snowflake-revenue-breakdown

Snowflake Revenue Breakdown

Snowflake generates most of its revenue from products/software. For instance, in 2023, almost 94% of its revenue came from product and 6% from professional services. Indeed in 2023, product generated $1.93 billion in revenue, compared to nearly $127 million from professional services.

snowflake-cost-structure
The snowflake cost structure is skewed toward the product business, which not only generates most of the revenue for the company, but its gross margins. Indeed, in 2023, on $2 billion of revenue, the company reported $717 million in cost of sales, and $1.35 billion in gross profits, at a 62% gross margin, mostly coming from the product business, which generated a 71% gross margin in 2023, whereas the professional service business is run at 34% negative gross margin, in the same period. In short, Snowflake leverages the professional service business to boost its product business. And the former is run at negative margins, while the latter is run at widely positive margins.
  • Revenue has been increasing over the years, with the highest growth between 2022 and 2023 (an increase of 69.67%).
  • The cost of sales has also been increasing, with the highest increase between 2022 and 2023 (an increase of 56.56%).
  • The cost of sales is increasing faster than revenue, meaning the company’s expenses are rising faster than its revenue.
  • Product revenue has increased dramatically from 2021 to 2023, with a growth rate of 249.26%.
  • Professional Services & Other revenue has also increased significantly from 2021 to 2023, with a growth rate of 232.74%.
  • The company has experienced strong growth in both its Product and Professional Services & Other revenue streams.
  • The number of customers has increased consistently, with the highest growth between 2021 and 2022 (an increase of 43.70%).
  • The number of customers with revenue over $1 million has also increased dramatically, with the highest growth between 2022 and 2023 (an increase of 78.26%).
  • The company has acquired more customers and grown its business, particularly among its high-value customers.
  • This trend suggests that the company effectively serves its market and builds strong customer relationships through a strong and qualified salesforce.
snowflake-customers-breakdown-1

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Snowflake Revenue

snowflake-revenue
Snowflake generated over $2 billion in revenue in 2023, compared to $1.22 billion in 2022 and $592 million in 2021.

Snowflake Revenue Breakdown

snowflake-revenue-breakdown
Snowflake generates most of its revenue from products/software. For instance, in 2023, almost 94% of its revenue came from product and 6% from professional services. Indeed in 2023, product generated $1.93 billion in revenue, compared to nearly $127 million from professional services.

Snowflake Net Loss

snowflake-net-loss
Snowflake reported $797 million in net losses in 2023, compared to $680 million in net losses in 2022 and $539 million in net losses in 2021.

Snowflake Financials

snowflake-financials
Snowflake generated over $2 billion in revenue in 2023, compared to $1.22 billion in 2022 and $592 million in 2021. Snowflake reported $797 million in net losses in 2023, compared to $680 million in net losses in 2022 and $539 million in net losses in 2021.

Snowflake Gross Margins

snowflake-gross-margins
Snowflake generated 65% in gross margins in 2023, compared to 62% in 2022 and 65% in 2021. All gross margins come from products, with a 72% gross margin in 2023, compared to professional services running at negative gross margins of 34% in 2023.

Snowflake Employees

snowflake-employees
Snowflake had 3,992 employees in 2022, with 788 employed in R&D, vs. 2,495 employees in 2021 of which 478 employed in R&D.

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