Snowflake Inc.
Cloud Data Warehousing and Data CloudFounded 2012- Updated June 2025
Reviewed by Swet Parvadiya
Last reviewed: June 2025
CorpDigest
Snowflake Inc.
Financial Performance
Last reviewed: June 2025 · By Swet Parvadiya
Revenue
$3.63B
Market Cap
$55.0B
Employees
6,800
Free cash flow of $834 million in FY2025 on $3.626 billion in revenue represents a 23% free cash flow margin for a company that still reports GAAP net losses — a $396 million GAAP loss in FY2025. The divergence between GAAP profitability and cash generation is structural, driven by the stock-based compensation that is characteristic of high-growth enterprise software companies and is excluded from the cash flow calculation. The company is generating real cash; the GAAP loss reflects accounting treatment of equity compensation. Revenue growth has been consistent: $2.066 billion in FY2023, $2.898 billion in FY2024, $3.626 billion in FY2025 — compound growth of approximately 32% over two years. The 609 customers generating over $1 million in annual product revenue and 122 customers exceeding $10 million annually represent the enterprise depth that sustains this trajectory. Enterprise customers who have integrated Snowflake deeply into their data infrastructure have switching costs that grow each year as more data, more pipelines, and more internal tooling becomes dependent on the platform. Non-GAAP gross margin expanded to 72% in FY2025, with product gross margin at 71%. These figures reflect the operating leverage available in a software-defined infrastructure business that runs on commodity hyperscaler hardware — Snowflake does not own the compute or storage it resells, paying AWS, Azure, and GCP a wholesale rate and charging customers a marked-up consumption rate. As revenue scales over a largely fixed engineering and product cost base, the incremental dollar of revenue converts to margin at a high rate. Market capitalization of approximately $55 billion at the time of the last data represents a meaningful compression from the $120 billion peak reached shortly after the 2020 IPO. The current multiple of approximately 15x forward revenue reflects a market that is pricing Snowflake as a durable enterprise software franchise rather than the hyper-growth story that justified the IPO valuations.
Revenue Trend Analysis
YoY Change
+25.1%
2-Year CAGR
+32.5%
Peak Year
2025
Trend
Consistent Growth
Snowflake Inc. has reported revenue across 3 fiscal years, compounding at +32.5% annually over 2 years. The most recent year saw a 25.1% increase versus the prior year. Revenue peaked in 2025 at $3.6B. Out of 2 reported periods, 2 showed growth and 0 showed a decline.
| Fiscal Year | Revenue | YoY Change |
|---|---|---|
| FY2025 | $3.6B | +25.1% |
| FY2024 | $2.9B | +40.3% |
| FY2023 | $2.1B | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
Snowflake reported fiscal 2024 revenue, the year ending January 31, 2024, of approximately $2.81 billion, up 36 percent from $2.07 billion in fiscal 2023 and from $1.22 billion in fiscal 2022. Product revenue, the metric that excludes professional services and represents most of the top line, was approximately $2.67 billion in fiscal 2024. The company has guided to fiscal 2025 product revenue of approximately $3.4 billion, representing roughly 24 percent growth, a deceleration from prior years as the company scales and customer optimization efforts continue. Remaining performance obligations exceeded $5 billion at fiscal 2024 year end, providing visibility into future revenue. Net revenue retention, a key metric showing existing-customer expansion, was 131 percent for fiscal 2024 after running above 150 percent in prior years. The company added 196 new Global 2000 customers in fiscal 2024 to reach 736, and its customer count crossed 9,437 globally. Snowflake remains GAAP unprofitable due to substantial stock-based compensation, but generates positive non-GAAP operating margin and strong free cash flow.
Snowflake's profitability picture diverges sharply between GAAP and non-GAAP metrics. The company reported a GAAP net loss of approximately $836 million for fiscal 2024, with stock-based compensation of roughly $1.16 billion accounting for the bulk of the gap to operating cash flow. Non-GAAP operating margin reached approximately 8 percent for fiscal 2024. Free cash flow margin, defined as operating cash flow minus capital expenditures and capitalized internal-use software costs as a percentage of revenue, was approximately 29 percent for fiscal 2024, totaling around $810 million in adjusted free cash flow. The company has consistently generated more cash than GAAP earnings would suggest because of the consumption-prepay model in which customers commit and pay in advance for credits drawn over multi-year terms. Snowflake ended fiscal 2024 with approximately $5.0 billion in cash and short-term investments and minimal debt. The company has authorized a $2 billion share repurchase program to partially offset dilution from equity compensation and has announced incremental authorizations as cash flow has continued to expand.
Snowflake went public on September 16, 2020 at an IPO price of $120 per share, with shares opening near $245 and closing the first day at $253.93 for a market capitalization above $70 billion, the largest software IPO in US history. Shares peaked near $429 in November 2021, valuing the company above $120 billion at the height of pandemic-era growth-stock enthusiasm. The 2022 to 2023 rate-tightening cycle and slowing customer expansion brought the stock down sharply, dropping below $120 briefly in 2023 before recovering. Market capitalization has typically ranged between $50 billion and $80 billion in 2023 and 2024 at share prices roughly $150 to $250. The company has approximately 333 million shares outstanding. Snowflake was added to the S&P 500 in September 2024 following sustained profitability on adjusted metrics. Berkshire Hathaway, a notable IPO participant, has gradually reduced but retained much of its position, and major institutional holders include Vanguard, BlackRock, and several growth-focused mutual funds and hedge funds.
Snowflake's largest variable cost is third-party cloud infrastructure purchased from Amazon Web Services, Microsoft Azure, and Google Cloud Platform, where customer workloads physically run. Cost of revenue includes hyperscaler compute, storage, and networking, depreciation of on-cloud infrastructure investments, and personnel for cloud operations. The company has disclosed minimum cloud commitments exceeding $2.5 billion to AWS alone over multi-year terms, with similar long-term commitments to Azure and GCP. Gross margin has steadily expanded as scale brings volume discounts and as Snowflake has invested in performance optimization, with non-GAAP product gross margin reaching approximately 76 to 78 percent in fiscal 2024. Operating expenses are heavily weighted toward research and development, with around 45 percent of revenue spent on R&D in fiscal 2024 as the company built out Cortex AI, Snowpark, Native Apps, and Iceberg support, plus sales and marketing at roughly 40 percent of revenue. Stock-based compensation remains a major non-cash expense, totaling roughly $1.16 billion in fiscal 2024, representing roughly 41 percent of revenue.
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CorpDigest. "Snowflake Inc. Revenue & Financials." CorpDigest, https://corpdigest.com/company/snowflake/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>Snowflake Inc. reported $4B in revenue (FY2025).</strong><br>Source: <a href="https://corpdigest.com/company/snowflake/financials" target="_blank" rel="noopener">CorpDigest — Snowflake Inc. financials</a></div>