Dan

Dan asked Sridhar Ramaswamy to frame the impact of migrations on product revenue this quarter compared to the previous quarter, and to comment on the sustainability and visibility of this momentum. He also asked Brian Robbins about the Q4 operating margin guidance, noting it was lower than Q3 and implied in the prior quarter's guidance.

Answer

Sridhar Ramaswamy, CEO, indicated that Snowflake is 'super early' in legacy migrations, with AI acting as both a 'pull' (increasing data value) and a 'push' (accelerating migration processes), aided by acquisitions like Datometry. Brian Robbins, CFO, advised against over-interpreting the Q4 operating margin guidance, as it is provided concurrently with the annual guidance.

The analyst, speaking on behalf of Yi, inquired about the projected number of GMP manufacturing customers by the end of 2024, the pipeline beyond the currently disclosed customers, the expected test volume for the TR8 pharmacogenomic service, and plans for expansion into other states.

Answer

The company clarified that since the GMP facility launches at the end of fiscal 2024, the first GMP manufacturing runs are expected in early calendar 2025, with verbal commitments for about half of the capacity already secured. For the TR8 PGx service, they are initially targeting the concierge physician market in New York to build volume before pursuing larger enterprise contracts in H1 2025. They are also completing registration to sell in 47 additional states, which does not require the same lengthy validation process as New York.

Asked about future combination strategies, timing of the interim data, expectations for the NET program, peak sales potential for FYARRO, and historical trial data.

Answer

The company stated it's too early to discuss future combinations, the data is expected "later in Q3", they hope to see better ORR in the NET trial than historical mTORs, FYARRO growth will be incremental in a very rare indication, and provided details on historical trial data.