Sridhar Ramaswamy: Yeah. And just adding on to what Frank said just now, our short-term goals are very clear. As I said, we have a slew of product enhancements and everything from like transactional systems like Unistore, to interoperable storage, to making applications on top of our data cloud possible with native applications and container services and, of course, AI on top of that. So, I think the short term and the need to react pretty quickly to a very quick silver AI landscape is what I’m going to be focused on. But I would almost say that, that actually translates pretty well into a longer-term strategy. Our belief is that a cloud that starts with data at the center combined with our product philosophy of creating a tightly integrated, easy-to-use product is the long-term winning strategy.
Yes, there are going to be details that are different about which are the applications that we are going to be developing, what are ones that we are going to be doing in partnership, but that combination of the data cloud applications built on top of it with AI as an orchestrator is actually a pretty solid long-term strategy as well. Of course, as I said, we have to be adaptive because the world of AI and its capabilities are changing by the month. And so, we have to be receptive to that kind of change. But I feel very good about the path that we have set out for ourselves in how effective it’s going to be both in the short term and the long term.
Patrick Colville: Prefect. Thank you, Frank and Sridhar. Mike, can I just — one quick one for you. You gave the guidance about 3 points of product revenue will be from Snowpark in 1Q. Thanks for that color.
Mike Scarpelli: For the year.
Patrick Colville: I guess my question…
Mike Scarpelli: For the year.
Patrick Colville: For the year, okay. Fiscal ’25, okay. When might Snowpark hockey stick? It’s been a product you guys have been talking about and invested pretty heavily in. It’s seen terrific momentum. But can we expect the hockey stick at some point?
Mike Scarpelli: Anything is possible. What I would say is we did about mid-$30 million in revenue, I think $35 million, $36 million in revenue last year associated with Snowpark. Clearly, what I’m saying 3% is going to be just under $100 million, $95 million or so this year. I think that is pretty phenomenal growth. And if we can get it to grow faster, we obviously will.
Patrick Colville: All right, keep up the good work. Thank you.
Operator: Thank you. Our next question comes from Brad Sills of Bank of America. Brad, your line is now open. Please go ahead.
Unidentified Analyst: Hi. Thank you for taking the question. This is Carly on for Brad. I guess, first question, just wanted to ask on your guide for the full year. Fiscal year ’25, I think you assumed a number of large customers going to adopt Iceberg Table. So, some expectation on data moving out of Snowflake losing some storage revenue and some compute revenue there. Can you just double-click on that why some of the existing large customers are going to choose Iceberg Table rather than their original?
Mike Scarpelli: A lot of big customers want to have open file formats, to give them the options. And by the way, this is not necessarily customers moving all of their storage out of Snowflake, but a lot of the growth in their storage will be put into Iceberg Tables is what we think is going to happen. So, you’re just not going to see the growth associated with the storage in many of those customers. As a reminder, about 10% to 11% of our overall revenue is associated with storage.
Unidentified Analyst: Got it. Okay. And then, just a follow-up on — I guess, on the — it’s like encouraging to know 3% of the contribution will be from Snowpark. And then, at the same time, you guys are expecting some headwinds from Iceberg and also the tiered storage pricing. Can you just quantify for us what’s like headwinds for the storage pricing in the Iceberg Table for the fiscal — for the full year?
Mike Scarpelli: Well, it’s built into our guidance. I’m not going to break them out all separately. I would say the performance improvements, which have nothing to do with that, around 6.2%, 6.3%.
Unidentified Analyst: Got it. Okay. And then, I think you said the consumption is going to be like similar to fiscal year ’24.
Mike Scarpelli: We’re forecasting consumption patterns similar to what we saw in ’24.
Unidentified Analyst: Okay. Thank you.
Operator: Thank you. Our next question comes from Matt Hedberg of RBC. Your line is now open. Please go ahead.
Matt Hedberg: Great. Thanks for taking my questions, guys. I guess following up on the Snowpark conversation, it feels like $35 million going to $100 million is, like you said, Mike, that is good growth. Could you talk a little bit more about sort of what the customer feedback has been? It feels like pipeline, it’s like every check you do, Snowpark is in the conversation. So maybe just double-click on what that customer feedback has been and how encouraged you are with the pipeline growth there?
Christian Kleinerman: Yeah, hi. Christian here. The feedback has been very strongly positive. What we hear more often is better economics and better performance, but probably more important, more simplicity into how data doesn’t have to be moved between systems and it’s just an integrated solution. Some of the enhancements that you see apply not only to data engineering, but also to traditional machine learning, which we see an increasing number of use cases also being deployed. So, the sentiment is very positive.
Matt Hedberg: Got it. Thanks. And Mike, maybe just one other, just to double-click on the guidance philosophy. You said consumption patterns from ’24 is what influencing your ’25 guidance. I’m curious — and it feels like consumption has improved as ’24 progressed. Are you sort of weighting it more towards like what you saw in the first half of the year or more sort of like some of the better trends you saw in the second half? Or just maybe double-clicking on a little bit on kind of what those fiscal ’24 assumptions, because it feels like things have gotten better as the year progressed?
Mike Scarpelli: I would say it’s more the average of ’24, which we saw stability happen in our customer base. I’m not forecasting any type of recovery inside there.
Matt Hedberg: Got it. Thanks, guys.
Operator: Thank you. Our next question comes from Tyler Radke of Citi. Your line is now open. Please go ahead.
Tyler Radke: Yeah, thanks for taking the question. And I want to direct this question at Sridhar, maybe Christian can jump in. But just as we think about the product roadmap for FY ’25, you talked a little about Unistore, Container Services, Cortex. Can you just put an update on when you expect these products to go GA? What you’re seeing in terms of customer momentum? Any customer statistics you can call out? And then, how do you just kind of think about the maturity of these products, Sridhar, now that you’ve had time to look at the progress of these? Are you still expecting these to be contributors by year-end? Thank you.
Sridhar Ramaswamy: I’ll give a brief initial answer and then have Christian take over from there. One of the things that the Snowflake team is very, very good at doing is making sure that everything that we ship is tightly integrated with everything else. There’s just fluid interoperability between our various features, and that is also rock solid. I think that culture of integrated and well-built features is a hallmark of Snowflake. Of course, in areas like AI, which is moving at lightning speed, we want a stable infrastructure, but we also need to be flexible enough, whether it’s new models that we put inside Cortex or other functionality that we need to develop on top of it. But a lot of the core investments that the team has made to allow for this kind of extensibility is what is coming in handy for us in terms of being able to ship things with speed. I’ll hand it off to Christian to talk about when he expects different things to hit GA. Christian?
Christian Kleinerman: Yeah. So, as both Sridhar and Mike mentioned, we expect a number of meaningful GA milestones this fiscal year, starting with generative AI, Cortex will be in public preview very soon, and we expect it to be generally available on and around the Summit’s timeframe. And as Sridhar said, we expect all sorts of interesting use cases of generative AI coming to the data and preserving privacy and security. Snowpark Container Services is already in public preview in AWS, and we expect it to be generally available in that same timeframe, give or take a couple of months from Summit. And is the ultimate extensibility capability for bringing computation into Snowflake. Iceberg Tables is already on public preview across all three clouds, and will be generally available again, also in the Data Cloud Summit timeframe.
Unistore, which enables combining transactional and analytical capabilities in single applications went very recently into public preview in AWS and will be generally available in the second half of the year. And Native Apps, which is how we accelerate time to value for both partners and customers is clearly GA on AWS and Azure, and we’re continuing to round up the enhancement. So, this is imminent, and we expect a strong showing of product capabilities at the Data Cloud Summit.
Tyler Radke: Great. Thanks. And a follow-up for Mike. Just in terms of what you’ve seen so far in February, and I know you’re taking about FY ’25 consumptions — assumptions consistent with a year ago. But have you seen February trends improve relative to January? Does February feel similar to February a year ago, or is it closer to the strong growth that you saw in consumption towards the end of last year?
Mike Scarpelli: Well, I just guided for February, well, for the quarter, and that reflects the consumption trends we’ve been seeing through yesterday. So, I would say it’s more in line with what we saw coming out last year throughout on average for the year.
Tyler Radke: Thank you.
Operator: Thank you. Our next question comes from Mike Cikos of Needham & Co. Your line is now open. Please go ahead.
Mike Cikos: Hey, thanks for getting me on here, guys. And I did just want to follow up. I guess one of the dominant messages from management, if I just go back a quarter ago, really seem to be the theme about the growing use of unstructured data by your customers. And I don’t know if it’s just my read here, but it feels like it’s a more muted message today. Maybe I’m missing something. But can you just put some finer points here as far as the trends that Snowflake is seeing specifically around unstructured data in Q4? And then, I did have a follow-up.
Christian Kleinerman: Christian here. The momentum that we shared in the last quarter has carried forward on to this quarter. So, there is no change in pace or interest. And if anything, the Document AI that Sridhar mentioned earlier in the call, where we have hundreds of customers lined up to be able to leverage this technology is all about extracting value and signal from unstructured documents. So, the fact that it was not mentioned is not anything that should be read into. It is still a topic of high interest among many of our customers.
Mike Cikos: Got it. And I know that you guys have these assumptions as well in the guidance around the potential headwinds from some of your larger customers adopting or moving data to Iceberg. Maybe to parse through that a little bit, can you talk about what you’ve seen thus far as far as customers’ behavior? Are they already doing this with Iceberg? Or is it just an assumption that you guys have? I’m trying to get a sense as far as the behavior customers have exhibited as well as how much you guys are peppering into your guidance today when we think about that headwind as well as the rollout of tiered storage?
Mike Scarpelli: Yeah. Iceberg is not GA yet. So, customers are not going to roll that into production until it’s GA, and we do think it will be a gradual process of if they’re going to move data out. But as soon as it’s GA, new data can go into Iceberg Table. And we don’t expect that to be GA until sometime around June timeframe.
Mike Cikos: Okay. And so, just to put a finer point on that though, the headwind we’re expecting from Iceberg, this is theoretical, you have not seen that behavior from customers just yet?
Mike Scarpelli: Correct. It is what we are expecting. I know the tiered — the new toward — tiered storage pricing that we rolled out we’re seeing that today. And I’ll let Christian add some to that as well, too.
Christian Kleinerman: Yeah. I would add that for many of our large customers, we have been in touch on their plans for adoption on Iceberg. So, some of what see in our guidance has factored in those intentions.
Mike Cikos: Terrific. Thank you.
Operator: Thank you. Our next question comes from Michael Turrin of Wells Fargo. Your line is now open. Please go ahead.
Michael Turrin: Hey, thanks. I appreciate you taking the question. Maybe one on hiring. I think you mentioned 1,000 net new heads you’re expecting to add in the coming year. How are you balancing, adding to R&D given all the new product efforts and AI interest with bringing on sales capacity if the market does start to turn? And on the FedRAMP High authorization, any commentary around that, what that could open up and if that’s an area of potential investment as well? Thank you.
Mike Scarpelli: I would say a lot of our expensive hiring is in the R&D area and it will continue to be more in the AI/ML space. These engineers are very expensive. With that said, we’re still adding in the sales organization. And if we see an uptick in new customers and consumption patterns with our customers, we can easily dial that up just like we’ve dialed back our hiring in the past. But we are not going to sacrifice on R&D.
Michael Turrin: Got it. Thanks.
Operator: Thank you. Our next question comes from Derrick Wood of TD Cowen. Your line is now open. Please go ahead.
Derrick Wood: Thanks. Mike, most other cloud consumption vendors are talking about stabilizing growth. You guys are still modeling pretty sharp deceleration over the next year. So, this certainly sticks out and may bring about questions on maybe company-specific challenges. So first, are there any notable customer or workload losses that could be weighing on growth this year? And generally, how are you feeling about sales productivity and competitive win rates in the current environment?
Mike Scarpelli: Absolutely no big competitive losses or workloads moving off that I’m aware of. This is all related to our model where a lot of the performance improvements that we have in our software go directly to the customer. And that’s why I was pointing out you saw there was a 62% year-over-year growth in jobs on a daily basis run on Snowflake versus only a 33% revenue growth. And we know there’s a lot of performance improvements coming into play this year, coupled with Iceberg, coupled with tiered storage pricing that we rolled out. And I was able to roll out the tiered storage pricing because we were getting much better pricing out of the cloud vendors to us.
Derrick Wood: Yeah. Okay. It would be interesting to kind of see what the growth rates on just the workloads related to compute is relative to the storage drag. Maybe that’s something you could give. But just how do you feel about ultimately kind of getting back to 30% growth longer term? And kind of what’s the top one or two critical things that need to take place to get you there?
Mike Scarpelli: I would say the biggest thing is the uptick in consumption associated with all the new enhancements we have in our product, in particular, what we could see coming out of Cortex, we could see coming out of Snowpark Container Services, and ultimately, what we could see in Native App development on our platform.
Derrick Wood: Okay. Thank you.
Operator: Thank you. Our next question comes from Gray Powell of BTIG. Your line is now open. Please go ahead.
Gray Powell: Okay. Great. Thank you for taking the question. I just had a quick follow-up on Snowpark. I think you called out Snowpark at a $70 million annual run rate one day back in December. I know that was sort of like a one-day statistic. But I’m just trying to think through that. I mean, the guide of 3% of revenue for fiscal ’25, that’s like $95 million, $100 million. I guess it just seems kind of conservative given that Snowpark was — or that consumption of Snowpark was growing 45% quarter-over-quarter last quarter. Just how should we think about the level of conservatism on that assumption within your guidance?
Mike Scarpelli: Well, what I’m saying is we’re guiding it to be 3% of product revenue this year, and you can infer what you want from the guidance.
Gray Powell: Well, all right then. Thank you very much.
Operator: Thank you. We will take no further questions for today. So, that concludes today’s conference call. Thank you all for joining. You may now disconnect your lines.
