8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 25, 2022

SNOWFLAKE INC.

(Exact name of registrant as specified in its charter)

Delaware		001-39504	46-0636374
(State or other jurisdiction of incorporation or organization)		(Commission File Number)	(IRS Employer Identification No.)
Suite 3A, 106 East Babcock Street			59715
Bozeman,	Montana
(Address of Principal Executive Offices)1			(Zip Code)

(844) 766-9355

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.0001 par value	SNOW	The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

1 We are a Delaware corporation with a globally distributed workforce and no corporate headquarters. Under the Securities and Exchange Commission's rules, we are required to designate a “principal executive office.” For purposes of this report, we have designated our office in Bozeman, Montana as our principal executive office, as that is where our Chief Executive Officer and Chief Financial Officer are based.

Item 2.02 Results of Operations and Financial Condition.

On May 25, 2022, Snowflake Inc. (the “Company”) issued a press release announcing its financial results for the fiscal first quarter ended April 30, 2022. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information contained in this Item 2.02 and Item 9.01 in this Current Report on Form 8-K, including the accompanying Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filings, unless expressly incorporated by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Press release issued by Snowflake Inc. dated May 25, 2022.
104	Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Snowflake Inc.
Dated: May 25, 2022
	By:	/s/ Michael P. Scarpelli
		Michael P. Scarpelli
		Chief Financial Officer

Document

Snowflake Reports Financial Results for the First Quarter of Fiscal 2023

•Product revenue of $394.4 million in the first quarter, representing 84% year-over-year growth

•Remaining performance obligations of $2.6 billion, representing 82% year-over-year growth

•6,322 total customers

•Net revenue retention rate of 174%

•206 customers with trailing 12-month product revenue greater than $1 million

No-Headquarters/BOZEMAN, Mont. - May 25, 2022 - Snowflake (NYSE: SNOW), the Data Cloud company, today announced financial results for its first quarter of fiscal 2023, ended April 30, 2022.

Revenue for the quarter was $422.4 million, representing 85% year-over-year growth. Product revenue for the quarter was $394.4 million, representing 84% year-over-year growth. Remaining performance obligations were $2.6 billion, representing 82% year-over-year growth. Net revenue retention rate was 174% as of April 30, 2022. The company now has 6,322 total customers and 206 customers with trailing 12-month product revenue greater than $1 million. See the section titled “Key Business Metrics” for definitions of product revenue, remaining performance obligations, net revenue retention rate, total customers, and customers with trailing 12-month product revenue greater than $1 million.

"During Q1, product revenue grew 84% year-on-year to $394 million dollars. We closed the quarter with a record $181 million of non-GAAP adjusted free cash flow, pairing high growth with improving unit economics and operational efficiency," said Frank Slootman, Chairman and CEO, Snowflake. "Snowflake's strategic focus is to enable every single workload type that needs access to data."

First Quarter Fiscal 2023 GAAP and Non-GAAP Results:

The following table summarizes our financial results for the first quarter of fiscal 2023:

	First Quarter Fiscal 2023GAAP Results		First Quarter Fiscal 2023<br><br>Non-GAAP Results(1)
	Amount (millions)
Product revenue	394.4	%
	Amount (millions)		Amount <br>(millions)	Margin
Product gross profit	283.0	%	$296.7	75	%
Operating income (loss)	(188.8)	%)	$1.7	—	%
Net cash provided by operating activities	184.6
Free cash flow			$172.4	41	%
Adjusted free cash flow			$181.4	43	%
(1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures, and the table titled “GAAP to Non-GAAP Reconciliations” for a reconciliation of GAAP to non-GAAP financial measures.<br><br><br><br>Note: Fiscal year ends January 31. Numbers are rounded for presentation purposes.

All values are in US Dollars.

Financial Outlook:

Our guidance includes GAAP and non-GAAP financial measures.

The following table summarizes our guidance for the second quarter of fiscal 2023:

	Second Quarter Fiscal 2023<br><br>GAAP Guidance		Second Quarter Fiscal 2023<br><br>Non-GAAP Guidance(1)
	Amount <br>(millions)	Year/Year Growth
Product revenue	$435 - $440	71 - 73%
				Margin
Operating loss				(2	%)
			Amount <br>(millions)
Weighted-average shares used in computing net income per share attributable to common stockholders - diluted(2)			358
(1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures.<br><br><br><br>(2) We may have a non-GAAP net income for the second quarter of fiscal 2023. As a result, we are presenting the weighted-average shares used in computing net income per share attributable to common stockholders - diluted in the non-GAAP column of the table above, giving effect to all dilutive securities (stock options, restricted stock units, and employee stock purchase rights under our 2020 Employee Stock Purchase Plan). These dilutive securities would be excluded from the weighted-average shares used in computing net loss per share attributable to common stockholders - diluted if we are in a non-GAAP net loss position.

The following table summarizes our guidance for the full-year fiscal 2023:

	Full-Year Fiscal 2023<br><br>GAAP Guidance		Full-Year Fiscal 2023<br><br>Non-GAAP Guidance(1)
	Amount <br>(millions)	Year/Year Growth
Product revenue	$1,885 - $1,900	65 - 67%
				Margin
Product gross profit				74.5	%
Operating income				1	%
Adjusted free cash flow				16	%
			Amount <br>(millions)
Weighted-average shares used in computing net income per share attributable to common stockholders - diluted(2)			358
(1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures.<br><br><br><br>(2) We may have a non-GAAP net income for full-year fiscal 2023. As a result, we are presenting the weighted-average shares used in computing net income per share attributable to common stockholders - diluted in the non-GAAP column of the table above, giving effect to all dilutive securities (stock options, restricted stock units, and employee stock purchase rights under our 2020 Employee Stock Purchase Plan). These dilutive securities would be excluded from the weighted-average shares used in computing net loss per share attributable to common stockholders - diluted if we are in a non-GAAP net loss position.

A reconciliation of non-GAAP guidance measures to corresponding GAAP guidance measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP financial results included in this release. Our fiscal year ends January 31, and numbers are rounded for presentation purposes.

Conference Call Details

We will host a conference call today, beginning at 3 p.m. Mountain Time on May 25, 2022. Investors and participants may attend the call by dialing (844) 200-6205 (Passcode: 167617), or if outside the United States, by dialing (929) 526-1599 (Passcode: 167617).

The call will also be webcast live on the Snowflake Investor Relations website.

An audio replay of the conference call and webcast will be available two hours after its completion and will be accessible for 30 days on the Snowflake Investor Relations website.

Investor Presentation Details

An investor presentation providing additional information and analysis can be found at https://investors.snowflake.com.

Statement Regarding Use of Non‑GAAP Financial Measures

We report the following non-GAAP financial measures, which have not been prepared in accordance with generally accepted accounting principles in the United States (GAAP), in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

▪Product gross profit, Operating income (loss), and Net income (loss). Our non-GAAP product gross profit, operating income (loss), and net income (loss) measures exclude the effect of stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, amortization of acquired intangibles, expenses associated with acquisitions and strategic investments, and the related income tax effect of these adjustments as well as the non-recurring income tax expense or benefit associated with acquisitions. We believe the presentation of operating results that exclude these non-cash or non-recurring items provides useful supplemental information to investors and facilitates the analysis of our operating results and comparison of operating results across reporting periods.

▪Free cash flow. Free cash flow is defined as net cash provided by (used in) operating activities reduced by purchases of property and equipment and capitalized internal-use software development costs. Cash outflows for employee payroll tax items related to the net share settlement of equity awards are included in cash flow for financing activities and, as a result, do not have an effect on the calculation of free cash flow. Free cash flow margin is calculated as free cash flow as a percentage of revenue. We believe these measures provide useful supplemental information to investors because they are indicators of the strength and performance of our core business operations.

▪Adjusted free cash flow. Adjusted free cash flow is defined as free cash flow plus (minus) net cash paid (received) on employer and employee payroll tax-related items on employee stock transactions. Employee payroll tax-related items on employee stock transactions are generally pass-through transactions that are expected to have a net zero impact on free cash flow over time, but that may impact free cash flow in any given fiscal quarter due to differences between the time that we receive funds from our employees and the time we remit those funds to applicable tax authorities. We believe that excluding the effects of these payroll tax-related items will enhance stockholders' ability to evaluate our free cash flow performance, including on a quarter-over-quarter basis. Adjusted free cash flow margin is calculated as adjusted free cash flow as a percentage of revenue. We believe these measures provide useful supplemental information to investors because they are indicators of the strength and performance of our core business operations.

We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP results.

Key Business Metrics

We monitor our key business metrics, including (i) free cash flow starting with the fiscal quarter ended January 31, 2022, and (ii) the other metrics set forth below to help us evaluate our business and growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for the definition of free cash flow. The calculation of our key business metrics may differ from other similarly titled metrics used by other companies, securities analysts, or investors.

•Product Revenue. Product revenue is a key metric for us because we recognize revenue based on platform consumption, which is inherently variable at our customers’ discretion, and not based on the amount and duration of contract terms. Product revenue is primarily derived from the consumption of compute, storage, and data transfer resources, which are consumed by customers on our platform as a single, integrated offering. Customers have the flexibility to consume more than their contracted capacity during the contract term and may have the ability to roll over unused capacity to future periods, generally upon the purchase of additional capacity at renewal. Our consumption-based business model distinguishes us from subscription-based software companies that generally recognize revenue ratably over the contract term and may not permit rollover. Because customers have flexibility in the timing of their consumption, which can exceed their contracted capacity or extend beyond the original contract term in many cases, the amount of product revenue recognized in a given period is an important indicator of customer satisfaction and the value derived from our platform. Product revenue excludes our professional services and other revenue.

•Remaining Performance Obligations. Remaining performance obligations (RPO) represent the amount of contracted future revenue that has not yet been recognized, including (i) deferred revenue, and (ii) non-cancelable contracted amounts that will be invoiced and recognized as revenue in future periods. RPO excludes performance obligations from on-demand arrangements and certain time and materials contracts that are billed in arrears. Portions of RPO that are not yet invoiced and are denominated in foreign currencies are revalued into USD each period based on the applicable period-end exchange rates. RPO is not necessarily indicative of future product revenue growth because it does not account for the timing of customers’ consumption or their consumption of more than their contracted capacity. Moreover, RPO is influenced by a number of factors, including the timing of renewals, the timing of purchases of additional capacity, average contract terms, seasonality, and the extent to which customers are permitted to roll over unused capacity to future periods, generally upon the purchase of additional capacity at renewal.

•Total Customers. We count the total number of customers at the end of each period. For purposes of determining our customer count, we treat each customer account, including accounts for end-customers under a reseller arrangement, that has at least one corresponding capacity contract as a unique customer, and a single organization with multiple divisions, segments, or subsidiaries may be counted as multiple customers. For purposes of determining our customer count, we do not include customers that consume our platform only under on-demand arrangements. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity, and we present our total customer count for historical periods reflecting these adjustments.

•Net Revenue Retention Rate. To calculate net revenue retention rate, we first specify a measurement period consisting of the trailing two years from our current period end. Next, we define as our measurement cohort the population of customers under capacity contracts that used our platform at any point in the first month of the first year of the measurement period. Starting with the fiscal quarter ended October 31, 2021, the cohorts used to calculate net revenue retention rate include end-customers under a reseller arrangement. We then calculate our net revenue retention rate as the quotient obtained by dividing our product revenue from this cohort in the second year of the measurement period by our product revenue from this cohort in the first year of the measurement period. Any customer in the cohort that did not use our platform in the second year remains in the calculation and contributes zero product revenue in the second year. Our net revenue retention rate is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity, and we present our net revenue retention rate for historical periods reflecting these adjustments. Since we will continue to attribute the historical product revenue to the consolidated contract, consolidation of capacity contracts within a customer’s organization typically will not impact our net revenue retention rate unless one of those customers was not a customer at any point in the first month of the first year of the measurement period.

•Customers with Trailing 12-Month Product Revenue Greater than $1 Million. To calculate the number of customers with trailing 12-month product revenue greater than $1 million, we count the number of customers under capacity arrangements that contributed more than $1 million in product revenue in the trailing 12 months. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity, and we present our customer count for historical periods reflecting these adjustments.

Use of Forward‑Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding our performance, including but not limited to statements in the section titled “Financial Outlook.” The forward-looking statements contained in this release and the accompanying oral presentation are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to, those related to our business and financial performance, the effects of COVID-19 or other public health crises on our business, results of operations, and financial condition, general market and business conditions, downturns, or uncertainty, the effects of the recent and developing armed conflict in Ukraine on our business, results of operations, and financial condition, our ability to attract and retain customers, our ability to develop new products and services and enhance existing products and services, our ability to respond rapidly to emerging technology trends, our ability to execute on our business strategy, including our strategy related to the Data Cloud, our ability to increase and predict customer consumption of our platform, our ability to compete effectively, and our ability to manage growth.

Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in our Form 10-K for the fiscal year ended January 31, 2022 and other filings and reports we make with the Securities and Exchange Commission from time to time, including our Form 10-Q that will be filed for the fiscal quarter ended April 30, 2022.

Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Forward-looking statements speak only as of the date the statements are made and are based on information available to us at the time those statements are made and/or management's good faith belief as of that time with respect to future events. Except as required by law, we undertake no obligation, and do not intend, to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter.

About Snowflake

Snowflake enables every organization to mobilize their data with Snowflake’s Data Cloud. Customers use the Data Cloud to unite siloed data, discover and securely share data, and execute diverse analytic workloads. Wherever data or users live, Snowflake delivers a single data experience that spans multiple clouds and geographies. Thousands of customers across many industries, including 506 of the 2021 Forbes Global 2000 (G2K) as of April 30, 2022, use Snowflake Data Cloud to power their businesses. Learn more at snowflake.com.

Investor Contact

Jimmy Sexton

IR@snowflake.com

Press Contact

Eszter Szikora

Press@snowflake.com

Source: Snowflake Inc.

Snowflake Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

	Three Months Ended April 30,
		2022		2021
Revenue		$	422,371	$	228,914
Cost of revenue		147,930		97,346
Gross profit		274,441		131,568
Operating expenses:
Sales and marketing		243,912		166,804
Research and development		150,798		109,796
General and administrative		68,497		60,563
Total operating expenses		463,207		337,163
Operating loss		(188,766)		(205,595)
Interest income		4,759		2,612
Other expense, net		(8,481)		(488)
Loss before income taxes		(192,488)		(203,471)
Benefit from income taxes		(26,694)		(251)
Net loss		$	(165,794)	$	(203,220)
Net loss per share attributable to common stockholders - basic and diluted		$	(0.53)	$	(0.70)
Weighted-average shares used in computing net loss per share attributable to common stockholders - basic and diluted		314,361		291,386

Snowflake Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

	April 30, 2022		January 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	1,063,401	$	1,085,729
Short-term investments	2,751,679		2,766,364
Accounts receivable, net	277,559		545,629
Deferred commissions, current	53,943		51,398
Prepaid expenses and other current assets	195,151		149,523
Total current assets	4,341,733		4,598,643
Long-term investments	1,212,378		1,256,207
Property and equipment, net	118,611		105,079
Operating lease right-of-use assets	188,946		190,356
Goodwill	502,614		8,449
Intangible assets, net	181,851		37,141
Deferred commissions, non-current	124,340		124,517
Other assets	352,226		329,306
Total assets	$	7,022,699	$	6,649,698
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	18,442	$	13,441
Accrued expenses and other current liabilities	185,281		200,664
Operating lease liabilities, current	27,298		25,101
Deferred revenue, current	1,132,697		1,157,887
Total current liabilities	1,363,718		1,397,093
Operating lease liabilities, non-current	179,251		181,196
Deferred revenue, non-current	10,434		11,180
Other liabilities	11,302		11,184
Stockholders’ equity	5,457,994		5,049,045
Total liabilities and stockholders’ equity	$	7,022,699	$	6,649,698

Snowflake Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

	Three months ended April 30,
		2022		2021
Cash flows from operating activities:
Net loss		$	(165,794)	$	(203,220)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		9,941		4,684
Non-cash operating lease costs		10,091		8,509
Amortization of deferred commissions		13,201		8,316
Stock-based compensation, net of amounts capitalized		172,493		151,014
Net amortization of premiums on investments		8,198		13,019
Net unrealized losses on strategic investments in marketable equity securities		8,859		—
Deferred income tax		(26,664)		—
Other		1,761		1,214
Changes in operating assets and liabilities, net of effects of a business combination:
Accounts receivable		266,656		127,179
Deferred commissions		(16,718)		(14,749)
Prepaid expenses and other assets		(57,535)		(54,357)
Accounts payable		4,158		(1,245)
Accrued expenses and other liabilities		(14,217)		(6,567)
Operating lease liabilities		(8,376)		(7,833)
Deferred revenue		(21,441)		(4,110)
Net cash provided by operating activities		184,613		21,854
Cash flows from investing activities:
Purchases of property and equipment		(7,413)		(6,430)
Capitalized internal-use software development costs		(4,804)		(2,480)
Cash paid for a business combination, net of cash and cash equivalents acquired		(177,925)		—
Purchases of intangible assets		—		(10,460)
Purchases of investments		(897,291)		(1,145,670)
Sales of investments		10,974		384,383
Maturities and redemptions of investments		886,667		516,588
Net cash used in investing activities		(189,792)		(264,069)
Cash flows from financing activities:
Proceeds from exercise of stock options		15,276		41,402
Proceeds from issuance of common stock under employee stock purchase plan		26,094		26,398
Taxes paid related to net share settlement of equity awards		(53,216)		—
Net cash provided by (used in) financing activities		(11,846)		67,800
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(5,098)		19
Net decrease in cash, cash equivalents, and restricted cash		(22,123)		(174,396)
Cash, cash equivalents, and restricted cash—beginning of period		1,102,534		835,193
Cash, cash equivalents, and restricted cash—end of period		$	1,080,411	$	660,797

Snowflake Inc.

GAAP to Non-GAAP Reconciliations

(in thousands, except percentages)

(unaudited)

			GAAP amounts as a % of revenue		Stock-based compensation-related charges(1)			Amortization of acquired intangibles			Expenses associated with acquisitions and strategic investments			Non-GAAP amounts			Non-GAAP amounts as a % of revenue
Revenue:
Product revenue	394,434		93	%
Professional services and other revenue			7	%
Revenue			100	%
Year-over-year growth		%
Cost of revenue:
Cost of product revenue			26	%	$	(13,141)		$	(567)		$	—		$	97,703		23	%
Cost of professional services and other revenue			9	%	(11,749)			—			—			24,770			6	%
Total cost of revenue			35	%	(24,890)			(567)			—			122,473			29	%
Gross profit (loss):
Product gross profit					13,141			567			—			296,731
Professional services and other gross profit (loss)					11,749			—			—			3,167
Total gross profit			65	%	24,890			567			—			299,898			71	%
Product gross margin		%			3		%	—		%	—		%	75		%
Professional services and other gross margin		%)			42		%	—		%	—		%	11		%
Total gross margin		%			6		%	—		%	—		%	71		%
Operating expenses:
Sales and marketing			58	%	(57,624)			(2,546)			—			183,742			44	%
Research and development			36	%	(75,784)			(1,766)			—			73,248			17	%
General and administrative			16	%	(24,943)			(412)			(1,909)			41,233			10	%
Total operating expenses			110	%	(158,351)			(4,724)			(1,909)			298,223			71	%
Operating income (loss)	(188,766)		(45	%)	$	183,241		$	5,291		$	1,909		$	1,675		—	%
Operating margin		%)			44		%	1		%	—		%	—		%
(1) Stock-based compensation-related charges included approximately 10.2 million of employer payroll tax-related expenses on employee stock transactions.

All values are in US Dollars.

	GAAP amounts			GAAP amounts as a % of revenue		Stock-based compensation-related charges(1)			Amortization of acquired intangibles			Expenses associated with acquisitions and strategic investments			Non-GAAP amounts			Non-GAAP amounts as a % of revenue
Revenue:
Product revenue	$	213,830		93	%
Professional services and other revenue	15,084			7	%
Revenue	228,914			100	%
Year-over-year growth	110		%
Cost of revenue:
Cost of product revenue	72,080			32	%	$	(12,168)		$	(567)		$	—		$	59,345		26	%
Cost of professional services and other revenue	25,266			11	%	(12,156)			—			—			13,110			6	%
Total cost of revenue	97,346			43	%	(24,324)			(567)			—			72,455			32	%
Gross profit (loss):
Product gross profit	141,750					12,168			567			—			154,485
Professional services and other gross profit (loss)	(10,182)					12,156			—			—			1,974
Total gross profit	131,568			57	%	24,324			567			—			156,459			68	%
Product gross margin	66		%			6		%	—		%	—		%	72		%
Professional services and other gross margin	(68		%)			81		%	—		%	—		%	13		%
Total gross margin	57		%			11		%	—		%	—		%	68		%
Operating expenses:
Sales and marketing	166,804			73	%	(54,245)			—			—			112,559			49	%
Research and development	109,796			48	%	(60,812)			(855)			—			48,129			21	%
General and administrative	60,563			26	%	(28,117)			(397)			(471)			31,578			14	%
Total operating expenses	337,163			147	%	(143,174)			(1,252)			(471)			192,266			84	%
Operating loss	$	(205,595)		(90	%)	$	167,498		$	1,819		$	471		$	(35,807)		(16	%)
Operating margin	(90		%)			73		%	1		%	—		%	(16		%)
(1) Stock-based compensation-related charges included approximately 16.2 million of employer payroll tax-related expenses on employee stock transactions.

All values are in US Dollars.

			2021
Revenue	422,371		$	228,914
GAAP net cash provided by operating activities	184,613		$	21,854
Less: purchases of property and equipment			(6,430)
Less: capitalized internal-use software development costs			(2,480)
Non-GAAP free cash flow			12,944
Add: net cash paid on payroll tax-related items on employee stock transactions(1)			10,445
Non-GAAP adjusted free cash flow	181,441		$	23,389
Non-GAAP free cash flow margin		%	6		%
Non-GAAP adjusted free cash flow margin		%	10		%
(1) The amount for the three months ended April 30, 2022 does not include employee payroll taxes of 53.2 million related to net share settlement of employee restricted stock units, which were reflected as cash outflows for financing activities. No equity awards were net settled prior to the three months ended April 30, 2022.

All values are in US Dollars.