This statistic highlights Snowflake’s Revenue by Segment, split between Products, Professional services and others, reported on a quarter basis from Q3 2020.
Snowflake’s Revenue by Segment
| Revenue by Segment | Q2 2021 | Q1 2022 | Q2 2022 | Contribution in Q2 2022 |
| Products | $125.216 | $213.83 | $254.623 | 94% |
| Professional Service and others | $7.929 | $15.084 | $17.575 | 6% |
| Total | $133.145 | $228.914 | $272.198 | 100% |
(All figures are in millions, except percentages)
From the above table, it is clear that the total revenue increased from $133.145 million in Q2 2021 to $272.198 million in Q2 2022, marking almost 104.43% growth on a year-on-year basis. It also grew by 18.91% to $272.198 million in the latest quarter as compared to $228.914 million earned in Q1 2022.
- Products
Product revenue includes computing, storage, and data transfer resource that are consumed by customers. Consumers are given the flexibility to consume more than contracted capacity during the contract term and roll over the unused capacity to future periods. The consumption-based model distinguishes the company from the subscription-based software that may not permit rollover. Product revenue is an important indicator of customer satisfaction and value that they derive from the platform.
There has been significant growth in the product revenue from $125.216 million in Q2 2021 to $254.623 million in Q2 2022, marking almost 103.34% growth on a year-on-year basis. It also grew by almost 19% compared to $213.830 million in Q1 2022. This increase was primarily driven by an increase in capacity sales prices and an increase in consumption of the platform by existing customers.
- Professional Service and Others
Professional Service and others consist of consulting, on-site technical solutions, and training related to the platform. Revenue is recognized based on the input measure that includes time and material cost incurred compared to total costs, considerations given to output measures such as contract deliverables. It also includes fees from customer training given on-site.
There has been a significant increase from $7.929 million in Q2 2021 to $17.575 million in Q2 2022, marking almost 121.65% growth on a year-on-year basis. It also grew by almost 16.51% compared to $15.084 million in Q1 2022.
Impact of Covid-19
The results of the operations, cash flows, and financial condition were not adversely impacted by the pandemic. An adverse impact on certain business parts includes:
- Lengthening of the sales cycle, loss of customers, and difficulty in collection
- Vendors and suppliers experienced disruption in supply chain
- Incur of fixed cost for which there are no benefits derived such as real estate
- Partners and customer face-to-face interaction and conducting virtual business pose new problems.
- Remote working resulted in a decrease in productivity, morale, and unwanted employee attrition.
But, there was a positive impact on other aspects such as reduced travel business resulting in slower growth of the operating expense and increase in consumption of the platform by the customers.
About the Company
Snowflake is a cloud data platform provider offering customers to consolidate data into a single source for business insights and build data-driven applications and share data. It also supports a multi-cloud strategy including a cross-cloud approach. The company was founded in July 2012 and launched publicly in October 2014. The company was also ranked 1st in Forbes Cloud 100 in 2019.
Key benefits to the customer
- Transform into data-driven business- Eliminates data silos, empowers secure and monitors access to data, and removes data management and infrastructure complexities.
- Consolidate data into a single, analytics-ready source of truth- It consolidates data and simplifies customer infrastructure for fast and accurate decision making.
- Increase agility and augment insights- Allows customers to share and consume live data seamlessly across organizations and with their partners, customers, etc.
- Create new monetization streams and data-driven applications- Allows customers to unlock untapped monetization streams allowing organizations to better reach and engage with their customers.
- Multi-Cloud Strategy- With multi-cloud strategy organizations can optimize for the best features and functionality each public cloud provides without becoming dependent on a single public cloud provider.
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