Q4 2024 Summary
Published Feb 18, 2025, 5:23 PM UTCInitial Price$144.79October 31, 2023
Final Price$195.64January 31, 2024
Price Change$50.85
% Change+35.12%
- Snowflake signed its largest deal ever in Q4, a 5-year $250 million contract with an existing customer, demonstrating strong customer commitment and pent-up demand for new products like Cortex and Snowpark container services.
- The company is experiencing significant underlying usage growth, with a 62% year-over-year increase in daily jobs run on the platform, indicating strong customer engagement and adoption, even as revenue growth is moderated by performance improvements that benefit customers.
- Snowflake anticipates future growth driven by increased customer consumption of new product enhancements, particularly from innovations like Cortex, Snowpark container services, and native app development on their platform.
- Snowflake is forecasting slower product revenue growth of 22% year-over-year for fiscal 2025, down from 38% growth in fiscal 2024. This deceleration is attributed to anticipated headwinds from product efficiency gains, tiered storage pricing, and expected customer adoption of Iceberg Tables, which may reduce revenue.
- Consumption patterns have improved but have not returned to pre-fiscal 2024 levels, and the company is forecasting consumption patterns similar to fiscal 2024. This suggests that customer usage has not fully rebounded, potentially impacting revenue growth.
- There is uncertainty regarding the revenue impact of new products like Snowpark and Cortex. While Snowflake expects Snowpark to contribute 3% of product revenue, some analysts view this guidance as conservative, and significant growth from these new offerings is not yet assured.