1、Table of ContentsUNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-K(Mark One)ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended January 31,2024ORTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCH

2、ANGE ACT OF 1934For the transition period from toCommission file number:001-39504SNOWFLAKE INC.(Exact name of registrant as specified in its charter)Delaware46-0636374(State or other jurisdiction of incorporation or organization)(I.R.S.Employer Identification No.)Suite 3A,106 East Babcock StreetBoze

3、man,MT 59715(Address of principal executive offices)(844)766-9355(Registrants telephone number,including area code)Securities registered pursuant to Section 12(b)of the Act:Title of each classTrading Symbol(s)Name of each exchange on which registeredClass A Common Stock,$0.0001 par valueSNOWThe New

4、York Stock ExchangeSecurities registered pursuant to section 12(g)of the Act:Not ApplicableIndicate by check mark if the registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act.Yes No Indicate by check mark if the registrant is not required to file reports pursuant to

5、 Section 13 or Section 15(d)of the Exchange Act.Yes No Indicate by check mark whether the registrant:(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months(or for such shorter period that the registrant was required t

6、o file such reports),and(2)hasbeen subject to such filing requirements for the past 90 days.Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the

7、 preceding 12 months(or for such shorter period that the registrant wasrequired to submit such files).Yes No Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company,or an emerging growth company.See the defin

8、itions of“large accelerated filer,”“accelerated filer,”“smaller reporting company,”and“emerging growth company”in Rule 12b-2 of the Exchange Act.Large accelerated filerAccelerated filerNon-accelerated filerSmall reporting companyEmerging growth companyIf an emerging growth company,indicate by check

9、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.Indicate by check mark whether the registrant has filed a report on and attestation to its managemen

10、ts assessment of the effectiveness of its internal control over financial reporting under Section 404(b)of the Sarbanes-Oxley Act(15 U.S.C.7262(b)by the registered publicaccounting firm that prepared or issued its audit report.If securities are registered pursuant to Section 12(b)of the Act,indicate

11、 by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based co

12、mpensation received by any of the registrants executive officers during the relevant recovery period pursuant to 240.10D-1(b).Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Act).Yes No The aggregate market value of voting stock held by non-affiliates

13、 of the Registrant on July 31,2023(the last business day of the Registrants fiscal second quarter),based on the closing price of$177.71 for shares of the Registrants Class A common stock as reported by the NewYork Stock Exchange,was approximately$56.6 billion.As of March 15,2024,there were 334.2 mil

14、lion shares of the registrants Class A common stock,par value of$0.0001 per share,outstanding(excluding approximately 0.2 million shares of Class A common stock held by a wholly owned subsidiary of the registrant which aretreated as treasury stock for accounting purposes).DOCUMENTS INCORPORATED BY R

15、EFERENCEPortions of the registrants definitive Proxy Statement relating to the 2024 Annual Meeting of Stockholders are incorporated herein by references in Part III of this Annual Report on Form 10-K to the extent stated herein.Such Proxy Statement will be filed with the Securities andExchange Commi

16、ssion within 120 days of the registrants fiscal year ended January 31,2024.We are a Delaware corporation with a globally distributed workforce and no corporate headquarters.Under the Securities and Exchange Commissions rules,we are required to designate a“principal executive office.”For purposes of

17、this report,we have designated our officein Bozeman,Montana as our principal executive office.11 Table of ContentsTABLE OF CONTENTSPageSpecial Note About Forward-Looking Statements3Selected Risks Affecting Our Business6PART I.7ITEM 1.Business.7ITEM 1A.Risk Factors.19ITEM 1B.Unresolved Staff Comments

18、.46ITEM 1C.Cybersecurity46ITEM 2.Properties.48ITEM 3.Legal Proceedings.48ITEM 4.Mine Safety Disclosures.48PART II.49ITEM 5.Market for Registrants Common Equity,Related Stockholder Matters and Issuer Purchases of Equity Securities.49ITEM 6.Reserved49ITEM 7.Managements Discussion and Analysis of Finan

19、cial Condition and Results of Operations.50ITEM 7A.Quantitative and Qualitative Disclosures About Market Risk.69ITEM 8.Financial Statements and Supplementary Data.71ITEM 9.Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.121ITEM 9A.Controls and Procedures.121ITEM

20、9B.Other Information.122ITEM 9C.Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.122PART III.123ITEM 10.Directors,Executive Officers and Corporate Governance.123ITEM 11.Executive Compensation.123ITEM 12.Security Ownership of Certain Beneficial Owners and Management and Related Sto

21、ckholder Matters.123ITEM 13.Certain Relationships and Related Transactions,and Director Independence.123ITEM 14.Principal Accounting Fees and Services.123PART IV.124ITEM 15.Exhibits and Financial Statement Schedules.124ITEM 16.Form 10K Summary.125Signatures1263Table of ContentsSPECIAL NOTE ABOUT FOR

22、WARD-LOOKING STATEMENTSThis Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933,as amended(Securities Act),and Section 21E of theSecurities Exchange Act of 1934,as amended(Exchange Act),about us and our industry that involve

23、substantial risks and uncertainties.All statements other than statements of historical factscontained in this report,including statements regarding our future results of operations and financial condition,business strategy,and plans and objectives of management for future operations,are forward-look

24、ing statements.In some cases,forward-looking statements may be identified by words such as“anticipate,”“believe,”“continue,”“could,”“design,”“estimate,”“target,”“expect,”“intend,”“may,”“plan,”“potentially,”“predict,”“project,”“should,”“will,”“would,”or the negative of these terms or other similar ex

25、pressions.These forward-looking statementsinclude,but are not limited to,statements concerning the following:our expectations regarding our revenue,expenses,and other operating results,including statements relating to the portion of our remaining performance obligations that we expect torecognize as

26、 revenue in future periods;our ability to acquire new customers and successfully retain existing customers;our ability to maintain and increase consumption on our platform;our ability to continue to innovate and make new features generally available to customers,including our development and use of

27、artificial intelligence and machine learning;our ability to achieve or sustain our profitability;future investments in our business,our anticipated capital expenditures,and our estimates regarding our capital requirements;the costs and success of our sales and marketing efforts,and our ability to pr

28、omote our brand;our growth strategies for,and market acceptance of,our platform and the Data Cloud,including the Snowflake Marketplace and Snowpark,as well as our ability to execute suchstrategies;our ability to successfully integrate and realize the benefits of strategic acquisitions;our reliance o

29、n key personnel and our ability to identify,recruit,and retain skilled personnel;our ability to effectively manage our growth,including any international expansion;our ability to protect our intellectual property rights and any costs associated therewith;our ability to prevent or mitigate disruption

30、s,outages,defects,and other performance and quality problems with our platform or with the public cloud and internet infrastructure onwhich it relies;our expectations regarding general market conditions and the effects of those conditions,including on customer and partner activity;our ability to com

31、pete effectively with existing competitors and new market entrants;the growth rates of the markets in which we compete;our expectations regarding our stock repurchase program;andthe impacts of volatility and uncertainty in the global economy on our business and the businesses of our customers and pa

32、rtners.We caution you that the foregoing list may not contain all of the forward-looking statements made in this Annual Report on Form 10-K.4Table of ContentsForward-looking statements are based on our managements beliefs and assumptions and on information currently available.These forward-looking s

33、tatements are subject to a number ofknown and unknown risks,uncertainties and assumptions,including risks described in the section titled“Risk Factors”and elsewhere in this Annual Report on Form 10-K.Other sections of thisAnnual Report on Form 10-K may include additional factors that could harm our

34、business and financial performance.Moreover,we operate in a very competitive and rapidly changingenvironment.New risk factors emerge from time to time,and it is not possible for our management to predict all risk factors nor can we assess the impact of all factors on our business or theextent to whi

35、ch any factor,or combination of factors,may cause actual results to differ from those contained in,or implied by,any forward-looking statements.You should not rely upon forward-looking statements as predictions of future events.We cannot assure you that the events and circumstances reflected in the

36、forward-looking statements willbe achieved or occur.Although we believe that the expectations reflected in the forward-looking statements are reasonable,we cannot guarantee future results,levels of activity,performance,orachievements.Except as required by law,we undertake no obligation to update pub

37、licly any forward-looking statements for any reason after the date of this report or to conform these statementsto actual results or to changes in our expectations.You should read this Annual Report on Form 10-K and the documents that we reference in this Annual Report on Form 10-K and have filed as

38、exhibits to this report with the understanding that our actual future results,levels of activity,performance,and achievements may be materially different from what we expect.We qualify all ofour forward-looking statements by these cautionary statements.Investors and others should note that we may an

39、nounce material business and financial information to our investors using our investor relations website(),ourfilings with the Securities and Exchange Commission(SEC),webcasts,press releases,and conference calls.We use these mediums,including our website,to communicate with investors and thegeneral

40、public about our company,our products,and other issues.It is possible that the information that we make available on our website may be deemed to be material information.Wetherefore encourage investors and others interested in our company to review the information that we make available on our websi

41、te.5Table of ContentsSELECTED RISKS AFFECTING OUR BUSINESSInvesting in our common stock involves numerous risks,including those set forth below.This summary does not contain all of the information that may be important to you,and you shouldread this summary together with the more detailed discussion

42、 of risks and uncertainties set forth in the section titled“Risk Factors”included elsewhere in this Annual Report on Form 10-K.Below are summaries of some of these risks,any one of which could materially adversely affect our business,results of operations,and financial condition.In that event,the ma

43、rket price of ourcommon stock could decline,and you could lose part or all of your investment.Additional risks and uncertainties that we are unaware of,or that we currently believe are not material,may alsobecome important factors that adversely affect our business.You should not interpret our discl

44、osure of any of the following risks to imply that such risks have not already materialized.We have experienced rapid revenue growth and have a limited operating history,both of which make it difficult to forecast our future results of operations.We may not have visibility into our future financial p

45、osition and results of operations.We have a history of operating losses and may not achieve or sustain profitability in the future.General market conditions,volatility,or disruptions,including higher inflation,higher interest rates,bank failures,and fluctuations or volatility in capital markets or f

46、oreign currencyexchange rates,could have an adverse impact on our or our customers or partners businesses,which could negatively impact our financial condition or results of operations.The markets in which we operate are highly competitive,and if we do not compete effectively,our business,financial

47、condition,and results of operations could be harmed.If we fail to innovate in response to changing customer needs,new technologies,or other market requirements,our business,financial condition,and results of operations could beharmed.If we are not successful in executing our investments in our platf

48、orm,including artificial intelligence and machine learning technology,or AI Technology,our business,financialcondition,and results of operations could be harmed.If we or our third-party service providers experience an actual or perceived security breach or unauthorized parties otherwise obtain acces

49、s to our customers data,our data,or ourplatform,our platform may be perceived as not being secure,our reputation may be harmed,demand for our platform may be reduced,and we may incur significant liabilities.We could suffer disruptions,outages,defects,and other performance and quality problems with o

50、ur platform or with the public cloud and internet infrastructure on which it relies.We expect fluctuations in our financial results,making it difficult to project future results,and if we fail to meet the expectations of securities analysts or investors with respect to ourresults of operations,our s

51、tock price could decline.Failure to effectively develop and expand our sales and marketing capabilities could harm our ability to increase our customer base and achieve broader market acceptance of ourproducts and platform.Sales efforts to large customers involve risks that may not be present or tha

52、t are present to a lesser extent with respect to sales to smaller organizations,such as longer sales cycles andmore complex customer requirements.Unfavorable conditions in our industry or the global economy,reductions in cloud spending,or lower than expected consumption,could limit our ability to gr

53、ow our business andnegatively affect our results of operations.6Table of ContentsPART IITEM 1.BUSINESSWe believe that a cloud computing platform that puts data and AI at its core will offer great benefits to organizations by allowing them to realize the value of the data that powers theirbusinesses.

54、By offering rich primitives for data and applications,we believe that we can create a data connected world where organizations have seamless access to explore,share,and unlock thevalue of data.To realize this vision,we deliver the Data Cloud,a network where Snowflake customers,partners,developers,da

55、ta providers,and data consumers can break down data silos andderive value from rapidly growing data sets in secure,governed,and compliant ways.Our platform is the innovative technology that powers the Data Cloud,enabling customers to consolidate data into a single source of truth to drive meaningful

56、 insights,apply AI to solvebusiness problems,build data applications,and share data and data products.We provide our platform through a customer-centric,consumption-based business model,only charging customersfor the resources they use.Snowflake solves the decades-old problem of data silos and data

57、governance.Leveraging the elasticity and performance of the public cloud,our platform enables customers to unify andquery data to support a wide variety of use cases.It also provides frictionless and governed data access so users can securely share data inside and outside of their organizations,gene

58、rally withoutcopying or moving the underlying data.As a result,customers can blend existing data with new data for broader context,augment data science efforts,and create new monetization streams.Delivered as a service,our platform requires near-zero maintenance,enabling customers to focus on derivi

59、ng value from their data rather than managing infrastructure.Our cloud-native architecture consists of three independently scalable but logically integrated layers across compute,storage,and cloud services.The compute layer provides dedicatedresources to enable users to simultaneously access common

60、data sets for many use cases with minimal latency.The storage layer ingests massive amounts and varieties of structured,semi-structured,and unstructured data to create a unified data record.The cloud services layer intelligently optimizes each use cases performance requirements with no administratio

61、n.Thisarchitecture is built on three major public clouds across 40 regional deployments around the world.These deployments are generally interconnected to deliver the Data Cloud,enabling aconsistent,global user experience.Our platform supports a wide range of workloads that enable our customers most

62、 important business objectives,including data warehouse,data lake,data engineering,AI/ML,applications,collaboration,cybersecurity and Unistore.From January 1,2024 to January 31,2024,we processed an average of approximately 4.2 billion daily queries across all our customer accounts,upfrom an average

63、of approximately 2.6 billion daily queries during the corresponding month of the prior fiscal year.We are committed to expanding our platforms use cases and supportingdevelopers in building their applications and businesses.In 2021,we launched Snowpark for Java and Scala to allow developers to build

64、 in the language of their choice,and in 2022 we addedsupport for Python.In 2023,we launched Snowpark Container Services,a fully managed container platform designed to facilitate the deployment,management,and scaling of containerizedapplications and AI/ML models within our ecosystem.We continue to in

65、vest in our Native Application program to help companies build,operate,and market applications in the Data Cloud bysupporting developers across all stages of the application journey.We have an industry-vertical focus,which allows us to go to market with tailored business solutions.For example,we hav

66、e launched the Telecom Data Cloud,the Financial Services DataCloud,the Media Data Cloud,the Healthcare and Life Sciences Data Cloud,and the Retail Data Cloud.Each of these brings together Snowflakes platform capabilities with industry-specificpartner solutions and datasets to drive business growth a

67、nd deliver improved experiences and insights.Our business benefits from powerful network effects.The Data Cloud will continue to grow as organizations move their siloed data from cloud-based repositories and on-premises datacenters to the Data Cloud.The more customers adopt our platform,the more dat

68、a can be exchanged with other Snowflake customers,partners,data providers,and data consumers,enhancing thevalue of our platform for all users.We believe this network effect will help us drive our vision of the Data Cloud.7Table of ContentsOur platform is used globally by organizations of all sizes a

69、cross a broad range of industries.As of January 31,2024,we had 9,437 total customers,increasing from 7,744 customers as ofJanuary 31,2023.As of January 31,2024,our customers included 691 of the Forbes Global 2000,based on the 2023 Forbes Global 2000 list,and those customers contributed approximately

70、 41%of our revenue for the fiscal year ended January 31,2024.Our Forbes Global 2000 customer count is subject to adjustments for annual updates to the Global 2000 list by Forbes,as well asacquisitions,consolidations,spin-offs,and other market activity with respect to such customers,and we present ou

71、r Forbes Global 2000 customer count for historical periods reflecting theseadjustments.As our customers experience the benefits of our platform,they typically expand their usage significantly,as evidenced by our net revenue retention rate,which was 131%as ofJanuary 31,2024.The number of customers th

72、at contributed more than$1 million in trailing 12-month product revenue increased from 331 to 461 as of January 31,2023 and 2024,respectively.For the fiscal years ended January 31,2024,2023,and 2022,our revenue was$2.8 billion,$2.1 billion,and$1.2 billion,respectively,representing year-over-year gro

73、wth of 36%and 69%,respectively.Our net loss was$838.0 million,$797.5 million,and$679.9 million for the fiscal years ended January 31,2024,2023,and 2022,respectively.The Rise of the Data CloudData exists everywhere,but is often held hostage in silos by machines,applications,networks,and clouds.To acc

74、ess the value of this data,organizations are undergoing massive digitaltransformation initiatives,and data is driving operations for many modern enterprises.In an effort to mobilize data,companies have invested billions of dollars in disparate on-premises systems,infrastructure clouds,and applicatio

75、n clouds.Yet,there are a myriad of challenges associated with legacy data solutions and the data silo problem persists.We believe the Data Cloud can enable a world without data silos,allowing organizations to effortlessly discover,access,derive insights from,and share data from a variety of sources.

76、Customers can share and provide access to each others data or data products,augment data science and machine learning algorithms with more data sets,connect global supply chains throughdata hubs,build data products,and create new monetization channels by connecting data providers and consumers.As th

77、e Data Cloud grows through broad adoption and increasing usage,thereare enhanced benefits from greater data availability.Moving forward,we are continuing to foster these benefits through industry-specific Data Clouds and the Native Application Framework.Our SolutionOur platform is built on a cloud-n

78、ative architecture that leverages the massive scalability and performance of the public cloud.Our platform allows customers to consolidate data into a singlesource of truth to drive meaningful business insights,power applications,and share data across regions and public clouds.Key elements of our pl

79、atform include:Diverse data types.Our platform integrates and optimizes structured,semi-structured,and unstructured data,while maintaining performance and flexibility.Massive scalability of data volumes.Our platform leverages the scalability and performance of the public cloud to support growing dat

80、a sets without sacrificing performance.Multiple use cases and users simultaneously.Our platform makes compute resources dynamically available to address the demand of as many users and use cases as needed.Becausethe storage layer is independent of compute,the data is centralized and simultaneously a

81、ccessible by many users without compromising performance or data integrity.Optimized price-performance.Our platform uses advanced optimizations to efficiently access only the data required to deliver the desired results.It delivers speed without the need fortuning or the expense of manually organizi

82、ng data prior to use.Organizations can adjust their consumption to precisely match their needs,always optimizing for price-performance.8Table of ContentsEasy to use.Our platform can be up and running in seconds and is priced based on a consumption-based business model,reducing hidden costs and ensur

83、ing customers pay only forwhat they use.Snowpark,our developer framework,allows developers to interact with Snowflake through various popular programming languages,including Python.This,combinedwith our familiar SQL-based programming model and query language,provides choice for organizations without

84、 governance tradeoffs and saves time and costs to learn new skills orhire specialized analysts or data scientists.Delivered as a service with no overhead.Our platform is delivered as a service,eliminating the cost,time,and resources associated with managing underlying infrastructure.We deliverautoma

85、ted platform updates regularly with minimal planned downtime,eliminating expensive and time-consuming version and patch management.This gives customers the ability toconsume more data at a lower total cost of ownership compared with other solutions.Multi-cloud and multi-region.Our platform is availa

86、ble on three major public clouds across 40 regional deployments around the world.These deployments are generally interconnectedto provide a global and consistent user experience.Seamless and secure collaboration.Our platform enables governed and secure sharing of live data within an organization and

87、 externally across customers and partners,generallywithout copying or moving the underlying data.When sharing data across regions and public clouds,our platform allows customers to easily replicate data and maintain a single sourceof truth.Our platform also enables organizations to securely share an

88、d monetize data products.Key Benefits to our CustomersOur platform enables customers to:Transform into data-driven businesses.Our platform eliminates data silos,empowers secure and governed access to data,and removes data management and infrastructurecomplexities.This enables organizations to drive

89、greater insights,improve products and services,and pursue new business opportunities.Consolidate data into a single,analytics-ready source of truth.Our platform simplifies our customers data infrastructure by centralizing data in an analytics-ready format.As a result,organizations are able to delive

90、r secure,fast,and accurate decision making.It also simplifies governance and minimizes the errors,complexity,and costs associated with managing datasilos.Increase agility,augment insights,and create new monetization streams through seamless collaboration.Our platform allows customers to seamlessly s

91、hare and consume live dataacross their organizations,and with their partners,customers,and suppliers,without moving the underlying data.Our platform also allows customers to unlock previously untappedmonetization streams through creating and sharing data applications and data products.Customers can

92、also leverage the Snowflake Marketplace,which provides access to hundreds oflive,ready-to-query third-party data sets and data products across a wide range of categories.Through collaborating within and outside of their ecosystems,our customers are able toenhance insights and better reach,engage,and

93、 retain their end customers.Benefit from a global multi-cloud strategy.Our platform delivers a consistent product experience across connected regions and public clouds.With a global multi-cloud strategy,organizations can optimize for the best features and functionality each public cloud provides,wit

94、hout becoming overly reliant on a single public cloud provider.Our customers canoptimize their cloud costs,seamlessly migrate data among connected public clouds without having to alter existing security policies,and implement regional strategies,including to meetregulatory and data sovereignty requi

95、rements.Reduce time spent managing infrastructure.Because we deliver our platform as a service,our customers can focus on driving immediate value from their data and not on managingcomplex and expensive infrastructure.Enable greater data access through enhanced data governance.Security and governanc

96、e,including the encryption of data in transit and at rest,were designed into our platformarchitecture.This provides customers with the confidence to share their data inside their organizations,as well as with their partners,customers,and suppliers,to unlock new insightsand build new applications.9Ta

97、ble of ContentsOur Growth StrategiesWe intend to invest in our business to advance the Data Cloud through the adoption of our platform.Our growth strategies include:Innovate and advance our platform.We have a history of technological innovation,releasing new features on a regular basis and making fr

98、equent updates to our platform.We intend tocontinue making significant investments in research and development and hiring top technical talent to enable new use cases,strengthen our technical lead in our platforms architecture,and increase our differentiation through enhanced collaboration capabilit

99、ies.During the fiscal year ended January 31,2024,capabilities like Marketplace Listing Auto-Fulfillment&Monetization,account replication&failover,Query Acceleration Service,geospatial analytics,and Snowpipe Streaming became generally available,while capabilities like Icebergtables,Hybrid tables,and

100、Cortex LLM and ML-powered functions became available in public preview and are expected to become generally available in the fiscal year ending January31,2025.Drive growth by acquiring new customers.We believe that nearly all organizations will eventually embrace a cloud strategy,and that the opport

101、unity to continue growing our customerbase,particularly with larger organizations and organizations with vast amounts of data,is substantial.To drive new customer growth,we intend to continue investing in sales andmarketing,with a focus on replacing legacy solutions and big data offerings and provid

102、ing industry-specific services.Drive increased usage within our existing customer base.As customers realize the benefits of our platform,they typically increase their platform consumption by processing,storing,and sharing more data.We plan to continue investing in sales and marketing,with a focus on

103、 driving more consumption on our platform to grow large customer relationships,which leadto scale and operating leverage in our business model.Expand our global footprint.As organizations around the world increase their public cloud adoption,we believe there is a significant opportunity to expand th

104、e use of our platformoutside of North America.We continue to make investments in sales and marketing,research and development,customer support,and public cloud deployments across the EMEA,Asia-Pacific and Japan(APJ),and Latin America regions.Expand data content and collaboration across our global ec

105、osystem.Our platform provides an innovative way for organizations to collaborate and connect with data and data products,including through the Snowflake Marketplace.We plan to continue investing in adding new customers,partners,data providers,data consumers,and forms of sharing to connect on ourplat

106、form,and to drive market awareness of the Data Cloud.Grow and invest in our partner network.Our Snowflake Partner Network is comprised of system integrators,resellers,data providers,and other services partners who help acceleratethe adoption of our platform,and technology partners,who help provide e

107、nd-to-end solutions to our customers.We plan to continue investing in building out our partner program todrive more consumption on our platform,broaden our distribution footprint,acquire new customers,and drive greater awareness of our platform.For example,we launched our Poweredby Snowflake program

108、 in 2021 to help customers and partners build,operate,and grow their applications built using Snowflake,and we continue to invest in expanding the program.Our PlatformOur platform unifies data and supports a growing variety of workloads,including data warehouse,data lake,data engineering,AI/ML,appli

109、cations,collaboration,cybersecurity and Unistore.Customers can leverage our platform for any one of these workloads,but when taken together,it provides an integrated,end-to-end solution that delivers greater insights,faster datatransformations,improved data sharing,and accelerated application develo

110、pment.Delivered as a service,our platform is deployed across multiple public clouds and regions,is easy to use,andrequires near-zero maintenance.10Table of ContentsWorkloadsOrganizations use our platform to power the following workloads:Data Warehouse.Our platform provides reporting and analytics to

111、 improve business intelligence.For Data Warehouse,our platform enables organizations to:Support multiple users and activities concurrently.Enable multiple activities,such as repeatable analytics,rendering of dashboards,or ad hoc explorations,such as data sciencemodel training,with flexible compute c

112、apacity,no resource contention,and no provisioning of any infrastructure.Generate comprehensive data insights.Run queries on structured,semi-structured,and unstructured data to capitalize on a more comprehensive view of their data to drive maximuminsights.Simplify data governance.Gain immediate insi

113、ght into data and usage patterns and set policies and configurations to maximize governance.Data Lake.Our platform can serve as a central data repository without trade-offs in performance,security,or data governance.It can also augment existing data lakes with seamlessaccess to external data and ope

114、n formats.For Data Lake,our platform enables organizations to:Build a modern scalable data lake in the cloud.Consolidate data into one centralized place with the scalability,security,and power of the cloud to enable real-time analytics on alldata.Customers can rely on this centralized data repositor

115、y to address a variety of use cases.Enact better governance and security to enable broader data access.Simplify data governance and provide rich security and controls to ensure data is managed and accessedaccording to regulatory and corporate requirements.Data Engineering.Our platform enables data e

116、ngineers,IT departments,data science teams,and business analytics teams to efficiently build and manage both batch and streaming datapipelines using SQL,Python,or other programming languages to transform raw data for downstream consumers like data science teams,analytics teams,and business applicati

117、ons.ForData Engineering,our platform enables organizations to:Drive faster decision making.Ingest data and transform it in real time to ensure access to up-to-date information to drive better business outcomes.Dynamically meet peak business demands.Meet fluctuating business demands by instantly scal

118、ing resources up and down.AI/ML.Our platform enables organizations to securely build and deploy large language models(LLMs)and machine learning(ML)models.For AI/ML,our platform enablesorganizations to:Bring generative AI and LLMs to enterprise data.Quickly and securely analyze data and build AI appl

119、ications using Snowflake Cortex(in private preview),a managed service thatserves LLMs and vector functions.Build and deploy ML models.Use Snowpark ML(in public preview)to quickly build features,train models and deploy them into production using familiar Python syntax withouthaving to move or copy da

120、ta outside the organizations governance boundary.Fine-tune LLMs securely in our platform.Deploy,manage,and scale containerized models and fine tune open-source and other third-party LLMs using secure,Snowflake-managedinfrastructure with graphics processing units,or GPUs,all within the boundary of th

121、e organizations Snowflake account.Turn models into interactive applications.Manage resources for data transformation and use leading data science tools,with the support of Scala,R,Java,and Python,to buildmachine learning algorithms in a single cloud platform.11Table of ContentsApplications.Our platf

122、orm can power new applications as well as enable existing applications with capabilities for reporting and analytics.For Applications,our platform enablesorganizations to:Develop analytical applications.Build data applications with our platform serving as the analytical engine to provide massive sca

123、lability and insights with minimal operationaloverhead.Embed Snowflake into existing applications.Feed data and analytics directly into business applications in the context of daily workstreams.Develop and distribute Snowflake-native applications.Build,scale,and deploy applications that run securely

124、 within the boundary of the end customers Snowflake accounts withSnowflakes Native Application Framework.Collaboration.Our platform enables organizations to securely share,monetize,and acquire live data sets and data products.For Collaboration,our platform enables organizations to:Securely share liv

125、e data.Build a private data exchange for employees across all parts of the organization to access,share,and analyze live data.Acquire data sets to enrich analytics.Leverage public data sets on the Snowflake Marketplace to enrich insights,augment analysis,and inform machine learning algorithms.Moneti

126、ze new data sets and data products.List data sets or data products to the Snowflake Marketplace and tap into new monetization streams.Invite external parties to access governed data.Invite customers,suppliers,and partners to securely access their data,streamline operations,and increase transparency.

127、Enable data clean rooms.Our platform enables data clean rooms,allowing organizations to design their own collaborative data environment in a privacy-compliant manner.Easy data replication.Our platform allows for easy replication of data,accounts,policies,and pipelines for multiple users across multi

128、ple public cloud providers and regionswithout compromising data integrity and governance,enabling our customers and their users to rely on a single source of truth and achieve cross-cloud business continuity.Cybersecurity.Our platform helps eliminate data silos,which can enable robust analytics and

129、better security outcomes.For Cybersecurity,our platform enables organizations to:Accelerate security analytics.Unify logs,enterprise data,and contextual data sets to achieve better fidelity and automation.Leverage customized resources.Access dynamically updated threat intelligence from the Snowflake

130、 Marketplace and a wide network of connected applications that provide out-of-the-box integrations,content,and visualizations to enable initiatives such as threat detection and response.Unistore.Our platform enables organizations to simplify development by uniting transactions and analytical data us

131、ing hybrid tables(in public preview),a new type of Snowflake tablethat enables fast,single-row operations.For Unistore,our platform enables organizations to:Unlock transactional use cases with hybrid tables.Use hybrid tables to develop lightweight transactional use cases like serving data or storing

132、 an applications state,all within ourplatform.Analyze transactional and historical data fast.Immediately act on data from across the organizations ecosystem,build new and better customer experiences,and get deeper insightsby integrating transactional and analytical data in a single data set.Architec

133、tureOur platform was built from the ground up to take advantage of the cloud,and is built on an innovative multi-cluster,shared data architecture.It consists of three independently scalablelayers deployed and generally connected globally across public clouds and regions:12Table of ContentsCentralize

134、d storage.The storage layer is based on scalable cloud storage and can manage structured,semi-structured,and unstructured data.It can be grown independently of computeresources,allowing for maximum scalability and elasticity,and ensures a single,persistent copy of the data.The stored data is automat

135、ically partitioned,and metadata is extracted duringloading to enable efficient processing.Multi-cluster compute.The compute layer is designed to capitalize on the instant elasticity and performance of the public cloud.Compute clusters can be spun up and down easilywithin seconds,enabling our platfor

136、m to retrieve the optimal data required from the storage layer to answer queries and transform data with optimized price-performance.Thisfunctionality allows a multitude of users and use cases to operate on a single copy of the data.Cloud services.The cloud services layer acts as the brain of the pl

137、atform ensuring the different components work in unison to deliver a consistent user-friendly customer experience.Itperforms a variety of tasks,including security operations,system monitoring,query optimization,and metadata and state tracking throughout the platform.This architecture is built on thr

138、ee major public clouds across 40 regional deployments around the world.These deployments are generally interconnected through our Snowgrid technology todeliver the Data Cloud,enabling a global and consistent user experience.Our TechnologyInnovation is at the core of our culture.We have developed inn

139、ovative technology across our platform,including managed service,storage,query capabilities,compute model,data sharing,global infrastructure,and integrated security.Managed ServiceHigh availability.Within a region,all components of our platform are distributed over multiple data centers to ensure hi

140、gh availability.Hardware and software problems areautomatically detected and addressed by the system,with full transparency to our customers.Transactions.Our platform supports full ACID compliant transactional integrity,ensuring that data remains consistent even when our platform is concurrently use

141、d by many usersand use cases.Data availability and recovery.Our platform provides customers the ability to replicate data across various deployments,create point-in-time consistent snapshots of data,and viewor recover deleted or changed data over a configured period of time.This allows customers to

142、avoid difficult trade-offs between high recovery times,data loss,or downtime.StorageColumnar data.Our platform stores data in a proprietary columnar representation,which optimizes the performance of analytical and reporting queries.It also provides highcompression ratios,resulting in economic benefi

143、ts for customers.Micro-partitioning.Our platform automatically partitions all data it stores without the need for user specification or configuration.It creates small files called“micro partitions”based on size,enabling optimizations in query processing to retrieve only the data relevant for user qu

144、eries,simplifying user administration and enhancing performance.Metadata.When data is ingested,our platform automatically extracts and stores metadata to speed up query processing.It does so by collecting data distribution information for allcolumns in every micro-partition.Semi-structured and unstr

145、uctured data.In addition to structured,relational data,our platform supports semi-structured data,including JSON,Avro,and Parquet,and unstructureddata,including PDF documents,screenshots,recordings,and images.Data in these formats can be ingested and queried with performance comparable to a relation

146、al,structuredrepresentation.13Table of ContentsQuery Capabilities.Our platform is engineered to query petabytes of data.It implements support for a large subset of the ANSI SQL standard for read operations and data modificationoperations.Our platform provides additional features,including:Time trave

147、l.Our platform keeps track of all changes happening to a table,which enables customers to query previous versions based on their preferences.Customers can query as ofa relative point in time or as of an absolute point in time.This has a broad array of use cases for customers,including error recovery

148、,time-based analysis,and data quality checks.Cloning.Our architecture enables us to offer zero-copy cloning,an operation by which entire tables,schemas,or databases can be duplicatedor clonedwithout having to copy orduplicate the underlying data.Our platform leverages the separation between cloud se

149、rvices and storage to be able to track independent clones of objects sharing the same physicalcopy of the underlying data.This enables a variety of customer use cases such as making copies of production data for data scientists,creating custom snapshots in time,or testingdata pipelines.Compute Model

150、.Our platform offers a variety of capabilities to operate on data,from ingestion to transformation,as well as rich query and analysis.Our compute services are primarilypresented to users in one of two models,either through explicit specification of compute clusters or through a number of serverless

151、features.Compute Clusters.Our platform exposes compute clusters as a core concept.Our customers can create as few or as many compute clusters as they want and specify computecapacity at tiered levels.These clusters can be configured to run only when needed,with cluster instantiation operations typic

152、ally completed in seconds.Compute clusters can alsobe configured as a multi-cluster warehouse in which our platform can automatically add and remove additional instances of a given cluster to address variations in query demands.This gives us the ability to offer extremely high levels of concurrency

153、with a simple configuration specification.We also offer warehouse recommendations for workloads that havelarge memory requirements,such as machine learning use cases.Serverless features.We offer a number of additional services that automatically provide the capacity our customers require.For example

154、,our data ingestion service automaticallyingests data from cloud storage and allocates compute capacity based on the amount of data ingested;our clustering service continuously rearranges the physical layout of data toensure conformity with clustering key specifications,improving performance;our mat

155、erialized views service propagates changes from underlying tables to views that havematerialized subsets or summaries;our replication service moves data between regions or clouds;our search optimization service analyzes changes in data,maintains informationthat speeds up lookup queries,and accelerat

156、es queries performing lookups of specific values;and our query acceleration service automatically offloads parts of eligible queries toshared,flexible compute clusters to handle high-burst workloads.Data Sharing.In our platform,data sharing is defined through access control and not through data move

157、ment.As such,the data consumer sees no latency relative to updates from thedata provider,and incurs no cost to move or transform data to make it usable.Based on the same technology principles,our platform enables data clean rooms.Global InfrastructureDatabase replication.Our platform enables custome

158、rs to replicate data from one region or public cloud to another region or public cloud while maintaining transactional integrity.Business continuity.Our platform enables failing over and failing back a database and redirecting clients transparently across regions or public clouds.This provides an in

159、tegratedand global disaster recovery capability.Global listings for sharing.Our platform enables a listing to be published globally to access consumers across regions or public clouds.14Table of ContentsBuilt-in Security.We built our platform with security as a core tenet.Our platform provides a num

160、ber of capabilities for customers to confidently use our platform while preserving thesecurity requirements of their organizations,including:Authentication.Our platform supports rich authentication capabilities,including federated authentication with a variety of identity providers,as well as suppor

161、t for multi-factorauthentication.Access control.Our platform provides a fine-grained security model based on role-based access control.It provides granular privileges on system objects and actions.Data encryption.Our platform encrypts all data,both in motion and at rest,and simplifies operations by

162、providing automatic re-keying of data.It also supports customer-managedkeys,where an additional layer of encryption is provided by keys controlled by customers,giving them the ability to control access to the data.Sales and MarketingWe sell our platform primarily through our direct sales team,which

163、consists of field sales and inside sales professionals segmented by customer industry,size,and region.Our direct salesteam is primarily focused on new customer acquisitions and driving increased use of our platform by existing customers.The breadth of our platform allows us to engage at every level

164、of anorganization,including data analysts and data engineers through our self-service model and senior executives through our direct sales team.The substantial majority of our global sales andmarketing efforts are carried out by teams located in North America.Outside of North America,we have dedicat

165、ed direct sales teams for the EMEA and APJ regions for organizations of all sizes.Many organizations initially adopt our platform through a self-service trial on our website.We deploy a range of marketing strategies to drive traffic to our website and usage of our platform.Our marketing team combine

166、s the creation of inbound demand with direct marketing,business development,and efforts targeted at business and technology leaders.PartnershipsOur partnership strategy is focused on delivering complete end-to-end solutions for our customers,driving general awareness of our platform,and broadening o

167、ur distribution and reach tonew customers.Our Snowflake Partner Network is a global program that manages our business relationships with a broad-based network of companies.Our partnerships consist of channelpartners,system integrators,data providers,and other technology partners.Collectively,these p

168、artners help us source leads,execute transactions,and provide training and implementation of ourplatform.Our system integrator partners help make the adoption of and migration to our platform easier by providing implementations,value-added professional services,managed services,andresale services.Ou

169、r technology partners provide strategic value to our customers by providing software tools,such as data loading,business intelligence,artificial intelligence and machinelearning,data governance,and security,as well as data sets and applications on the Snowflake Marketplace,to augment the capabilitie

170、s of our platform.We continue to invest in formal allianceswith the leading consulting,data management,and implementation service providers to help our customers migrate their legacy database solutions to the cloud.Over time,we expect our partnernetwork to drive more customers and consumption to our

171、 platform.Research and DevelopmentOur research and development organization is responsible for the design,development,testing,and delivery of new technologies,features,integrations,and improvements of our platform.Itis also responsible for operating and scaling our platform,including the underlying

172、public cloud infrastructure.Our research and development employees are located primarily in or aroundBellevue,Washington and San Mateo,California in the United States,and internationally in Berlin,Germany;Toronto,Canada;and Warsaw,Poland.Our research and development organization consists of teams sp

173、ecializing in software engineering,user experience,product management,data science,technical program management,andtechnical writing.As of January 31,2024,we had 2,002 employees in our research and development organization.We intend to continue to invest in our research and development capabilities

174、toexpand our platform.15Table of ContentsOur CompetitionThe markets we serve are highly competitive and rapidly evolving.With the introduction of new technologies and innovations,we expect the competitive environment to remain intense.Ourcompetition includes the following:large,well-established,publ

175、ic cloud providers that generally compete in all of our markets,including Amazon Web Services(AWS),Microsoft Azure(Azure),and Google CloudPlatform(GCP);less-established public and private cloud companies with products that compete in some of our markets;other established vendors of legacy database s

176、olutions or big data offerings;andnew or emerging entrants seeking to develop competing technologies.We believe we compete favorably based on the following competitive factors:ability to provide and innovate around an architecture that is purpose-built for the cloud;ability to efficiently and seamle

177、ssly ingest diverse data types in one location at scale;ability to drive business value and ROI;ability to support multiple use cases in one platform,including various industry-specific use cases;ability to provide seamless and secure access of data to many users simultaneously;ability to seamlessly

178、 and securely share and move data across public clouds or regions;ability to provide a consistent user experience across multiple public cloud providers;ability to provide pricing transparency and optimized price-performance benefits;ability to elastically scale up and scale down in high-intensity u

179、se cases;ease of deployment,implementation,and use;choice of programming language;performance,scalability,and reliability;security and governance;andquality of service and customer satisfaction.See the section titled“Risk Factors”for a more comprehensive description of risks related to competition.S

180、easonalityHistorically,we have received a higher volume of orders from new and existing customers in the fourth fiscal quarter of each year.As a result,we have historically seen higher net cashprovided by operating activities and non-GAAP free cash flow in the first and fourth fiscal quarters of eac

181、h year,and our sequential growth in remaining performance obligations has historicallybeen highest in the fourth fiscal quarter of each year.In addition,while historically revenue has been higher in our fourth fiscal quarter,it is also the most negatively impacted by reduced holidayconsumption.For m

182、ore information,including a definition of non-GAAP free cash flow and a reconciliation of free cash flow to the most directly comparable financial measure calculated inaccordance with U.S.generally accepted accounting principles(GAAP),see the section titled“Managements Discussion and Analysis of Fin

183、ancial Condition and Results of Operations.”16Table of ContentsHuman Capital ResourcesGeneralAs of January 31,2024,we had 7,004 employees operating across 34 countries.None of our employees are represented by a labor union with respect to his or her employment.In certaincountries in which we operate

184、,such as France,we are subject to,and comply with,local labor law requirements,which include works councils and industry-wide collective bargainingagreements.We have not experienced any work stoppages,and we consider our relations with our employees to be good.LocationWe are a Delaware corporation w

185、ith a globally distributed workforce.We recruit and hire employees in jurisdictions around the world based on a range of factors,including the availabletalent pool,the type of work being performed,the relative cost of labor,regulatory requirements and costs,and other considerations.The majority of o

186、ur personnel work from physical offices.Culture and EngagementWe consider our culture and employees to be important to our success.Our culture is driven by our core company values:Put Customers First:We only succeed when our customers succeed,so we focus on what matters most to them.Integrity Always

187、:We are open,honest,and respectful.Think Big:We set big goals that will make a positive impact and a lasting difference.Be Excellent:We hold ourselves to the highest standards to achieve quality and excellence in everything we do.Make Each Other the Best:We bring ideas and people together through re

188、spect and collaboration.Get it Done:We follow through on our commitments and deliver results.Own It:We hold ourselves accountable at all times.Embrace Each Others Differences:We are mindful that everyone has different experiences,and we use our differences to strengthen who we are.Total RewardsWe ha

189、ve invested substantial time and resources in building our team,and we measure employee performance against our company values.We are dependent on our management,highly-skilled software engineers,and sales personnel,and it is crucial that we continue to attract and retain valuable employees.To facil

190、itate attraction and retention,we strive to provide opportunitiesfor our employees to grow and develop in their careers,supported by strong compensation and benefits programs.We use a combination of fixed and variable cash compensation for all employees,and we award equity compensation to certain em

191、ployees that is designed to align our employees interestswith those of our stockholders.Eligible employees are also able to participate in our 2020 Employee Stock Purchase Plan,which allows employees to purchase our stock at a 15 percent discountup to U.S.Internal Revenue Code limits.We offer employ

192、ees benefits that vary by country and are designed to meet or exceed local legal requirements and to be competitive in the marketplace.17Table of ContentsIntellectual PropertyIntellectual property rights are important to the success of our business.We rely on a combination of patent,copyright,tradem

193、ark,and trade secret laws in the United States and otherjurisdictions,as well as license agreements,confidentiality procedures,non-disclosure agreements with third parties,and other contractual protections,to protect our intellectual property rights,including our proprietary technology,software,know

194、-how,and brand.We use open-source software in our platform.As of January 31,2024,we held 730 issued U.S.patents and had 364 U.S.patent applications pending.We also held 178 issued patents in foreign jurisdictions.Our issued patents arescheduled to expire between September 2024 and July 2043.As of Ja

195、nuary 31,2024,we held 33 registered trademarks in the United States,and also held 506 registered or protected trademarksin foreign jurisdictions.We continually review our development efforts to assess the existence and patentability of new intellectual property.Although we rely on intellectual prope

196、rty rights,including patents,copyrights,trademarks,and trade secrets,as well as contractual protections to establish and protect our proprietary rights,we believe that factors such as the technological and creative skills of our personnel,creation of new services,features and functionality,and frequ

197、ent enhancements to our platform are moreessential to establishing and maintaining our technology leadership position.We control access to and use of our proprietary technology and other confidential information through the use of internal and external controls,including technical controls and contr

198、actualprotections with employees,contractors,customers,and partners.We require our employees,consultants,and other third parties to enter into confidentiality and proprietary rights agreements,and we control and monitor access to our software,documentation,proprietary technology,and other confidenti

199、al information.Our policy is to require all employees and independent contractorsto sign agreements assigning to us any inventions,trade secrets,works of authorship,developments,processes,and other intellectual property generated by them on our behalf and under whichthey agree to protect our confide

200、ntial information.In addition,we generally enter into confidentiality agreements with our customers and partners.See the section titled“Risk Factors”for a morecomprehensive description of risks related to our intellectual property.Government RegulationOur business activities are subject to various f

201、ederal,state,local,and foreign laws,rules,and regulations.Compliance with these laws,rules,and regulations has not had a material effect onour capital expenditures,results of operations,and competitive position as compared to prior periods.Nevertheless,compliance with existing or future governmental

202、 regulations,including,butnot limited to,those related to global trade,business acquisitions,consumer and data protection,AI Technology,environmental or related requirements or disclosures,and taxes,could have amaterial impact on our business in future periods.For more information on the potential i

203、mpacts of government regulations affecting our business,see the section titled“Risk Factors.”Available InformationOur website address is .Information found on,or accessible through,our website is not a part of,and is not incorporated into,this Annual Report on Form 10-K.We fileelectronically with th

204、e SEC our annual reports on Form 10-K,quarterly reports on Form 10-Q,current reports on Form 8-K,and amendments to those reports filed or furnished pursuant toSection 13(a)or 15(d)of the Exchange Act.We make available on our website at ,free of charge,copies of these reports and other information as

205、 soon as reasonablypracticable after we electronically file such material with,or furnish it to,the SEC.Table of ContentsITEM 1A.RISK FACTORSOur operations and financial results are subject to various risks and uncertainties,including those described below.You should consider and read carefully all

206、of the risks and uncertaintiesdescribed below,together with all of the other information contained in this Annual Report on Form 10-K,including the sections titled“Special Note about Forward-Looking Statements”and“Managements Discussion and Analysis of Financial Condition and Results of Operations”a

207、nd our consolidated financial statements and related notes,before making an investment decision.The risks described below are not the only ones we face.The occurrence of any of the following risks or additional risks and uncertainties not presently known to us or that we currently believeto be immat

208、erial could materially and adversely affect our business,financial condition,results of operations,or growth prospects.In such case,the trading price of our common stock coulddecline.You should not interpret our disclosure of any of the following risks to imply that such risks have not already mater

209、ialized.Risks Related to Our Business and OperationsWe have experienced rapid revenue growth and have a limited operating history,both of which make it difficult to forecast our future results of operations.Our revenue was$2.8 billion,$2.1 billion and$1.2 billion for the fiscal years ended January 3

210、1,2024,2023 and 2022,respectively.As a result of our historical rapid growth,limitedoperating history,and unstable macroeconomic conditions,our ability to accurately forecast our future results of operations,including revenue,remaining performance obligations(RPO),and thepercentage of RPO we expect

211、to recognize as revenue in future periods,is limited and subject to a number of uncertainties,including our ability to plan for and model future growth and platformconsumption.Our historical revenue growth should not be considered indicative of our future performance.Further,our revenue growth could

212、 slow or our revenue could decline for a number of reasons,including increased competition,changes to technology,such as changes in software orunderlying cloud infrastructure or the increasing prominence of new technology like artificial intelligence,and reduced demand for our platform.For example,c

213、ustomers may continue tooptimize consumption,rationalize budgets,and prioritize cash flow management,including by reducing storage through shorter data retention policies and shortening committed contractdurations.As a result of the foregoing and our rapid revenue growth in prior periods,our revenue

214、 growth rate has slowed in recent periods.Any further declines in our revenue growth rate couldadversely affect investors perceptions of our business,and negatively impact the trading price of our common stock.We have also encountered,and will continue to encounter,risks anduncertainties frequently

215、experienced by growing companies in rapidly changing industries,such as the risks and uncertainties described below.If our assumptions regarding these risks anduncertainties and our future revenue growth are incorrect or change,or if we do not address these risks successfully,our operating and finan

216、cial results could differ materially from ourexpectations,and our business could suffer.We may not have visibility into our future financial position and results of operations.Customers generally consume our platform by using compute,storage,and data transfer resources.Unlike a subscription-based bu

217、siness model,in which revenue is recognized ratably overthe term of the subscription,we generally recognize revenue on consumption.Because our customers have flexibility in the timing of their consumption,we do not have the visibility into thetiming of revenue recognition that a typical subscription

218、-based software company has.There is a risk that customers will consume our platform at lower levels than we expect,including inresponse to adverse macroeconomic conditions or holidays.For example,during April 2023 and part of May 2023,consumption of our platform increased at a slower pace than expe

219、cted.Unexpected fluctuations in customer consumption may cause actual results to differ from our forecasts.As a result,our results of operations in a given period should not be relied upon asindicative of future performance.19Table of ContentsWe have a history of operating losses and may not achieve

220、 or sustain profitability in the future.We have experienced net losses in each period since inception.We generated net losses of$838.0 million,$797.5 million and$679.9 million for the fiscal years ended January 31,2024,2023 and 2022,respectively.As of January 31,2024 and 2023,we had an accumulated d

221、eficit of$4.1 billion and$2.7 billion,respectively.We expect our costs and expenses to increase in futureperiods.In particular,we intend to continue to invest significant resources to further develop our platform,expand our research and development teams,retain our employees,and acquire otherbusines

222、ses,including in the areas of data science,artificial intelligence,and machine learning.In addition,our platform currently operates on public cloud infrastructure provided by AmazonWeb Services(AWS),Microsoft Azure(Azure),and Google Cloud Platform(GCP),and our costs and gross margins are significant

223、ly influenced by the prices we are able to negotiate with thesepublic cloud providers,which in certain cases are also our competitors.If we fail to meet any minimum commitments under these third-party cloud infrastructure agreements,we may be requiredto pay the difference,and our results of operatio

224、ns could be negatively impacted.We will also incur increased general and administrative expenses associated with our growth,including costsrelated to internal systems,operating as a public company,and targeting regulated industries or markets.Our efforts to grow our business may be costlier than we

225、expect,or our revenue growthrate may be slower than we expect,and we may not be able to increase our revenue enough to offset the increase in operating expenses resulting from these investments.If we are unable toachieve and sustain profitability,or if we are unable to achieve the revenue growth tha

226、t we expect from these investments,the value of our business and common stock may significantlydecrease.The markets in which we operate are highly competitive,and if we do not compete effectively,our business,financial condition,and results of operations could be harmed.Our go-to-market strategy is

227、focused on acquiring new customers and driving increased use of our platform by existing customers.The markets in which we operate are rapidly evolving andhighly competitive.As these markets continue to mature and new technologies and competitors enter such markets,we expect competition to intensify

228、.Our current competitors include:large,well-established,public cloud providers that generally compete in all of our markets,including AWS,Azure,and GCP;less-established public and private cloud companies with products that compete in some of our markets;other established vendors of legacy database s

229、olutions or big data offerings;andnew or emerging entrants seeking to develop competing technologies.We compete based on various factors,including price,performance,breadth of use cases,multi-cloud availability,brand recognition and reputation,customer support,and differentiatedcapabilities,includin

230、g ease of implementation and data migration,ease of administration and use,scalability and reliability,data governance,security and compatibility with existing standards,programming languages,and third-party products.Many of our competitors have substantially greater brand recognition,customer relat

231、ionships,and financial,technical,and other resources thanwe do,and may be able to respond more effectively than us to new or changing opportunities,technologies,standards,customer requirements,and buying practices.In addition,we may not beable to respond to market opportunities as quickly as smaller

232、 companies.We currently only offer our platform on the public clouds provided by AWS,Azure,and GCP,which are also some of our primary competitors.Currently,a substantial majority of ourbusiness is run on the AWS public cloud.There is risk that one or more of these public cloud providers could use it

233、s respective control of its public clouds to embed innovations or privilegedinteroperating capabilities in competing products,bundle competing products,provide us unfavorable pricing,leverage its public cloud customer relationships to exclude us from opportunities,and treat us and our customers diff

234、erently with respect to terms and conditions or regulatory requirements than it would treat its similarly situated customers.Further,they have the resources toacquire,invest in,or partner with existing and emerging providers of competing technology and thereby accelerate adoption of those competing

235、technologies.All of the foregoing could make itdifficult or impossible for us to provide products and services that compete favorably with those of the public cloud providers.For all of these reasons,competition may negatively impact our ability to acquire new customers and maintain and grow use of

236、our platform,or it may put downward pressure on our pricesand gross margins,any of which could materially harm our reputation,business,results of operations,and financial condition.20Table of ContentsIf we fail to innovate in response to changing customer needs,new technologies,or other market requi

237、rements,our business,financial condition,and results of operations could be harmed.We compete in markets that evolve rapidly.We believe that the pace of innovation will continue to accelerate as customers increasingly base their purchases of cloud data platforms on abroad range of factors,including

238、performance and scale,markets addressed,types of data processed,ease of data ingress and egress,user experience and programming languages,use of artificialintelligence,and data governance and regulatory compliance.We introduced data warehousing on our platform in 2014 as our core use case,and our cu

239、stomers subsequently began using ourplatform for additional workloads,including data lake,data engineering,AI/ML,applications,collaboration,cybersecurity,and Unistore.Our future success depends on our ability to continue toinnovate rapidly and effectively and increase customer adoption of our platfo

240、rm and the Data Cloud,including the Snowflake Marketplace and Snowpark.Further,the value of our platform to customers is increased to the extent they are able to use it to process and access all types of data.We need to continue to invest in technologies,services,and partnerships that increase the t

241、ypes of data available and processed on our platform and the ease with which customers can ingest data into our platform.We must also continue to enhanceour data sharing and marketplace capabilities so customers can share their data with internal business units,customers,and other third parties,acqu

242、ire additional third-party data and dataproducts to combine with their own data in order to gain additional business insights,and develop and monetize applications on our platform.As we develop,acquire,and introduce new servicesand technologies,including those that may incorporate artificial intelli

243、gence and machine learning,we may be subject to new or heightened legal,ethical,and other challenges.In addition,ourplatform requires third-party public cloud infrastructure to operate.Currently,we use public cloud offerings provided by AWS,Azure,and GCP.We will need to continue to innovate to optim

244、izeour offerings for these and other public clouds that our customers require,particularly as we expand internationally.Further,the markets in which we compete are subject to evolving industrystandards and regulations,resulting in increasing data governance and compliance requirements for us and our

245、 customers and partners.To the extent we expand further into the public sector andhighly regulated countries and industries,our platform and operations may need to address additional requirements specific to those markets,including data sovereignty requirements.If we are unable to enhance our platfo

246、rm or operations to keep pace with these rapidly evolving customer requirements,or if new technologies emerge that are able to deliver competitiveproducts at lower prices,more efficiently,more conveniently,or more securely than our platform,our business,financial condition,and results of operations

247、could be adversely affected.If we are not successful in executing our investments in artificial intelligence and machine learning technology,including generative AI Technology,our business,financial condition,andresults of operations could be harmed.We are investing significantly in artificial intel

248、ligence and machine learning technology,or AI Technology.Our investments include internally developing AI Technology,acquiringcompanies with complementary AI Technology,and partnering with companies to bring AI Technology to our platform.Our competitors are pursuing similar opportunities.These compe

249、titorsmay,as a result of greater resources,branding,or otherwise,develop,adopt and implement AI Technology faster or more successfully than we do,which could impair our ability to competeeffectively and adversely affect our business,financial condition and results of operations.In addition,our succe

250、ssful development of AI Technology depends on our access to GPUs,which arecurrently in high demand.It is also possible that our investments in AI Technology do not result in the benefits we anticipate,or enable us to maintain our competitive advantage,which mayadversely affect our business,financial

251、 condition,and results of operations.For example,we may not accurately anticipate market demand or offer AI Technology that amplifies our core dataplatform.21Table of ContentsIf we or our third-party service providers experience an actual or perceived security breach or unauthorized parties otherwis

252、e obtain access to our customers data,our data,or our platform,our platform may be perceived as not being secure,our reputation may be harmed,demand for our platform may be reduced,and we may incur significant liabilities.Our platform processes,stores,and transmits our own sensitive data as well as

253、customers and partners proprietary,confidential,and sensitive data,such as personal information,protectedhealth information,and financial data.Our platform is built on the infrastructure of third-party public cloud providers,such as AWS,Azure,and GCP.We also use third-party service providers,sub-pro

254、cessors,and technology to help us deliver services to our customers and their end-users,as well as for our internal business operations.These third-party providers may process,store,ortransmit data of our employees,partners,customers,and customers end-users or may otherwise be used to help operate o

255、ur technology.Some of this third-party technology,including open-source software,could be used as an attack vector.Even though we may not control the security measures of these vendors,we may be responsible for any breach of such measures.Threats to information systems and data come from a variety o

256、f sources,including traditional computer“hackers,”internal and external personnel(such as through theft or misuse),sophisticated nation-states,and nation-state-supported actors.We and the third parties on which we rely are subject to a variety of evolving cyber threats,including unauthorized intrusi

257、ons,denial-of-service attacks,ransomware attacks,business email compromises,computer malware,social engineering attacks(including through deep fakes and phishing),internal and externalpersonnel misconduct or error,supply-chain attacks,software vulnerabilities,software or hardware disruptions or fail

258、ures,and attacks enhanced or facilitated by AI Technology,all of which areprevalent in our industry and our customers and partners industries.Furthermore,future business expansions,acquisitions or partnerships could expose us to additional cybersecurity risks andvulnerabilities.The techniques used t

259、o sabotage or obtain unauthorized access to our and our third-party providers platforms,systems,networks,or physical facilities in which data is stored orprocessed,or through which data is transmitted change frequently,and are becoming increasingly difficult to detect.In addition,ransomware attacks

260、are becoming more frequent and severe,andwe may be unwilling or unable to make ransom payments due to,for example,applicable laws or regulations prohibiting such payments.In general,cybersecurity breaches or securityvulnerabilities could lead to significant interruptions in our operations,loss of da

261、ta and income,reputational harm,diversion of funds,unexpected service interruptions,increased insurance costs,and other harm to our business,reputation,and competitive position.While we have implemented security measures designed to protect against security incidents,there can be no assurance thatth

262、ese measures will be effective.We are a target of threat actors seeking unauthorized access to our or our customers or partners systems or data or to disrupt our operations or ability to provide our services.Threat actorsmay also exploit vulnerabilities in,or obtain unauthorized access to,platforms,

263、systems,networks,or physical facilities utilized by our third-party service providers.While we take steps designedto detect,mitigate,and remediate vulnerabilities in our information security systems(such as our hardware and software,including that of third parties upon which we rely),we may be unabl

264、e inthe future to detect and remediate all such vulnerabilities on a timely basis.Any security breach of our platform,our operational systems,our software(including open-source software),ourphysical facilities,or the systems of our third-party service providers or sub-processors,or the perception th

265、at one has occurred,could result in litigation,indemnity obligations,regulatoryenforcement actions,investigations,fines,penalties,mitigation and remediation costs,disputes,reputational harm,diversion of managements attention,and other liabilities and damage to ourbusiness.Security breaches and conse

266、quences from breaches,including negative publicity,may also prevent or cause customers to stop using our products,deter new customers from using ourproducts,and negatively impact our ability to grow and operate our business.We have contractual and other legal obligations to notify relevant stakehold

267、ers of security breaches.For example,SEC rules require disclosure on Form 8-K of the nature,scope and timingof any material cybersecurity incident and the reasonably likely impact of such incident.Determining whether a cybersecurity incident is notifiable or reportable may not be straightforward and

268、any such mandatory disclosures are costly and could lead to negative publicity,loss of customer or partner confidence in the effectiveness of our security measures,diversion of managementsattention,governmental investigations,and the expenditure of significant capital and other resources to respond

269、to or alleviate problems caused by the actual or perceived security breach.22Table of ContentsA security incident may also cause us to breach,or lead to claims that we have breached,customer contracts or other legal obligations.As a result,we could be subject to legal action(including the imposition

270、 of fines or penalties)and our customers could end their relationships with us.Furthermore,there can be no assurance that any limitations of liability in our contractswould be enforceable or adequate or would otherwise protect us from liabilities,damages,or claims related to our data privacy and sec

271、urity obligations.Litigation and regulatory actions resulting from security breaches or related to our information security practices may adversely affect our business.Unauthorized access to our platform,systems,networks,or physical facilities could result in litigation with our customers,our custom

272、ers end-users,or other relevant stakeholders,or investigations,inquiries,or actions by regulators.We may be subject to,and have received in the past,requests by regulators for information about our security practices,experiences,and issues.Alleged failures,problems,or issues related toour informatio

273、n security,including following such information requests,could result in formal investigations or actions from a variety of regulators,including state attorneys general,the FederalTrade Commission(FTC),the SEC,and others.These proceedings could force us to spend money in defense or settlement,divert

274、 managements time and attention,increase our costs of doingbusiness,or adversely affect our reputation.We could be required to fundamentally change our business activities and practices or modify our platform capabilities in response to such litigation,which could have an adverse effect on our busin

275、ess.Our insurance coverage may not be adequate for data security,indemnification obligations,or other liabilities.The successful assertion of one or more large claims against us that exceedsour available insurance coverage or results in changes to our insurance policies(including premium increases o

276、r the imposition of large deductible or co-insurance requirements)could have anadverse effect on our business.In addition,we cannot be sure that our existing insurance coverage and coverage for errors and omissions will continue to be available on acceptable terms or thatour insurers will not deny c

277、overage as to any future claim.Risks related to our systems and security breaches are likely to increase as we continue to expand our platform and geographicfootprint,grow our customer and partner base,and process,store,and transmit increasingly large amounts of data.In addition,some of our employee

278、s work remotely,including while traveling for business,which increases our cybersecurity risk,creates data accessibility concerns,and makes us moresusceptible to security breaches or business disruptions.Any of the foregoing could have a material adverse effect on our business,financial condition,re

279、sults of operations,or prospects.We could suffer disruptions,outages,defects,and other performance and quality problems with our platform or with the public cloud and internet infrastructure on which it relies.Our business depends on our platform being available without disruption.We have experience

280、d,and may in the future experience,disruptions,outages,defects,and other performance andquality problems with our platform and with the public cloud and internet infrastructure on which our platform relies.These problems can be caused by a variety of factors,includingintroductions of new functionali

281、ty,vulnerabilities,and defects in proprietary and open-source software,human error or misconduct,natural disasters(such as tornadoes,earthquakes,or fires),capacity constraints,design limitations,denial of service attacks,or other security-related incidents.Further,if our contractual and other busine

282、ss relationships with our public cloud providers are terminated,suspended,or suffer a material change to which we are unable to adapt,such as theelimination of services or features on which we depend,we could be unable to provide our platform and could experience significant delays and incur additio

283、nal expense in transitioningcustomers to a different public cloud provider.Any disruptions,outages,defects,and other performance and quality problems with our platform or with the public cloud and internet infrastructure on which it relies,or any material changein our contractual and other business

284、relationships with our public cloud providers,could result in reduced use of our platform,increased expenses,including service credit obligations,and harmto our brand and reputation,any of which could have a material adverse effect on our business,financial condition,and results of operations.23Tabl

285、e of ContentsWe expect fluctuations in our financial results,making it difficult to project future results,and if we fail to meet the expectations of securities analysts or investors with respect to our resultsof operations,our stock price could decline.Our results of operations have fluctuated in t

286、he past and are expected to fluctuate in the future due to a variety of factors,many of which are outside of our control.As a result,our pastresults may not be indicative of our future performance.In addition to the other risks described herein,factors that may affect our results of operations inclu

287、de the following:fluctuations in demand for our platform or changes in our pricing model;fluctuations in usage of our platform,including as a result of customer optimization efforts that result in reduced consumption to execute workloads;our ability to attract new customers;our ability to retain exi

288、sting customers and drive their increased consumption of our platform;customer expansion rates;timing,amount,and cost of our investments to expand the capacity of our public cloud providers;seasonality,including the impact of holidays;investments in new features,functionality,and programming languag

289、es,including investments in AI Technology and in making our platform available to store and process highlyregulated data or comply with new or existing data sovereignty requirements;fluctuations in consumption resulting from the introduction of new features,technologies,or capabilities to our softwa

290、re,systems,or to underlying cloud infrastructure,includingfeatures or capabilities that may increase or decrease the consumption required to execute existing or future workloads,like better storage compression and cloud infrastructure processorimprovements,or that allow customers to use our platform

291、 to provide compute services without requiring them to store data;our ability to execute on our business strategy,including our strategies related to the Data Cloud,such as Snowpark and the Snowflake Marketplace;the timing and frequency of purchases;the speed with which customers are able to migrate

292、 data onto our platform;fluctuations or delays in purchasing decisions in anticipation of new products or enhancements by us or our competitors;changes in customers budgets and cash flow management strategies and in the timing of their budget cycles and purchasing decisions;our ability to control co

293、sts,including our operating expenses;the amount and timing of operating expenses,particularly research and development expenses,including with respect to GPUs to develop AI Technology,and sales and marketingexpenses,including commissions;the amount and timing of non-cash expenses,including stock-bas

294、ed compensation,goodwill impairments,and other non-cash charges;the amount and timing of costs associated with recruiting,training,and integrating new employees and retaining and motivating existing employees;the effects and timing of acquisitions and their integration;24Table of Contentsgeneral pol

295、itical,social,market,and economic conditions,uncertainty,or volatility,both domestically and internationally,as well as political,social,and economic conditionsspecifically affecting industries in which our customers and partners participate or on which they rely;health epidemics or pandemics,such a

296、s the COVID-19 pandemic;the impact,or timing of our adoption,of new accounting pronouncements;changes in regulatory or legal environments,including the interpretation or enforcement of regulatory or legal requirements,that may cause us to incur,among other things,expensesassociated with compliance;t

297、he overall tax rate for our business,which may be affected by the mix of income we earn in the United States and in jurisdictions with different tax rates,the effects of stock-basedcompensation,and the effects of changes in our business;the impact of changes in tax laws or judicial or regulatory int

298、erpretations of tax laws,which are recorded in the period in which such laws are enacted or interpretations are issued andmay significantly affect the effective tax rate of that period;rising inflation and our ability to control costs,including our operating expenses;fluctuations in currency exchang

299、e rates and changes in the proportion of our revenue and expenses denominated or measured in foreign currencies;fluctuations or impairments in,or the full loss of,the market values of our strategic investments or of our portfolio,including changes to the value or accessibility of our cash and casheq

300、uivalents as a result of economic conditions or bank failures;fluctuations in interest rates;changes in the competitive dynamics of our market,including consolidation among competitors or customers;andsignificant security breaches of,technical difficulties with,or interruptions to,the delivery and u

301、se of our platform.Any of these and other factors,or the cumulative effect of some of these factors,may cause our results of operations to vary significantly or be adversely affected.If our results of operationsfall below the expectations of investors and securities analysts who follow our stock,the

302、 price of our common stock could decline substantially,and we could face costly lawsuits,includingsecurities class actions.Failure to effectively develop and expand our sales and marketing capabilities could harm our ability to increase our customer base and achieve broader market acceptance of our

303、productsand platform.We must increase the productivity of our sales and marketing organization to increase our sales to new and existing customers.It requires significant time and resources to effectivelyonboard new sales and marketing personnel and to train new and existing personnel so they are ab

304、le to successfully sell our product.We also plan to continue to dedicate significant resources tosales and marketing programs that are industry-specific and focused on large organizations.Once a new customer begins using our platform,our sales team needs to focus on expandingconsumption with that cu

305、stomer.All of these efforts will require us to invest significant financial and other resources,including in industries and sales channels in which we have limitedexperience to date.Our business and results of operations will be harmed if our sales and marketing efforts generate increases in revenue

306、 that are smaller than anticipated.We may not achieveanticipated revenue growth from our sales force if we are unable to hire,develop,integrate,and retain talented and effective sales personnel,if our sales personnel are unable to achieve desiredproductivity levels,or if our sales and marketing prog

307、rams are not effective.25Table of ContentsSales efforts to large customers involve risks that may not be present or that are present to a lesser extent with respect to sales to smaller organizations.Sales to large customers involve risks that may not be present or that are present to a lesser extent

308、 with sales to smaller organizations,such as longer sales cycles,stronger customer leveragein negotiating pricing and other terms,more complex customer requirements,including our ability to partner with third parties that advise such customers or help them integrate their IT solutions,substantial up

309、front sales costs,less predictability in completing some of our sales,and higher customer support expectations.For example,large customers may require considerable time toevaluate and test our platform or new features prior to making a purchase decision.In addition,large customers may be switching f

310、rom legacy on-premises solutions when purchasing ourproducts,and may rely on third parties with whom we do not have relationships when making purchasing decisions.A number of factors also influence the length and variability of our salescycle,including the need to educate potential customers about t

311、he uses and benefits of our platform,the renegotiation of existing agreements to cover additional workloads,changing laws,thediscretionary nature of purchasing and budget cycles,and the competitive nature of evaluation and purchasing approval processes.As a result,the length of our sales cycle,from

312、identification ofthe opportunity to deal closure,may vary significantly from customer to customer,with sales to large enterprises typically taking longer to complete.We have also historically seen consumptiongrowth from large enterprises take longer than when compared to smaller enterprises.Moreover

313、,large customers often begin to deploy our products on a limited basis but nevertheless demandimplementation services and negotiate pricing discounts,which increase our upfront investment in the sales effort with no guarantee that sales to these customers will justify our substantialupfront investme

314、nt.If we fail to effectively manage these risks associated with sales cycles and sales to large customers,our business,financial condition,and results of operations may beaffected.Unfavorable conditions in our industry or the global economy,or reductions in cloud spending,could limit our ability to

315、grow our business and negatively affect our results of operations.Our results of operations may vary based on the impact of changes in our industry or the global economy on us or our customers and potential customers.Negative conditions or volatility inthe general economy both in the United States a

316、nd abroad,including conditions resulting from changes in gross domestic product growth,financial and credit market fluctuations,bank failures,international trade relations,inflation,and interest rate fluctuations,or the existence of pandemics(such as the COVID-19 pandemic),political turmoil,natural

317、catastrophes,warfare,or terroristattacks on the United States,Europe,the Asia-Pacific region,Japan,or elsewhere,could cause a decrease in business investments,including spending on cloud technologies,and negatively affectthe growth of our business.For example,the ongoing Hamas-Israel and the Russia-

318、Ukraine conflicts have created volatility in the global capital markets and could have further global economicconsequences,including disruptions of the global supply chain.In addition,unfavorable conditions in the general economy may negatively impact our customers budgets or cash flow,whichcould im

319、pact the contract terms,including payment terms,our customers demand from us.Competitors,many of whom are larger and have greater financial resources than we do,may respond tochallenging market conditions by lowering prices in an attempt to attract our customers.We cannot predict the timing,strength

320、,or duration of any economic slowdown,instability,or recovery,generally or within any particular industry.Our growth depends on the development,expansion,and success of our partner relationships.As part of our vision for the Data Cloud,we will need to grow and maintain a network of data providers,da

321、ta consumers,and data application developers.The relationships we have withthese partners,and that our partners have with our customers,provide our customers with enhanced value from our platform and the Data Cloud,including the Snowflake Marketplace.Our futuregrowth will be increasingly dependent o

322、n the success of these relationships,and if we are unsuccessful in growing and maintaining these relationships or the types and quality of data and dataapplications supported by or available for consumption on our platform,our business,financial condition,and results of operations could be adversely

323、 affected.26Table of ContentsAdditionally,a small but increasing portion of our revenue is generated as a result of our relationships with global system integrators,managed service providers,and resellers.Increasingly,we and our customers rely on these partners to provide professional services,inclu

324、ding customer implementations and migrations from legacy solutions,and there may not be enough qualifiedpartners available,or we may not be able to develop or maintain relationships with enough partners,to meet customer demand.While we provide our partners with training and other enablementprograms,

325、these programs may not be effective or utilized consistently,and our return on these investments may be lower than expected.In addition,new partners may require extensive trainingor significant time and resources to achieve productivity.If we fail to effectively manage and grow our network of these

326、partners,or properly monitor the quality and efficacy of their interactionswith our customers,our ability to attract and retain new customers and expand customer consumption of our platform may be impacted,and our operating results and growth rate may be harmed.If we are unable to successfully manag

327、e the growth of our professional services business and improve our profit margin from these services,our operating results will be harmed.Our professional services business,which performs implementation services for our customers,has grown larger and more complex as our product revenue has increased

328、.We believe ourfuture success depends in part on investment in professional services to facilitate customer code conversion and migration from legacy solutions and adoption of our platform,especially withlarge enterprises.As a result,our sales efforts have and will continue to be focused on helping

329、our customers more quickly realize the value of our platform and the Data Cloud rather than on theprofitability of our professional services business.We price our professional services based on the anticipated cost of those services and,as a result,we expect to improve the gross profitpercentage of

330、our professional services business over time.If we are unable to manage the growth of our professional services business and improve our profit margin from these services,ouroperating results,including our profit margins,will be harmed.If we lose key members of our management team or are unable to a

331、ttract and retain the executives and employees we need to support our operations and growth,our business and futuregrowth prospects may be harmed.Our success depends in part on the continued services of our executive officers,as well as our other key employees in the areas of research and developmen

332、t and sales and marketing.From time to time,there may be changes in our executive management team or other key employees resulting from the hiring or departure of these personnel.Our executive officers andother key employees are employed on an at-will basis,which means that these personnel could ter

333、minate their employment with us at any time.For example,in February 2024,Frank Slootmanretired as Chief Executive Officer and we appointed Sridhar Ramaswamy to replace him.The loss of one or more of our executive officers could harm morale,cause additional personnel todepart,or introduce operational delays or risks as successor executives learn our business,each of which could harm our operating r