So Snowflake looked immortal in 2021, looked a little more mortal in 2024 … and is now, like many of the best in Cloud and B2B, reacclerating in 2025!
And come meet and hear from CEO Sridhar Ramaswamy LIVE at 2025 SaaStr Annual, May 13-15 in SF Bay!!
Snowflake is on a tear again:
- $4B ARR (just about)
- 28% revenue growth
- 44% free-cash flow last quarter (WOW!), 26% for the year
- 126% NRR
It’s not 2021. No, it’s 2025. It’s Good Times Again, Just Different Good Times. Fueled by AI, not post-pandemic spend.
And Snowflake is back on a tear.
Snowflake had a strong Q4, with product revenue coming in at $943 million, up 28% year-over-year. Overall, FY25 revenue was $3.5 billion, up 30% year-over-year.
This past year was a momentous one for us and we’re set up for an incredible year ahead:
➡️We’re innovating at… pic.twitter.com/1eXIzukzsS
— sridhar (@RamaswmySridhar) February 27, 2025
5 Interesting Learnings:
#1. 11,159 Customers — So An Average of $360,000 Per Customer
Snowflake solves enterprise-grade problems around data management — and it charges prices commensurate with that. 580 of them pay $1m or more.
#2. 126% NRR and Staying High
While down a smidge from 131% in 5 quarters ago, this is still world class. And it promises a strong run of growth for Snowflake in the coming years. Snowflake is also predicting it will stay in the “mid-twenties.”
#3. Very Profitable Now, But Still Hiring
Snowflake has become a cash-generating engine, with 26% free cash flow for the past year and a stunning 44% (!) last quarter. But it’s still hiring, albeit more slowly that revenue. Hiring is up +12% over the past 15 months, and +8% over the past year. Revenue grew 28%, so that makes the company much more efficient. Even while it still hires. Hire, but slower than revenue grows, you get more efficient 😉
#4. 79% of Revenue Still From Americas
While different data and privacy laws and regulatory frameworks can make flowing data across borders harder than applications, I’m still a bit surprised Snowflake hasn’t increased its EMEA and APJ revenue. It can be hard. Will be interesting to continue to track here.
#5. 4,000 Customers Using Their AL and ML Offerings Weekly, But Direct Incremental Revenue Here Not Yet Material
It’s still early, but over 30% using their AI/ML offerings is a promising start!
And a few other interesting learnings:
#6. Customers Typically Sign a 3 Year Contract, Billed Annually Upfront
Not a total surprise in $1M+ deals, and takes some of the variability out of pricing as well.
#7. RPO (Future Revenue) Growing Even Faster Than Current Revenue
A bullish sign for the future! Revenue isn’t just re-accelerating, but so are future bookings. That’s a bullish sign, especially paired with 126% NRR. The next few years look pretty bright!
And a great deep dive with Snowflake’s CMO at last year’s SaaStr Annual on how they planned for 2025 growth:
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- Source: https://www.saastr.com/5-interesting-learnings-from-snowflake-at-4-billion-in-arr/
