Mike Scarpelli: Well, as I said, the more recent adopters of the platform we definitely see them ramping slower. They’re taking longer in terms of they’re not growing euphorically like some of the earlier ones. And I really do think that is a factor of — it could be the macro that they want to conserve. It could be that they’re depending on the customer, that they’re being more efficient in how they roll Snowflake out as there’s a bigger population of people who have been using Snowflake in the market. And it’s also a factor that a lot of the new customers that we’re signing up aren’t necessarily these venture-backed start-ups that have unlimited capital. They tend to be more of these mature companies that have always been disciplined on their spending.
So it really does vary. In terms of seasonality, we just guided for the quarter, you can see what we we guided. We guided 44% to 45% growth in Q1 and guided 40% to the year. I’m not going to give you the quarterly guidance for the other quarters because we’ll give you Q2 after Q1 is finished as we’ve always done.
Operator: Now turning to Sterling Auty from SVB. Your line is open.
Sterling Auty: Mike, you gave a couple of reasons for the slower growth in the newer customers. But I’m also wondering are new customers reducing the number of use cases initially? And if so, what are the use cases that you see them ramping with first? And what things maybe are they putting on hold?
Mike Scarpelli: There is no reduction in use cases. The use cases continue to expand. What are the most common use cases? It really depends. Migrations are a big one and on-prem, but it’s an on-prem data warehouse, a lot of them. Some of them, though, are still — we’re still replacing some of those first-generation cloud data warehouses, I think, Redshift and things like that. I really haven’t seen any slowdown in use cases. The average deal sizes remain relatively the same, hasn’t changed.
Operator: We now turn to Kamil Mielczarek from William Blair. Your line is open.
Kamil Mielczarek: Your free cash flow margin reached your long-term target of 25%. Can you provide a little more color around how you think about that shorter-term cash flow decision to balance margin and revenue growth? And assuming the macro environment improves later this year in fiscal ’25, how do you think about bringing down margins to reaccelerate revenue?
Mike Scarpelli: Free cash flow margin is not directly related to our growth. Our growth is more on the expense side and looking at productivity, and will not grow our revenue faster unless we see productivity increase in the sales organization. And when we see that increase in productivity, we’ll add more heads there, and we think we’re adding at the appropriate pace based on what we’re seeing in the business today. As I said, where most companies are cutting, we added 1,900 people last year, net, and we will add over 1,000 people this year while still generating improvement in operating margin and having very good free cash flow next year again.
Kamil Mielczarek: That’s helpful. And a quick follow-up. I realize it’s still early, but can you provide some detail around the traction you’re seeing with the Unistore product and how you expect that piece of the platform to evolve for the next few years?
Christian Kleinerman: Yes. This is Christian. It is, as you say, still very early on. We’re selling in private preview with tens of customers validating a ring us feedback. We received quite positive feedback and encouragement, but it’s early for us to have any meaningful rollout for adoption.
Operator: We now turn to Fred Lee from Credit Suisse. Your line is open.
