Snowflake Inc. announced robust financial results for its third quarter of fiscal 2025, ended October 31, 2024, on November 20, 2024. The company reported total revenue of $942.1 million, marking a 28% year-over-year growth, with product revenue reaching $900.3 million, up 29% year-over-year. The net revenue retention rate stood at a healthy 127%, indicating strong customer consumption.
The company also raised its full-year fiscal 2025 product revenue guidance to $3.43 billion, representing 29% year-over-year growth, an increase from the $3.36 billion forecast three months prior. Non-GAAP operating income was $58.9 million, achieving a 6% margin, while adjusted free cash flow reached $86.8 million, or 9% of revenue. These figures demonstrate strong operational efficiency and financial momentum.
In a significant strategic move, Snowflake announced a multi-year partnership with Anthropic, an AI safety and research company. This collaboration will make Anthropic’s Claude 3.5 models available within Snowflake Cortex AI, enabling global enterprises to develop and scale AI products and workflows. Snowflake's agentic AI products, including Snowflake Intelligence and Cortex Analyst, will also leverage Claude models.
Further expanding its capabilities, Snowflake signed a definitive agreement to acquire Datavolo, an open data integration platform. This acquisition aims to enhance data engineering on Snowflake’s platform by simplifying unstructured data ingestion and management. Datavolo, powered by Apache NiFi, will form the basis of Snowflake’s open and extensible connectivity platform, supporting both structured and unstructured data flows.
Additionally, Snowflake completed a private offering of $2.3 billion aggregate principal amount of 0% convertible senior notes in September 2024, with maturities in 2027 and 2029. The net proceeds of approximately $2.27 billion were partially used to repurchase $399.6 million of common stock at $112.50 per share and to pay $195.5 million for capped call transactions. This financing strengthens the company's balance sheet and supports strategic investments.
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