Snowflake

Product revenue hit 1.49 billion dollars this quarter, up 37% from a year ago, and that was the third quarter in a row where growth sped up instead of slowing down. Management raised the full year target to 6.07 billion dollars, up from the 5.84 billion dollars they guided to three months ago. Business already under contract sits at 9 billion dollars, up 30%.

Snowflake's new AI tools are spreading fast. CoCo is now used in more than 9,100 accounts after adding over 2,000 in a single quarter, and CoWork reached 5,800 accounts. Existing customers spent 26% more than they did a year ago, and the company added 692 net new customers, up 32%, which is exactly the flywheel you want when AI workloads start piling on.

Snowflake lost 263 million dollars on an operating basis this quarter, a negative 17% margin on the official accounting, and trailing profit margins sit near negative 24%. The gap is mostly heavy cloud bills and paying employees in stock, which quietly dilutes existing shareholders. Growth is real, but the profit still has not shown up.

Adjusted free cash flow was only 92 million dollars on 1.55 billion dollars of revenue this quarter, about 6%, so hitting the full year 23% cash target means the back half has to do nearly all the heavy lifting. Meanwhile Amazon and Microsoft keep bundling competing data tools into contracts customers already have, which pressures pricing over time.