Snowflake 1Q27：2027财年强劲开局

+1917344 8506mark.moerdler@bernsteinsg.com +1 917344 8316firoz.vallji@bernsteinsg.com Market-PerformPrice Target +1917344 8342shelly.tang@bernsteinsg.com Snowflake 1Q27: A strong start to FY27 and highlighted healthy Al usage traction. Overall, the results checked allthe boxes, pushingthe stock up 37% in the after hours. Last qtr (4Q26),SNOW had provided a healthy outlookfor FY27 (Snowflake 4Q26: Solid quarter and solid guide), but it was unclear if the growthcan accelerate in FY27.This qtr.,SNOW decisively resolved that debate.Al product tractioninvestorconfidence.Given thebroader strength in laaS/PaaSconsumptiondemand,lowcapexintensity,clarity around growthacceleration and initial success with Al productstrategy, should drive near-term momentum for SNOw.Similar,follow-up data points shouldhelp improve investor confidence in SNOW's longer-term trajectory. What weliked about the qtr: 1)Strong revenue and margin beat, 2) 14pt improvementin GAAP op.margin 3)acceleration in revenue and cRPO growth, 3)SBC margin down8pts Y/Y.What we are watching for: 1) NRR improved by just 1 ppt to 126%, continuedimprovement in NRR would drive confidence in durability of growth momentum, 2) GaaP op.margin at -23% is still wellbelow industry peers. We are encouraged by the innovation and execution focus under the new CEo. However,we remain concerned that competition is increasing in their core market.Newer initiativesare still in the earlystages,and we need to see sustained data points before assumingmeaningful future growth contributions. Therefore, we choose to remain on the sidelines. InvestmentImplications Snowflake (PT $25o, Market-Perform):Growth trajectoryand positioning in Al era werethe key questions facing SNOW,leading to 40% reset in valuation overthe past 6mo.Stronggrowth acceleration and guidance, coupled with commentary around Al product tractionshould resolve these questions, at least in the near-term. Given the strong consumptiondemand environment, we like the near-term setupfor SNOw. However, we need to seesustained data points to gain confidence in the future growth and profitability trajectory ofthe company.Therefore, we maintain our Market-Perform rating. We raise our PT from $195to $250, as we rolled forward our model and raised our target multiple from 9.5x to 11x. Wehighlightthekeypointsfromthequarterbelow andbeatingconsensusby5.1%.ThegrowthwasdrivenbytheconsumptionincreaseinthecoreplatformascustomersSnowflakeIntelligence.GiventhestrongmomentumcompanyrevisedFY27guidanceupfrom27%to31%,representingYYacceleration Inteligence (CoCo went into GA on Feb 5th just at the start of this quarter), and these products encouraging existing to healthy overall growth (Exhibit 7). A stable and now improving NRR is important as it will ensure that the growth will notdecelerate quickly and combined with strong cRPO growth (see below) and traction in new products, will give managementas well as investors confidence of healthy growth in FY27. :Strong cRPO and stronger RPOgrowth:RPO grew38% this quarter and cRPO acceleratedto 38% (Exhibit 8).Lastquarter, Snowflake signed a >$400M deal which was the largest deal in its history. ·We note that for a consumption-based namelike SNOW with quite some in-quarter revenue volatility,cRPO aloneis notthe cleanest indicator of growth; but combined with an improving NRR we think this provides a good setup for revenuegrowth in FY27. .Partnerships withAWS,OpenAland SAP:Snowflake announced a 5-year $6B contract with AWS,morethan doublingtheir previous contract signed in FY23, to invest in customer success, workload migrations and GTM.Besides AWS, thecompany also deepened its partnership with OpenAl to deliver advanced Al capabilities through co-innovation and joint go-to-market efforts, and brought capabilities from its landmark SAP partnership to GA. Natoma Acquisition: Snowflake also announced today to have signed a definitive agreement to acquire Natoma,anenterprise MCP platform for Al agents with expertise in identity governance and access management, to make it easier forusers to securely connect Al to the tools they use every day. :Margins improvement withafocus toreduce SBC:Non-GAAPoperatingmargincamein at 11.9%for1Q,up30ObpsY/focuses on reducing SBC. (Exhibit 9) 1Q27RESULTS SUMMARY: Snowflakebeatconsensus on all the revenuemetrics (see Exhibit 2):Total revenueof$1.391B,5%aheadofconsensus..Product revenue of $1.334B represents 34%growth,5%ahead ofconsensusof$1.27B· Non-GAAP Product GM of 75.1%, in line with consensus.: Non-GAAP operating margin of 11.9%, above consensus of 9.2% (Exhibit 9):Net Revenue Retention (NRR)was126% in1Q27,up1ptQoQ (seeExhibit6) GUIDANCE Management issued 2027 guidance above consensus (Exhibit 3): ·Product revenue growth of 30% vs. consensus of 26%:Non-GAAPoperatingmargin of12.5%vs.consensus of 11.9% ·Product revenue growth guide raisedto31%from 27%,based on a combination of strength in the core business and meaningful upliftfrom Al capa