Try our mobile app

Published: 2021-03-03 16:05:13 ET
<<<  go to SNOW company page
EX-99.1 3 fy2021q4earnings.htm EX-99.1 Document

image1a.jpg
Snowflake Reports Financial Results for the Fourth Quarter and Full Year of Fiscal 2021

Product revenue of $178.3 million in the fourth quarter, representing 116% year-over-year growth
Remaining performance obligations of $1.3 billion, representing 213% year-over-year growth
4,139 total customers
Net revenue retention rate of 168%
77 customers with trailing 12-month product revenue greater than $1 million


SAN MATEO, Calif. - March 3, 2021 - Snowflake (NYSE: SNOW), the Data Cloud company, today announced financial results for its fourth quarter and full year of fiscal 2021, ended January 31, 2021.

Revenue for the quarter was $190.5 million, representing 117% year-over-year growth. Product revenue for the quarter was $178.3 million, representing 116% year-over-year growth. Remaining performance obligations were $1.3 billion, representing 213% year-over-year growth. Net revenue retention rate was 168% as of January 31, 2021. The company now has 4,139 total customers and 77 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.

“We finished our fiscal year with strong performance and reported triple-digit product revenue growth,” said Snowflake CEO, Frank Slootman. “Remaining performance obligations showed a robust increase year-on-year, reflecting strength in sales across the board. Coupled with this rapid growth, we saw improving operating efficiency while expanding our footprint globally. These results indicate that customers across multiple industries rely on the Snowflake Data Cloud to mobilize their data and enable breakthrough data strategies.”






Fourth Quarter Fiscal 2021 GAAP and Non-GAAP Results:

The following table summarizes our financial results for the fourth quarter of fiscal 2021:

Fourth Quarter Fiscal 2021
GAAP Results
Fourth Quarter Fiscal 2021
Non-GAAP Results(1)
Amount
(millions)
Year/Year Growth
Product revenue$178.3116 %
Amount
(millions)
MarginAmount
(millions)
Margin
Product gross profit$114.564 %$125.370 %
Operating loss($200.4)(105 %)($46.0)(24 %)
Net cash provided by operating activities$19.6
Free cash flow$7.3%
Adjusted free cash flow$17.3%

(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 entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures, and the table entitled “GAAP to Non-GAAP Reconciliations” for a reconciliation of GAAP to non-GAAP financial measures.
Note: Fiscal year ends January 31. Numbers are rounded for presentation purposes.


Full-Year Fiscal 2021 GAAP and Non-GAAP Results:

The following table summarizes our financial results for the full-year fiscal 2021:

Full-Year Fiscal 2021
GAAP Results
Full-Year Fiscal 2021
Non-GAAP Results(1)
Amount
(millions)
Year/Year Growth
Product revenue$553.8120 %
Amount
(millions)
MarginAmount
(millions)
Margin
Product gross profit$360.065 %$380.469 %
Operating loss($543.9)(92 %)($224.9)(38 %)
Net cash used in operating activities($45.4)
Free cash flow($85.7)(14 %)
Adjusted free cash flow($71.6)(12 %)

(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 entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures, and the table entitled “GAAP to Non-GAAP Reconciliations” for a reconciliation of GAAP to non-GAAP financial measures.
Note: Fiscal year ends January 31. Numbers are rounded for presentation purposes.





Financial Outlook:

Our guidance includes GAAP and non-GAAP financial measures.

The following table summarizes our guidance for the first quarter of fiscal 2022:

First Quarter Fiscal 2022
GAAP Guidance
First Quarter Fiscal 2022
Non-GAAP Guidance(1)
Amount
(millions)
Year/Year Growth
Product revenue$195 - $20092 - 96%
Margin
Operating loss(23 %)
Amount
(millions)
Weighted-average shares used to compute diluted net loss per share attributable to common stockholders - basic and diluted289 

(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 entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures.


The following table summarizes our guidance for the full-year fiscal 2022:

Full-Year Fiscal 2022
GAAP Guidance
Full-Year Fiscal 2022
Non-GAAP Guidance(1)
Amount
(millions)
Year/Year Growth
Product revenue$1,000 - $1,02081 - 84%
Margin
Product gross profit71 %
Operating loss(19 %)
Adjusted free cash flow%
Amount
(millions)
Weighted-average shares used to compute diluted net loss per share attributable to common stockholders - basic and diluted295 

(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 entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures.

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 expense-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 press 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 2 p.m. Pacific Time on March 3, 2021. Investors and participants can register for the call in advance by visiting http://www.directeventreg.com/registration/event/3553798. After registering, a confirmation will be sent via email, including dial-in details and unique conference call access codes required for call entry.

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 and Operating income (loss). Our non-GAAP product gross profit and operating income (loss) measures exclude the effect of stock-based compensation expense-related charges, including employer payroll tax-related items on employee stock transactions, amortization of acquired intangibles, and expenses associated with acquisitions and strategic investments. 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 and Adjusted 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. Adjusted free cash flow is defined as free cash flow plus cash paid on employer payroll tax-related items on employee stock transactions. Free cash flow margin and adjusted free cash flow margin are calculated as free cash flow or 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

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 includes 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 on 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 both deferred revenue and 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. 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 end-customer account that has at least one corresponding capacity contract or order form 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.

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. 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. 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.

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, 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-Q for the fiscal quarter ended October 31, 2020 and other filings and reports we make with the Securities and Exchange Commission from time to time, including our Form 10-K that will be filed for the fiscal year ended January 31, 2021.

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 delivers the Data Cloud — a global network where thousands of organizations mobilize data with near-unlimited scale, concurrency, and performance. Inside the Data Cloud, organizations unite their siloed data, easily discover and securely share governed data, and execute diverse analytic workloads. Wherever data or users live, Snowflake delivers a single and seamless experience across multiple public clouds. Snowflake’s platform is the engine that powers and provides access to the Data Cloud, creating a solution for data warehousing, data lakes, data engineering, data science, data application development, and data sharing. Join Snowflake customers, partners, and data providers already taking their businesses to new frontiers in the Data Cloud 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 share and per share data)
(unaudited)

Three Months Ended January 31,Twelve Months Ended January 31,
2021202020212020
Revenue$190,465 $87,692 $592,049 $264,748 
Cost of revenue82,904 34,522 242,588 116,557 
Gross profit107,561 53,170 349,461 148,191 
Operating expenses:
Sales and marketing154,050 80,444 479,317 293,577 
Research and development93,997 29,709 237,946 105,160 
General and administrative59,911 28,129 176,135 107,542 
Total operating expenses307,958 138,282 893,398 506,279 
Operating loss(200,397)(85,112)(543,937)(358,088)
Interest income1,853 2,299 7,507 11,551 
Other income (expense), net951 (186)(610)(1,005)
Loss before income taxes(197,593)(82,999)(537,040)(347,542)
Provision for income taxes1,342 255 2,062 993 
Net loss$(198,935)$(83,254)$(539,102)$(348,535)
Net loss per share attributable to common stockholders - basic and diluted$(0.70)$(1.67)$(3.81)$(7.77)
Weighted-average shares used to compute net loss per share attributable to common stockholders - basic and diluted284,121,777 49,992,181 141,613,196 44,847,442 





Snowflake Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)

January 31, 2021January 31, 2020
Assets
Current assets:
Cash and cash equivalents$820,177 $127,206 
Short-term investments3,087,887 306,844 
Accounts receivable, net294,017 179,459 
Deferred commissions, current32,371 26,358 
Prepaid expenses and other current assets66,200 25,327 
Total current assets4,300,652 665,194 
Long-term investments1,165,275 23,532 
Property and equipment, net68,968 27,136 
Operating lease right-of-use assets186,818 195,976 
Goodwill8,449 7,049 
Intangible assets, net16,091 4,795 
Deferred commissions, non-current86,164 69,516 
Other assets89,322 19,522 
Total assets$5,921,739 $1,012,720 
Liabilities, Redeemable Convertible Preferred Stock and
Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable$5,647 $8,488 
Accrued expenses and other current liabilities125,315 62,817 
Operating lease liabilities, current19,650 18,092 
Deferred revenue, current638,652 327,058 
Total current liabilities789,264 416,455 
Operating lease liabilities, non-current184,887 193,175 
Deferred revenue, non-current4,194 2,907 
Other liabilities6,923 8,466 
Redeemable convertible preferred stock— 936,474 
Stockholders’ equity (deficit)4,936,471 (544,757)
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit)$5,921,739 $1,012,720 





Snowflake Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

Three Months Ended January 31,Twelve Months Ended January 31,
2021202020212020
Cash flows from operating activities:
Net loss$(198,935)$(83,254)$(539,102)$(348,535)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization3,215 1,265 9,826 3,522 
Non-cash operating lease costs8,635 7,978 33,475 27,712 
Amortization of deferred commissions7,608 5,578 28,841 16,986 
Stock-based compensation, net of amounts capitalized143,651 20,974 301,441 78,399 
Net amortization (accretion) of premiums (discounts) on investments7,513 (310)8,630 (5,459)
Other507 200 4,580 1,476 
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable(125,510)(78,676)(116,289)(116,869)
Deferred commissions(24,183)(33,591)(51,444)(68,595)
Prepaid expenses and other assets(32,869)(1,955)(62,349)(10,811)
Accounts payable928 (9,450)(2,878)1,116 
Accrued expenses and other liabilities35,775 20,626 58,252 34,994 
Operating lease liabilities(7,863)(7,403)(31,281)(13,455)
Deferred revenue201,142 115,226 312,881 222,961 
Net cash provided by (used in) operating activities19,614 (42,792)(45,417)(176,558)
Cash flows from investing activities:
Purchases of property and equipment(11,019)(4,079)(35,037)(18,583)
Capitalized internal-use software development costs(1,279)(1,325)(5,293)(4,265)
Cash paid for acquisitions, net of cash acquired— — (6,035)(6,314)
Purchases of intangible assets(2,190)— (8,374)— 
Purchases of investments(3,624,832)(105,375)(4,859,852)(622,854)
Sales of investments148,365 10,691 177,070 14,087 
Maturities and redemptions of investments329,348 84,438 700,876 776,424 
Net cash (used in) provided by investing activities(3,161,607)(15,650)(4,036,645)138,495 
Cash flows from financing activities:
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs— — 478,573 24,121 
Proceeds from initial public offering and private placements, net of underwriting discounts
— — 4,242,284 — 
Proceeds from early exercised stock options— 271 159 6,213 
Proceeds from exercise of stock options22,278 6,387 53,378 27,526 
Proceeds from repayment of a nonrecourse promissory note— — 2,090 — 
Repurchases of early exercised stock options and restricted common stock— — (30)(391)
Payments of deferred purchase consideration for acquisitions— — (1,164)— 
Net cash provided by financing activities22,278 6,658 4,775,290 57,469 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(11)— (11)— 
Net (decrease) increase in cash, cash equivalents and restricted cash(3,119,726)(51,784)693,217 19,406 
Cash, cash equivalents and restricted cash at beginning of period3,954,919 193,760 141,976 122,570 
Cash, cash equivalents and restricted cash at end of period$835,193 $141,976 $835,193 $141,976 




Snowflake Inc.
GAAP to Non-GAAP Reconciliations
(in thousands, except percentages)
(unaudited)

Three Months Ended January 31, 2021
GAAP amountsGAAP amounts as a % of revenue
Stock-based compensation expense-related charges(1)
Amortization of acquired intangiblesExpenses associated with acquisitions and strategic investmentsNon-GAAP amountsNon-GAAP amounts as a % of revenue
Revenue:
Product revenue$178,288 94 %
Professional services and other revenue12,177 %
Revenue190,465 100 %
Year over Year % Growth117 %
Cost of Revenue:
Cost of product revenue63,770 33 %$(10,171)$(566)$— $53,033 28 %
Cost of professional services and other revenue19,134 11 %(8,702)— — 10,432 %
Total cost of revenue82,904 44 %(18,873)(566)— 63,465 33 %
Gross profit (loss):
Product gross profit114,518 10,171 566 — 125,255 
Professional services and other gross profit (loss)(6,957)8,702 — — 1,745 
Total gross profit107,561 56 %18,873 566 — 127,000 67 %
Product gross margin64 %%— %— %70 %
Professional services and other gross margin(57 %)71 %— %— %14 %
Total gross margin56 %11 %— %— %67 %
Operating expenses:
Sales and marketing154,050 81 %(52,438)— — 101,612 54 %
Research and development93,997 49 %(53,440)— — 40,557 21 %
General and administrative59,911 31 %(28,713)(352)(44)30,802 16 %
Total operating expenses307,958 161 %(134,591)(352)(44)172,971 91 %
Operating loss$(200,397)(105 %)$153,464 $918 $44 $(45,971)(24 %)
Operating margin(105 %)81 %— %— %(24 %)
(1) Stock-based compensation expense-related charges included approximately $9.6 million of employer payroll tax-related expenses on employee stock transactions.




Three Months Ended January 31, 2020
GAAP amountsGAAP amounts as a % of revenue
Stock-based compensation expense-related charges(1)
Amortization of acquired intangiblesExpenses associated with acquisitions and strategic investmentsNon-GAAP amountsNon-GAAP amounts as a % of revenue
Revenue:
Product revenue$82,432 94 %
Professional services and other revenue5,260 %
Revenue87,692 100 %
Year over Year % Growth139 %
Cost of Revenue:
Cost of product revenue28,777 33 %$(472)$(281)$— $28,024 32 %
Cost of professional services and other revenue5,745 %(496)— — 5,249 %
Total cost of revenue34,522 39 %(968)(281)— 33,273 38 %
Gross profit (loss):
Product gross profit53,655 472 281 — 54,408 
Professional services and other gross profit (loss)(485)496 — — 11 
Total gross profit53,170 61 %968 281 — 54,419 62 %
Product gross margin65 %%— %— %66 %
Professional services and other gross margin(9 %)%— %— %— %
Total gross margin61 %%— %— %62 %
Operating expenses:
Sales and marketing80,444 92 %(5,424)(16)— 75,004 86 %
Research and development29,709 34 %(4,929)— — 24,780 28 %
General and administrative28,129 32 %(9,758)— — 18,371 21 %
Total operating expenses138,282 158 %(20,111)(16)— 118,155 135 %
Operating loss$(85,112)(97 %)$21,079 $297 $— $(63,736)(73 %)
Operating margin(97 %)24 %— %— %(73 %)
(1) Stock-based compensation expense-related charges included approximately $0.1 million of employer payroll tax-related expenses on employee stock transactions.




Twelve Months Ended January 31, 2021
GAAP amountsGAAP amounts as a % of revenue
Stock-based compensation expense-related charges(1)
Amortization of acquired intangiblesExpenses associated with acquisitions and strategic investmentsNon-GAAP amountsNon-GAAP amounts as a % of revenue
Revenue:
Product revenue$553,794 94 %
Professional services and other revenue38,255 %
Revenue592,049 100 %
Year over Year % Growth124 %
Cost of Revenue:
Cost of product revenue193,835 33 %$(18,724)$(1,696)$— $173,415 29 %
Cost of professional services and other revenue48,753 %(16,104)— — 32,649 %
Total cost of revenue242,588 41 %(34,828)(1,696)— 206,064 35 %
Gross profit (loss):
Product gross profit359,959 18,724 1,696 — 380,379 
Professional services and other gross profit (loss)(10,498)16,104 — — 5,606 
Total gross profit349,461 59 %34,828 1,696 — 385,985 65 %
Product gross margin65 %%— %— %69 %
Professional services and other gross margin(27 %)42 %— %— %15 %
Total gross margin59 %%— %— %65 %
Operating expenses:
Sales and marketing479,317 81 %(104,537)(12)— 374,768 63 %
Research and development237,946 40 %(103,954)— — 133,992 23 %
General and administrative176,135 30 %(72,647)(1,069)(296)102,123 17 %
Total operating expenses893,398 151 %(281,138)(1,081)(296)610,883 103 %
Operating loss$(543,937)(92 %)$315,966 $2,777 $296 $(224,898)(38 %)
Operating margin(92 %)54 %— %— %(38 %)
(1) Stock-based compensation expense-related charges included approximately $14.2 million of employer payroll tax-related expenses on employee stock transactions.




Twelve Months Ended January 31, 2020
GAAP amountsGAAP amounts as a % of revenue
Stock-based compensation expense-related charges(1)
Amortization of acquired intangiblesExpenses associated with acquisitions and strategic investmentsNon-GAAP amountsNon-GAAP amounts as a % of revenue
Revenue:
Product revenue$252,229 95 %
Professional services and other revenue12,519 %
Revenue264,748 100 %
Year over Year % Growth174 %
Cost of Revenue:
Cost of product revenue96,622 36 %$(1,919)$(849)$— $93,854 35 %
Cost of professional services and other revenue19,935 %(1,732)— — 18,203 %
Total cost of revenue116,557 44 %(3,651)(849)— 112,057 42 %
Gross profit (loss):
Product gross profit155,607 1,919 849 — 158,375 
Professional services and other gross loss(7,416)1,732 — — (5,684)
Total gross profit148,191 56 %3,651 849 — 152,691 58 %
Product gross margin62 %%— %— %63 %
Professional services and other gross margin(59 %)14 %— %— %(45 %)
Total gross margin56 %%%— %58 %
Operating expenses:
Sales and marketing293,577 111 %(20,922)(58)— 272,597 103 %
Research and development105,160 40 %(15,786)— — 89,374 34 %
General and administrative107,542 41 %(38,257)— (328)68,957 26 %
Total operating expenses506,279 192 %(74,965)(58)(328)430,928 163 %
Operating loss$(358,088)(136 %)$78,616 $907 $328 $(278,237)(105 %)
Operating margin(136 %)30 %%— %(105 %)
(1) Stock-based compensation expense-related charges included approximately $0.2 million of employer payroll tax-related expenses on employee stock transactions.











Three Months Ended January 31,Twelve Months Ended January 31,
2021202020212020
Revenue$190,465 $87,692 $592,049 $264,748 
GAAP net cash provided by (used in) operating activities$19,614 $(42,792)$(45,417)$(176,558)
Less: purchases of property and equipment(11,019)(4,079)(35,037)(18,583)
Less: capitalized internal-use software development costs(1,279)(1,325)(5,293)(4,265)
Non-GAAP free cash flow7,316 (48,196)(85,747)(199,406)
Add: cash paid for employer payroll tax-related items on employee stock transactions9,940 105 14,136 217 
Non-GAAP adjusted free cash flow$17,256 $(48,091)$(71,611)$(199,189)
Non-GAAP free cash flow margin%(55 %)(14 %)(75 %)
Non-GAAP adjusted free cash flow margin%(55 %)(12 %)(75 %)