Snowflake Inc. has recently released its 10-Q report, providing an insight into the company's financial performance and operations. Snowflake Inc. is a cloud-based data platform provider based in Bozeman, Montana, offering Data Cloud, which allows customers to consolidate data into a single source of truth for business insights, data-driven applications, and AI-driven problem-solving. The company's platform is used globally by organizations of all sizes across various industries, with 10,618 total customers as of October 31, 2024, including 754 of the Forbes Global 2000. Snowflake generates the substantial majority of its revenue from fees charged to customers based on compute, storage, and data transfer resources consumed on its platform.
In the recently released 10-Q report, Snowflake highlighted that it had completed a private offering of $1.15 billion aggregate principal amount of 0% convertible senior notes due 2027 and $1.15 billion aggregate principal amount of 0% convertible senior notes due 2029. The company used a portion of the net proceeds from the offering to pay the cost of privately negotiated capped call transactions related to each series of the Notes and repurchased $399.6 million of its common stock from purchasers of the Notes in privately negotiated transactions entered into in connection with the Notes offering at a purchase price of $112.50 per share.
Additionally, Snowflake's board of directors authorized a stock repurchase program of up to $2.0 billion of its outstanding common stock in February 2023. In August 2024, the board authorized the repurchase of an additional $2.5 billion of its outstanding common stock and extended the expiration date of the stock repurchase program from March 2025 to March 2027. During the nine months ended October 31, 2024, Snowflake repurchased 14.8 million shares of its outstanding common stock for an aggregate purchase price of $1.9 billion, excluding transaction costs and excise tax associated with the repurchases, at a weighted-average price of $130.87 per share. As of October 31, 2024, $2.0 billion remained available for future repurchases under the stock repurchase program.
The report also highlighted that Snowflake's future success depends on the market adoption of its platform, including new product functionality such as Snowpark and its artificial intelligence and machine learning technology (AI Technology), such as Snowflake Cortex. The company's growth is increasingly dependent on its ability to increase consumption of its platform by building and expanding the AI Data Cloud, a network of data providers, data consumers, and data application developers that enables customers to securely share, monetize, and acquire live data sets and data products.
As a result of these announcements, the company's shares have moved 2.0% on the market, and are now trading at a price of $177.11. For more information, read the company's full 10-Q submission here.
