Snowflake Inc. (NYSE:SNOW) Q4 2023 Earnings Call Transcript

Mike Scarpelli: No. As I said before, we factor in a 5% revenue headwind every year associated with both hardware and software improvements, and don’t see any material hardware improvements happening. This year, as of today, there are a number of software improvements that we’re constantly working on those. And so I feel pretty good about that 5%, as I mentioned. The Graviton2 deployments are all completed as of today. We didn’t quite get them all done last year. There were a number of them were finished in the first month of this quarter. And so didn’t quite have the full impact as we thought last year, but it’s really hard to tell, but it’s baked into our forecast for this year.

Unidentified Analyst: And then just one last one. I was just curious on the international, if there are any markets in particular that kind of drove the underperformance in international?

Mike Scarpelli: So EMEA actually had a good consumption. They were pretty much on plan from a consumption. They were a little slower on the booking side. And I think that’s more of a function of people being more cautious with uncertainty in their businesses. I would say, Japan is doing well for us, but they are very methodical and buy as they go. And I would say some of the other areas in Asia are a little bit slower, but Asia is such a small piece of our overall business. It’s really EMEA that was a little slower than what we would have thought from a bookings perspective and productivity.

Operator: Ladies and gentlemen, today’s call has now concluded. We’d like to thank you for your participation. You may now disconnect your lines.