BlackRock, Inc., the world’s largest asset manager, has reported a highly successful third quarter for 2024, marked by strong financial growth. The firm’s total assets under management (AUM) surged to a record $11.5 trillion, driven by $221 billion in net inflows during the quarter. This represents a significant year-over-year increase of $2.4 trillion in AUM, showcasing BlackRock's continued leadership in the asset management industry.
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Snowflake Reports Q1 FY25 Financial Results and Positive Outlook
- Product Revenue Growth: Snowflake reported product revenue of $789.6 million for the first quarter of fiscal 2025, marking a 34% year-over-year increase.
- Total Revenue: The company's total revenue for the quarter was $828.7 million, representing 33% year-over-year growth.
- Customer Growth: Snowflake now has 485 customers with trailing 12-month product revenue greater than $1 million, a 30% year-over-year increase. The company also serves 709 Forbes Global 2000 customers, an 8% increase from the previous year.
- Net Revenue Retention: The net revenue retention rate stands at 128%.
- Remaining Performance Obligations: Snowflake reported $5.0 billion in remaining performance obligations, a 46% year-over-year growth.
Financial Performance:
- GAAP Results: Snowflake reported a GAAP operating loss of $348.6 million for the first quarter.
- Non-GAAP Results: The non-GAAP operating income for the same period was $36.2 million, with a product gross profit margin of 77%.
- Cash Flow: Net cash provided by operating activities was $355.5 million, with a free cash flow of $331.5 million and an adjusted free cash flow of $365.7 million.
CEO Commentary:
Sridhar Ramaswamy, CEO of Snowflake, stated, "We finished our first quarter with strong performance across many of our key metrics. Product revenue was up 34% year-over-year at nearly $790 million, while remaining performance obligations were $5.0 billion, up 46% year-over-year. Our core business is very strong. Our AI products, now generally available, are generating strong customer interest. They will help our customers deliver effective and efficient AI-powered experiences faster than ever."
Acquisition Announcement:
Snowflake also announced its intent to acquire technology assets and hire key employees from TruEra, an AI observability platform. TruEra specializes in evaluating and monitoring large language model (LLM) applications and machine learning models in production.
Financial Outlook
Q2 FY25 Guidance:
- Product Revenue: Expected to be between $805 million and $810 million, representing a 26-27% year-over-year growth.
- Operating Income: Non-GAAP operating income margin is projected to be around 3%.
Full-Year FY25 Guidance:
- Product Revenue: Expected to reach $3.3 billion, indicating a 24% year-over-year growth.
- Product Gross Profit Margin: Forecasted at 75%.
- Operating Income: Non-GAAP operating income margin is expected to be 3%.
- Adjusted Free Cash Flow: Anticipated to be 26%.
Market Reaction
Following the release of the first quarter results, Snowflake's stock price saw a positive reaction in after-market trading, rising by 4.15%.
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