Snowflake Inc. — Call Transcript 2026

Good day, and welcome to the Q1 FY 2027 Snowflake earnings conference call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Katherine McCracken, Head of Investor Relations. Please go ahead. Good afternoon, and thank you for joining us on Snowflake's first quarter fiscal 2027 earnings call. Joining me on the call today are Sridhar Ramaswamy, our Chief Executive Officer, Brian Robins, our Chief Financial Officer, and Christian Kleinerman, our Executive Vice President of Product, who will participate in the Q&A session. During today's call, we will review our financial results for the first quarter fiscal 2027 and discuss our guidance for the second quarter and full-year fiscal 2027. 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 our 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. See our investor presentation for the definitions of the non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures and business metric definitions, including customer count and adoption. The earnings press release and investor presentation are available on our website at investors.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 Sridhar. Thank you, Katherine. Thank you all for joining us today. AI is fundamentally reshaping how work gets done, and Snowflake is at the center of the transformation. Across industries, organizations are moving toward a future where employees and intelligent agents work side by side to accelerate decisions, automate complex workflows, and unlock entirely new levels of productivity and innovation. With Snowflake, that future is already taking shape. Our platform brings together the four elements organizations need to become an agentic enterprise. A unified, governed data foundation, access to leading AI models, connectivity across enterprise applications and workflows, and a unifying agentic control plane that turns intent into governed action. That control plane is becoming real through Snowflake Intelligence and Cortex Code, or CoCo, as it's affectionately known. Snowflake Intelligence gives business users a natural language interface to enterprise data, context, and actions, while CoCo gives builders a natural language way to create applications, pipelines, agents, and workflows directly on Snowflake. Snowflake is uniquely positioned to help customers become agentic enterprises, as evidenced by our Q1 results. Product revenue came in at $1.334 billion, with growth accelerating to 34% year-over-year, up from 30% last quarter and 26% a year ago, marking our strongest sequential dollar growth in company history. Our net revenue retention rate increased to 126%. With our continued focus on executing with discipline and operational rigor, our Q1 non-GAAP operating margin expanded over 300 basis points year-over-year to 12%. I want to take a moment to touch on our outlook. Based on a combination of strength in our core data platform business and meaningful uplift from AI capabilities, including CoCo and Snowflake Intelligence, we are increasing our FY 2027 outlook from 27% to 31% year-over-year growth. Brian will share more details on our guidance in his remarks. Thank you to all of our Snowflake for the hard work and dedication to deliver these results. Across our business, AI is strengthening Snowflake on multiple levels simultaneously. First, AI is accelerating consumption in our core platform as customers migrate workloads to Snowflake faster in order to access the data, context, and governance needed to power AI securely and at scale. Second, Snowflake Intelligence and CoCo are seeing the fastest adoption of any new products in our history, opening new opportunities for growth as the first major product surfaces of the agentic control plane. Third, adoption of these AI products is increasing core platform consumption as customers move from questions to answers, from prompts to pipelines, and from ideas to production workflows on Snowflake. Customers adopting CoCo are growing even faster. We expect that momentum to continue as adoption expands. The strength of our Q1 results reflects the powerful flywheel effect of the agentic enterprise. Importantly, this momentum starts with the strength of our core business. Our 13,912 customers turn to Snowflake because our AI Data Cloud is easy to use, seamlessly connected for collaboration, and trusted, with enterprise-grade governance and security. In fact, 42% of our customers are data sharing on Snowflake with at least one stable edge. This underscores the power of the platform to connect organizations, partners, and applications around a single governed source of truth. That interconnected foundation becomes even more valuable in the age of AI. Snowflake isn't just software, it is a circulatory system connecting modern enterprises, enabling data, applications, and AI agents to move securely and seamlessly across organizations. This combination of connectivity, governance, and ease of use is why enterprises continue to choose Snowflake as the cornerstone for their data and AI strategies again and again. Take Holiday Inn Club Vacations, a leading vacation ownership company. They chose Snowflake to power their data and AI modernization, citing our simplicity, built-in AI, and machine learning capabilities, and strong partnership as reasons for their selection. With Snowflake, they are now positioned to scale analytics and operations across their business. Houzz, the leading AI-driven platform for construction and design, selected Snowflake to accelerate their next phase of growth, enabling faster access to insights across the business. With Snowflake, Houzz will significantly improve data processing performance, reduce pipeline maintenance, and free up engineering resources to focus on building new products. Going forward, they'll be investing in natural language query processing and self-serve analytics to make data more accessible across the organization. Our existing customers continue to go all in on Snowflake. After nearly two years, and one of the most complex data warehouse migrations in financial services, one of the largest banks in the United States completed their Teradata migration onto Snowflake. This migration represents one of many legacy platforms they intend to move to Snowflake. Their teams are now building AI-powered regulatory intelligence, natural language analytics, and data discovery directly on top of a platform they already run at massive scale. There's Nestlé, one of the world's largest consumer goods companies, with more than 2,000 brands globally, operating in 185 countries. They're expanding their use of Snowflake to power their enterprise digital transformation. As part of this, Nestlé is reimagining its operations end-to-end, with data and AI as key enablers, building enterprise data products used by over 50,000 users across 150 global capabilities. This enables a real-time connected view of the business, allowing teams to make faster and more proactive decisions. One of the world's largest wealth management firms built a Cortex-powered agent called Ask Your Data and deployed it to their entire executive leadership team. Over 60% of business inquiries that were previously routed to analysts for manual data pulls are now answered instantly on demand, leveraging their existing data in Snowflake. We also saw Global 2000 companies like Global Payments, Depository Trust & Clearing Corporation, DTCC, and Blue Yonder expand their use of Snowflake to support growing workloads, accelerate AI-powered insights, and drive further value for their end customers. This continued expansion is reflected in our large customer growth. In Q1, eight customers surpassed $10 million in trailing 12-month revenue. We now have 64 customers spending more than $10 million on a trailing 12-month basis. As AI strengthens demand for our core platform, it is also expanding Snowflake's opportunity to deliver a new generation of AI-powered products and experiences. Snowflake is uniquely positioned to lead in the next phase of enterprise AI, because we already sit at the center of our customers' data, business context, AI models, and workflows. What customers increasingly want is simple: one place to get work done. A place where a business user can ask a question, understand the answer, and trigger the next step. Where a developer can turn an idea into an application, a pipeline, an agent, or a workflow without leaving Snowflake. That is what we mean by the agentic control plane. It's the governed layer where intent becomes action, grounded in the customer's enterprise data, business context, model, applications, and security policies. Snowflake Intelligence is the business user surface of that control plane. CoCo is the builder interface. Together, they help customers move from insight to action and from prompt to production, all within Snowflake's trusted governance model. In fact, accounts using Snowflake Intelligence more than doubled quarter-over-quarter as more organizations embrace a governed conversational way for business users to ask questions, get answers, and act on enterprise data. CoCo is already in use with more than 7,100 accounts, giving builders a natural language way to create applications, pipelines, agents, and workflows directly in Snowflake. Just recently, our partner, Infinite Lambda was preparing for a major customer pitch. One of their engineers used CoCo to build a true customer 360 application in just five hours, bringing together customer data, chart insights, recommended actions, and live dashboards into a single experience, and they showed it to the customer. The reaction was immediate. After the meeting, Infinite Lambda's CEO called me and said, "You are changing this industry." Providence, one of the largest health systems in the U.S., is using Snowflake Cortex to surface insights from clinical notes and patient records in seconds. With CoCo, they are now building these workflows directly in Snowflake, enabling care teams to access critical information faster while maintaining privacy standards. Thomson Reuters, a global provider of legal, tax, and regulatory intelligence, uses Snowflake Cortex, including CoCo, to power AI-driven legal and compliance workflows. By leveraging CoCo to build and deploy intelligent applications directly within Snowflake, its teams can turn complex regulatory data into actionable insights in seconds while accelerating product development. This approach maintains the fiduciary-grade governance and reliability required for high-stakes professional use. CoCo is contributing meaningful AI revenue while also driving increased engagement across the broader platform. This tangible momentum, together with continued strength in our core platform, is reflected in our increased FY 2027 outlook. Today, with the announcement of our intended acquisition of Natoma, we are extending the Snowflake agentic control plane beyond data and development workflows into the everyday applications where work happens. With Natoma, users can do things like send emails, summarize Slack conversations, check calendars, and open Jira tickets without ever leaving Snowflake Intelligence or CoCo. The important point is not just convenience, it is control. These actions happen from a governed environment with enterprise security, permissions, observability, and policy enforcement built in. This will extend Snowflake's leadership in AI governance by ensuring companies can safely manage not just their data, but also the actions AI agents take across business workflows. As we continue to innovate to support our customers, we are also leading the AI transformation from within. With Snowflake Intelligence and CoCo, our teams are revolutionizing how they work. Across our global support organization at Snowflake, CoCo now analyzes incoming customer cases before an engineer engages, surfacing diagnostic insights and likely root causes upfront. Alongside the use of AI-accelerated investigations, this has driven over 25% faster case resolution times and a 25% increase in case throughput per engineer. By using CoCo, engineering teams that run Snowflake cloud deployment have freed up capacity and moved resources to product innovation while reducing complex case resolution time by nearly 30% and cutting engineering time spent per ticket by roughly 40%. Across our data organization, CoCo's double developer productivity as measured by pull requests and lines of code per engineer and has automated more than 100 workflows across finance, marketing, sales, and HR in just weeks. Through this operational transformation, our teams are moving with greater speed and focus to capture the AI opportunity in front of us. In Q1, we delivered over 20% more product capabilities to market than we did a year ago, underscoring both the pace of our innovation and the breadth of platform expansion underway across Snowflake. We are also strengthening our go-to-market organization to support our next phase of growth. Following a seamless transition, our new Chief Revenue Officer, Jonathan Beaulier, JB, is positioning Snowflake to scale in the AI era. JB brings more than a decade of experience with Snowflake, deep knowledge of our customers and platform, and a strong operational focus as we continue to evolve our go-to-market motion. That strong execution is translating into continued customer momentum and broader product adoption of the platform. In the quarter, we added 616 net new customers, up 38% year-over-year. We're also seeing customers deploy and scale workloads at a faster pace. The number of use cases, individual projects managed on Snowflake deployed in the quarter increased 114% year-over-year as customers moved more workloads into production on the platform. At the same time, the number of use cases won per account executive increased 86% year-over-year, underscoring both growing customer demand and improved sales execution across the organization. We are also continuing to strengthen our ecosystem as we deepen our strategic partner relationships and extend the reach of our AI Data Cloud. Just today, we announced an expanded collaboration with AWS through a new $6 billion multi-year agreement to accelerate enterprise AI adoption globally, leveraging Graviton compute and AI services. The announcement comes as Snowflake surpassed $7 billion in lifetime AWS Marketplace sales, reflecting the growing demand for AI and data workloads running on Snowflake. During the quarter, we also announced an expanding $200 million partnership with OpenAI. Just recently, we brought the joint capabilities from our landmark partnership with SAP to general availability, enabling customers to unite mission-critical business data across their core data systems within our AI Data Cloud. Before I close, I want to acknowledge our Co-Founder and Chief Architect, Benoit Dageville, who will be stepping away from day-to-day operations in mid-June and continuing as a member of Snowflake's Board of Directors. Ben was one of the greatest technical visionaries of our industry. His leadership and innovation helped invent the modern cloud data platform and laid the foundation for everything Snowflake has become today. The impact he's had on this company, our customers, and the broader technology landscape is extraordinary, and we are deeply grateful for his continued guidance as we enter this next chapter. Our product organization will continue to be led by Christian Kleinerman. For the past several years, we've seen AI emerge as a tailwind for our business. Q1 marks an important shift in this journey. The combination of Snowflake's trusted enterprise data, rich business context, leading AI models, and secure connectivity into enterprise applications creates a unique opportunity. Snowflake Intelligence and Cortex Code are the two primary ways customers experience that opportunity, one for business users, one for builders. Together, they allow customers to move from intent to action in a governed environment, positioning Snowflake to win a new market, the agentic control plane. We are benefiting from AI as a secular tailwind while also monetizing first-party AI capabilities. Through the combination of rapid innovation, strong go-to-market execution, and operational discipline, we are well-positioned to deliver accelerating growth and margin expansion. With that, I'll turn it over to Brian to walk through the financial details. Brian? Thank you, Sridhar. In Q1, year-over-year product revenue growth accelerated approximately 400 basis points to reach 34%. Growth benefited from a meaningful increase in AI revenue and an acceleration in our core data platform business. AI is a driving force behind our momentum. AI serves as a catalyst for our core data platform business. With an AI-first mindset, customers are moving to the cloud and to Snowflake with increasing urgency. This tailwind is evident in the pace of new customer additions. As Sridhar mentioned, our net new customer additions increased 38% year over year. We added 13 Global 2000s compared to four in the same period last year. Snowflake's AI workload is now a significant revenue engine in its own right. AI products like Cortex Code are expanding our opportunity with existing customers as CoCo encourages faster, more consumption of the data platform. We now have 79 customers spending more than $1 million on a trailing 12-month basis. 46 customers crossed the $1 million threshold in Q1 compared to 26 a year ago period. Remaining performance obligations grew 38% year-over-year, compared to 34% in Q1 of last year. We continue to see customers favor Q4 renewals. As a result, we expect bookings to be increasingly weighted towards the fourth quarter. We remain committed to delivering both growth and margin expansion. In Q1, non-GAAP operating margin expanded over 300 basis points year-over-year to reach 12%. Strong revenue growth and disciplined hiring both contributed to the outperformance in non-GAAP operating margin. We added 190 employees this quarter, compared to approximately 400 added in the year ago period. Of these 190 employees, 173 joined Snowflake through the Observe acquisition. Excluding Observe, organic hiring was limited to 17 people in the quarter. In Q1, we used approximately $300 million to repurchase 1.7 million shares. We have approximately $800 million remaining of our original $4.5 billion repurchase authorization. We ended the quarter with $4.4 billion in cash equivalents, short-term, and long-term investments. During the quarter, we entered into a five-year, $6 billion contract with AWS, more than doubling our prior contract signed in FY 2023. With this agreement, AWS has committed to an expanded go-to-market investment and collaboration. This agreement marks an important milestone in our ongoing partnership with AWS, and its impact is fully incorporated into our outlook. Moving to our outlook, as always, our forecast is based on existing consumption patterns. There are no changes to our forecast methodology or guidance philosophy. Given the strength we've observed in both our core data platform business and AI business, we are raising our guidance for the year. For FY 2027, we now expect product revenue of $5.84 billion, representing 31% year-over-year growth. In Q2, we expect product revenue between $1.415 billion and $1.42 billion, representing 30% year-over-year growth. Our Observe acquisition is progressing well, consistent with our initial expectations. Observe contributed less than one percentage point of product revenue growth in Q1, and we continue to expect the acquisition to add approximately one percentage point of product revenue growth for the full-year. Turning to margins, we expect 75% non-GAAP product gross margin for FY 2027. We expect Q2 non-GAAP operating margin at 12.5%, and we are increasing our full-year non-GAAP operating margin guidance from 12.5% to 13.5%. We are reiterating our non-GAAP adjusted free cash flow margin guide of 23%. Our full-year outlook for both non-GAAP operating margin and non-GAAP adjusted free cash flow margin continues to include approximately 150 basis point headwind related to our Observe acquisition. This impact is unchanged from last quarter. Our intended acquisition of Natoma will bring 20 employees to Snowflake. Before turning to Q&A, I'd like to briefly revisit my priorities for FY 2027. Last quarter, I outlined two key priorities. First, driving growth and margin expansion. Second, supporting ongoing excellence in our go-to-market motion. We are executing well on both fronts as AI strengthens every element of our business. Since last quarter, we've seen a step function change in our AI revenue opportunity, led by Cortex Code. AI is only transforming how we operate internally, enabling greater productivity through a combination of slower hiring and more cloud spend. On the go-to-market side, we're incredibly pleased with the response to our new CRO. JB brings a wealth of experience and a proven track record of success at Snowflake. He understands how to deliver great outcomes and win with individual customers. More importantly, he knows how to drive that success across the broader organization. Finally, next week we'll host our Investor Day in conjunction with Snowflake Summit conference in San Francisco. If you're interested in attending, please email [email protected]. With that, I'll pass the call to operator for Q&A. Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. A voice prompt on your phone line will indicate when your line is open. Please state your name and company before posing your question. Please limit yourself to one question. Again, press star one to ask a question, and we'll go ahead and take the first question. Thank you. This is Sanjit Singh from Morgan Stanley. Sridhar, I've been covering consumption model software companies for a long time. In a normal year, we typically don't see the sequential dollar growth that you guys are posting up. Typically, you don't see raises through the full-year or Q2 guides the way we're seeing with this set of results. The simple question is, what inflected in the quarter on two fronts? I would say maybe from a market backdrop, demand perspective, and then from within the Snowflake portfolio between, let's say maybe migrations, organic customer expansion in the core data platform, and then the AI story. Can you talk about where specifically you're seeing the inflection? Thank you very much. Absolutely. I would break this up into three parts. First, AI is accelerating the value that people can get from the data that they have put into Snowflake or that they can put into Snowflake. We saw a healthy secular tailwind for our core data platform. Part two is really that agentic products, the control plane products like Snowflake Intelligence and Cortex Code, CoCo, came into their own in Q1. Recall that CoCo went into GA on February 5th, so just as we were opening up the quarter. We've seen very strong traction with both the products. The really interesting thing with Cortex Code is that it in turn drives more consumption on the core data platform simply because it's much easier to get projects done, whether it's a pipeline or creating a new agent, or setting up a new Dynamic Tables or even, honestly, a migration. It's driving the second order effect as well. It's really this is the one, two, three, and that's why I like to think of this as AI compounding Snowflake's strengths in data. I'll hand it off to Brian for the mechanics of how these came together in our forecast for the quarter and the year. Brian? Yeah, thanks, Sridhar. I'll unpack that a little on terms of impact. CoCo had the largest driver to the increase in our forecast. As a reminder, when we forecast, we only forecast observed behavior. As Sridhar mentioned, that just happened in the quarter. This quarter, we had a very unique opportunity to layer CoCo in the model, and that's reflected throughout the remainder of the year. We also saw acceleration in our core business, and that informs our outlook as well. There's no change to our guidance philosophy, where 3% we view as a really strong beat. Thanks, Brian, for the color. We'll take the next question. Yeah, hi, it's Kirk Materne with Evercore ISI. Thanks, Sridhar, for taking the question, and congrats on the quarter. Sridhar, I want to dive a little bit more into CoCo, just in terms of how does that change your customer's ability to get more data out of the platform at a faster rate? Can you just dive into that a little bit more? Can you also just talk about how having a product like CoCo maybe changes the go-to-market model a little bit? You said, obviously, JB had a great first quarter. Just wondering how having these agentic products also shapes your thinking around the go-to-market efforts as we go through the rest of the year. Thanks. Yeah. CoCo is a general-purpose coding agent that has a set of features that are specialized for Snowflake and data platforms. We have published benchmarks that show that CoCo can outperform even the frontier models when it comes to doing operations within Snowflake. Over the past quarter, we've actually expanded it to support other data platforms like Amazon Glue or Airflow, or dbt Cloud, and in fact, even Databricks. It's incredibly powerful. In terms of how it impacts our customers' ability, our partners' ability to get things done faster is any kind of coding transformation, and a migration is one such example, can be made faster with CoCo. We have a migrations team that is busy creating, we call them harnesses. They are ways of structuring the process so that a complex migration can be broken down and attacked methodically. We work very closely with both partners and customers and help them get these migrations done faster. I previously talked about how some of our partners are even switching their entire business models from charging for time and material to being able to charge for outcomes. In addition, something like creating an agent to run inside Snowflake Intelligence just goes a whole lot faster because we have created workflows within CoCo for the entirety of the agent creation pipeline. In fact, this has gotten so demystified that even somebody like me can go from a data set to things like Cortex Analyst and search instances, to creating an agent, to running an eval on it. That's the life cycle of creating an agent. It's like an automation platform for everything having to do with Snowflake, and there is a ton of activity within Snowflake and outside by partners, for example, to build even more complicated skills and processes on top of this. I very much think that this is early. In terms of how it's affecting our go-to-market, first and foremost, I think products like CoCo and Snowflake Intelligence have made the entirety of our go-to-market team AI native in a way that honestly, we could not even imagine it a year ago. We have a lot of governed data, and so our solution engineers, our sales, our account executives even, can show the power of Snowflake. There's nothing like pulling your phone out to show what Snowflake Intelligence can do, as every CEO that's met me in the last nine months knows that's one of the things that I always do. Our solution engineers are able to build much more realistic demos and prototypes, even actually get projects done for their customers very quickly, showing our customers what is possible with CoCo. Similarly, our internal teams, whether it's the support team that I talked about, or our SRE team, our site reliability engineering team that runs our production systems, or our services team. They have 95%+ adoption of CoCo, which leverages them enormously when they are creating products. CoCo and coding agents have also changed things like enablement. It's a lot easier to learn, and you can literally ask a coding agent how to do something, have it write a toy example for you, for you to examine it, tinker with it, and then write a more complicated example. A professor friend of mine called coding agents self-pedagogical. They come with that learning built in, which means that a product feature released in CoCo can be used by someone in services literally the same week. It's that rapid iteration that's also benefiting us. That's the virtuous loop that we are on. We think we can get projects done faster. We think we are also honestly very early in the world of agent development. There are new techniques being developed, honestly, every week. Our ability to get more and more complex projects done on top of these coding agents is just enormously powerful. I think we are setting the standard for what data work and more is going to be like, both with CoCo, but also with Snowflake Intelligence. Things like MCP are a further unlock into what is possible with these agents. Thanks, Sridhar. Appreciate it. We'll take another question. Oh, hi. It's Karl Keirstead with UBS. I'd love to continue the conversation on CoCo, if that's okay, for a question to both Sridhar and Brian. Sridhar, it's pretty evident that customer spend on Cortex Code and even broadly, models like Claude are bending spending higher given the token or usage-based pricing. I think a lot of investors are worried that it's going to reach a point where customers might try to govern or throttle the use of these tools to try to contain spend. I'm just curious, are you anticipating that to happen? Perhaps the answer is that the value add is such that you are unlikely to see that. Then maybe for Brian, I think there might also be a perception that products like Cortex Code come at generally a lower gross margin than the rest of the business, but one thing I noted from your guidance for the full-year is that you stuck with the product gross margin guidance of 75%, despite a big apparent uptick in Cortex Code, which suggests perhaps that the gross margin drag is minimal, if any. I'd love to ask you to comment a little bit on that. Thank you. I'll start, and then I'll hand off to Brian. Cost is always an issue that we pay attention to. This is true in Snowflake Intelligence. This is also true in Cortex Code. What helps significantly is the fact that these are products in which you can either get things done that you were never able to before, or get things done 10 times and sometimes more than that faster. Those are not normal things. To give you concrete examples, a very large bank that we work with has told me that while they spend several hundred million dollars on data systems as a whole, it's a very large bank, the amount of money that they spend on the human capital that powers all of these various pieces of software and links them up, is three to four times that much. Anything that makes that part of the labor force 10 times more effective is always incredibly welcome. Having said that, when we want to roll, for example, Snowflake Intelligence out to 10,000 users, cost governance is absolutely an issue, just like it's an issue in Snowflake when I want to roll products out at scale. We are doing things like cost limits at an account level, or at a particular agent level, or you want to be able to restrict how much tokens a particular user can be spending. Of course, it quickly comes back to having exceptions for very talented users that are actually worth the tokens that they are using. That's the kind of infrastructure that we are really good at creating. We feel very good about being able to do that. There is a lot of innovation that we are driving within these coding agent products themselves. As I said, they handle very complicated tasks, but not everything is complicated. If you want to summarize, for example, I did something a couple of days ago to summarize Slack threads. Perfectly small models from Mistral are enough for that. You don't need the latest and greatest Opus models for summarizing Slack threads. We are building those kinds of capabilities natively into Snowflake, so that it can be efficient in what kind of models that it uses. My short answer to your question is they're creating incredible value, but we are not resting on that. We are creating the controls that one needs in order to keep costs manageable as things continue expanding. I'll let Brian take the AI and margin question. Karl, thanks for the question. You're absolutely right. Our AI products have a lower gross margin than our core platform. The one thing that we want to do with our AI products when we launch a new product like CoCo is make sure that we develop a great product, that we get massive adoption, and we've seen really good adoption with CoCo. We're up to roughly about a little over 7,000 accounts have adopted CoCo. With that said, we're offsetting that and keeping the same product gross margin at 75% for the full-year, and lower bandwidth costs, i.e., I talked about the AWS contract, and so we're offsetting it there. That's how we're able to do that. We're committed to find efficiency to be able to maintain that 75% gross margin. Okay, great. Congratulations to both of you. Thank you, Karl. We'll take the next question. Hey, Raimo Lenschow from Barclays. Congrats from me as well. That's an amazing quarter. The question I had is more for Brian. Brian, if you think about the last couple of quarters you've been telling us about the beat cadence that you think about, obviously this quarter, you beat by much more, and CoCo is helping there. It's also a consumption model. How do you think about this going forward, and how should we think about the guidance philosophy that you have there? Maybe you can help us there. Congrats from me as well. Amazing quarter. Thank you. Let me emphasize that there's been no change in guidance philosophy, and we view a 3% beat as a very solid beat. The difference that happened this quarter was CoCo was launched in the quarter, and we base guidance on observed behavior, and so we didn't have any observed behavior for guidance for CoCo. We had a unique opportunity now, since we've been able to watch it for a quarter, to layer that in now for the full-year, and that's what we've done. Then we also saw the acceleration in the core, and we've included that for the full-year based on what we've seen. Okay, perfect. Makes sense. Thank you. Thank you. We'll take the next question. Hi there. This is Matt Hedberg from RBC. Congrats from me as well. I had a question. There's been a lot of talk, especially from an autonomous AI agent perspective, the importance of context engineering and harness engineering, and Sridhar, you mentioned that in your prepared remarks. I guess I'm wondering, what role does Snowflake have in that, and how do we think about that from a moat perspective from some of the AI labs? Yeah. The data that is stored in Snowflake is among the most valuable pieces of data for a particular company. It's called the gold layer, and typically has the most important information. At Snowflake, for example, all of our revenue information, our consumption information, and information about the different departments are all kept in Snowflake. On top of that, the dashboarding platforms that are written on top of Snowflake have an amount of additional context as well, and we see what they do. Our ability to provide context to AI is exceptional. We are also busy creating products that can use this to make the act of getting value from AI even faster. I talked earlier about how we have workflow automation for the entire life cycle of creating an agent. We want to do more than that. We want CoCo to be the place where it is fastest to get value from the data investments that you have made, and Christian's working on a key effort on this side as well. Christian, you want to add additional context? Yeah. Briefly, Matt, I think your question is insightful. We have a track record of using metadata and activity inside of Snowflake to drive better results. Oftentimes, it used to be query optimization and performance, and we are now using that same type of signal and activity in Snowflake to provide better context to AI. We will be showcasing at Snowflake Summit some of the differences of how out-of-the-box results are better with CoCo and Snowflake Intelligence as opposed to other agents. This also points to the overall strategic value of Cortex Code, because if a number of data users from within an enterprise are using these agentic coding platforms in order to create end-user products, it could be skills, it could be dashboards, it could be agents. We also then have the ability to essentially learn across these. We have created memory concepts, where use of these products within Snowflake makes Cortex Code itself much better for future use. That is part of the flywheel effect that one gets from having great agentic coding products. Moving on to another question. Hi, it's Brent Thill at Jefferies. Sridhar, just on the sales and marketing side, if you just back out Observe, you didn't have a really big S&M hiring quarter, and I'm just curious, based on the demand and everything you're seeing, why not lean a little harder into the go-to-market side? Maybe you are behind the scenes, and I think this maybe also ties into the transformation that took place in the quarter with the new head of sales. Maybe if you could just tie it all together in a go-to-market view from your perspective, that'd be great. Thanks. I think part of what we need to understand right now is that there are many, many places in which AI is making Snowflake a lot more efficient. I talked in my prepared remarks about how we have greatly increased the number of use cases that we have won, which is primarily an account executive-driven activity. We've also had significant increases in individual productivity year on year. This is because of AI, their ability to learn faster, pitch products that are more relevant to their customers, and also have solution engineers create prototypes that are directly relevant and in the context of the customer. As an organization, we are just becoming a lot more effective. We will continue to invest in all of the key functions that are responsible for driving Snowflake forward. This applies to engineering, this applies also on the sales and solution engineering side. It is counterbalanced by the large amount of efficiencies that we are getting in a number of other functions that are very amenable to AI automation, like support, like SRE, like technical documentation. Basically, a lot of information functions and information exchange functions have gotten a whole lot easier, and this is also where teams are being very, very effective in deploying things like CoCo and Snowflake Intelligence for these kinds of use cases. We will absolutely continue to invest wherever we get strong leverage. Thank you. We'll take the next question. Hey, guys. Alex Zukin from Wolfe Research. Congrats on an amazing quarter, and thanks for taking the question. Sridhar, maybe for you, actually, both of them probably for you. If you think about the profile of a customer a year ago versus now, a customer that's using Cortex Code, what are you seeing in terms of the uplift on spend? With the acquisition of Natoma that you announced. It seems to me that Cortex Code was just the beginning. Maybe it's the first agent that you're going to launch, and you're not stopping there. Maybe there's a number of other ones that are coming. Maybe just help us think about how that changes the potential spend profile of a customer over time. Among the biggest impact that products like CoCo have with our customers is simply one that of expectation. I talked, again, in my remarks about how we did a two-year Teradata migration. We are engaged in more migrations, but the timelines for doing those now run between a quarter and two quarters. Why both my team and the customer expects and demands that. We have the ability to deliver against that. I think both the impatience and hunger for what people can do with data, along with the expectation for how quickly we can get them done, I would say that's a huge sea change. Christian? No, align with what you're saying, Sridhar. There's a massive backlog- Right. Of what customers want to do. Just helping them do it faster just says they get to the next set of work sooner. That's right. Even our own data teams, for example, typically had backlogs that ran into multiple years. In fact, the standard request, all of you know this, it's sort of funny, but not. If you had a request of a data team, their answer usually is, "That's nice. Take a ticket and wait." We are now in a situation where they can actually crank through that backlog just a whole lot more quickly, unlocking values. To go back to the question about Natoma and its importance and coding agents, it is important to understand that Snowflake Intelligence and Cortex Code are built on the same underlying technology with just different tools, having different capabilities that are exposed to end users. They use the Model Garden underneath that powers all of these models. They share what's called the harness. This is the one that is working on top of the model, deciding what tools to call. Increasingly, they are also going to be sharing the same runtime. We have a cloud runtime product that is in public preview. It means that all of the power that you expect from running CoCo locally can now be executed in the cloud in a governed manner, and I'm already running agents in this cloud agent platform. That ability to launch things, for example, autonomous agents, because you no longer need to have your laptop open for something to run, is pretty remarkable. It's all being built on the same infrastructure for the harness, for the runtime, as well as things like session memory. Cortex Code and Snowflake Intelligence are just two manifestations of the same product. The reason MCP and Natoma are a big deal is they now bring the context entirety of SaaS application context into these products. I've run deep research reports, for example, that I've shown Christian, that can now look for information from Snowflake, from the web, from Google Docs, also from Slack, and synthesize that into something that is astoundingly meaningful. These also let you take action instantly. You can Slack somebody, you can compose emails, and send it, and you can take actions on the underlying applications. That's the promise. We basically have a builder version and an end-user version of these products. Obviously, the names make them sound more different than they are. That's something that we are working on. The amount of power and flexibility that these coding agent products offer is pretty remarkable. In my mind, the right analogy here is that a coding agent, yes, can write code, but at its core, it's an abstraction agent. It can let you do things at a high level that previously you sort of had to sequence out one by one. I think that's the power that comes from them. Christian? One other comment on Natoma, it's very important to highlight that it does that tool visibility with governance and auditability. Okay. Our mission is to help every organization leverage AI in the context of the data, but with governance, with security, and trustworthiness, so that fits entirely into our mission. Okay. Excellent. Thank you, guys. We'll take another question. Great. Brad Reback, Stifel. Sridhar, with the success you're having here with CoCo and Snowflake Intelligence, is that fundamentally changing the competitive landscape when you're going into new customers? Are you now seeing LLMs more than some of the older competitors? Thanks. We come with a unique value proposition. As you folks know, even in the world of data, the cloud service providers have had products. We have very successful partnerships with them. In fact, we just announced a $6 billion partnership with one of them. Our value prop has always been very clear. We are about customer choice. We are also about a certain amount of independence from the mechanics of the cloud providers. A Snowflake implementation works fine on AWS, but it can also work on Azure. We have similar, really good partnerships with the leading AI labs, both Anthropic and OpenAI. We collaborate very closely with them to create great AI products, but also to create safe AI products. Similarly, Cortex Code and Snowflake Intelligence provide model choice. We run fine on both the models. We also host a whole series of other models ourselves, and as things like open source models become more important, we always act on behalf of what is right for the customer, which I think positions us in very good stead with all our customers. I'll just add on to that. Just from a sales execution perspective within the quarter, the achievement was great in all geographies and all industry verticals. This was the most net new customer adds that we had in company history, it's just really a solid quarter all around. Thank you. We'll go ahead and take the next question. Hi, this is Koji Ikeda from Bank of America. Thanks so much for taking the question. When I talk with partners and customers of Snowflake, I hear the same thing over and over again, "Snowflake is my trusted enterprise data and AI vendor with governance and security guardrails as key differentiators." I think about that a lot. The AI world is moving so fast, and assuming the competition out there gets better with all this, what makes you confident that Snowflake's position as a trusted enterprise data and AI partner is secure over the long term? Thank you. Because there are a set of deep infrastructure capabilities that just take a lot of time to develop, whether it is role-based access control and row-level access control at massive scale, or world-class replication that provides for things like disaster recovery, amazing organization support, and there are dozens that I'm missing. Christian, you want to add some? I think that piece on data masking, row-level policies, all of that governance, security configuration, identity, makes it such that customers have already configured Snowflake to have trusted access to the data. AI just amplifies that, as opposed to alternatives are just going to get them to reinvent the wheel and rebuild all of this, which doesn't make much sense. It's also important to understand that we are also not sitting still. Our ability to create products like Snowflake Intelligence and Cortex Code, but also all of the second-order effects. Imagine having autonomous agents that can automatically figure out if there are anomalies in your data, so that you don't have to be running those jobs outside. To be able to do governance, not with endless tedious sets of SQL statements that you write, but more with a policy that specifies that this is how you want your enterprise governance to be done, and we take care of all the details and the mechanics of running these things behind. Creating new classes of applications that sit on a substrate of Snowflake data powered by AI. These are all things that we make possible, and I think, honestly, that is also what we have to do. Your core thesis, that people will be able to add these features or stitch them together, is true, but we are also developing great new capabilities at break-neck speed, also powered by AI. I think that is what it takes to succeed today. Yeah, we have lots of new controls and policies we'll be showcasing next week. Including amazing mechanisms to simplify them. Thank you. That does conclude the question and answer session. I'll now turn the conference back over to Snowflake for closing remarks. Thank you, everyone. To recap, AI is accelerating consumption across our core platform, and our native AI products, Snowflake Intelligence and Cortex Code, are scaling rapidly, already contributing meaningfully to revenue in their own right. These AI capabilities are establishing Snowflake as the agentic control plane for the enterprise, connecting data, models, applications, and workflows in a trusted environment where intent becomes governed action. We are continuing to execute, accelerating growth, expanding margins, and deepening our customer relationships while winning many new ones. We believe that Snowflake is uniquely positioned to lead in the era of the agentic enterprise, and continue to see enormous opportunity ahead. AI is compounding Snowflake's advantage in data. Thank you. That does conclude today's conference. We do thank you for your participation, and have an excellent day.

Speaker 11: Good day, and welcome to the Q1 FY 2027 Snowflake earnings conference call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Katherine McCracken, Head of Investor Relations. Please go ahead. Good day, and welcome to the Q1 FY 2027 Snowflake earnings conference call. good day and welcome to the q1 fy 2027 snowflake earnings conference call Today's conference is being recorded. today's conference is being recorded At this time, I'd like to turn the conference over to Katherine McCracken, Head of Investor Relations. at this time i'd like to turn the conference over to katherine mccracken head of investor relations Please go ahead. please go ahead

Speaker 7: Good afternoon, and thank you for joining us on Snowflake's first quarter fiscal 2027 earnings call. Joining me on the call today are Sridhar Ramaswamy, our Chief Executive Officer, Brian Robins, our Chief Financial Officer, and Christian Kleinerman, our Executive Vice President of Product, who will participate in the Q&A session. During today's call, we will review our financial results for the first quarter fiscal 2027 and discuss our guidance for the second quarter and full-year fiscal 2027. 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 our 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. Good afternoon, and thank you for joining us on Snowflake's first quarter fiscal 2027 earnings call. good afternoon and thank you for joining us on snowflake's first quarter fiscal 2027 earnings call Joining me on the call today are Sridhar Ramaswamy, our Chief Executive Officer, Brian Robins, our Chief Financial Officer, and Christian Kleinerman, our Executive Vice President of Product, who will participate in the Q&A session. joining me on the call today are sridhar ramaswamy our chief executive officer brian robins our chief financial officer and christian kleinerman our executive vice president of product who will participate in the q&a session During today's call, we will review our financial results for the first quarter fiscal 2027 and discuss our guidance for the second quarter and full-year fiscal 2027. during today's call we will review our financial results for the first quarter fiscal 2027 and discuss our guidance for the second quarter and full-year fiscal 2027 During today's call, we will make forward-looking statements, including statements related to our business operations and financial performance. 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 our actual results. these statements are subject to risks and uncertainties which could cause them to differ materially from our 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. 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. See our investor presentation for the definitions of the non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures and business metric definitions, including customer count and adoption. The earnings press release and investor presentation are available on our website at investors.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 Sridhar. All our statements are made as of today, based on information currently available to us. 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. 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. during today's call we will also discuss certain non-gaap financial measures See our investor presentation for the definitions of the non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures and business metric definitions, including customer count and adoption. see our investor presentation for the definitions of the non-gaap financial measures and a reconciliation of gaap to non-gaap measures and business metric definitions including customer count and adoption The earnings press release and investor presentation are available on our website at investors.snowflake.com. the earnings press release and investor presentation are available on our website at investors.snowflake.com A replay of today's call will also be posted on the website. 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 Sridhar. with that i would now like to turn the call over to sridhar

Speaker 14: Thank you, Katherine. Thank you all for joining us today. AI is fundamentally reshaping how work gets done, and Snowflake is at the center of the transformation. Across industries, organizations are moving toward a future where employees and intelligent agents work side by side to accelerate decisions, automate complex workflows, and unlock entirely new levels of productivity and innovation. With Snowflake, that future is already taking shape. Our platform brings together the four elements organizations need to become an agentic enterprise. A unified, governed data foundation, access to leading AI models, connectivity across enterprise applications and workflows, and a unifying agentic control plane that turns intent into governed action. That control plane is becoming real through Snowflake Intelligence and Cortex Code, or CoCo, as it's affectionately known. Thank you, Katherine. thank you katherine Thank you all for joining us today. thank you all for joining us today AI is fundamentally reshaping how work gets done, and Snowflake is at the center of the transformation. ai is fundamentally reshaping how work gets done and snowflake is at the center of the transformation Across industries, organizations are moving toward a future where employees and intelligent agents work side by side to accelerate decisions, automate complex workflows, and unlock entirely new levels of productivity and innovation. across industries organizations are moving toward a future where employees and intelligent agents work side by side to accelerate decisions automate complex workflows and unlock entirely new levels of productivity and innovation With Snowflake, that future is already taking shape. with snowflake that future is already taking shape Our platform brings together the four elements organizations need to become an agentic enterprise. our platform brings together the four elements organizations need to become an agentic enterprise A unified, governed data foundation, access to leading AI models, connectivity across enterprise applications and workflows, and a unifying agentic control plane that turns intent into governed action. a unified governed data foundation access to leading ai models connectivity across enterprise applications and workflows and a unifying agentic control plane that turns intent into governed action That control plane is becoming real through Snowflake Intelligence and Cortex Code, or CoCo, as it's affectionately known. that control plane is becoming real through snowflake intelligence and cortex code or coco as it's affectionately known Snowflake Intelligence gives business users a natural language interface to enterprise data, context, and actions, while CoCo gives builders a natural language way to create applications, pipelines, agents, and workflows directly on Snowflake. Snowflake is uniquely positioned to help customers become agentic enterprises, as evidenced by our Q1 results. Product revenue came in at $1.334 billion, with growth accelerating to 34% year-over-year, up from 30% last quarter and 26% a year ago, marking our strongest sequential dollar growth in company history. Our net revenue retention rate increased to 126%. With our continued focus on executing with discipline and operational rigor, our Q1 non-GAAP operating margin expanded over 300 basis points year-over-year to 12%. I want to take a moment to touch on our outlook. Snowflake Intelligence gives business users a natural language interface to enterprise data, context, and actions, while CoCo gives builders a natural language way to create applications, pipelines, agents, and workflows directly on Snowflake. snowflake intelligence gives business users a natural language interface to enterprise data context and actions while coco gives builders a natural language way to create applications pipelines agents and workflows directly on snowflake Snowflake is uniquely positioned to help customers become agentic enterprises, as evidenced by our Q1 results. snowflake is uniquely positioned to help customers become agentic enterprises as evidenced by our q1 results Product revenue came in at $1.334 billion, with growth accelerating to 34% year-over-year, up from 30% last quarter and 26% a year ago, marking our strongest sequential dollar growth in company history. product revenue came in at $1.334 billion with growth accelerating to 34% year-over-year up from 30% last quarter and 26% a year ago marking our strongest sequential dollar growth in company history Our net revenue retention rate increased to 126%. our net revenue retention rate increased to 126% With our continued focus on executing with discipline and operational rigor, our Q1 non-GAAP operating margin expanded over 300 basis points year-over-year to 12%. with our continued focus on executing with discipline and operational rigor our q1 non-gaap operating margin expanded over 300 basis points year-over-year to 12% I want to take a moment to touch on our outlook. i want to take a moment to touch on our outlook Based on a combination of strength in our core data platform business and meaningful uplift from AI capabilities, including CoCo and Snowflake Intelligence, we are increasing our FY 2027 outlook from 27% to 31% year-over-year growth. Brian will share more details on our guidance in his remarks. Thank you to all of our Snowflake for the hard work and dedication to deliver these results. Across our business, AI is strengthening Snowflake on multiple levels simultaneously. First, AI is accelerating consumption in our core platform as customers migrate workloads to Snowflake faster in order to access the data, context, and governance needed to power AI securely and at scale. Second, Snowflake Intelligence and CoCo are seeing the fastest adoption of any new products in our history, opening new opportunities for growth as the first major product surfaces of the agentic control plane. Based on a combination of strength in our core data platform business and meaningful uplift from AI capabilities, including CoCo and Snowflake Intelligence, we are increasing our FY 2027 outlook from 27% to 31% year-over-year growth. based on a combination of strength in our core data platform business and meaningful uplift from ai capabilities including coco and snowflake intelligence we are increasing our fy 2027 outlook from 27% to 31% year-over-year growth Brian will share more details on our guidance in his remarks. brian will share more details on our guidance in his remarks Thank you to all of our Snowflake for the hard work and dedication to deliver these results. thank you to all of our snowflake for the hard work and dedication to deliver these results Across our business, AI is strengthening Snowflake on multiple levels simultaneously. across our business ai is strengthening snowflake on multiple levels simultaneously First, AI is accelerating consumption in our core platform as customers migrate workloads to Snowflake faster in order to access the data, context, and governance needed to power AI securely and at scale. first ai is accelerating consumption in our core platform as customers migrate workloads to snowflake faster in order to access the data context and governance needed to power ai securely and at scale Second, Snowflake Intelligence and CoCo are seeing the fastest adoption of any new products in our history, opening new opportunities for growth as the first major product surfaces of the agentic control plane. second snowflake intelligence and coco are seeing the fastest adoption of any new products in our history opening new opportunities for growth as the first major product surfaces of the agentic control plane Third, adoption of these AI products is increasing core platform consumption as customers move from questions to answers, from prompts to pipelines, and from ideas to production workflows on Snowflake. Customers adopting CoCo are growing even faster. We expect that momentum to continue as adoption expands. The strength of our Q1 results reflects the powerful flywheel effect of the agentic enterprise. Importantly, this momentum starts with the strength of our core business. Our 13,912 customers turn to Snowflake because our AI Data Cloud is easy to use, seamlessly connected for collaboration, and trusted, with enterprise-grade governance and security. In fact, 42% of our customers are data sharing on Snowflake with at least one stable edge. This underscores the power of the platform to connect organizations, partners, and applications around a single governed source of truth. That interconnected foundation becomes even more valuable in the age of AI. Third, adoption of these AI products is increasing core platform consumption as customers move from questions to answers, from prompts to pipelines, and from ideas to production workflows on Snowflake. third adoption of these ai products is increasing core platform consumption as customers move from questions to answers from prompts to pipelines and from ideas to production workflows on snowflake Customers adopting CoCo are growing even faster. customers adopting coco are growing even faster We expect that momentum to continue as adoption expands. we expect that momentum to continue as adoption expands The strength of our Q1 results reflects the powerful flywheel effect of the agentic enterprise. the strength of our q1 results reflects the powerful flywheel effect of the agentic enterprise Importantly, this momentum starts with the strength of our core business. importantly this momentum starts with the strength of our core business Our 13,912 customers turn to Snowflake because our AI Data Cloud is easy to use, seamlessly connected for collaboration, and trusted, with enterprise-grade governance and security. our 13,912 customers turn to snowflake because our ai data cloud is easy to use seamlessly connected for collaboration and trusted with enterprise-grade governance and security In fact, 42% of our customers are data sharing on Snowflake with at least one stable edge. This underscores the power of the platform to connect organizations, partners, and applications around a single governed source of truth. in fact 42% of our customers are data sharing on snowflake with at least one stable edge. this underscores the power of the platform to connect organizations partners and applications around a single governed source of truth That interconnected foundation becomes even more valuable in the age of AI. that interconnected foundation becomes even more valuable in the age of ai Snowflake isn't just software, it is a circulatory system connecting modern enterprises, enabling data, applications, and AI agents to move securely and seamlessly across organizations. This combination of connectivity, governance, and ease of use is why enterprises continue to choose Snowflake as the cornerstone for their data and AI strategies again and again. Take Holiday Inn Club Vacations, a leading vacation ownership company. They chose Snowflake to power their data and AI modernization, citing our simplicity, built-in AI, and machine learning capabilities, and strong partnership as reasons for their selection. With Snowflake, they are now positioned to scale analytics and operations across their business. Houzz, the leading AI-driven platform for construction and design, selected Snowflake to accelerate their next phase of growth, enabling faster access to insights across the business. Snowflake isn't just software, it is a circulatory system connecting modern enterprises, enabling data, applications, and AI agents to move securely and seamlessly across organizations. snowflake isn't just software it is a circulatory system connecting modern enterprises enabling data applications and ai agents to move securely and seamlessly across organizations This combination of connectivity, governance, and ease of use is why enterprises continue to choose Snowflake as the cornerstone for their data and AI strategies again and again. this combination of connectivity governance and ease of use is why enterprises continue to choose snowflake as the cornerstone for their data and ai strategies again and again Take Holiday Inn Club Vacations, a leading vacation ownership company. take holiday inn club vacations a leading vacation ownership company They chose Snowflake to power their data and AI modernization, citing our simplicity, built-in AI, and machine learning capabilities, and strong partnership as reasons for their selection. they chose snowflake to power their data and ai modernization citing our simplicity built-in ai and machine learning capabilities and strong partnership as reasons for their selection With Snowflake, they are now positioned to scale analytics and operations across their business. with snowflake they are now positioned to scale analytics and operations across their business Houzz, the leading AI-driven platform for construction and design, selected Snowflake to accelerate their next phase of growth, enabling faster access to insights across the business. houzz the leading ai-driven platform for construction and design selected snowflake to accelerate their next phase of growth enabling faster access to insights across the business With Snowflake, Houzz will significantly improve data processing performance, reduce pipeline maintenance, and free up engineering resources to focus on building new products. Going forward, they'll be investing in natural language query processing and self-serve analytics to make data more accessible across the organization. Our existing customers continue to go all in on Snowflake. After nearly two years, and one of the most complex data warehouse migrations in financial services, one of the largest banks in the United States completed their Teradata migration onto Snowflake. This migration represents one of many legacy platforms they intend to move to Snowflake. Their teams are now building AI-powered regulatory intelligence, natural language analytics, and data discovery directly on top of a platform they already run at massive scale. With Snowflake, Houzz will significantly improve data processing performance, reduce pipeline maintenance, and free up engineering resources to focus on building new products. with snowflake houzz will significantly improve data processing performance reduce pipeline maintenance and free up engineering resources to focus on building new products Going forward, they'll be investing in natural language query processing and self-serve analytics to make data more accessible across the organization. going forward they'll be investing in natural language query processing and self-serve analytics to make data more accessible across the organization Our existing customers continue to go all in on Snowflake. our existing customers continue to go all in on snowflake After nearly two years, and one of the most complex data warehouse migrations in financial services, one of the largest banks in the United States completed their Teradata migration onto Snowflake. after nearly two years and one of the most complex data warehouse migrations in financial services one of the largest banks in the united states completed their teradata migration onto snowflake This migration represents one of many legacy platforms they intend to move to Snowflake. this migration represents one of many legacy platforms they intend to move to snowflake Their teams are now building AI-powered regulatory intelligence, natural language analytics, and data discovery directly on top of a platform they already run at massive scale. their teams are now building ai-powered regulatory intelligence natural language analytics and data discovery directly on top of a platform they already run at massive scale There's Nestlé, one of the world's largest consumer goods companies, with more than 2,000 brands globally, operating in 185 countries. They're expanding their use of Snowflake to power their enterprise digital transformation. As part of this, Nestlé is reimagining its operations end-to-end, with data and AI as key enablers, building enterprise data products used by over 50,000 users across 150 global capabilities. This enables a real-time connected view of the business, allowing teams to make faster and more proactive decisions. One of the world's largest wealth management firms built a Cortex-powered agent called Ask Your Data and deployed it to their entire executive leadership team. Over 60% of business inquiries that were previously routed to analysts for manual data pulls are now answered instantly on demand, leveraging their existing data in Snowflake. There's Nestlé, one of the world's largest consumer goods companies, with more than 2,000 brands globally, operating in 185 countries. there's nestlé one of the world's largest consumer goods companies with more than 2,000 brands globally operating in 185 countries They're expanding their use of Snowflake to power their enterprise digital transformation. they're expanding their use of snowflake to power their enterprise digital transformation As part of this, Nestlé is reimagining its operations end-to-end, with data and AI as key enablers, building enterprise data products used by over 50,000 users across 150 global capabilities. as part of this nestlé is reimagining its operations end-to-end with data and ai as key enablers building enterprise data products used by over 50,000 users across 150 global capabilities This enables a real-time connected view of the business, allowing teams to make faster and more proactive decisions. this enables a real-time connected view of the business allowing teams to make faster and more proactive decisions One of the world's largest wealth management firms built a Cortex-powered agent called Ask Your Data and deployed it to their entire executive leadership team. one of the world's largest wealth management firms built a cortex-powered agent called ask your data and deployed it to their entire executive leadership team Over 60% of business inquiries that were previously routed to analysts for manual data pulls are now answered instantly on demand, leveraging their existing data in Snowflake. over 60% of business inquiries that were previously routed to analysts for manual data pulls are now answered instantly on demand leveraging their existing data in snowflake We also saw Global 2000 companies like Global Payments, Depository Trust & Clearing Corporation, DTCC, and Blue Yonder expand their use of Snowflake to support growing workloads, accelerate AI-powered insights, and drive further value for their end customers. This continued expansion is reflected in our large customer growth. In Q1, eight customers surpassed $10 million in trailing 12-month revenue. We now have 64 customers spending more than $10 million on a trailing 12-month basis. As AI strengthens demand for our core platform, it is also expanding Snowflake's opportunity to deliver a new generation of AI-powered products and experiences. Snowflake is uniquely positioned to lead in the next phase of enterprise AI, because we already sit at the center of our customers' data, business context, AI models, and workflows. What customers increasingly want is simple: one place to get work done. We also saw Global 2000 companies like Global Payments, Depository Trust & Clearing Corporation, DTCC, and Blue Yonder expand their use of Snowflake to support growing workloads, accelerate AI-powered insights, and drive further value for their end customers. we also saw global 2000 companies like global payments depository trust & clearing corporation dtcc and blue yonder expand their use of snowflake to support growing workloads accelerate ai-powered insights and drive further value for their end customers This continued expansion is reflected in our large customer growth. this continued expansion is reflected in our large customer growth In Q1, eight customers surpassed $10 million in trailing 12-month revenue. in q1 eight customers surpassed $10 million in trailing 12-month revenue We now have 64 customers spending more than $10 million on a trailing 12-month basis. we now have 64 customers spending more than $10 million on a trailing 12-month basis As AI strengthens demand for our core platform, it is also expanding Snowflake's opportunity to deliver a new generation of AI-powered products and experiences. as ai strengthens demand for our core platform it is also expanding snowflake's opportunity to deliver a new generation of ai-powered products and experiences Snowflake is uniquely positioned to lead in the next phase of enterprise AI, because we already sit at the center of our customers' data, business context, AI models, and workflows. snowflake is uniquely positioned to lead in the next phase of enterprise ai because we already sit at the center of our customers' data business context ai models and workflows What customers increasingly want is simple: one place to get work done. what customers increasingly want is simple one place to get work done A place where a business user can ask a question, understand the answer, and trigger the next step. Where a developer can turn an idea into an application, a pipeline, an agent, or a workflow without leaving Snowflake. That is what we mean by the agentic control plane. It's the governed layer where intent becomes action, grounded in the customer's enterprise data, business context, model, applications, and security policies. Snowflake Intelligence is the business user surface of that control plane. CoCo is the builder interface. Together, they help customers move from insight to action and from prompt to production, all within Snowflake's trusted governance model. In fact, accounts using Snowflake Intelligence more than doubled quarter-over-quarter as more organizations embrace a governed conversational way for business users to ask questions, get answers, and act on enterprise data. A place where a business user can ask a question, understand the answer, and trigger the next step. a place where a business user can ask a question understand the answer and trigger the next step Where a developer can turn an idea into an application, a pipeline, an agent, or a workflow without leaving Snowflake. where a developer can turn an idea into an application a pipeline an agent or a workflow without leaving snowflake That is what we mean by the agentic control plane. that is what we mean by the agentic control plane It's the governed layer where intent becomes action, grounded in the customer's enterprise data, business context, model, applications, and security policies. it's the governed layer where intent becomes action grounded in the customer's enterprise data business context model applications and security policies Snowflake Intelligence is the business user surface of that control plane. snowflake intelligence is the business user surface of that control plane CoCo is the builder interface. coco is the builder interface Together, they help customers move from insight to action and from prompt to production, all within Snowflake's trusted governance model. together they help customers move from insight to action and from prompt to production all within snowflake's trusted governance model In fact, accounts using Snowflake Intelligence more than doubled quarter-over-quarter as more organizations embrace a governed conversational way for business users to ask questions, get answers, and act on enterprise data. in fact accounts using snowflake intelligence more than doubled quarter-over-quarter as more organizations embrace a governed conversational way for business users to ask questions get answers and act on enterprise data CoCo is already in use with more than 7,100 accounts, giving builders a natural language way to create applications, pipelines, agents, and workflows directly in Snowflake. Just recently, our partner, Infinite Lambda was preparing for a major customer pitch. One of their engineers used CoCo to build a true customer 360 application in just five hours, bringing together customer data, chart insights, recommended actions, and live dashboards into a single experience, and they showed it to the customer. The reaction was immediate. After the meeting, Infinite Lambda's CEO called me and said, "You are changing this industry." Providence, one of the largest health systems in the U.S., is using Snowflake Cortex to surface insights from clinical notes and patient records in seconds. With CoCo, they are now building these workflows directly in Snowflake, enabling care teams to access critical information faster while maintaining privacy standards. CoCo is already in use with more than 7,100 accounts, giving builders a natural language way to create applications, pipelines, agents, and workflows directly in Snowflake. coco is already in use with more than 7,100 accounts giving builders a natural language way to create applications pipelines agents and workflows directly in snowflake Just recently, our partner, Infinite Lambda was preparing for a major customer pitch. just recently our partner infinite lambda was preparing for a major customer pitch One of their engineers used CoCo to build a true customer 360 application in just five hours, bringing together customer data, chart insights, recommended actions, and live dashboards into a single experience, and they showed it to the customer. one of their engineers used coco to build a true customer 360 application in just five hours bringing together customer data chart insights recommended actions and live dashboards into a single experience and they showed it to the customer The reaction was immediate. the reaction was immediate After the meeting, Infinite Lambda's CEO called me and said, "You are changing this industry." Providence, one of the largest health systems in the U.S., is using Snowflake Cortex to surface insights from clinical notes and patient records in seconds. after the meeting infinite lambda's ceo called me and said "you are changing this industry." providence one of the largest health systems in the u.s is using snowflake cortex to surface insights from clinical notes and patient records in seconds With CoCo, they are now building these workflows directly in Snowflake, enabling care teams to access critical information faster while maintaining privacy standards. with coco they are now building these workflows directly in snowflake enabling care teams to access critical information faster while maintaining privacy standards Thomson Reuters, a global provider of legal, tax, and regulatory intelligence, uses Snowflake Cortex, including CoCo, to power AI-driven legal and compliance workflows. By leveraging CoCo to build and deploy intelligent applications directly within Snowflake, its teams can turn complex regulatory data into actionable insights in seconds while accelerating product development. This approach maintains the fiduciary-grade governance and reliability required for high-stakes professional use. CoCo is contributing meaningful AI revenue while also driving increased engagement across the broader platform. This tangible momentum, together with continued strength in our core platform, is reflected in our increased FY 2027 outlook. Today, with the announcement of our intended acquisition of Natoma, we are extending the Snowflake agentic control plane beyond data and development workflows into the everyday applications where work happens. Thomson Reuters, a global provider of legal, tax, and regulatory intelligence, uses Snowflake Cortex, including CoCo, to power AI-driven legal and compliance workflows. thomson reuters a global provider of legal tax and regulatory intelligence uses snowflake cortex including coco to power ai-driven legal and compliance workflows By leveraging CoCo to build and deploy intelligent applications directly within Snowflake, its teams can turn complex regulatory data into actionable insights in seconds while accelerating product development. by leveraging coco to build and deploy intelligent applications directly within snowflake its teams can turn complex regulatory data into actionable insights in seconds while accelerating product development This approach maintains the fiduciary-grade governance and reliability required for high-stakes professional use. CoCo is contributing meaningful AI revenue while also driving increased engagement across the broader platform. this approach maintains the fiduciary-grade governance and reliability required for high-stakes professional use coco is contributing meaningful ai revenue while also driving increased engagement across the broader platform This tangible momentum, together with continued strength in our core platform, is reflected in our increased FY 2027 outlook. this tangible momentum together with continued strength in our core platform is reflected in our increased fy 2027 outlook Today, with the announcement of our intended acquisition of Natoma, we are extending the Snowflake agentic control plane beyond data and development workflows into the everyday applications where work happens. today with the announcement of our intended acquisition of natoma we are extending the snowflake agentic control plane beyond data and development workflows into the everyday applications where work happens With Natoma, users can do things like send emails, summarize Slack conversations, check calendars, and open Jira tickets without ever leaving Snowflake Intelligence or CoCo. The important point is not just convenience, it is control. These actions happen from a governed environment with enterprise security, permissions, observability, and policy enforcement built in. This will extend Snowflake's leadership in AI governance by ensuring companies can safely manage not just their data, but also the actions AI agents take across business workflows. As we continue to innovate to support our customers, we are also leading the AI transformation from within. With Snowflake Intelligence and CoCo, our teams are revolutionizing how they work. Across our global support organization at Snowflake, CoCo now analyzes incoming customer cases before an engineer engages, surfacing diagnostic insights and likely root causes upfront. With Natoma, users can do things like send emails, summarize Slack conversations, check calendars, and open Jira tickets without ever leaving Snowflake Intelligence or CoCo. with natoma users can do things like send emails summarize slack conversations check calendars and open jira tickets without ever leaving snowflake intelligence or coco The important point is not just convenience, it is control. the important point is not just convenience it is control These actions happen from a governed environment with enterprise security, permissions, observability, and policy enforcement built in. these actions happen from a governed environment with enterprise security permissions observability and policy enforcement built in This will extend Snowflake's leadership in AI governance by ensuring companies can safely manage not just their data, but also the actions AI agents take across business workflows. this will extend snowflake's leadership in ai governance by ensuring companies can safely manage not just their data but also the actions ai agents take across business workflows As we continue to innovate to support our customers, we are also leading the AI transformation from within. as we continue to innovate to support our customers we are also leading the ai transformation from within With Snowflake Intelligence and CoCo, our teams are revolutionizing how they work. with snowflake intelligence and coco our teams are revolutionizing how they work Across our global support organization at Snowflake, CoCo now analyzes incoming customer cases before an engineer engages, surfacing diagnostic insights and likely root causes upfront. across our global support organization at snowflake coco now analyzes incoming customer cases before an engineer engages surfacing diagnostic insights and likely root causes upfront Alongside the use of AI-accelerated investigations, this has driven over 25% faster case resolution times and a 25% increase in case throughput per engineer. By using CoCo, engineering teams that run Snowflake cloud deployment have freed up capacity and moved resources to product innovation while reducing complex case resolution time by nearly 30% and cutting engineering time spent per ticket by roughly 40%. Across our data organization, CoCo's double developer productivity as measured by pull requests and lines of code per engineer and has automated more than 100 workflows across finance, marketing, sales, and HR in just weeks. Through this operational transformation, our teams are moving with greater speed and focus to capture the AI opportunity in front of us. Alongside the use of AI-accelerated investigations, this has driven over 25% faster case resolution times and a 25% increase in case throughput per engineer. alongside the use of ai-accelerated investigations this has driven over 25% faster case resolution times and a 25% increase in case throughput per engineer By using CoCo, engineering teams that run Snowflake cloud deployment have freed up capacity and moved resources to product innovation while reducing complex case resolution time by nearly 30% and cutting engineering time spent per ticket by roughly 40%. by using coco engineering teams that run snowflake cloud deployment have freed up capacity and moved resources to product innovation while reducing complex case resolution time by nearly 30% and cutting engineering time spent per ticket by roughly 40% Across our data organization, CoCo's double developer productivity as measured by pull requests and lines of code per engineer and has automated more than 100 workflows across finance, marketing, sales, and HR in just weeks. across our data organization coco's double developer productivity as measured by pull requests and lines of code per engineer and has automated more than 100 workflows across finance marketing sales and hr in just weeks Through this operational transformation, our teams are moving with greater speed and focus to capture the AI opportunity in front of us. through this operational transformation our teams are moving with greater speed and focus to capture the ai opportunity in front of us In Q1, we delivered over 20% more product capabilities to market than we did a year ago, underscoring both the pace of our innovation and the breadth of platform expansion underway across Snowflake. We are also strengthening our go-to-market organization to support our next phase of growth. Following a seamless transition, our new Chief Revenue Officer, Jonathan Beaulier, JB, is positioning Snowflake to scale in the AI era. JB brings more than a decade of experience with Snowflake, deep knowledge of our customers and platform, and a strong operational focus as we continue to evolve our go-to-market motion. That strong execution is translating into continued customer momentum and broader product adoption of the platform. In the quarter, we added 616 net new customers, up 38% year-over-year. We're also seeing customers deploy and scale workloads at a faster pace. In Q1, we delivered over 20% more product capabilities to market than we did a year ago, underscoring both the pace of our innovation and the breadth of platform expansion underway across Snowflake. in q1 we delivered over 20% more product capabilities to market than we did a year ago underscoring both the pace of our innovation and the breadth of platform expansion underway across snowflake We are also strengthening our go-to-market organization to support our next phase of growth. we are also strengthening our go-to-market organization to support our next phase of growth Following a seamless transition, our new Chief Revenue Officer, Jonathan Beaulier, JB, is positioning Snowflake to scale in the AI era. following a seamless transition our new chief revenue officer jonathan beaulier jb is positioning snowflake to scale in the ai era JB brings more than a decade of experience with Snowflake, deep knowledge of our customers and platform, and a strong operational focus as we continue to evolve our go-to-market motion. jb brings more than a decade of experience with snowflake deep knowledge of our customers and platform and a strong operational focus as we continue to evolve our go-to-market motion That strong execution is translating into continued customer momentum and broader product adoption of the platform. that strong execution is translating into continued customer momentum and broader product adoption of the platform In the quarter, we added 616 net new customers, up 38% year-over-year. in the quarter we added 616 net new customers up 38% year-over-year We're also seeing customers deploy and scale workloads at a faster pace. we're also seeing customers deploy and scale workloads at a faster pace The number of use cases, individual projects managed on Snowflake deployed in the quarter increased 114% year-over-year as customers moved more workloads into production on the platform. At the same time, the number of use cases won per account executive increased 86% year-over-year, underscoring both growing customer demand and improved sales execution across the organization. We are also continuing to strengthen our ecosystem as we deepen our strategic partner relationships and extend the reach of our AI Data Cloud. Just today, we announced an expanded collaboration with AWS through a new $6 billion multi-year agreement to accelerate enterprise AI adoption globally, leveraging Graviton compute and AI services. The announcement comes as Snowflake surpassed $7 billion in lifetime AWS Marketplace sales, reflecting the growing demand for AI and data workloads running on Snowflake. The number of use cases, individual projects managed on Snowflake deployed in the quarter increased 114% year-over-year as customers moved more workloads into production on the platform. the number of use cases individual projects managed on snowflake deployed in the quarter increased 114% year-over-year as customers moved more workloads into production on the platform At the same time, the number of use cases won per account executive increased 86% year-over-year, underscoring both growing customer demand and improved sales execution across the organization. at the same time the number of use cases won per account executive increased 86% year-over-year underscoring both growing customer demand and improved sales execution across the organization We are also continuing to strengthen our ecosystem as we deepen our strategic partner relationships and extend the reach of our AI Data Cloud. we are also continuing to strengthen our ecosystem as we deepen our strategic partner relationships and extend the reach of our ai data cloud Just today, we announced an expanded collaboration with AWS through a new $6 billion multi-year agreement to accelerate enterprise AI adoption globally, leveraging Graviton compute and AI services. just today we announced an expanded collaboration with aws through a new $6 billion multi-year agreement to accelerate enterprise ai adoption globally leveraging graviton compute and ai services The announcement comes as Snowflake surpassed $7 billion in lifetime AWS Marketplace sales, reflecting the growing demand for AI and data workloads running on Snowflake. the announcement comes as snowflake surpassed $7 billion in lifetime aws marketplace sales reflecting the growing demand for ai and data workloads running on snowflake During the quarter, we also announced an expanding $200 million partnership with OpenAI. Just recently, we brought the joint capabilities from our landmark partnership with SAP to general availability, enabling customers to unite mission-critical business data across their core data systems within our AI Data Cloud. Before I close, I want to acknowledge our Co-Founder and Chief Architect, Benoit Dageville, who will be stepping away from day-to-day operations in mid-June and continuing as a member of Snowflake's Board of Directors. Ben was one of the greatest technical visionaries of our industry. His leadership and innovation helped invent the modern cloud data platform and laid the foundation for everything Snowflake has become today. The impact he's had on this company, our customers, and the broader technology landscape is extraordinary, and we are deeply grateful for his continued guidance as we enter this next chapter. During the quarter, we also announced an expanding $200 million partnership with OpenAI. during the quarter we also announced an expanding $200 million partnership with openai Just recently, we brought the joint capabilities from our landmark partnership with SAP to general availability, enabling customers to unite mission-critical business data across their core data systems within our AI Data Cloud. just recently we brought the joint capabilities from our landmark partnership with sap to general availability enabling customers to unite mission-critical business data across their core data systems within our ai data cloud Before I close, I want to acknowledge our Co-Founder and Chief Architect, Benoit Dageville, who will be stepping away from day-to-day operations in mid-June and continuing as a member of Snowflake's Board of Directors. Ben was one of the greatest technical visionaries of our industry. before i close i want to acknowledge our co-founder and chief architect benoit dageville who will be stepping away from day-to-day operations in mid-june and continuing as a member of snowflake's board of directors. ben was one of the greatest technical visionaries of our industry His leadership and innovation helped invent the modern cloud data platform and laid the foundation for everything Snowflake has become today. his leadership and innovation helped invent the modern cloud data platform and laid the foundation for everything snowflake has become today The impact he's had on this company, our customers, and the broader technology landscape is extraordinary, and we are deeply grateful for his continued guidance as we enter this next chapter. the impact he's had on this company our customers and the broader technology landscape is extraordinary and we are deeply grateful for his continued guidance as we enter this next chapter Our product organization will continue to be led by Christian Kleinerman. For the past several years, we've seen AI emerge as a tailwind for our business. Q1 marks an important shift in this journey. The combination of Snowflake's trusted enterprise data, rich business context, leading AI models, and secure connectivity into enterprise applications creates a unique opportunity. Snowflake Intelligence and Cortex Code are the two primary ways customers experience that opportunity, one for business users, one for builders. Together, they allow customers to move from intent to action in a governed environment, positioning Snowflake to win a new market, the agentic control plane. We are benefiting from AI as a secular tailwind while also monetizing first-party AI capabilities. Through the combination of rapid innovation, strong go-to-market execution, and operational discipline, we are well-positioned to deliver accelerating growth and margin expansion. Our product organization will continue to be led by Christian Kleinerman. our product organization will continue to be led by christian kleinerman For the past several years, we've seen AI emerge as a tailwind for our business. for the past several years we've seen ai emerge as a tailwind for our business Q1 marks an important shift in this journey. q1 marks an important shift in this journey The combination of Snowflake's trusted enterprise data, rich business context, leading AI models, and secure connectivity into enterprise applications creates a unique opportunity. the combination of snowflake's trusted enterprise data rich business context leading ai models and secure connectivity into enterprise applications creates a unique opportunity Snowflake Intelligence and Cortex Code are the two primary ways customers experience that opportunity, one for business users, one for builders. snowflake intelligence and cortex code are the two primary ways customers experience that opportunity one for business users one for builders Together, they allow customers to move from intent to action in a governed environment, positioning Snowflake to win a new market, the agentic control plane. together they allow customers to move from intent to action in a governed environment positioning snowflake to win a new market the agentic control plane We are benefiting from AI as a secular tailwind while also monetizing first-party AI capabilities. we are benefiting from ai as a secular tailwind while also monetizing first-party ai capabilities Through the combination of rapid innovation, strong go-to-market execution, and operational discipline, we are well-positioned to deliver accelerating growth and margin expansion. through the combination of rapid innovation strong go-to-market execution and operational discipline we are well-positioned to deliver accelerating growth and margin expansion With that, I'll turn it over to Brian to walk through the financial details. Brian? With that, I'll turn it over to Brian to walk through the financial details. with that i'll turn it over to brian to walk through the financial details Brian? brian

Speaker 4: Thank you, Sridhar. In Q1, year-over-year product revenue growth accelerated approximately 400 basis points to reach 34%. Growth benefited from a meaningful increase in AI revenue and an acceleration in our core data platform business. AI is a driving force behind our momentum. AI serves as a catalyst for our core data platform business. With an AI-first mindset, customers are moving to the cloud and to Snowflake with increasing urgency. This tailwind is evident in the pace of new customer additions. As Sridhar mentioned, our net new customer additions increased 38% year over year. We added 13 Global 2000s compared to four in the same period last year. Snowflake's AI workload is now a significant revenue engine in its own right. AI products like Cortex Code are expanding our opportunity with existing customers as CoCo encourages faster, more consumption of the data platform. Thank you, Sridhar. thank you sridhar In Q1, year-over-year product revenue growth accelerated approximately 400 basis points to reach 34%. in q1 year-over-year product revenue growth accelerated approximately 400 basis points to reach 34% Growth benefited from a meaningful increase in AI revenue and an acceleration in our core data platform business. growth benefited from a meaningful increase in ai revenue and an acceleration in our core data platform business AI is a driving force behind our momentum. ai is a driving force behind our momentum AI serves as a catalyst for our core data platform business. ai serves as a catalyst for our core data platform business With an AI-first mindset, customers are moving to the cloud and to Snowflake with increasing urgency. with an ai-first mindset customers are moving to the cloud and to snowflake with increasing urgency This tailwind is evident in the pace of new customer additions. this tailwind is evident in the pace of new customer additions As Sridhar mentioned, our net new customer additions increased 38% year over year. as sridhar mentioned our net new customer additions increased 38% year over year We added 13 Global 2000s compared to four in the same period last year. we added 13 global 2000s compared to four in the same period last year Snowflake's AI workload is now a significant revenue engine in its own right. snowflake's ai workload is now a significant revenue engine in its own right AI products like Cortex Code are expanding our opportunity with existing customers as CoCo encourages faster, more consumption of the data platform. ai products like cortex code are expanding our opportunity with existing customers as coco encourages faster more consumption of the data platform We now have 79 customers spending more than $1 million on a trailing 12-month basis. 46 customers crossed the $1 million threshold in Q1 compared to 26 a year ago period. Remaining performance obligations grew 38% year-over-year, compared to 34% in Q1 of last year. We continue to see customers favor Q4 renewals. As a result, we expect bookings to be increasingly weighted towards the fourth quarter. We remain committed to delivering both growth and margin expansion. In Q1, non-GAAP operating margin expanded over 300 basis points year-over-year to reach 12%. Strong revenue growth and disciplined hiring both contributed to the outperformance in non-GAAP operating margin. We added 190 employees this quarter, compared to approximately 400 added in the year ago period. Of these 190 employees, 173 joined Snowflake through the Observe acquisition. Excluding Observe, organic hiring was limited to 17 people in the quarter. We now have 79 customers spending more than $1 million on a trailing 12-month basis. 46 customers crossed the $1 million threshold in Q1 compared to 26 a year ago period. we now have 79 customers spending more than $1 million on a trailing 12-month basis 46 customers crossed the $1 million threshold in q1 compared to 26 a year ago period Remaining performance obligations grew 38% year-over-year, compared to 34% in Q1 of last year. remaining performance obligations grew 38% year-over-year compared to 34% in q1 of last year We continue to see customers favor Q4 renewals. we continue to see customers favor q4 renewals As a result, we expect bookings to be increasingly weighted towards the fourth quarter. as a result we expect bookings to be increasingly weighted towards the fourth quarter We remain committed to delivering both growth and margin expansion. we remain committed to delivering both growth and margin expansion In Q1, non-GAAP operating margin expanded over 300 basis points year-over-year to reach 12%. in q1 non-gaap operating margin expanded over 300 basis points year-over-year to reach 12% Strong revenue growth and disciplined hiring both contributed to the outperformance in non-GAAP operating margin. strong revenue growth and disciplined hiring both contributed to the outperformance in non-gaap operating margin We added 190 employees this quarter, compared to approximately 400 added in the year ago period. we added 190 employees this quarter compared to approximately 400 added in the year ago period Of these 190 employees, 173 joined Snowflake through the Observe acquisition. of these 190 employees 173 joined snowflake through the observe acquisition Excluding Observe, organic hiring was limited to 17 people in the quarter. excluding observe organic hiring was limited to 17 people in the quarter In Q1, we used approximately $300 million to repurchase 1.7 million shares. We have approximately $800 million remaining of our original $4.5 billion repurchase authorization. We ended the quarter with $4.4 billion in cash equivalents, short-term, and long-term investments. During the quarter, we entered into a five-year, $6 billion contract with AWS, more than doubling our prior contract signed in FY 2023. With this agreement, AWS has committed to an expanded go-to-market investment and collaboration. This agreement marks an important milestone in our ongoing partnership with AWS, and its impact is fully incorporated into our outlook. Moving to our outlook, as always, our forecast is based on existing consumption patterns. There are no changes to our forecast methodology or guidance philosophy. Given the strength we've observed in both our core data platform business and AI business, we are raising our guidance for the year. In Q1, we used approximately $300 million to repurchase 1.7 million shares. in q1 we used approximately $300 million to repurchase 1.7 million shares We have approximately $800 million remaining of our original $4.5 billion repurchase authorization. we have approximately $800 million remaining of our original $4.5 billion repurchase authorization We ended the quarter with $4.4 billion in cash equivalents, short-term, and long-term investments. we ended the quarter with $4.4 billion in cash equivalents short-term and long-term investments During the quarter, we entered into a five-year, $6 billion contract with AWS, more than doubling our prior contract signed in FY 2023. during the quarter we entered into a five-year $6 billion contract with aws more than doubling our prior contract signed in fy 2023 With this agreement, AWS has committed to an expanded go-to-market investment and collaboration. with this agreement aws has committed to an expanded go-to-market investment and collaboration This agreement marks an important milestone in our ongoing partnership with AWS, and its impact is fully incorporated into our outlook. this agreement marks an important milestone in our ongoing partnership with aws and its impact is fully incorporated into our outlook Moving to our outlook, as always, our forecast is based on existing consumption patterns. moving to our outlook as always our forecast is based on existing consumption patterns There are no changes to our forecast methodology or guidance philosophy. there are no changes to our forecast methodology or guidance philosophy Given the strength we've observed in both our core data platform business and AI business, we are raising our guidance for the year. given the strength we've observed in both our core data platform business and ai business we are raising our guidance for the year For FY 2027, we now expect product revenue of $5.84 billion, representing 31% year-over-year growth. In Q2, we expect product revenue between $1.415 billion and $1.42 billion, representing 30% year-over-year growth. Our Observe acquisition is progressing well, consistent with our initial expectations. Observe contributed less than one percentage point of product revenue growth in Q1, and we continue to expect the acquisition to add approximately one percentage point of product revenue growth for the full-year. Turning to margins, we expect 75% non-GAAP product gross margin for FY 2027. We expect Q2 non-GAAP operating margin at 12.5%, and we are increasing our full-year non-GAAP operating margin guidance from 12.5% to 13.5%. We are reiterating our non-GAAP adjusted free cash flow margin guide of 23%. For FY 2027, we now expect product revenue of $5.84 billion, representing 31% year-over-year growth. for fy 2027 we now expect product revenue of $5.84 billion representing 31% year-over-year growth In Q2, we expect product revenue between $1.415 billion and $1.42 billion, representing 30% year-over-year growth. in q2 we expect product revenue between $1.415 billion and $1.42 billion representing 30% year-over-year growth Our Observe acquisition is progressing well, consistent with our initial expectations. our observe acquisition is progressing well consistent with our initial expectations Observe contributed less than one percentage point of product revenue growth in Q1, and we continue to expect the acquisition to add approximately one percentage point of product revenue growth for the full-year. observe contributed less than one percentage point of product revenue growth in q1 and we continue to expect the acquisition to add approximately one percentage point of product revenue growth for the full-year Turning to margins, we expect 75% non-GAAP product gross margin for FY 2027. turning to margins we expect 75% non-gaap product gross margin for fy 2027 We expect Q2 non-GAAP operating margin at 12.5%, and we are increasing our full-year non-GAAP operating margin guidance from 12.5% to 13.5%. we expect q2 non-gaap operating margin at 12.5% and we are increasing our full-year non-gaap operating margin guidance from 12.5% to 13.5% We are reiterating our non-GAAP adjusted free cash flow margin guide of 23%. we are reiterating our non-gaap adjusted free cash flow margin guide of 23% Our full-year outlook for both non-GAAP operating margin and non-GAAP adjusted free cash flow margin continues to include approximately 150 basis point headwind related to our Observe acquisition. This impact is unchanged from last quarter. Our intended acquisition of Natoma will bring 20 employees to Snowflake. Before turning to Q&A, I'd like to briefly revisit my priorities for FY 2027. Last quarter, I outlined two key priorities. First, driving growth and margin expansion. Second, supporting ongoing excellence in our go-to-market motion. We are executing well on both fronts as AI strengthens every element of our business. Since last quarter, we've seen a step function change in our AI revenue opportunity, led by Cortex Code. AI is only transforming how we operate internally, enabling greater productivity through a combination of slower hiring and more cloud spend. On the go-to-market side, we're incredibly pleased with the response to our new CRO. Our full-year outlook for both non-GAAP operating margin and non-GAAP adjusted free cash flow margin continues to include approximately 150 basis point headwind related to our Observe acquisition. This impact is unchanged from last quarter. our full-year outlook for both non-gaap operating margin and non-gaap adjusted free cash flow margin continues to include approximately 150 basis point headwind related to our observe acquisition. this impact is unchanged from last quarter Our intended acquisition of Natoma will bring 20 employees to Snowflake. our intended acquisition of natoma will bring 20 employees to snowflake Before turning to Q&A, I'd like to briefly revisit my priorities for FY 2027. before turning to q&a i'd like to briefly revisit my priorities for fy 2027 Last quarter, I outlined two key priorities. last quarter i outlined two key priorities First, driving growth and margin expansion. first driving growth and margin expansion Second, supporting ongoing excellence in our go-to-market motion. second supporting ongoing excellence in our go-to-market motion We are executing well on both fronts as AI strengthens every element of our business. we are executing well on both fronts as ai strengthens every element of our business Since last quarter, we've seen a step function change in our AI revenue opportunity, led by Cortex Code. since last quarter we've seen a step function change in our ai revenue opportunity led by cortex code AI is only transforming how we operate internally, enabling greater productivity through a combination of slower hiring and more cloud spend. ai is only transforming how we operate internally enabling greater productivity through a combination of slower hiring and more cloud spend On the go-to-market side, we're incredibly pleased with the response to our new CRO. on the go-to-market side we're incredibly pleased with the response to our new cro JB brings a wealth of experience and a proven track record of success at Snowflake. He understands how to deliver great outcomes and win with individual customers. More importantly, he knows how to drive that success across the broader organization. Finally, next week we'll host our Investor Day in conjunction with Snowflake Summit conference in San Francisco. If you're interested in attending, please email [email protected]. With that, I'll pass the call to operator for Q&A. JB brings a wealth of experience and a proven track record of success at Snowflake. jb brings a wealth of experience and a proven track record of success at snowflake He understands how to deliver great outcomes and win with individual customers. he understands how to deliver great outcomes and win with individual customers More importantly, he knows how to drive that success across the broader organization. more importantly he knows how to drive that success across the broader organization Finally, next week we'll host our Investor Day in conjunction with Snowflake Summit conference in San Francisco. finally next week we'll host our investor day in conjunction with snowflake summit conference in san francisco If you're interested in attending, please email [email protected]. if you're interested in attending please email [email protected] With that, I'll pass the call to operator for Q&A. with that i'll pass the call to operator for q&a

Speaker 11: Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. A voice prompt on your phone line will indicate when your line is open. Please state your name and company before posing your question. Please limit yourself to one question. Again, press star one to ask a question, and we'll go ahead and take the first question. Thank you. thank you If you would like to ask a question, please signal by pressing star one on your telephone keypad. if you would like to ask a question please signal by pressing star one on your telephone keypad If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. if you are using a speakerphone please make sure your mute function is turned off to allow your signal to reach our equipment A voice prompt on your phone line will indicate when your line is open. a voice prompt on your phone line will indicate when your line is open Please state your name and company before posing your question. please state your name and company before posing your question Please limit yourself to one question. please limit yourself to one question Again, press star one to ask a question, and we'll go ahead and take the first question. again press star one to ask a question and we'll go ahead and take the first question

Speaker 13: Thank you. This is Sanjit Singh from Morgan Stanley. Sridhar, I've been covering consumption model software companies for a long time. In a normal year, we typically don't see the sequential dollar growth that you guys are posting up. Typically, you don't see raises through the full-year or Q2 guides the way we're seeing with this set of results. The simple question is, what inflected in the quarter on two fronts? I would say maybe from a market backdrop, demand perspective, and then from within the Snowflake portfolio between, let's say maybe migrations, organic customer expansion in the core data platform, and then the AI story. Can you talk about where specifically you're seeing the inflection? Thank you very much. Thank you. thank you This is Sanjit Singh from Morgan Stanley. this is sanjit singh from morgan stanley Sridhar, I've been covering consumption model software companies for a long time. sridhar i've been covering consumption model software companies for a long time In a normal year, we typically don't see the sequential dollar growth that you guys are posting up. in a normal year we typically don't see the sequential dollar growth that you guys are posting up Typically, you don't see raises through the full-year or Q2 guides the way we're seeing with this set of results. typically you don't see raises through the full-year or q2 guides the way we're seeing with this set of results The simple question is, what inflected in the quarter on two fronts? the simple question is what inflected in the quarter on two fronts I would say maybe from a market backdrop, demand perspective, and then from within the Snowflake portfolio between, let's say maybe migrations, organic customer expansion in the core data platform, and then the AI story. i would say maybe from a market backdrop demand perspective and then from within the snowflake portfolio between let's say maybe migrations organic customer expansion in the core data platform and then the ai story Can you talk about where specifically you're seeing the inflection? can you talk about where specifically you're seeing the inflection Thank you very much. thank you very much

Speaker 14: Absolutely. I would break this up into three parts. First, AI is accelerating the value that people can get from the data that they have put into Snowflake or that they can put into Snowflake. We saw a healthy secular tailwind for our core data platform. Part two is really that agentic products, the control plane products like Snowflake Intelligence and Cortex Code, CoCo, came into their own in Q1. Recall that CoCo went into GA on February 5th, so just as we were opening up the quarter. We've seen very strong traction with both the products. Absolutely. absolutely I would break this up into three parts. i would break this up into three parts First, AI is accelerating the value that people can get from the data that they have put into Snowflake or that they can put into Snowflake. first ai is accelerating the value that people can get from the data that they have put into snowflake or that they can put into snowflake We saw a healthy secular tailwind for our core data platform. we saw a healthy secular tailwind for our core data platform Part two is really that agentic products, the control plane products like Snowflake Intelligence and Cortex Code, CoCo, came into their own in Q1. part two is really that agentic products the control plane products like snowflake intelligence and cortex code coco came into their own in q1 Recall that CoCo went into GA on February 5th, so just as we were opening up the quarter. recall that coco went into ga on february 5th so just as we were opening up the quarter We've seen very strong traction with both the products. we've seen very strong traction with both the products The really interesting thing with Cortex Code is that it in turn drives more consumption on the core data platform simply because it's much easier to get projects done, whether it's a pipeline or creating a new agent, or setting up a new Dynamic Tables or even, honestly, a migration. It's driving the second order effect as well. It's really this is the one, two, three, and that's why I like to think of this as AI compounding Snowflake's strengths in data. I'll hand it off to Brian for the mechanics of how these came together in our forecast for the quarter and the year. Brian? The really interesting thing with Cortex Code is that it in turn drives more consumption on the core data platform simply because it's much easier to get projects done, whether it's a pipeline or creating a new agent, or setting up a new Dynamic Tables or even, honestly, a migration. the really interesting thing with cortex code is that it in turn drives more consumption on the core data platform simply because it's much easier to get projects done whether it's a pipeline or creating a new agent or setting up a new dynamic tables or even honestly a migration It's driving the second order effect as well. it's driving the second order effect as well It's really this is the one, two, three, and that's why I like to think of this as AI compounding Snowflake's strengths in data. it's really this is the one two three and that's why i like to think of this as ai compounding snowflake's strengths in data I'll hand it off to Brian for the mechanics of how these came together in our forecast for the quarter and the year. i'll hand it off to brian for the mechanics of how these came together in our forecast for the quarter and the year Brian? brian

Speaker 4: Yeah, thanks, Sridhar. I'll unpack that a little on terms of impact. CoCo had the largest driver to the increase in our forecast. As a reminder, when we forecast, we only forecast observed behavior. As Sridhar mentioned, that just happened in the quarter. This quarter, we had a very unique opportunity to layer CoCo in the model, and that's reflected throughout the remainder of the year. We also saw acceleration in our core business, and that informs our outlook as well. There's no change to our guidance philosophy, where 3% we view as a really strong beat. Yeah, thanks, Sridhar. yeah thanks sridhar I'll unpack that a little on terms of impact. i'll unpack that a little on terms of impact CoCo had the largest driver to the increase in our forecast. coco had the largest driver to the increase in our forecast As a reminder, when we forecast, we only forecast observed behavior. as a reminder when we forecast we only forecast observed behavior As Sridhar mentioned, that just happened in the quarter. as sridhar mentioned that just happened in the quarter This quarter, we had a very unique opportunity to layer CoCo in the model, and that's reflected throughout the remainder of the year. this quarter we had a very unique opportunity to layer coco in the model and that's reflected throughout the remainder of the year We also saw acceleration in our core business, and that informs our outlook as well. we also saw acceleration in our core business and that informs our outlook as well There's no change to our guidance philosophy, where 3% we view as a really strong beat. there's no change to our guidance philosophy where 3% we view as a really strong beat

Speaker 13: Thanks, Brian, for the color. Thanks, Brian, for the color. thanks brian for the color

Speaker 11: We'll take the next question. We'll take the next question. we'll take the next question

Speaker 8: Yeah, hi, it's Kirk Materne with Evercore ISI. Thanks, Sridhar, for taking the question, and congrats on the quarter. Sridhar, I want to dive a little bit more into CoCo, just in terms of how does that change your customer's ability to get more data out of the platform at a faster rate? Can you just dive into that a little bit more? Can you also just talk about how having a product like CoCo maybe changes the go-to-market model a little bit? You said, obviously, JB had a great first quarter. Just wondering how having these agentic products also shapes your thinking around the go-to-market efforts as we go through the rest of the year. Thanks. Yeah, hi, it's Kirk Materne with Evercore ISI. yeah hi it's kirk materne with evercore isi Thanks, Sridhar, for taking the question, and congrats on the quarter. thanks sridhar for taking the question and congrats on the quarter Sridhar, I want to dive a little bit more into CoCo, just in terms of how does that change your customer's ability to get more data out of the platform at a faster rate? sridhar i want to dive a little bit more into coco just in terms of how does that change your customer's ability to get more data out of the platform at a faster rate Can you just dive into that a little bit more? can you just dive into that a little bit more Can you also just talk about how having a product like CoCo maybe changes the go-to-market model a little bit? can you also just talk about how having a product like coco maybe changes the go-to-market model a little bit You said, obviously, JB had a great first quarter. you said obviously jb had a great first quarter Just wondering how having these agentic products also shapes your thinking around the go-to-market efforts as we go through the rest of the year. just wondering how having these agentic products also shapes your thinking around the go-to-market efforts as we go through the rest of the year Thanks. thanks

Speaker 14: Yeah. CoCo is a general-purpose coding agent that has a set of features that are specialized for Snowflake and data platforms. We have published benchmarks that show that CoCo can outperform even the frontier models when it comes to doing operations within Snowflake. Over the past quarter, we've actually expanded it to support other data platforms like Amazon Glue or Airflow, or dbt Cloud, and in fact, even Databricks. It's incredibly powerful. In terms of how it impacts our customers' ability, our partners' ability to get things done faster is any kind of coding transformation, and a migration is one such example, can be made faster with CoCo. We have a migrations team that is busy creating, we call them harnesses. They are ways of structuring the process so that a complex migration can be broken down and attacked methodically. Yeah. yeah CoCo is a general-purpose coding agent that has a set of features that are specialized for Snowflake and data platforms. coco is a general-purpose coding agent that has a set of features that are specialized for snowflake and data platforms We have published benchmarks that show that CoCo can outperform even the frontier models when it comes to doing operations within Snowflake. we have published benchmarks that show that coco can outperform even the frontier models when it comes to doing operations within snowflake Over the past quarter, we've actually expanded it to support other data platforms like Amazon Glue or Airflow, or dbt Cloud, and in fact, even Databricks. over the past quarter we've actually expanded it to support other data platforms like amazon glue or airflow or dbt cloud and in fact even databricks It's incredibly powerful. it's incredibly powerful In terms of how it impacts our customers' ability, our partners' ability to get things done faster is any kind of coding transformation, and a migration is one such example, can be made faster with CoCo. in terms of how it impacts our customers' ability our partners' ability to get things done faster is any kind of coding transformation and a migration is one such example can be made faster with coco We have a migrations team that is busy creating, we call them harnesses. we have a migrations team that is busy creating we call them harnesses They are ways of structuring the process so that a complex migration can be broken down and attacked methodically. they are ways of structuring the process so that a complex migration can be broken down and attacked methodically We work very closely with both partners and customers and help them get these migrations done faster. I previously talked about how some of our partners are even switching their entire business models from charging for time and material to being able to charge for outcomes. In addition, something like creating an agent to run inside Snowflake Intelligence just goes a whole lot faster because we have created workflows within CoCo for the entirety of the agent creation pipeline. In fact, this has gotten so demystified that even somebody like me can go from a data set to things like Cortex Analyst and search instances, to creating an agent, to running an eval on it. That's the life cycle of creating an agent. We work very closely with both partners and customers and help them get these migrations done faster. we work very closely with both partners and customers and help them get these migrations done faster I previously talked about how some of our partners are even switching their entire business models from charging for time and material to being able to charge for outcomes. i previously talked about how some of our partners are even switching their entire business models from charging for time and material to being able to charge for outcomes In addition, something like creating an agent to run inside Snowflake Intelligence just goes a whole lot faster because we have created workflows within CoCo for the entirety of the agent creation pipeline. in addition something like creating an agent to run inside snowflake intelligence just goes a whole lot faster because we have created workflows within coco for the entirety of the agent creation pipeline In fact, this has gotten so demystified that even somebody like me can go from a data set to things like Cortex Analyst and search instances, to creating an agent, to running an eval on it. in fact this has gotten so demystified that even somebody like me can go from a data set to things like cortex analyst and search instances to creating an agent to running an eval on it That's the life cycle of creating an agent. that's the life cycle of creating an agent It's like an automation platform for everything having to do with Snowflake, and there is a ton of activity within Snowflake and outside by partners, for example, to build even more complicated skills and processes on top of this. I very much think that this is early. In terms of how it's affecting our go-to-market, first and foremost, I think products like CoCo and Snowflake Intelligence have made the entirety of our go-to-market team AI native in a way that honestly, we could not even imagine it a year ago. We have a lot of governed data, and so our solution engineers, our sales, our account executives even, can show the power of Snowflake. It's like an automation platform for everything having to do with Snowflake, and there is a ton of activity within Snowflake and outside by partners, for example, to build even more complicated skills and processes on top of this. it's like an automation platform for everything having to do with snowflake and there is a ton of activity within snowflake and outside by partners for example to build even more complicated skills and processes on top of this I very much think that this is early. i very much think that this is early In terms of how it's affecting our go-to-market, first and foremost, I think products like CoCo and Snowflake Intelligence have made the entirety of our go-to-market team AI native in a way that honestly, we could not even imagine it a year ago. in terms of how it's affecting our go-to-market first and foremost i think products like coco and snowflake intelligence have made the entirety of our go-to-market team ai native in a way that honestly we could not even imagine it a year ago We have a lot of governed data, and so our solution engineers, our sales, our account executives even, can show the power of Snowflake. we have a lot of governed data and so our solution engineers our sales our account executives even can show the power of snowflake There's nothing like pulling your phone out to show what Snowflake Intelligence can do, as every CEO that's met me in the last nine months knows that's one of the things that I always do. Our solution engineers are able to build much more realistic demos and prototypes, even actually get projects done for their customers very quickly, showing our customers what is possible with CoCo. Similarly, our internal teams, whether it's the support team that I talked about, or our SRE team, our site reliability engineering team that runs our production systems, or our services team. They have 95%+ adoption of CoCo, which leverages them enormously when they are creating products. CoCo and coding agents have also changed things like enablement. There's nothing like pulling your phone out to show what Snowflake Intelligence can do, as every CEO that's met me in the last nine months knows that's one of the things that I always do. there's nothing like pulling your phone out to show what snowflake intelligence can do as every ceo that's met me in the last nine months knows that's one of the things that i always do Our solution engineers are able to build much more realistic demos and prototypes, even actually get projects done for their customers very quickly, showing our customers what is possible with CoCo. our solution engineers are able to build much more realistic demos and prototypes even actually get projects done for their customers very quickly showing our customers what is possible with coco Similarly, our internal teams, whether it's the support team that I talked about, or our SRE team, our site reliability engineering team that runs our production systems, or our services team. similarly our internal teams whether it's the support team that i talked about or our sre team our site reliability engineering team that runs our production systems or our services team They have 95 %+ adoption of CoCo, which leverages them enormously when they are creating products. they have 95 %+ adoption of coco which leverages them enormously when they are creating products CoCo and coding agents have also changed things like enablement. coco and coding agents have also changed things like enablement It's a lot easier to learn, and you can literally ask a coding agent how to do something, have it write a toy example for you, for you to examine it, tinker with it, and then write a more complicated example. A professor friend of mine called coding agents self-pedagogical. They come with that learning built in, which means that a product feature released in CoCo can be used by someone in services literally the same week. It's that rapid iteration that's also benefiting us. That's the virtuous loop that we are on. We think we can get projects done faster. We think we are also honestly very early in the world of agent development. There are new techniques being developed, honestly, every week. Our ability to get more and more complex projects done on top of these coding agents is just enormously powerful. It's a lot easier to learn, and you can literally ask a coding agent how to do something, have it write a toy example for you, for you to examine it, tinker with it, and then write a more complicated example. it's a lot easier to learn and you can literally ask a coding agent how to do something have it write a toy example for you for you to examine it tinker with it and then write a more complicated example A professor friend of mine called coding agents self-pedagogical. a professor friend of mine called coding agents self-pedagogical They come with that learning built in, which means that a product feature released in CoCo can be used by someone in services literally the same week. they come with that learning built in which means that a product feature released in coco can be used by someone in services literally the same week It's that rapid iteration that's also benefiting us. it's that rapid iteration that's also benefiting us That's the virtuous loop that we are on. that's the virtuous loop that we are on We think we can get projects done faster. we think we can get projects done faster We think we are also honestly very early in the world of agent development. we think we are also honestly very early in the world of agent development There are new techniques being developed, honestly, every week. there are new techniques being developed honestly every week Our ability to get more and more complex projects done on top of these coding agents is just enormously powerful. our ability to get more and more complex projects done on top of these coding agents is just enormously powerful I think we are setting the standard for what data work and more is going to be like, both with CoCo, but also with Snowflake Intelligence. Things like MCP are a further unlock into what is possible with these agents. I think we are setting the standard for what data work and more is going to be like, both with CoCo , but also with Snowflake Intelligence. i think we are setting the standard for what data work and more is going to be like both with coco but also with snowflake intelligence Things like MCP are a further unlock into what is possible with these agents. things like mcp are a further unlock into what is possible with these agents

Speaker 8: Thanks, Sridhar. Appreciate it. Thanks, Sridhar. thanks sridhar Appreciate it. appreciate it

Speaker 11: We'll take another question. We'll take another question. we'll take another question

Speaker 6: Oh, hi. It's Karl Keirstead with UBS. I'd love to continue the conversation on CoCo, if that's okay, for a question to both Sridhar and Brian. Sridhar, it's pretty evident that customer spend on Cortex Code and even broadly, models like Claude are bending spending higher given the token or usage-based pricing. I think a lot of investors are worried that it's going to reach a point where customers might try to govern or throttle the use of these tools to try to contain spend. I'm just curious, are you anticipating that to happen? Perhaps the answer is that the value add is such that you are unlikely to see that. Oh, hi. oh hi It's Karl Keirstead with UBS. it's karl keirstead with ubs I'd love to continue the conversation on CoCo, if that's okay, for a question to both Sridhar and Brian. i'd love to continue the conversation on coco if that's okay for a question to both sridhar and brian Sridhar, it's pretty evident that customer spend on Cortex Code and even broadly, models like Claude are bending spending higher given the token or usage-based pricing. sridhar it's pretty evident that customer spend on cortex code and even broadly models like claude are bending spending higher given the token or usage-based pricing I think a lot of investors are worried that it's going to reach a point where customers might try to govern or throttle the use of these tools to try to contain spend. i think a lot of investors are worried that it's going to reach a point where customers might try to govern or throttle the use of these tools to try to contain spend I'm just curious, are you anticipating that to happen? i'm just curious are you anticipating that to happen Perhaps the answer is that the value add is such that you are unlikely to see that. perhaps the answer is that the value add is such that you are unlikely to see that Then maybe for Brian, I think there might also be a perception that products like Cortex Code come at generally a lower gross margin than the rest of the business, but one thing I noted from your guidance for the full-year is that you stuck with the product gross margin guidance of 75%, despite a big apparent uptick in Cortex Code, which suggests perhaps that the gross margin drag is minimal, if any. I'd love to ask you to comment a little bit on that. Thank you. Then maybe for Brian, I think there might also be a perception that products like Cortex Code come at generally a lower gross margin than the rest of the business, but one thing I noted from your guidance for the full-year is that you stuck with the product gross margin guidance of 75%, despite a big apparent uptick in Cortex Code, which suggests perhaps that the gross margin drag is minimal, if any. then maybe for brian i think there might also be a perception that products like cortex code come at generally a lower gross margin than the rest of the business but one thing i noted from your guidance for the full-year is that you stuck with the product gross margin guidance of 75% despite a big apparent uptick in cortex code which suggests perhaps that the gross margin drag is minimal if any I'd love to ask you to comment a little bit on that. i'd love to ask you to comment a little bit on that Thank you. thank you

Speaker 14: I'll start, and then I'll hand off to Brian. Cost is always an issue that we pay attention to. This is true in Snowflake Intelligence. This is also true in Cortex Code. What helps significantly is the fact that these are products in which you can either get things done that you were never able to before, or get things done 10 times and sometimes more than that faster. Those are not normal things. To give you concrete examples, a very large bank that we work with has told me that while they spend several hundred million dollars on data systems as a whole, it's a very large bank, the amount of money that they spend on the human capital that powers all of these various pieces of software and links them up, is three to four times that much. I'll start, and then I'll hand off to Brian. i'll start and then i'll hand off to brian Cost is always an issue that we pay attention to. cost is always an issue that we pay attention to This is true in Snowflake Intelligence. this is true in snowflake intelligence This is also true in Cortex Code. this is also true in cortex code What helps significantly is the fact that these are products in which you can either get things done that you were never able to before, or get things done 10 times and sometimes more than that faster. what helps significantly is the fact that these are products in which you can either get things done that you were never able to before or get things done 10 times and sometimes more than that faster Those are not normal things. those are not normal things To give you concrete examples, a very large bank that we work with has told me that while they spend several hundred million dollars on data systems as a whole, it's a very large bank, the amount of money that they spend on the human capital that powers all of these various pieces of software and links them up, is three to four times that much. to give you concrete examples a very large bank that we work with has told me that while they spend several hundred million dollars on data systems as a whole it's a very large bank the amount of money that they spend on the human capital that powers all of these various pieces of software and links them up is three to four times that much Anything that makes that part of the labor force 10 times more effective is always incredibly welcome. Having said that, when we want to roll, for example, Snowflake Intelligence out to 10,000 users, cost governance is absolutely an issue, just like it's an issue in Snowflake when I want to roll products out at scale. We are doing things like cost limits at an account level, or at a particular agent level, or you want to be able to restrict how much tokens a particular user can be spending. Of course, it quickly comes back to having exceptions for very talented users that are actually worth the tokens that they are using. That's the kind of infrastructure that we are really good at creating. We feel very good about being able to do that. Anything that makes that part of the labor force 10 times more effective is always incredibly welcome. anything that makes that part of the labor force 10 times more effective is always incredibly welcome Having said that, when we want to roll, for example, Snowflake Intelligence out to 10,000 users, cost governance is absolutely an issue, just like it's an issue in Snowflake when I want to roll products out at scale. having said that when we want to roll for example snowflake intelligence out to 10,000 users cost governance is absolutely an issue just like it's an issue in snowflake when i want to roll products out at scale We are doing things like cost limits at an account level, or at a particular agent level, or you want to be able to restrict how much tokens a particular user can be spending. we are doing things like cost limits at an account level or at a particular agent level or you want to be able to restrict how much tokens a particular user can be spending Of course, it quickly comes back to having exceptions for very talented users that are actually worth the tokens that they are using. of course it quickly comes back to having exceptions for very talented users that are actually worth the tokens that they are using That's the kind of infrastructure that we are really good at creating. that's the kind of infrastructure that we are really good at creating We feel very good about being able to do that. we feel very good about being able to do that There is a lot of innovation that we are driving within these coding agent products themselves. As I said, they handle very complicated tasks, but not everything is complicated. If you want to summarize, for example, I did something a couple of days ago to summarize Slack threads. Perfectly small models from Mistral are enough for that. You don't need the latest and greatest Opus models for summarizing Slack threads. We are building those kinds of capabilities natively into Snowflake, so that it can be efficient in what kind of models that it uses. My short answer to your question is they're creating incredible value, but we are not resting on that. We are creating the controls that one needs in order to keep costs manageable as things continue expanding. I'll let Brian take the AI and margin question. There is a lot of innovation that we are driving within these coding agent products themselves. there is a lot of innovation that we are driving within these coding agent products themselves As I said, they handle very complicated tasks, but not everything is complicated. as i said they handle very complicated tasks but not everything is complicated If you want to summarize, for example, I did something a couple of days ago to summarize Slack threads. if you want to summarize for example i did something a couple of days ago to summarize slack threads Perfectly small models from Mistral are enough for that. perfectly small models from mistral are enough for that You don't need the latest and greatest Opus models for summarizing Slack threads. you don't need the latest and greatest opus models for summarizing slack threads We are building those kinds of capabilities natively into Snowflake, so that it can be efficient in what kind of models that it uses. we are building those kinds of capabilities natively into snowflake so that it can be efficient in what kind of models that it uses My short answer to your question is they're creating incredible value, but we are not resting on that. my short answer to your question is they're creating incredible value but we are not resting on that We are creating the controls that one needs in order to keep costs manageable as things continue expanding. we are creating the controls that one needs in order to keep costs manageable as things continue expanding I'll let Brian take the AI and margin question. i'll let brian take the ai and margin question

Speaker 4: Karl, thanks for the question. You're absolutely right. Our AI products have a lower gross margin than our core platform. The one thing that we want to do with our AI products when we launch a new product like CoCo is make sure that we develop a great product, that we get massive adoption, and we've seen really good adoption with CoCo. We're up to roughly about a little over 7,000 accounts have adopted CoCo. With that said, we're offsetting that and keeping the same product gross margin at 75% for the full-year, and lower bandwidth costs, i.e., I talked about the AWS contract, and so we're offsetting it there. That's how we're able to do that. We're committed to find efficiency to be able to maintain that 75% gross margin. Karl, thanks for the question. karl thanks for the question You're absolutely right. you're absolutely right Our AI products have a lower gross margin than our core platform. our ai products have a lower gross margin than our core platform The one thing that we want to do with our AI products when we launch a new product like CoCo is make sure that we develop a great product, that we get massive adoption, and we've seen really good adoption with CoCo. the one thing that we want to do with our ai products when we launch a new product like coco is make sure that we develop a great product that we get massive adoption and we've seen really good adoption with coco We're up to roughly about a little over 7,000 accounts have adopted CoCo. we're up to roughly about a little over 7,000 accounts have adopted coco With that said, we're offsetting that and keeping the same product gross margin at 75% for the full-year, and lower bandwidth costs, i.e., I talked about the AWS contract, and so we're offsetting it there. with that said we're offsetting that and keeping the same product gross margin at 75% for the full-year and lower bandwidth costs i.e i talked about the aws contract and so we're offsetting it there That's how we're able to do that. that's how we're able to do that We're committed to find efficiency to be able to maintain that 75% gross margin. we're committed to find efficiency to be able to maintain that 75% gross margin

Speaker 6: Okay, great. Congratulations to both of you. Okay, great. okay great Congratulations to both of you. congratulations to both of you

Speaker 4: Thank you, Karl. Thank you, Karl. thank you karl

Speaker 11: We'll take the next question. We'll take the next question. we'll take the next question

Speaker 12: Hey, Raimo Lenschow from Barclays. Congrats from me as well. That's an amazing quarter. The question I had is more for Brian. Brian, if you think about the last couple of quarters you've been telling us about the beat cadence that you think about, obviously this quarter, you beat by much more, and CoCo is helping there. It's also a consumption model. How do you think about this going forward, and how should we think about the guidance philosophy that you have there? Maybe you can help us there. Congrats from me as well. Amazing quarter. Hey, Raimo Lenschow from Barclays. hey raimo lenschow from barclays Congrats from me as well. congrats from me as well That's an amazing quarter. that's an amazing quarter The question I had is more for Brian. the question i had is more for brian Brian, if you think about the last couple of quarters you've been telling us about the beat cadence that you think about, obviously this quarter, you beat by much more, and CoCo is helping there. brian if you think about the last couple of quarters you've been telling us about the beat cadence that you think about obviously this quarter you beat by much more and coco is helping there It's also a consumption model. it's also a consumption model How do you think about this going forward, and how should we think about the guidance philosophy that you have there? how do you think about this going forward and how should we think about the guidance philosophy that you have there Maybe you can help us there. maybe you can help us there Congrats from me as well. congrats from me as well Amazing quarter. amazing quarter

Speaker 4: Thank you. Let me emphasize that there's been no change in guidance philosophy, and we view a 3% beat as a very solid beat. The difference that happened this quarter was CoCo was launched in the quarter, and we base guidance on observed behavior, and so we didn't have any observed behavior for guidance for CoCo. We had a unique opportunity now, since we've been able to watch it for a quarter, to layer that in now for the full-year, and that's what we've done. Then we also saw the acceleration in the core, and we've included that for the full-year based on what we've seen. Thank you. thank you Let me emphasize that there's been no change in guidance philosophy, and we view a 3% beat as a very solid beat. let me emphasize that there's been no change in guidance philosophy and we view a 3% beat as a very solid beat The difference that happened this quarter was CoCo was launched in the quarter, and we base guidance on observed behavior, and so we didn't have any observed behavior for guidance for CoCo . the difference that happened this quarter was coco was launched in the quarter and we base guidance on observed behavior and so we didn't have any observed behavior for guidance for coco We had a unique opportunity now, since we've been able to watch it for a quarter, to layer that in now for the full-year, and that's what we've done. we had a unique opportunity now since we've been able to watch it for a quarter to layer that in now for the full-year and that's what we've done Then we also saw the acceleration in the core, and we've included that for the full-year based on what we've seen. then we also saw the acceleration in the core and we've included that for the full-year based on what we've seen

Speaker 12: Okay, perfect. Makes sense. Thank you. Okay, perfect. okay perfect Makes sense. makes sense Thank you. thank you

Speaker 4: Thank you. Thank you. thank you

Speaker 11: We'll take the next question. We'll take the next question. we'll take the next question

Speaker 10: Hi there. This is Matt Hedberg from RBC. Congrats from me as well. I had a question. There's been a lot of talk, especially from an autonomous AI agent perspective, the importance of context engineering and harness engineering, and Sridhar, you mentioned that in your prepared remarks. I guess I'm wondering, what role does Snowflake have in that, and how do we think about that from a moat perspective from some of the AI labs? Hi there. hi there This is Matt Hedberg from RBC. this is matt hedberg from rbc Congrats from me as well. congrats from me as well I had a question. i had a question There's been a lot of talk, especially from an autonomous AI agent perspective, the importance of context engineering and harness engineering, and Sridhar, you mentioned that in your prepared remarks. there's been a lot of talk especially from an autonomous ai agent perspective the importance of context engineering and harness engineering and sridhar you mentioned that in your prepared remarks I guess I'm wondering, what role does Snowflake have in that, and how do we think about that from a moat perspective from some of the AI labs? i guess i'm wondering what role does snowflake have in that and how do we think about that from a moat perspective from some of the ai labs

Speaker 14: Yeah. The data that is stored in Snowflake is among the most valuable pieces of data for a particular company. It's called the gold layer, and typically has the most important information. At Snowflake, for example, all of our revenue information, our consumption information, and information about the different departments are all kept in Snowflake. On top of that, the dashboarding platforms that are written on top of Snowflake have an amount of additional context as well, and we see what they do. Our ability to provide context to AI is exceptional. We are also busy creating products that can use this to make the act of getting value from AI even faster. I talked earlier about how we have workflow automation for the entire life cycle of creating an agent. We want to do more than that. Yeah. yeah The data that is stored in Snowflake is among the most valuable pieces of data for a particular company. the data that is stored in snowflake is among the most valuable pieces of data for a particular company It's called the gold layer, and typically has the most important information. it's called the gold layer and typically has the most important information At Snowflake, for example, all of our revenue information, our consumption information, and information about the different departments are all kept in Snowflake. at snowflake for example all of our revenue information our consumption information and information about the different departments are all kept in snowflake On top of that, the dashboarding platforms that are written on top of Snowflake have an amount of additional context as well, and we see what they do. on top of that the dashboarding platforms that are written on top of snowflake have an amount of additional context as well and we see what they do Our ability to provide context to AI is exceptional. our ability to provide context to ai is exceptional We are also busy creating products that can use this to make the act of getting value from AI even faster. we are also busy creating products that can use this to make the act of getting value from ai even faster I talked earlier about how we have workflow automation for the entire life cycle of creating an agent. i talked earlier about how we have workflow automation for the entire life cycle of creating an agent We want to do more than that. we want to do more than that We want CoCo to be the place where it is fastest to get value from the data investments that you have made, and Christian's working on a key effort on this side as well. Christian, you want to add additional context? We want CoCo to be the place where it is fastest to get value from the data investments that you have made, and Christian's working on a key effort on this side as well. we want coco to be the place where it is fastest to get value from the data investments that you have made and christian's working on a key effort on this side as well Christian, you want to add additional context? christian you want to add additional context

Speaker 5: Yeah. Briefly, Matt, I think your question is insightful. We have a track record of using metadata and activity inside of Snowflake to drive better results. Oftentimes, it used to be query optimization and performance, and we are now using that same type of signal and activity in Snowflake to provide better context to AI. We will be showcasing at Snowflake Summit some of the differences of how out-of-the-box results are better with CoCo and Snowflake Intelligence as opposed to other agents. Yeah. yeah Briefly, Matt, I think your question is insightful. briefly matt i think your question is insightful We have a track record of using metadata and activity inside of Snowflake to drive better results. we have a track record of using metadata and activity inside of snowflake to drive better results Oftentimes, it used to be query optimization and performance, and we are now using that same type of signal and activity in Snowflake to provide better context to AI. oftentimes it used to be query optimization and performance and we are now using that same type of signal and activity in snowflake to provide better context to ai We will be showcasing at Snowflake Summit some of the differences of how out-of-the-box results are better with CoCo and Snowflake Intelligence as opposed to other agents. we will be showcasing at snowflake summit some of the differences of how out-of-the-box results are better with coco and snowflake intelligence as opposed to other agents

Speaker 14: This also points to the overall strategic value of Cortex Code, because if a number of data users from within an enterprise are using these agentic coding platforms in order to create end-user products, it could be skills, it could be dashboards, it could be agents. We also then have the ability to essentially learn across these. We have created memory concepts, where use of these products within Snowflake makes Cortex Code itself much better for future use. That is part of the flywheel effect that one gets from having great agentic coding products. This also points to the overall strategic value of Cortex Code, because if a number of data users from within an enterprise are using these agentic coding platforms in order to create end-user products, it could be skills, it could be dashboards, it could be agents. this also points to the overall strategic value of cortex code because if a number of data users from within an enterprise are using these agentic coding platforms in order to create end-user products it could be skills it could be dashboards it could be agents We also then have the ability to essentially learn across these. we also then have the ability to essentially learn across these We have created memory concepts, where use of these products within Snowflake makes Cortex Code itself much better for future use. we have created memory concepts where use of these products within snowflake makes cortex code itself much better for future use That is part of the flywheel effect that one gets from having great agentic coding products. that is part of the flywheel effect that one gets from having great agentic coding products

Speaker 11: Moving on to another question. Moving on to another question. moving on to another question

Speaker 3: Hi, it's Brent Thill at Jefferies. Sridhar, just on the sales and marketing side, if you just back out Observe, you didn't have a really big S&M hiring quarter, and I'm just curious, based on the demand and everything you're seeing, why not lean a little harder into the go-to-market side? Maybe you are behind the scenes, and I think this maybe also ties into the transformation that took place in the quarter with the new head of sales. Maybe if you could just tie it all together in a go-to-market view from your perspective, that'd be great. Thanks. Hi, it's Brent Thill at Jefferies. hi it's brent thill at jefferies Sridhar, just on the sales and marketing side, if you just back out Observe, you didn't have a really big S&M hiring quarter, and I'm just curious, based on the demand and everything you're seeing, why not lean a little harder into the go-to-market side? sridhar just on the sales and marketing side if you just back out observe you didn't have a really big s&m hiring quarter and i'm just curious based on the demand and everything you're seeing why not lean a little harder into the go-to-market side Maybe you are behind the scenes, and I think this maybe also ties into the transformation that took place in the quarter with the new head of sales. maybe you are behind the scenes and i think this maybe also ties into the transformation that took place in the quarter with the new head of sales Maybe if you could just tie it all together in a go-to-market view from your perspective, that'd be great. maybe if you could just tie it all together in a go-to-market view from your perspective that'd be great Thanks. thanks

Speaker 14: I think part of what we need to understand right now is that there are many, many places in which AI is making Snowflake a lot more efficient. I talked in my prepared remarks about how we have greatly increased the number of use cases that we have won, which is primarily an account executive-driven activity. We've also had significant increases in individual productivity year on year. This is because of AI, their ability to learn faster, pitch products that are more relevant to their customers, and also have solution engineers create prototypes that are directly relevant and in the context of the customer. As an organization, we are just becoming a lot more effective. We will continue to invest in all of the key functions that are responsible for driving Snowflake forward. This applies to engineering, this applies also on the sales and solution engineering side. I think part of what we need to understand right now is that there are many, many places in which AI is making Snowflake a lot more efficient. i think part of what we need to understand right now is that there are many many places in which ai is making snowflake a lot more efficient I talked in my prepared remarks about how we have greatly increased the number of use cases that we have won, which is primarily an account executive-driven activity. i talked in my prepared remarks about how we have greatly increased the number of use cases that we have won which is primarily an account executive-driven activity We've also had significant increases in individual productivity year on year. we've also had significant increases in individual productivity year on year This is because of AI, their ability to learn faster, pitch products that are more relevant to their customers, and also have solution engineers create prototypes that are directly relevant and in the context of the customer. this is because of ai their ability to learn faster pitch products that are more relevant to their customers and also have solution engineers create prototypes that are directly relevant and in the context of the customer As an organization, we are just becoming a lot more effective. as an organization we are just becoming a lot more effective We will continue to invest in all of the key functions that are responsible for driving Snowflake forward. we will continue to invest in all of the key functions that are responsible for driving snowflake forward This applies to engineering, this applies also on the sales and solution engineering side. this applies to engineering this applies also on the sales and solution engineering side It is counterbalanced by the large amount of efficiencies that we are getting in a number of other functions that are very amenable to AI automation, like support, like SRE, like technical documentation. Basically, a lot of information functions and information exchange functions have gotten a whole lot easier, and this is also where teams are being very, very effective in deploying things like CoCo and Snowflake Intelligence for these kinds of use cases. We will absolutely continue to invest wherever we get strong leverage. It is counterbalanced by the large amount of efficiencies that we are getting in a number of other functions that are very amenable to AI automation, like support, like SRE, like technical documentation. it is counterbalanced by the large amount of efficiencies that we are getting in a number of other functions that are very amenable to ai automation like support like sre like technical documentation Basically, a lot of information functions and information exchange functions have gotten a whole lot easier, and this is also where teams are being very, very effective in deploying things like CoCo and Snowflake Intelligence for these kinds of use cases. basically a lot of information functions and information exchange functions have gotten a whole lot easier and this is also where teams are being very very effective in deploying things like coco and snowflake intelligence for these kinds of use cases We will absolutely continue to invest wherever we get strong leverage. we will absolutely continue to invest wherever we get strong leverage

Speaker 3: Thank you. Thank you. thank you

Speaker 11: We'll take the next question. We'll take the next question. we'll take the next question

Speaker 1: Hey, guys. Alex Zukin from Wolfe Research. Congrats on an amazing quarter, and thanks for taking the question. Sridhar, maybe for you, actually, both of them probably for you. If you think about the profile of a customer a year ago versus now, a customer that's using Cortex Code, what are you seeing in terms of the uplift on spend? With the acquisition of Natoma that you announced. It seems to me that Cortex Code was just the beginning. Maybe it's the first agent that you're going to launch, and you're not stopping there. Maybe there's a number of other ones that are coming. Maybe just help us think about how that changes the potential spend profile of a customer over time. Hey, guys. hey guys Alex Zukin from Wolfe Research. alex zukin from wolfe research Congrats on an amazing quarter, and thanks for taking the question. congrats on an amazing quarter and thanks for taking the question Sridhar, maybe for you, actually, both of them probably for you. sridhar maybe for you actually both of them probably for you If you think about the profile of a customer a year ago versus now, a customer that's using Cortex Code, what are you seeing in terms of the uplift on spend? if you think about the profile of a customer a year ago versus now a customer that's using cortex code what are you seeing in terms of the uplift on spend With the acquisition of Natoma that you announced. It seems to me that Cortex Code was just the beginning. with the acquisition of natoma that you announced. it seems to me that cortex code was just the beginning Maybe it's the first agent that you're going to launch, and you're not stopping there. maybe it's the first agent that you're going to launch and you're not stopping there Maybe there's a number of other ones that are coming. maybe there's a number of other ones that are coming Maybe just help us think about how that changes the potential spend profile of a customer over time. maybe just help us think about how that changes the potential spend profile of a customer over time

Speaker 14: Among the biggest impact that products like CoCo have with our customers is simply one that of expectation. I talked, again, in my remarks about how we did a two-year Teradata migration. We are engaged in more migrations, but the timelines for doing those now run between a quarter and two quarters. Why both my team and the customer expects and demands that. We have the ability to deliver against that. I think both the impatience and hunger for what people can do with data, along with the expectation for how quickly we can get them done, I would say that's a huge sea change. Christian? Among the biggest impact that products like CoCo have with our customers is simply one that of expectation. among the biggest impact that products like coco have with our customers is simply one that of expectation I talked, again, in my remarks about how we did a two-year Teradata migration. i talked again in my remarks about how we did a two-year teradata migration We are engaged in more migrations, but the timelines for doing those now run between a quarter and two quarters. we are engaged in more migrations but the timelines for doing those now run between a quarter and two quarters Why both my team and the customer expects and demands that. why both my team and the customer expects and demands that We have the ability to deliver against that. we have the ability to deliver against that I think both the impatience and hunger for what people can do with data, along with the expectation for how quickly we can get them done, I would say that's a huge sea change. i think both the impatience and hunger for what people can do with data along with the expectation for how quickly we can get them done i would say that's a huge sea change Christian? christian

Speaker 5: No, align with what you're saying, Sridhar. There's a massive backlog- No, align with what you're saying, Sridhar. no align with what you're saying sridhar There's a massive backlog- there's a massive backlog-

Speaker 14: Right. Right. right

Speaker 5: Of what customers want to do. Just helping them do it faster just says they get to the next set of work sooner. Of what customers want to do. of what customers want to do Just helping them do it faster just says they get to the next set of work sooner. just helping them do it faster just says they get to the next set of work sooner

Speaker 14: That's right. Even our own data teams, for example, typically had backlogs that ran into multiple years. In fact, the standard request, all of you know this, it's sort of funny, but not. If you had a request of a data team, their answer usually is, "That's nice. Take a ticket and wait." We are now in a situation where they can actually crank through that backlog just a whole lot more quickly, unlocking values. To go back to the question about Natoma and its importance and coding agents, it is important to understand that Snowflake Intelligence and Cortex Code are built on the same underlying technology with just different tools, having different capabilities that are exposed to end users. They use the Model Garden underneath that powers all of these models. They share what's called the harness. That's right. that's right Even our own data teams, for example, typically had backlogs that ran into multiple years. even our own data teams for example typically had backlogs that ran into multiple years In fact, the standard request, all of you know this, it's sort of funny, but not. in fact the standard request all of you know this it's sort of funny but not If you had a request of a data team, their answer usually is, "That's nice. if you had a request of a data team their answer usually is "that's nice Take a ticket and wait." We are now in a situation where they can actually crank through that backlog just a whole lot more quickly, unlocking values. take a ticket and wait." we are now in a situation where they can actually crank through that backlog just a whole lot more quickly unlocking values To go back to the question about Natoma and its importance and coding agents, it is important to understand that Snowflake Intelligence and Cortex Code are built on the same underlying technology with just different tools, having different capabilities that are exposed to end users. to go back to the question about natoma and its importance and coding agents it is important to understand that snowflake intelligence and cortex code are built on the same underlying technology with just different tools having different capabilities that are exposed to end users They use the Model Garden underneath that powers all of these models. they use the model garden underneath that powers all of these models They share what's called the harness. they share what's called the harness This is the one that is working on top of the model, deciding what tools to call. Increasingly, they are also going to be sharing the same runtime. We have a cloud runtime product that is in public preview. It means that all of the power that you expect from running CoCo locally can now be executed in the cloud in a governed manner, and I'm already running agents in this cloud agent platform. That ability to launch things, for example, autonomous agents, because you no longer need to have your laptop open for something to run, is pretty remarkable. It's all being built on the same infrastructure for the harness, for the runtime, as well as things like session memory. Cortex Code and Snowflake Intelligence are just two manifestations of the same product. This is the one that is working on top of the model, deciding what tools to call. this is the one that is working on top of the model deciding what tools to call Increasingly, they are also going to be sharing the same runtime. increasingly they are also going to be sharing the same runtime We have a cloud runtime product that is in public preview. we have a cloud runtime product that is in public preview It means that all of the power that you expect from running CoCo locally can now be executed in the cloud in a governed manner, and I'm already running agents in this cloud agent platform. it means that all of the power that you expect from running coco locally can now be executed in the cloud in a governed manner and i'm already running agents in this cloud agent platform That ability to launch things, for example, autonomous agents, because you no longer need to have your laptop open for something to run, is pretty remarkable. that ability to launch things for example autonomous agents because you no longer need to have your laptop open for something to run is pretty remarkable It's all being built on the same infrastructure for the harness, for the runtime, as well as things like session memory. it's all being built on the same infrastructure for the harness for the runtime as well as things like session memory Cortex Code and Snowflake Intelligence are just two manifestations of the same product. cortex code and snowflake intelligence are just two manifestations of the same product The reason MCP and Natoma are a big deal is they now bring the context entirety of SaaS application context into these products. I've run deep research reports, for example, that I've shown Christian, that can now look for information from Snowflake, from the web, from Google Docs, also from Slack, and synthesize that into something that is astoundingly meaningful. These also let you take action instantly. You can Slack somebody, you can compose emails, and send it, and you can take actions on the underlying applications. That's the promise. We basically have a builder version and an end-user version of these products. Obviously, the names make them sound more different than they are. That's something that we are working on. The amount of power and flexibility that these coding agent products offer is pretty remarkable. The reason MCP and Natoma are a big deal is they now bring the context entirety of SaaS application context into these products. the reason mcp and natoma are a big deal is they now bring the context entirety of saas application context into these products I've run deep research reports, for example, that I've shown Christian, that can now look for information from Snowflake, from the web, from Google Docs, also from Slack, and synthesize that into something that is astoundingly meaningful. i've run deep research reports for example that i've shown christian that can now look for information from snowflake from the web from google docs also from slack and synthesize that into something that is astoundingly meaningful These also let you take action instantly. these also let you take action instantly You can Slack somebody, you can compose emails, and send it, and you can take actions on the underlying applications. you can slack somebody you can compose emails and send it and you can take actions on the underlying applications That's the promise. that's the promise We basically have a builder version and an end-user version of these products. we basically have a builder version and an end-user version of these products Obviously, the names make them sound more different than they are. obviously the names make them sound more different than they are That's something that we are working on. that's something that we are working on The amount of power and flexibility that these coding agent products offer is pretty remarkable. the amount of power and flexibility that these coding agent products offer is pretty remarkable In my mind, the right analogy here is that a coding agent, yes, can write code, but at its core, it's an abstraction agent. It can let you do things at a high level that previously you sort of had to sequence out one by one. I think that's the power that comes from them. Christian? In my mind, the right analogy here is that a coding agent, yes, can write code, but at its core, it's an abstraction agent. in my mind the right analogy here is that a coding agent yes can write code but at its core it's an abstraction agent It can let you do things at a high level that previously you sort of had to sequence out one by one. it can let you do things at a high level that previously you sort of had to sequence out one by one I think that's the power that comes from them. i think that's the power that comes from them Christian? christian

Speaker 5: One other comment on Natoma, it's very important to highlight that it does that tool visibility with governance and auditability. One other comment on Natoma, it's very important to highlight that it does that tool visibility with governance and auditability. one other comment on natoma it's very important to highlight that it does that tool visibility with governance and auditability

Speaker 14: Okay. Okay. okay

Speaker 5: Our mission is to help every organization leverage AI in the context of the data, but with governance, with security, and trustworthiness, so that fits entirely into our mission. Our mission is to help every organization leverage AI in the context of the data, but with governance, with security, and trustworthiness, so that fits entirely into our mission. our mission is to help every organization leverage ai in the context of the data but with governance with security and trustworthiness so that fits entirely into our mission

Speaker 14: Okay. Okay. okay

Speaker 1: Excellent. Thank you, guys. Excellent. excellent Thank you, guys. thank you guys

Speaker 11: We'll take another question. We'll take another question. we'll take another question

Speaker 2: Great. Brad Reback, Stifel. Sridhar, with the success you're having here with CoCo and Snowflake Intelligence, is that fundamentally changing the competitive landscape when you're going into new customers? Are you now seeing LLMs more than some of the older competitors? Thanks. Great. great Brad Reback, Stifel. brad reback stifel Sridhar, with the success you're having here with CoCo and Snowflake Intelligence, is that fundamentally changing the competitive landscape when you're going into new customers? sridhar with the success you're having here with coco and snowflake intelligence is that fundamentally changing the competitive landscape when you're going into new customers Are you now seeing LLMs more than some of the older competitors? are you now seeing llms more than some of the older competitors Thanks. thanks

Speaker 14: We come with a unique value proposition. As you folks know, even in the world of data, the cloud service providers have had products. We have very successful partnerships with them. In fact, we just announced a $6 billion partnership with one of them. Our value prop has always been very clear. We are about customer choice. We are also about a certain amount of independence from the mechanics of the cloud providers. A Snowflake implementation works fine on AWS, but it can also work on Azure. We have similar, really good partnerships with the leading AI labs, both Anthropic and OpenAI. We collaborate very closely with them to create great AI products, but also to create safe AI products. Similarly, Cortex Code and Snowflake Intelligence provide model choice. We run fine on both the models. We come with a unique value proposition. we come with a unique value proposition As you folks know, even in the world of data, the cloud service providers have had products. as you folks know even in the world of data the cloud service providers have had products We have very successful partnerships with them. we have very successful partnerships with them In fact, we just announced a $6 billion partnership with one of them. in fact we just announced a $6 billion partnership with one of them Our value prop has always been very clear. our value prop has always been very clear We are about customer choice. We are also about a certain amount of independence from the mechanics of the cloud providers. we are about customer choice. we are also about a certain amount of independence from the mechanics of the cloud providers A Snowflake implementation works fine on AWS, but it can also work on Azure. a snowflake implementation works fine on aws but it can also work on azure We have similar, really good partnerships with the leading AI labs, both Anthropic and OpenAI. we have similar really good partnerships with the leading ai labs both anthropic and openai We collaborate very closely with them to create great AI products, but also to create safe AI products. we collaborate very closely with them to create great ai products but also to create safe ai products Similarly, Cortex Code and Snowflake Intelligence provide model choice. similarly cortex code and snowflake intelligence provide model choice We run fine on both the models. we run fine on both the models We also host a whole series of other models ourselves, and as things like open source models become more important, we always act on behalf of what is right for the customer, which I think positions us in very good stead with all our customers. We also host a whole series of other models ourselves, and as things like open source models become more important, we always act on behalf of what is right for the customer, which I think positions us in very good stead with all our customers. we also host a whole series of other models ourselves and as things like open source models become more important we always act on behalf of what is right for the customer which i think positions us in very good stead with all our customers

Speaker 4: I'll just add on to that. Just from a sales execution perspective within the quarter, the achievement was great in all geographies and all industry verticals. This was the most net new customer adds that we had in company history, it's just really a solid quarter all around. I'll just add on to that. i'll just add on to that Just from a sales execution perspective within the quarter, the achievement was great in all geographies and all industry verticals. just from a sales execution perspective within the quarter the achievement was great in all geographies and all industry verticals This was the most net new customer adds that we had in company history, it's just really a solid quarter all around. this was the most net new customer adds that we had in company history it's just really a solid quarter all around

Speaker 2: Thank you. Thank you. thank you

Speaker 11: We'll go ahead and take the next question. We'll go ahead and take the next question. we'll go ahead and take the next question

Speaker 9: Hi, this is Koji Ikeda from Bank of America. Thanks so much for taking the question. When I talk with partners and customers of Snowflake, I hear the same thing over and over again, "Snowflake is my trusted enterprise data and AI vendor with governance and security guardrails as key differentiators." I think about that a lot. The AI world is moving so fast, and assuming the competition out there gets better with all this, what makes you confident that Snowflake's position as a trusted enterprise data and AI partner is secure over the long term? Thank you. Hi, this is Koji Ikeda from Bank of America. hi this is koji ikeda from bank of america Thanks so much for taking the question. thanks so much for taking the question When I talk with partners and customers of Snowflake, I hear the same thing over and over again, "Snowflake is my trusted enterprise data and AI vendor with governance and security guardrails as key differentiators." I think about that a lot. when i talk with partners and customers of snowflake i hear the same thing over and over again "snowflake is my trusted enterprise data and ai vendor with governance and security guardrails as key differentiators." i think about that a lot The AI world is moving so fast, and assuming the competition out there gets better with all this, what makes you confident that Snowflake's position as a trusted enterprise data and AI partner is secure over the long term? the ai world is moving so fast and assuming the competition out there gets better with all this what makes you confident that snowflake's position as a trusted enterprise data and ai partner is secure over the long term Thank you. thank you

Speaker 14: Because there are a set of deep infrastructure capabilities that just take a lot of time to develop, whether it is role-based access control and row-level access control at massive scale, or world-class replication that provides for things like disaster recovery, amazing organization support, and there are dozens that I'm missing. Christian, you want to add some? Because there are a set of deep infrastructure capabilities that just take a lot of time to develop, whether it is role-based access control and row-level access control at massive scale, or world-class replication that provides for things like disaster recovery, amazing organization support, and there are dozens that I'm missing. because there are a set of deep infrastructure capabilities that just take a lot of time to develop whether it is role-based access control and row-level access control at massive scale or world-class replication that provides for things like disaster recovery amazing organization support and there are dozens that i'm missing Christian, you want to add some? christian you want to add some

Speaker 5: I think that piece on data masking, row-level policies, all of that governance, security configuration, identity, makes it such that customers have already configured Snowflake to have trusted access to the data. AI just amplifies that, as opposed to alternatives are just going to get them to reinvent the wheel and rebuild all of this, which doesn't make much sense. I think that piece on data masking, row- level policies, all of that governance, security configuration, identity, makes it such that customers have already configured Snowflake to have trusted access to the data. i think that piece on data masking row- level policies all of that governance security configuration identity makes it such that customers have already configured snowflake to have trusted access to the data AI just amplifies that, as opposed to alternatives are just going to get them to reinvent the wheel and rebuild all of this, which doesn't make much sense. ai just amplifies that as opposed to alternatives are just going to get them to reinvent the wheel and rebuild all of this which doesn't make much sense

Speaker 14: It's also important to understand that we are also not sitting still. Our ability to create products like Snowflake Intelligence and Cortex Code, but also all of the second-order effects. Imagine having autonomous agents that can automatically figure out if there are anomalies in your data, so that you don't have to be running those jobs outside. To be able to do governance, not with endless tedious sets of SQL statements that you write, but more with a policy that specifies that this is how you want your enterprise governance to be done, and we take care of all the details and the mechanics of running these things behind. Creating new classes of applications that sit on a substrate of Snowflake data powered by AI. These are all things that we make possible, and I think, honestly, that is also what we have to do. It's also important to understand that we are also not sitting still. it's also important to understand that we are also not sitting still Our ability to create products like Snowflake Intelligence and Cortex Code, but also all of the second-order effects. our ability to create products like snowflake intelligence and cortex code but also all of the second-order effects Imagine having autonomous agents that can automatically figure out if there are anomalies in your data, so that you don't have to be running those jobs outside. imagine having autonomous agents that can automatically figure out if there are anomalies in your data so that you don't have to be running those jobs outside To be able to do governance, not with endless tedious sets of SQL statements that you write, but more with a policy that specifies that this is how you want your enterprise governance to be done, and we take care of all the details and the mechanics of running these things behind. to be able to do governance not with endless tedious sets of sql statements that you write but more with a policy that specifies that this is how you want your enterprise governance to be done and we take care of all the details and the mechanics of running these things behind Creating new classes of applications that sit on a substrate of Snowflake data powered by AI. creating new classes of applications that sit on a substrate of snowflake data powered by ai These are all things that we make possible, and I think, honestly, that is also what we have to do. these are all things that we make possible and i think honestly that is also what we have to do Your core thesis, that people will be able to add these features or stitch them together, is true, but we are also developing great new capabilities at break-neck speed, also powered by AI. I think that is what it takes to succeed today. Your core thesis, that people will be able to add these features or stitch them together, is true, but we are also developing great new capabilities at break-neck speed, also powered by AI. your core thesis that people will be able to add these features or stitch them together is true but we are also developing great new capabilities at break-neck speed also powered by ai I think that is what it takes to succeed today. i think that is what it takes to succeed today

Speaker 5: Yeah, we have lots of new controls and policies we'll be showcasing next week. Yeah, we have lots of new controls and policies we'll be showcasing next week. yeah we have lots of new controls and policies we'll be showcasing next week

Speaker 14: Including amazing mechanisms to simplify them. Including amazing mechanisms to simplify them. including amazing mechanisms to simplify them

Speaker 11: Thank you. That does conclude the question and answer session. I'll now turn the conference back over to Snowflake for closing remarks. Thank you. thank you That does conclude the question and answer session. that does conclude the question and answer session I'll now turn the conference back over to Snowflake for closing remarks. i'll now turn the conference back over to snowflake for closing remarks

Speaker 14: Thank you, everyone. To recap, AI is accelerating consumption across our core platform, and our native AI products, Snowflake Intelligence and Cortex Code, are scaling rapidly, already contributing meaningfully to revenue in their own right. These AI capabilities are establishing Snowflake as the agentic control plane for the enterprise, connecting data, models, applications, and workflows in a trusted environment where intent becomes governed action. We are continuing to execute, accelerating growth, expanding margins, and deepening our customer relationships while winning many new ones. We believe that Snowflake is uniquely positioned to lead in the era of the agentic enterprise, and continue to see enormous opportunity ahead. AI is compounding Snowflake's advantage in data. Thank you, everyone. thank you everyone To recap, AI is accelerating consumption across our core platform, and our native AI products, Snowflake Intelligence and Cortex Code, are scaling rapidly, already contributing meaningfully to revenue in their own right. to recap ai is accelerating consumption across our core platform and our native ai products snowflake intelligence and cortex code are scaling rapidly already contributing meaningfully to revenue in their own right These AI capabilities are establishing Snowflake as the agentic control plane for the enterprise, connecting data, models, applications, and workflows in a trusted environment where intent becomes governed action. these ai capabilities are establishing snowflake as the agentic control plane for the enterprise connecting data models applications and workflows in a trusted environment where intent becomes governed action We are continuing to execute, accelerating growth, expanding margins, and deepening our customer relationships while winning many new ones. we are continuing to execute accelerating growth expanding margins and deepening our customer relationships while winning many new ones We believe that Snowflake is uniquely positioned to lead in the era of the agentic enterprise, and continue to see enormous opportunity ahead. we believe that snowflake is uniquely positioned to lead in the era of the agentic enterprise and continue to see enormous opportunity ahead AI is compounding Snowflake's advantage in data. ai is compounding snowflake's advantage in data

Speaker 11: Thank you. That does conclude today's conference. We do thank you for your participation, and have an excellent day. Thank you. thank you That does conclude today's conference. that does conclude today's conference We do thank you for your participation, and have an excellent day. we do thank you for your participation and have an excellent day