Another day, another earnings report with accelerating growth from AI. Snowflake earnings yesterday demonstrates yet again the impact of AI on a $4.4B revenue business.
Snowflake’s revenue has rebounded from a low of 26% to 32% quarter over quarter.
And once [customers] are on our platform, AI becomes a cornerstone of their strategy, powering 25% of all deployed use cases with over 6,100 accounts using Snowflake’s AI every week.
Since Cortex’s launch in Q1 of fiscal 2024, AI is now in half of Snowflake accounts and represents 25% of workloads. Two years since launch, Snowflake’s AI features show the latency required for some of these innovations to percolate through organizations.
Snowflake’s growth resurgence mirrors MongoDB. In fact, over the analyzed time period, the correlation between the growth of these two businesses is 0.96, which is exceptionally high. AI’s tide is lifting all databases.
We knew it was going to be a strong quarter, but not as strong as it was, and that’s just the nature of a consumption model… NRR, net revenue retention, which was a very solid 125%. What is happening is that there is more and more recognition that the AI components of our data platform can deliver enormous value. And we are seeing budgets get allocated from large customers for AI projects.
AI is driving more compute workloads, querying the core warehouses via OpenAI and Anthropic models.
Europe is still developing, but it’s contributing…I would also say, too, that Microsoft is very strong in EMEA,
Competition on the continent! There were some questions about the dynamics with Microsoft. Fabric may have a stronger position in Europe.
We now have over 1,200 accounts using Iceberg, underscoring our leadership in bringing truly open standards to the enterprise.
It means approximately 10% of the Snowflake customer base is now using Iceberg. These are likely the larger accounts. Iceberg adoption is one-fifth of AI adoption, showing it’s lower priority.