but not at all costs. It had to be efficient and establish a foundation for long-term growth. I believe the company succeeded on that mission. The board has run a succession process that wasn't based on arbitrary timeline, but instead, looked for an opportunity to advance the company's mission well into the future. The arrival of Sridhar Ramaswamy, through the acquisition of Neeva last year, represented that opportunity. Since joining us, Sridhar has been leading Snowflake's AI strategies, bringing new products and features to market at an incredible pace. He led the launch of Snowflake's Cortex, Snowflake's new fully managed service that makes AI simple and secure. Prior to Neeva, Sridhar led all of Google's advertising products. During his 15-year tenure at Google, he helped grow AdWords and Google's advertising business from $1.5 billion to over $100 billion. With the onslaught of generative AI, Snowflake needs a hard-driving technologist to navigate the challenges the new world represents. Sridhar's vision for the future and his proven ability to execute at scale made it clear to us as a board that he is the right executive at the right time to lead Snowflake. This marks my retirement from an operating role. I will remain on duty as chairman of the board and look forward to working with Sridhar and the team going forward. With that, I will pass it over to Sridhar. Thank you, Frank. I'm honored to have been chosen to lead this great company. The success Snowflake has achieved is a testament to the great customers, employees, and partners who have contributed along the way. And of course, Frank has been a huge part of getting us here, which I gratefully acknowledge. Snowflake is a once-in-a-generation company that will revolutionize the world with its cloud data platform. This has become more true in the past year with the rapid technology innovations we have seen. Generative AI is at the forefront of my customer conversations. This drives renewed emphasis on data strategy in preparation of these new technologies. You heard the team say it many times, there's no AI strategy without a data strategy, and this has opened a massive opportunity for Snowflake to address. To deliver on the opportunity ahead, we must have clear focus and move even faster to bring innovation on the Snowflake platform to our customers and partners. This will be my focus. I look forward to working with the team, and I'm extremely excited for the opportunity. With that, I'll pass it over to Mike. Thank you, Sridhar. Q4 marked a strong finish to a challenging year. Product revenue was $738 million, growing 33% year-over-year. Similar to prior years, we experienced significant holiday impacts in December and January. Holidays make it difficult to discern meaningful consumption trends. In the quarter, younger customers led revenue growth. These accounts are adding new workloads and migrating from legacy vendors. Financial services and retail were our largest revenue contributors, and we are seeing emerging momentum from the EMEA region and technology vertical. Customer optimizations returned to a normal level, with eight of our top 10 accounts growing sequentially. We proactively engage with customers to help them optimize their Snowflake usage, and we'll continue to do so. History has shown that optimizations expand our long-term opportunity. We now have 83 customers with trailing twelve-month product revenue greater than $5 million, up from 75 in Q3. Q4 was an exceptional booking quarter for us. Bookings are not leading indicator of revenue. They do signal an improving macro environment. Remaining performance obligations grew 41% year-over-year to $5.2 billion. Of the $5.2 billion in RPO, we expect approximately 50% to be recognized as revenue in the next twelve months. We signed our largest deal ever in Q4, a five-year, $250 million contract with an existing customer. Our international territories returned to meaningful growth, outperforming expectations for the first time in a year. We made significant progress in delivering margin expansion. Non-GAAP product margin of 78% was up approximately 300 basis points year-over-year. Improved terms from the cloud service providers have contributed to margin expansion. Non-GAAP operating margin of 9% was ahead of expectations. Operating margin benefit from increased hiring scrutiny. Non-GAAP adjusted free cash flow margin was 42%. Bookings outperformance increased collections. We ended the quarter with $4.8 billion in cash, cash equivalents in short-term and long-term investments. We did not repurchase any shares in Q4. We have approximately $1.4 billion remaining under our original authorization of $2 billion. Now let's turn to outlook. Consumption trends have improved since the beginning of last year, but have not returned to pre-FY 2024 patterns. We have evolved our forecasting process to be more receptive to recent trends. For that reason, our guidance assumes similar customer behavior to fiscal 2024. We are forecasting increased revenue headwinds associated with product efficiency gains, tiered storage pricing, and the expectation that some of our customers will leverage Iceberg Tables for their storage. We are not including potential revenue benefits from these initiatives in our forecast. These changes in our assumption impact our long-term guidance. Internally, we continue to march towards $10 billion in product revenue. Externally, we will not manage expectations to our previous targets until we have more data. We are focused on executing at FY 2024 to ensure long-term durable growth. Now, turning to FY 2025 guidance. For the first quarter, we expect product revenue between $745 million and $750 million, representing year-over-year growth between 26% and 27%. For the first quarter, we expect Non-GAAP operating margin of 3% and 366 million diluted weighted average shares outstanding. For the full year, we expect product revenue of approximately $3.25 billion, representing 22% year-over-year growth. We expect Snowpark to contribute 3% of product revenue. We are not including any other new products in our forecast at this time. For the full year, we expect non-GAAP product gross margin of 76%, non-GAAP operating margin of 6%, non-GAAP adjusted free cash flow margin of 29%, and diluted weighted average shares outstanding of 368 million. We plan to add approximately 1,000 employees this year, inclusive of M&A. For expenses, our forecast assumes meaningful investments in our AI initiatives. We expect approximately $50 million of GPU-related costs in fiscal year 2025, approximately $10 million flowing through cost of product revenue. For the purpose of forecasting, we are not including any incremental revenue associated with these features. We've also evolved our go-to-market motion. As we compensate more reps on a consumption quota, we will see increased commission expense. Consumption-based commissions are expensed immediately rather than amortized over a 5-year period. This has no impact on cash flows, but is expected to have approximately $30 million impact to P&L. Lastly, I would like to acknowledge Frank's retirement. Working with Frank for the past 17 years has been an incredible learning experience, and I'm grateful for our time together. Frank's contributions to Snowflake to set the company up for the long-term success, and I look forward to being part of that journey. I've committed to Sridhar and the board that I will be with Snowflake for at least the next three years.... Before closing, we will host our Investor Day on June fourth in San Francisco, in conjunction with Data Cloud Summit, our annual users conference. If you are interested in attending, please email ir@Snowflake.com. With that, operator, you can now open up the line for questions. Thank you. As a reminder, if you'd like to ask a question, you can press Star, followed by one on your telephone keypad. If you'd like to remove your question, you may press Star followed by two. Our first question for today comes from Mark Murphy of JP Morgan. Your line is now open. Please go ahead. Thank you very much. So, Mike, I think we—with the understanding that bookings are not a perfect forward indicator of revenue, you know, it's hard not to notice the total bookings performance is quite spectacular. And, you know, even the short-term backlog number looks good. I think we try to bridge from that, you know, growing closer to 30% and then to arrive at the revenue growth in the low 20s%. I understand it's mechanically more complicated than that, but on the surface, it looks like you're guiding with a lot more conservatism than a year ago. And so I'm just wondering, does that part of this feel a little more comfortable to you? Or do you think it could take a little longer to convert bookings to consumption this year? I think we are definitely being more conservative this year, given the consumption patterns we saw in 2024. As we said at our Analyst Day last year, we needed to see consumption patterns more in line with what we saw pre-2024 to get to our longer-term goal. As a result, we've decided to forecast this year based upon the consumption patterns we saw in 2024. As you know, we forecast based upon historical consumption of our products. There's a lot of new products coming into GA in Public Preview this year that we have not taken into account in our forecast, and we will do so once we start to see that consumption. So we will take this quarter by quarter for the year. Okay. And then as a quick follow-up, Frank, I wanted to thank you for everything and wish you all the best. And Sridhar, just wanted to ask you, because of your background in generative AI, do you envision any changes in the technology roadmap, perhaps relating to Snowpark or perhaps your role in LLMs or, you know, how heavily you'd steer the go-to-market in those areas? I'm just wondering if you, you know, foresee any change in philosophy or approach. Yeah. I've had over 100 conversations with customers over the past year about generative AI in particular and the product announcements that we've already made, things in private preview, including Snowflake Cortex, which is our managed AI and search layer, combined with applications like Document AI for extracting structured data or our Copilot. These have been very well received. Document AI, for example, has hundreds of customers waiting for it to hit GA that are on our wait list. So I would say it is a matter of executing to the roadmap that we have already laid out. Cortex will hit public preview soon. To Mike's point, getting this to GA, getting this in the hands of our customers and having them realize value is the top priority. I don't think of this as needing a new strategy. Thank you very much. Thank you. Our next question comes from Keith Weiss of Morgan Stanley. Your line is now open. Please go ahead. Excellent. This is Dion for Keith. Maybe to start off with one question on your consumption. I was wondering if you could give us a sense for where the consumption was softer as it is impacting your guidance. I think last quarter you gave us a good sense for digital natives seem to stabilize, enterprise seem to get better. So can you just kind of double-click where the consumption is softening now versus your expectations and where maybe stronger? Well, as I said, the strength was in financial services, in retail. We are seeing the technology vertical do well. And I wouldn't say it's soft. We did beat the last quarter. But what I would say is it's improving, but it's not back to the pre-2024 levels, as I mentioned. And that's the... We've revised our model to look at more recent history, rather than going back too far in history for forecasting consumption patterns. Got it. That's very helpful. And then one more follow-up on sort of the existing customer business and your net retention rate. That seemed to be on top of the bookings, another KPI that is at least getting better on a rate of change, basis. Is there any level that you would guide us to in terms of where that net retention rate could stabilize? Is that informing your guide aside from kind of the consumption you're seeing in any meaningful way? Any color you can give us on that would be helpful, too. Well, as we've said before, over time, Net Revenue Retention will converge with our revenue growth rate. And as I've said before, I'm not going to guide to Net Revenue Retention. Got it. Thanks. Thank you. Our next question comes from Raimo Lenschow of Barclays. Your line is now open. Please go ahead. Hey, thank you. Frank, all the best from me as well. A question for Sridhar. If you think about the customer conversations with AI, and, you know, people will think differently about the data and the data platform, can you speak a little bit about how do you see that playing out for you guys from a Snowflake perspective in terms of, you know, the one part that you have, like, the data warehouse, but also then more on the lake side? Like, what do you see in what are you hearing customer conversations, and how are you positioned now, and what would be the push for you there? And then I have one follow-up for Mike. Yeah. On Snowflake Cortex, we are implementing it as a core platform layer. It ships with every deployment. And it makes AI readily accessible from SQL, so that even an analyst that's not a, you know, an LLM expert or a Python expert, can simply write SQL for things like summarization or sentiment detection data that is already in Snowflake. Our overall aspiration here is to make AI really, really simple for our customers to use. And in some sense, the prototypical AI application is a chatbot over a specialized corpus, using what's called RAG: Retrieval Augmented Generation. But the idea is basically you're able to, say, talk to your documentation or talk to the support cases that you have and get answers back in natural language, but with things like citations, so you can actually believe the answers that are coming back from, you know, from the chatbot. So both of these are ready-made applications that our customers are excited about. But I would say the big, big unlock is being able to get at the structured data that is in Snowflake and have that be accessed by many, many more people. Today, people go through an elaborate process of getting the data ready, using BI tools, going through a pretty slow cycle. And so, the thing that we are driving towards is, you know, creating easy ways for people to be able to talk to subsets of data, you know, like Mike, to be able to talk to finance data, or other things like that. I would say that that is the thing that is truly, truly exciting, for our customers. And with respect to where data is sitting, as you know, we support things like Iceberg formats. It's getting more and more popular, so data interoperability is very much a thing. And our AI products can generally act on data that is sitting in cloud storage, as well. So the solutions that we are offering as part of Snowflake are broadly applicable, both to data within Snowflake, but also data that's sitting in cloud storage. Okay, perfect. Thank you. And then, Mike, a quick question for you. On the gross margin side, you know, congrats on the amazing improvement there. Is that-- Was that... Did I understand you correctly, is that just one hyperscaler where the contract terms kind of got improved? And is that something that you- we could kind of hope for, for others, or is the level now the level? Thank you. So as a reminder, we did AWS and, Azure before our Investor Day last year. We just did our Google contract, last quarter as well. So all three of those contracts now, and those are where we are running, and those three clouds are current, and I don't expect any changes to those terms in any meaningful way in the short term. Perfect. That answers it. Thank you. Thank you. Our next question comes from Kirk Materne, from Evercore. Your line is now open. Please go ahead. Yes, thanks very much. And Frank, congrats on a great run at Snowflake and before. You know, Mike, maybe for you, you know, every year you've told us that you'd always include technology advancements that you pass back to your customers in your guidance. It seems like there's a higher level of conservatism around that, just given the lack of visibility on that. Can you try to, I guess, qualitatively give us some idea of how much bigger a headwind that is than prior years, just to go along with some of the conservatism around consumption trends? It's about a 6.2%-6.3% impact this year. But coupled with that too, in the revenue, we rolled out in Q4 tiered storage pricing. So our... The amount of revenue associated with storage is coming down, but on top of that, we do expect a number of our large customers are going to adopt Iceberg formats and move their data out of Snowflake, where we lose that storage revenue and also the compute revenue associated with moving that data into Snowflake. We do expect, though, there'll be more workloads that will move to us, but until we see that incremental revenue on workloads, we're not gonna forecast that. I will say, last year, we saw a 62% increase in the number of jobs running on Snowflake year-over-year, with a corresponding 33% increase in revenue, and that's because we continue to show our customers that we become cheaper and cheaper to them every year. And when we do that, it opens up new workload opportunities for us, and we'll continue to do that. That's great. I'll leave it there. Sridhar, congrats on the new position. Thanks, guys. Thank you. Our next question for today comes from Brent Thill of Jefferies. Your line is now open. Please go ahead. Thanks, Mike, I just wanna reconcile, you know, a really good RPO close acceleration in Q4, and then how you marry that with the guide. I think there's a lot of questions about the acceleration you saw, and perhaps why that may not flow through into next year. Well, I would say we signed a lot of large multi-year deals in Q4. I mentioned the one that was a five-year, $250 million deal. What that really shows is the commitment customers are making to Snowflake. And from a customer's perspective, as long as they use that, those credits up within their contract period, they're fine. There is a lot of pent-up demand for a lot of our new products that are coming out. Sridhar talked about Document AI, but we have a lot of customers that want Cortex and Snowpark Container Services. So I think it's gonna be more back-end loaded this year, and until we see that, consumption by our customers, it's hard to forecast that. So stay tuned. Okay, Mike, just on linearity in Q4, I know the holidays were the holidays, but you know, did you see things bounce back similar to what you've seen historically in Q4s? Or, was there anything unique closing out the quarter? Are you talking from a revenue or are you talking on bookings? Bookings was very strong in January. I would say from a revenue consumption pattern, I think there was a little bit more of a prolonged holiday that went into mid-January. Coming out of January, consumption's good, but once again, and through today, but it's more in line with 2024 consumption versus the pre-2020 consumption patterns. Okay, great. Thank you. Thank you. Our next question comes from Alex Zukin of Wolfe Research. Your line is now open, please go ahead. Hey, guys, this is Alan on. Mike, just as a follow-up about consumption in the quarter, I'd love to maybe get a comparison on February. I know we got a day left, but maybe how this month shaped out compared to February of last year. And then I got a quick follow-up. And that's from a consumption perspective. The consumption is tracking where we are, and I just gave guidance for the quarter, so I don't know what else you want me to tell you. Okay. As a follow-up, I guess, you know, you talked about some of the free cash flow impacts from the go-to-market change around pushing consumption more. Is there any way we should be thinking about maybe the top-line impacts as a result of that with the guide? Thanks. What I was talking about was cash flow, with the switch in the comp plan from paying people on consumption versus the booking. And it doesn't really change the cash flow associated, because we're still doing the payments the same. And it has a $30 million P&L impact, but no cash flow impact, is what I was referring to. And obviously, one of the reasons why we switched to paying reps more on consumption is because we want reps to be deriving revenue more rather than bookings, necessarily. And our reps are heavily compensated on two things this year. You have approximately 35% of our reps are focused just on initial new customers. 55% are just paid on existing customers with driving consumption, identifying new workloads within customers. You have about 10% that are in a hybrid, a mix of new customers and consumption, and those are more in emerging territories or territories where maybe the installed base of customers isn't as high. Thank you. Our next question comes from Brent Bracelin of Piper Sandler. Your line is now open, please go ahead. Thank you. Good afternoon. Frank, I'll well wish this year in retirement. I'll forever remember your working with you on the first IPO and the last one here. It's been an amazing 17-year journey. Mike, glad to know you'll be with us for another three years. My question here is for Sridhar: As we think about driving more AI workloads to the Snowflake platform, what's the tip of the spear going forward? Is it Cortex? Is it Snowpark? Help us understand what you're focused on accelerating AI workloads to, to Snowflake. Yeah, when it comes to AI, as I was outlining, first of all, simplifying it, so that it is easy for our customers to use via Cortex is the very first thing. And a lot of things that you and I, like, you know, analysts do with text, now becomes so much easier, to do with language models of different sizes. But I would say the applications that truly drive customer excitement, that there is incredible demand for, are on the Document AI side, and on the Copilot offerings. They're different, but they use the same underlying technologies. Document AI is about extracting structured information from unstructured documents like PDFs, that every enterprise has boatloads of. And then on the other side, Copilot finally makes real the possibility of like being able to just talk to your data, ask questions in natural, natural language, and for that to get translated underneath to SQL, for that SQL to be run against against Snowflake, and for you to get back, you know, get back a tabular answer, and then soon visualizations as well. It's that kind of fluid access that customers are really, really excited by. And what you get from Snowflake is that this comes out of the box. This is very easy. You can build a Streamlit app with it. And so it avoids all of the complicated exfiltration of data using other tools, needing to stitch things together as an IT project in order to get something done. That's the power of our platform, where we know the data, we know the schema, we know all the previous queries that have been run against it, and are therefore able to create a very effective Copilot solution. Hopefully that gives you a flavor for the kinds of conversations that we've been having with customers and what they are looking forward to. Very helpful there. And then, Mike, if I just look at the guide on a per customer basis, it does look like consumption per customer could be slower this year than last year. What's the delta there? Is the primary delta the assumption that tiered storage pricing and Iceberg will put more pressure on consumption growth? Is that the primary delta, or is there something else I'm missing? No, there's a lot of new performance enhancements being rolled out on our software this year that are going to have an impact. There's also... Well, I'll tell you, but I really don't want to, because then I know you're gonna ask a lot of questions. We're also rolling out the Arm chip and the Azure. It's not as big as AWS as an impact that will impact that as well, too. And clearly, we do expect customers will begin to adopt Iceberg table format. Helpful color. Thank you. Thank you. Our next question comes from Kash Rangan from Goldman Sachs. Your line is now open. Please go ahead. Thank you very much. Mike, one for you, and one for you, Sridhar. Mike, how much of the conservatism is due to the transition at the senior-most level? And one for you, Sridhar. Congratulations. What are the biggest challenges and opportunities facing Snowflake, in your opinion? Thank you so much once again. I don't know how to answer that question, Kash, but what I would say is, I'd like to set the company up to be successful throughout the year as we progress with Sridhar coming on board. To answer your question, Kash, as you know, like Frank, our founders have built Snowflake to be the trusted, efficient, and cost-effective platform for enterprises. So I'm standing on the shoulder of giants to take us to the next chapter. And we already have a pretty ambitious plan, for example, to be able to write applications on top of Snowflake, and those underlying technologies, native applications, container services, are rolling out to GA this year. And then I would add what is unique about this moment in technology, of course, is AI and its power to democratize access to enterprise data. I think this sort of dramatically changes our understanding and notions of what an application is, how things can be stitched together. I think it is, it is that a data platform combined with applications with AI powering things like interoperability that I think is the biggest opportunity in front of us. And we have a ton of investments. As I said, many of them are coming to GA. Getting them out quickly and driving adoption is easily my highest you know highest priority. And you know and in terms of challenges, some of these were deep platform surgeries. Unistore as you folks know is an incredibly ambitious project that has never been done before. But it will, it, it, it will roll out. So I think you're going to see us realize a lot of benefits of the investments that we've been making in the core technology platform over the last two years. But as you know, AI is also moving at lightning speed. We have an amazing team that's at work on it, but I think there's just lots more disruption to the software landscape to come, and that's why acting with speed and urgency is especially important for us. Awesome. Excited to be on this journey with you, Sridhar. Congratulations, and thank you, Mike. Thank you, Kash. Thank you. Our next question comes from Patrick Colville of Scotiabank. Your line is now open. Please go ahead. All right, thank you for taking my question. I mean, under Frank's leadership, Snowflake's undoubtedly been a bit of a rocket ship. So Frank, I want to ask you, why leave now? And then, Sridhar, I can ask you one as well. You know, looking forward to you being in charge for exciting next steps. And how are you thinking about your strategy for Snowflake and changes you want to make now that you're in the CEO position? I've got a quick follow-up. That's right. ... Yeah, the important thing that I tried to highlight in the prepared remarks was that we haven't run succession as a time-based process. I said, why ask now? It's not a timing issue. It is, you know, do we have the person that we think is going to be an incredible win for the company, you know, going forward? And that's not. You can't dictate that or mandate that, that is just based on opportunities that will or will not present themselves. So, we feel incredibly fortunate that we crossed paths with Sridhar through the acquisition of Neeva. You know, if I think of myself not just as the former CEO of Snowflake, but also as an individual shareholder in Snowflake, this is the move I wanna make at this time. You know, I cannot tell you, as an investor, how strongly you should feel, you know, about succession. This is not just about changing of the guard. This is also about positioning the company really, really well for the challenges that are coming at us. Yeah, and just adding on to what, you know, Frank said, just now. Our short-term goals are very clear. As I said, we have a slew of product enhancements in everything from, you know, like transactional systems like Unistore to interoperable storage, to making applications on top of our data cloud possible with native applications and container services, and of course, AI on top of that. So I think the short term and the need to react pretty quickly to a very quicksilver AI landscape is what I'm going to be focused on. But I'd almost say that, you know, that actually translates pretty well into a longer-term strategy. Our belief is that a cloud that starts with data at the center, combined with our product philosophy of creating a tightly integrated, easy-to-use product, is the long-term winning strategy. Yes, there are going to be details that are different about, you know, which are the applications that, we are going to be developing, what are ones that we are going to be doing in partnership. But that combination of, the data cloud applications built on top of it with AI as an orchestrator, is actually a pretty solid long-term strategy as well. Of course, as I said, we have to be adaptive because the world of AI and its capabilities are changing by the month, and so we have to be receptive to that kind of change. But I feel very good about the path that we have set out for ourselves, in how effective it's going to be, both in the short term and the long term. Terrific. Thank you, Frank and Sridhar. Mike, can I just... One quick one for you. You gave the guidance about three points of product revenue, will be from Snowpark in 1Q. Thanks for that color. For the year. I guess my question is. For the year. When for the year, okay. Fiscal 25. Okay, when might Snowpark hockey stick? You know, that, that it's been a product you guys have been talking about and invested pretty heavily in. It's, you know, seen terrific momentum, but can we expect a hockey stick at some point? You know, anything's possible. What I would say is we did about mid-$30 million in revenue, I think $35 million-$36 million in revenue last year associated with Snowpark. Clearly, when I'm saying 3%, it's gonna be just under $100 million, $95 million or so this year. I think that is pretty phenomenal growth. And if we can get it to grow faster, we obviously will. All right. Keep up the good work. Thank you. Thank you. Our next question comes from Brad Sills of Bank of America. Brad, your line is now open. Please go ahead. Hi, thank you for taking the question. This is Carly on for Brad. I guess first question, just want to ask on, your guide for the full year, fiscal 2025. I think you assumed, you know, a number of large customer going to adopt Iceberg table, so, some expectation on data, moving out of Snowflake, losing some storage revenue and some compute revenue there. Can you just double-click on that, why some of the existing large customers are going to choose Iceberg table rather than their original? A lot, a lot of big customers wanna have open file formats to give them the options. By the way, this is not necessarily customers moving all of their storage out of Snowflake, but a lot of the growth in their storage will be put into Iceberg Tables, is what we think is going to happen. So you're just not gonna see the growth associated with the storage in many of those customers. As a reminder, about 10%-11% of our overall revenue is associated with storage. Got it. Okay. And then just a follow-up on, on that, I guess, on the... It's, like, encouraging to know, you know, 3% of the contribution will be from Snowpark. And then at the same time, you guys are expecting some headwinds from, Iceberg and also the tier storage pricing. Can you just quantify for us, you know, what's the, like, headwinds for the storage pricing in the Iceberg table for the, for the. Um For the full year? Well, it's built into our guidance. I'm not gonna break them out all separately. I would say the performance improvements, which have nothing to do with that, are around 6.2%-6.3%. Got it. Okay. And then I think you said the consumption's going to be, like, similar to fiscal 2024? We're forecasting consumption patterns similar to what we saw in 2024. Okay. Thank you. Thank you. Our next question comes from Matt Hedberg of RBC. Your line is now open. Please go ahead. Great. Thanks for taking my questions, guys. I guess following up on the Snowpark conversation, it feels like $35 million going to $100 million is, like you said, Mike, that is good growth. Could you talk a little bit more about sort of, you know, what the customer feedback has been? It feels like pipeline. It feels like every check you do, Snowpark's in the conversation. So maybe just double-click on, you know, what that, you know, customer feedback has been and, and, you know, how encouraged you are with the, the pipeline growth there. Yes, hi. Christian here. The feedback has been very strongly positive. What we hear more often is better economics and better performance, but probably more important, more simplicity into how data doesn't have to be moved between systems and it's just an integrated solution. Some of the enhancement that you see apply not only to data engineering, but also to traditional machine learning, which we see an increasing number of use cases also being deployed. So the sentiment is very positive. Got it. Thanks. And Mike, maybe just one other, just to double-click on the guidance philosophy. You said consumption patterns from 2024 is what's influencing your 2025 guide. I'm curious, and it feels like consumption has improved as 2024 progressed. Are you sort of weighting it more towards, like, what you saw in the first half of the year or more sort of like some of the better trends you saw in the second half? Or just maybe double-clicking on a little bit on, you know, kind of what those fiscal 2024 assumptions are. 'Cause it feels like things have gotten better as the year progressed. I would say it's more the average of 24, and which we saw stability happen in our customer base. I'm not forecasting any type of recovery inside there. Got it. Thanks, guys. Thank you. Our next question comes from Tyler Radke of Citi. Your line is now open, please go ahead. Yeah, thanks for taking the question, and I wanted to direct this question at Sridhar, and maybe Christian can jump in. But just as we think about the product roadmap for FY 2025, you know, you talked a little bit about Unistore, Container Services, Cortex. Can you just provide an update on when you expect these products to go GA, what you're seeing in terms of, you know, customer momentum, any customer statistics you can call out? And then how do you just kinda think about the maturity of these products, Sridhar, now that you've had time to look at the, you know, the progress of these? Are you still expecting these to be contributors by year-end? Thank you. I'll give a brief initial answer and then have Christian take over from that. One of the things that the Snowflake team is very, very good at doing is making sure that everything that we ship is tightly integrated with everything else. There is, you know, there's just fluid interoperability between our various features, and that it's also rock solid. I think that that culture of integrated and well-built features is a is a hallmark of Snowflake. Of course, in areas like AI, which is moving at lightning speed, we want a stable infrastructure, but we also need to be flexible enough, whether it's new models that we put inside Cortex or other functionality that we need to develop on top of it. But a lot of the core investments that the team has made to allow for this kind of extensibility is what is coming in handy for us in terms of being able to ship things with speed. I'll hand it off to Christian to talk about when he expects different things to hit GA. Christian? Yeah, so as both Sridhar and Mike mentioned, we expect a number of meaningful GA milestones this fiscal year, starting with generative AI. Cortex will be in public preview very soon, and we expect it to be generally available on and around the Summit timeframe. And as Sridhar said, we expect all sorts of interesting use cases of generative AI coming to the data and preserving privacy and security. Snowflake Container Services is already in public preview in AWS, and we expect it to be generally available in that same timeframe, give or take a couple of months from Summit, and is the ultimate extensibility capability for bringing computation into Snowflake. Iceberg Tables is already on public preview across all three clouds and will be generally available, again, also in the Data Cloud Summit timeframe. Unistore, which enables combining transactional and analytical capabilities in single applications, went very recently into public preview in AWS and will be in generally available in the second half of the year. And Native Apps, which is how we accelerate time to value for both partners and customers, is currently a GA on AWS and Azure, and we're continuing to round up the enhancement. So this is imminent, and we expect a strong showing of product capabilities at the Data Cloud Summit. Great, thanks. A follow-up for Mike, just in terms of what you've seen so far in February, and I know you're talking about FY 2025 consumption assumptions consistent with a year ago, but have you seen February trends improve relative to January? Does February feel similar to February a year ago, or is it closer to the strong growth that you saw in consumption, you know, towards the end of last year? Well, I just guided for February, well, for the quarter, and that reflects the consumption trends we've been seeing through yesterday. So, I would say it's more in line with what we saw coming out last year, throughout on average for the year. Thank you. Thank you. Our next question comes from Mike Cikos of Needham and Co. Your line is now open. Please go ahead. Hey, thanks for getting me on here, guys. I did just wanna follow up. I guess one of the dominant messages from management, if I just go back a quarter ago, really seemed to be this theme about the growing use of unstructured data by your customers. It... I I don't know if it's just my read here, but it feels like it's a more muted message today. Maybe I'm missing something, but can you just put some finer points here as far as the trends that Snowflake's seeing, specifically around unstructured data in Q4? And then I did have a follow-up. A great question here. The momentum that we shared in the last quarter has carried forward onto this quarter, so there's no change in pace or interest. And if anything, the Document AI that Sridhar mentioned earlier in the call, where we have hundreds of customers lined up to be able to leverage this technology, is all about extracting value and signal from unstructured documents. So the fact that it was not mentioned is not anything that should be read into it. It is still a topic of high interest among many of our customers. Got it. And I know that you guys had these assumptions as well in the guidance around the potential headwinds from some of your larger customers adopting or, or moving data to Iceberg. Maybe to walk us through that a little bit, can you talk about what you've seen thus far as far as customers' behavior? Or are they already doing this with Iceberg, or is it just an assumption that you guys have about? I'm trying to get a sense as far as the behavior customers have exhibited, as well as how much you guys are, are baking into your guidance today when we think about that headwind, as well as the rollout of tiered storage. Yeah, Iceberg is not GA yet, so customers are not gonna roll that into production until it's GA. And we do think it'll be a gradual process of if they're going to move data out. But as soon as it's GA, new data can go into Iceberg table, and we don't expect that to be GA until sometime around June timeframe. Okay. And so just to put a finer point on that, though, the headwind we're expecting from Iceberg, this is theoretical. You have not seen that behavior from customers just yet? Correct. It is what we are expecting. I know the new two-tiered storage pricing that we rolled out, we're seeing that today. And I'll let Christian add some to that as well, too. Yeah, I would add that for many of our large customers, we have been in touch on their plans for adoption on Iceberg. So some of what you see in our guidance has factored in those intentions. Terrific. Thank you. Thank you. Our next question comes from Michael Turrin of Wells Fargo. Your line is now open. Please go ahead. Hey, thanks. I appreciate you taking the question. Maybe one on hiring. I think you mentioned 1,000 net new heads you're expecting to add in the coming year. How are you balancing adding to R&D, given all the new product efforts and AI interest, with bringing on sales capacity if the market does start to turn? And on the FedRAMP High authorization, any commentary around that, what that could open up, and if that's an area, potential investment as well? Thank you. I would say a lot of our expensive hiring is in the R&D area, and there will continue to be more in the AI, ML space. These engineers are very expensive. With that said, we're still adding in the sales organization, and if we see an uptick in new customers and consumption patterns with our customers, we can easily dial that up, just like we've dialed back our hiring in the past. But we are not going to sacrifice on R&D. Got it. Thanks. Thank you. Our next question comes from Derek Wood of TD Cowen. Your line is now open. Please go ahead. Thanks, Mike. The most other cloud consumption vendors are talking about stabilizing growth. You guys are still modeling pretty sharp deceleration over the next year. So this certainly sticks out and may bring about questions on maybe company-specific challenges. So first, are there any notable customer or workload losses that could be weighing on growth this year? And generally, how are you feeling about sales productivity and competitive win rates in the current environment? A bsolutely no big competitive losses or workloads moving off that I'm aware of. This is all related to our model, where a lot of the performance improvements that we have in our software go directly to the customer, and that's why I was pointing out. You saw there was a 62% year-over-year growth in jobs on a daily basis run on Snowflake, versus only a 33% revenue growth. And we know there's a lot of performance improvements coming into play this year, coupled with Iceberg, coupled with tiered storage pricing that we rolled out. And I was able to roll out the tiered storage pricing because we were getting much better pricing out of the cloud vendors to us. Yeah. Okay. It would be interesting to kind of see what the growth rates on just the workloads related to compute is relative to the storage drag. Maybe that's something you could give. But just, how do you feel about ultimately kind of getting back to 30% growth, the longer term, and kind of what's the top one or two critical things that need to take place to get you there? I would say the biggest thing is the uptick in consumption associated with all the new enhancements we have in our product, and in particular, what we could see coming out of Cortex, what we could see coming out of Snowpark Container Services, and ultimately, the what we could see in Native App development on our platform. Okay. Thank you. Thank you. Our next question comes from Gray Powell of BTIG. Your line is now open, please go ahead. Okay, great. Thank you for taking the question. I just had a quick follow-up on Snowpark. I think you called out Snowpark at a $70 million annual run rate one day back in December. I know that was just sort of, like, a one-day statistic, but I'm just trying to think through that. I mean, the guide of 3% of revenue for fiscal 2025, that's like, you know, $95 million-$100 million. I guess it just seems kind of conservative, given that Snowpark was... or that consumption on Snowpark was growing 45% quarter-over-quarter last quarter. Just how should we think about the level of conservatism on that, you know, assumption within your guidance? Well, what I'm saying is, we're guiding it to be 3% of product revenue this year, and you can infer what you want from the guidance. Well, all right, then. Thank you very much. Thank you. We'll take no further questions for today, so that concludes today's conference call. Thank you all for joining. You may now disconnect your lines.