Summary by Moomoo AI
Snowflake Inc. reported strong financial results for Q3 FY2025, with revenue increasing 28% year-over-year to $942.1 million. Product revenue grew 29% to $900.3 million, while remaining performance obligations reached $5.7 billion. The company maintained a healthy net revenue retention rate of 127% and expanded its customer base to 10,618, including 754 Forbes Global 2000 customers.In a significant financial move, Snowflake completed a private offering of $2.3 billion in convertible senior notes, comprising $1.15 billion of 0% notes due 2027 and $1.15 billion due 2029. The company used part of the proceeds to enter into capped call transactions worth $195.5 million and repurchase $399.6 million of its common stock. During Q3, Snowflake repurchased 8.8 million shares for approximately $1 billion under its expanded stock repurchase program.Operating loss widened to $365.5 million from $260.6 million year-over-year, while gross margin decreased to 66% from 69%. The company continued its strategic investments in AI technology and platform development, with research and development expenses increasing 33% to $442.4 million. Looking ahead, management expects approximately 50% of the remaining performance obligations to be recognized as revenue in the next twelve months.
