5 Revealing Analyst Questions From Snowflake's Q1 Earnings Call

Snowflake’s first quarter results were marked by strong revenue and profitability, with management attributing the positive momentum to expanding adoption of its AI and data cloud platform across large enterprise customers. CEO Sridhar Ramaswamy emphasized the company’s focus on “driving product cohesion and extending value throughout the data life cycle.” He highlighted new customer wins, the rapid rollout of over 125 product capabilities, and continued momentum in data engineering and analytics as key factors supporting growth.

Is now the time to buy SNOW? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Snowflake’s Q1 Earnings Call

• Sanjit Singh (Morgan Stanley): Asked about consumption trends and monetization of Cortex AI, to which CEO Sridhar Ramaswamy clarified that AI features drive value within existing contracts rather than through separate sales.
• Kirk Materne (Evercore ISI): Inquired about drivers behind Snowpark and Dynamic Tables adoption, with Ramaswamy attributing success to both product innovation and targeted sales enablement efforts.
• Raimo Lenschow (Barclays): Questioned strategies for data consolidation versus multi-vendor environments. Ramaswamy acknowledged customer demand for unified platforms and highlighted Snowflake’s approach to ease-of-use and integration.
• Karl Keirstead (UBS): Asked about the impact of macroeconomic conditions and post-COVID optimization. CFO Mike Scarpelli responded that Snowflake’s customer base has become more cost-conscious and mature, but current macro factors have not significantly affected demand.
• Kasthuri Rangan (Goldman Sachs): Probed net revenue retention trends despite new product launches. Scarpelli explained that growth from newer customers and variable expansion rates among large accounts influence the metric’s trajectory.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will be watching (1) the adoption and monetization pace of new AI and analytics products like Cortex and Snowpark, (2) expansion into regulated sectors such as government and automotive with dedicated solutions, and (3) the company’s ability to sustain margin improvements while investing in innovation and customer acquisition. Execution at the annual Snowflake Summit and updates on customer migration trends will also be key signposts.

Snowflake currently trades at $225.21, up from $179.15 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

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