00:00Extraordinary, you've just added $20 billion to your market capitalization.
00:03How does that feel? Reflect for a minute.
00:07We had a landmark quarter, Caroline.
00:09Strongest sequential dollar growth in company's history.
00:12Product revenue up to $1.334 billion, up 34%.
00:16Net revenue retention rate, a key metric we watch, up to 126%.
00:21But I think the bigger news really was that this is the quarter
00:25where we clearly showed that AI is compounding Snowflake's advantage in data.
00:30We did this the old-fashioned way, by creating amazing products like Snowflake Intelligence,
00:34which is our work agent, which doubled its adoption with respect to accounts,
00:39and a coding agent, which is used by more than 7,000 accounts.
00:48And this is what gives us confidence in the business side.
00:51That's why we raised the yearly guidance from 27% to 31%.
00:54Solid performance, but I think it's much more of what does this mean for our future
00:59that we are very happy with.
01:00When product revenue is up 34% on the quarter, just reported,
01:03and your stock is up 34%, 35% right now,
01:06what exactly are your clients using you for?
01:09How is this actually building productivity?
01:13First of all, it's a whole lot easier to get things done with Snowflake.
01:19This is what Coco facilitates.
01:21People are literally getting jobs five to ten times faster.
01:27Part of many companies and getting them to be more productive is hugely impactful.
01:33Our data team, for example, has been able to get through their multi-year backlog
01:37in a matter of a small number of quarters.
01:40With products like Snowflake Intelligence, the end of your work is at your fingertip.
01:45To give you a very concrete example, I was at a conference, didn't know who I was going
01:50to be meeting, 30-odd CEOs.
01:51In two minutes, I knew which of them were customers, how much we should prioritize.
01:57And of instant access, that's really driving business results.
02:00And we have great customers like using these products to great effect.
02:05All right.
02:05I'm going to say we're having a slight audio issue.
02:09Sridhar, you're breaking up a little bit, and hopefully we can work on that and fix it.
02:14But, you know, I was thinking about this story all night long because, you know,
02:20for so long, the narrative has been AI may disrupt software, and that has now changed
02:25with your results, with your Amazon deal to AI may accelerate software, certainly in the
02:31case of Snowflake.
02:33What changed this quarter that proves AI is now a revenue tailwind rather than just a product
02:40narrative?
02:42Well, first of all, we've been very, very consistent.
02:46The data platform, especially one that's based on a consumption for the value that they are
02:55getting, is aided by I think what we also showed decisively this quarter is that ability
03:03to harness AI to get more value from Snowflake.
03:07People would build dashboards on top of Snowflake.
03:09Now, with products like Snowflake, all of the power of the data and so much more, the applications
03:15that you need, is there right within that work agent?
03:19It is that combination of both the secular drive that AI is providing for data platforms,
03:25plus our ability to harness AI ourselves and drive meaningful token consumption, for example,
03:31on time.
03:34We are still having that audio issue, so I'm going to ask this question, and maybe your team
03:38can just tweet some things you're in a little bit quickly, Sridhar.
03:42But I'm really interested in the Amazon deal.
03:44Six billion is a lot that you're committing in terms of infrastructure for spend.
03:48What are you getting in return?
03:49How much more efficient is Graviton, is the Amazon chip, to your cost base?
03:54First of all, they're a longtime partner.
03:57They are the biggest cloud service provider that we run on top of.
04:02We run on top of Azure as well as GCP.
04:06The only important thing with Amazon is how we go to our customers together.
04:12Both teams are extraordinary.
04:15Value that we deliver for our customers.
04:19And with deals like this, we get massive economies of scale that let us pass on some of these savings
04:25back to our customers.
04:26We announced a huge change in how we price AI.
04:29That makes AI a lot less expensive for our customers.
04:33It's aided by deals like this because of this ability to bulk purchase confidently,
04:38which, as I said, in turn, we give to our customers, create amazing products on top
04:43that are very cost efficient and so on.
04:47So what does Amazon get out of this deal with you?
04:51I mean, of course, there's a massive headline of a $6 billion number, but how do they work
04:58with you and collaborate?
05:05This deal makes us much more effective together.
05:08Amazon is interested in solving customer problems.
05:10And having a data platform is a key part of solving customer problems.
05:16Us being able to go to market together, we work at every level of the hierarchy.
05:19Matt and I are, Garmin, the CEO and I are in constant touch, but so are our teams.
05:25It's that ability to collaborate at a deep level to solve complex problems, for example,
05:30like data migration, that makes us pretty unique.
05:33It is truly a better together story.
05:36Better together is kind of the very thesis of why you're at Snowflake.
05:40Neva was the company that you built, a generative AI company that Snowflake bought,
05:44and you became head of AI and now CEO.
05:45And you've been making other purchases.
05:47And I noticed Natoma is one of them.
05:49This is about managing data actions of AI agents.
05:52Any more M&A that we should expect, Sri?
05:55We will continue to be very open-minded about M&A.
05:58Natoma is a key acquisition because it widens the aperture of what is visible in Snowflake
06:04intelligence to all of the data that matters to you, Caroline.
06:08Everything that you have in your email or perhaps your documents or other applications that you use
06:13are now visible to the work agent, which means that you can get much better insight.
06:18You can also take actions directly from Snowflake intelligence.
06:21We will continue to be very active on this front.
06:25Key pieces of technology as well as amazing teams that are going to make us so much better,
06:30like Neva did.
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