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23-05-2025
- Business
- Yahoo
Q4 2025 Dorian LPG Ltd Earnings Call
Theodore Young; Chief Financial Officer, Treasurer, Principal Financial and Accounting Officer; Chief Financial Officer and Treasurer, Dorian LPG (USA) LLC; Dorian LPG Ltd John Hadjipateras; Chairman of the Board, President, Chief Executive Officer and President of Dorian LPG (USA) LLC; Dorian LPG Ltd Tim Hansen; Chief Commercial Officer; Dorian LPG Ltd John Lycouris; Chief Executive Officer of Dorian LPG (USA) LLC, Director; Dorian LPG Ltd Omar Nokta; Analyst; Jefferies Operator Good morning, and welcome to the Dorian LPG fourth quarter and full-year 2025 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. Additionally, a live audio webcast of today's conference call is available on Dorian LPG's website, which is would now like to turn the conference over to Ted Young, Chief Financial Officer. Thank you, Mr. Young. Please go ahead. Theodore Young Thank you, Mickey. Good morning, everyone, and thank you all for joining us for our fourth-quarter 2025 results conference call. With me today are John Hadjipateras, Chairman, President, and CEO of Dorian LPG Limited; John Lycouris, Head of Energy Transition; and Tim Hansen, Chief Commercial Officer. As a reminder, this conference call webcast and a replay of this call will be available through May 29, of our remarks today contain forward-looking statements based on current expectations. These statements may often be identified with words such as expect, anticipate, believe, or similar indications of future expectations. Although we believe that such forward-looking statements are reasonable, we cannot assure you that any forward-looking statements will prove to be correct. These forward-looking statements are subject to known and unknown risks and uncertainties and other factors as well as general economic conditions. Should one or more of these risks or uncertainties materialize or should underlying assumptions or estimates prove to be incorrect, actual results may vary materially from those we express let me refer you to our unaudited results for the quarterly and annual periods ended March 31, 2025, that were filed this morning on Form 8-K. In addition, please refer to our previous filings on Forms 10-K and 10-Q where you'll find risk factors that could cause the actual results to differ materially from those forward-looking statements. Also, please note that we expect to file our full 10-K no later than May 30, 2025. Finally, I'd encourage you to review the investor highlight slides posted this morning on our with that, I'll turn over the call to John Hadjipateras. John Hadjipateras Good morning, and thank you for joining us. My colleagues, Ted, John, and Tim will provide you with detailed comments on our financial results, our sustainability and operational progress, and our market outlook. First, I'd like to highlight the following. Our dividend of $0.50 per share totaling $21.3 million reflects our commitment to returning capital to shareholders in a manner that's aligned with market conditions and our policy of distributing earnings prudently. This past fiscal year, we paid over $155 million in far in 2025, freight rate movements have been dramatic. While traders grappled with the tariff announcements and the fact that for a time, it became uneconomic to export US LPG to China, the market quickly assessed the ability of the Middle East and Canada to replace US funds. Through this, US exports remained strong with more than 300 VLGCs loading more than 14 million tonnes in the last quarter. US LPG specifications are particularly attractive for Chinese PDH you will hear from Tim, we believe that increased production in the US and the Middle East and US terminal expansion, combined with just nine new buildings for the rest of the year will support a balanced freight market and healthy earnings for 2025. We are confident in the long-term fundamentals of LPG demand, which are underpinned by growing petrochemical and residential consumption, particularly in Asia and by infrastructure expansions in the US which will support steady growth in NGL to the operational side of our business, we are progressing our investments in quick payback energy-saving devices and performance optimization. We have eight dry dockings planned for this year. John L. will provide an update on our initiatives and our decision to convert some of our VLGCs to facilitate the carriage of now I'd like to pass it over to our CFO, Ted Young, for our quarterly financial overview. Theodore Young Thanks, John. My comments this morning will focus on capital allocation, our financial position and liquidity, and our unaudited fourth quarter results. At March 31, 2025, we reported $317 million free cash, which was sequentially up from the previous quarter. Cash flow from operations more than doubled from $24 million to $50.3 million quarter over quarter, and we generated $10 million from the maturity of some bond holdings, all of which gave us enough cash flow to support our dividend, a progress payment on our new building made in January, and our quarterly debt amortization. Thus, in spite of significant outflows, we still managed a modest increase in disclosed two weeks ago, we will pay an irregular dividend of $0.50 per share or roughly $21 million in total on or about May 30, 2025 to shareholders of record as of May 16. Including this dividend, we have returned approximately $875 million in cash through dividends, a self-tender offer, and open market repurchases since our IPO. With the debt balance at quarter end of $557.4 million, our debt to total book capitalization stood at 34.8% and net debt to total capitalization at 15%. We have well structured and attractively priced debt capital with a current all-in cost of about 5.1%, an undrawn $50 million revolver and one debt-free with our strong free cash balance, we have a comfortable measure of financial flexibility. Looking ahead, we expect our cash cost per day for the coming year to be approximately $26,000 per day excluding capital expenditures for dry docking and progress payments on our new building. For the discussion of our fourth-quarter results, you may also find it useful to refer to the investor highlight slides posted this morning on our website. I would also remind you that my remarks will include a number of terms such as TCE, available days, and adjusted EBITDA. Please refer to our filings for the definitions of those at our fourth-quarter chartering results. Given the fact that our entire spot trading program is conducted through the Helios Pool, its reported spot results are the best measure of our spot chartering performance. For the March 31 quarter, the Helios Pool earned a TCE per day for its spot and COA voyage of $29,800 reflecting the more challenging LPG product environment during the quarter, which Tim will get into more in his available days were also affected by a relatively heavy drydocking schedule. The overall TCE result for the pool of 33,200 per day reflects the strong time charter out portfolio in the pool. On page 4 of our investor highlights material, you can see that we have three Dorian vessels on time charter within the pool indicating spot exposure of just over 89% for the 28 vessels in the Helios reported TCE revenue per available day was about $35,300 per day. This rate was marginally lower than the prior quarter's results, again, reflecting the challenging LPG product market. However, forward bookings for the quarter ending June 30, 2025, are more promising. We currently estimate that we have fixed 79% of the pools available days in the quarter at a TCE of roughly $42,000 per day. The rate includes both spot fixtures and time charters in the Helios the difficulty in predicting loading rates, which obviously have a huge effect on revenue recognition, this port options and some charters, and the fact that some of our COAs are priced on average Baltic rates, the estimates we quote during these calls on the rates actually realized can vary. Daily OpEx for the quarter was $11,000 a day, excluding dry-docking related expenses, which was up from the prior quarter. Crew and spare and storage costs were both quarter also saw nearly $1,000 a day difference between reported OpEx that includes expense dry-docking amounts, and our preferred measure of OpEx that excludes those costs. Those noncapitalized dry docking expenses totaled about $3.2 million and equated to $0.07 per share for the quarter. Our time charter expense for the four time charter in vessels came in at about $10.3 million or about $28,600 per time charter in day. Thus, those vessels contributed positively to our quarterly G&A for the quarter was $8.3 million, and cash G&A, which is G&A excluding noncash compensation expense, was about $6.8 million. This amount contained about $800,000 of statutory accruals which puts our core G&A at around $6 million, more in line with our typical levels. That $800,000 was worth about $0.02 per share. Our reported adjusted EBITDA for the quarter was $36.6 million. Total cash interest expense for the quarter was $6.7 million, which is down sequentially from the prior that we capitalized approximately $425,000 of interest related to our new building during the quarter. Principal amortization remained steady at around $13 million. For the current fiscal year ending March 2026, we expect to drydock eight of our vessels for which we have budgeted approximately $12 million, excluding off-hire time. Days and dry dock should be consistent with our disclosures, namely around 25 days per we have two progress payments on our new building in September and December 2025, each of roughly $12 million. The regular dividend declared at the beginning of the month of $0.50 per share brings to $15.70 per share in regular dividends that we have paid since September 21. The modest reduction of the dividend versus the prior quarter is consistent with our previous discussions around the topic. It reflects a balanced mix between results and the long-term needs and prospects of the recent rate gyrations underscore the range of variables that affect our business, weather, terminaling fees, global petrochemical demand, and global trade policies, just to name a few. Including the regular dividend to be paid this month, we paid over $640 million of dividends and have generated net income of $641 million over the same time period, i.e., back to June 30, Board weighs current earnings, our current near-term cash forecast, future investment needs, and the overall market environment among a number of factors in making its determination of the appropriate level, if any, for our dividends. The $0.50 per share dividend reflects a constructive market view considering last quarter's earnings and our heavy dry dock schedule this past year and for the coming year. In addition, the dividend decision was made before the conclusion of the most recent US-China trade talks. We continue to be on the lookout for fleet renewal opportunities and will be judicious with our free cash flow, working to balance shareholder distributions, debt reduction, and fleet that, I'll pass it over to Tim Hansen. Tim Hansen Thank you, Ted, and good day, everyone. At the start of the quarter ending March 31, the freight market kept its momentum from last December. Activity remains strong in the East with the Indian PSU actively covering general requirements. And in the West, charters quickly returned post holidays to secure first-half February liftings out of the US Gulf at rates in the low 110s on the BLPG 3 routes, Houston to Chiba, which equals some TCE in the mid- to high -- mid- to high-40s a rates trended upwards at the end of '24, and the typical winter spike was yet to materialize. Thus, there was expectations of further gains. However, in the second week of January, a cold spell in the US Gulf course charters to pose board fixing, being aware of disruptions such as Texas freeze in prior years, and recent terminal delays experienced last tightening in the Panama Canal with auction fees spiking to $500,000 added to further strain on the voyage planning. Repeated cold spells in the US drove out domestic LPG demand, leading to a rise in them on LPG price. In meantime, seasonally warm weather and subdued petrochemical demand in Asia narrowed the arbitrage, tightening the terminal fees and freight rates. With no spot activity, rates began to soften on February exports down with about 1 million worldwide with 300,000 in the East and about 700,000 out of the US and no US productivity for the second-half February liftings, plus we mentioned on certain Panama transit costs, more owners started to ballast from Asia towards Middle East, Gulf or via Cape to the US Gulf, putting pressure on the Middle East Gulf rates and increasing the vessels' to limited US activity, vessel availability gradually increased and freight rate continued to decline. By mid-February, earnings on a modern nonscrubber vessel have dropped from the high $40,000 a day in early January to low $20,000 a day in both the East and West market. Activity eventually resumed, stabilizing the rates and these levels -- at these levels before recovery began in early March as certain fixtures by mid-March, driven by a tightening position list led to a sharp rebound in ending the quarter with earnings back in the mid- to high $40,000 per day quarterly average spot earnings were settled around $30,000 a day, reflecting a balanced market. This was despite the absence of a typical winter demand in both -- in the East in both Q4 and Q1. The US cold snaps, as mentioned, February export did elevate feedstock costs railing on PDH and petrochem margins and a narrow arbitrage plus a high oil and gas market volatility amidst the tariff announcement by the US tariffs by China announced in Q1 '25 did not initially include LPG imports from the US to China, but spurs are cautioners by charters for committing too far ahead with the ever-changing tariff announcement and the flexibility of China, including LPG in the reciprocal tariffs LPG production hit another quarterly record in the first quarter of '25 producing 0.5 million tonnes above the previous quarter. Despite US LPG exports falling from 5.6 million tonnes in January to 4.9 million in February, the quarterly export has shown to be the highest on record for Q1, and it is the third highest on records per quarter addition to the first quarter updates, by early April, the trade war continued to escalate. China included LPG and ethane in the reciprocal tariffs. This caused a huge shock to the LPG market causing freight rates to collapse from approximately $40,000 a day down to OpEx level virtually overnight. Two traders relet their vessels at roughly $40 per tonne below the last tonne levels on the Houston-Chiba route, reflecting the expectation of immediate market within a week, the market stabilized and freight rate rebounded to a more sustainable level, although still below the highs seen at the end of first quarter. While these rising tariffs effectively prevented direct LPG trade from US to China, the market anticipated a repeat of the 2019 trade war pattern with China sourcing replacement volumes from alternative regions, although substituting the entire Chinese to US -- Chinese US originated volumes would be difficult and could cause some demand shift in trade lanes happened quickly and led to inefficiencies and increased ton-mile demand as also seen in the previous trade war, this time to a larger extent due to the large volumes to be substituted and the limitations of such available alternative volumes. The Mount Value prices declined rapidly along other energy markets, making US LPG increasingly competitive as an absolute substitute for non-Chinese PDH units and for steam crackers. This shift supported demand outside China. While the concerns being that the Chinese PDH demand destruction might lead to rising US inventories, especially in a post-winter improved price competitiveness of US LPG helps sustain export flows. The key question was whether the increased ton-mile demand elsewhere would be sufficient to offset the loss in Chinese volume. In the short term, it did. This dynamic was quickly overtaken by development in the US to China trade will temporarily reduce at least from the critical levels of 245 and 225 respectively, for a 90-day period with a 10% Chinese import tax on US LPG production. Notably, even this tariff -- this lower tariffs level was enough to alter the trade float in 2019. Today, we have a high established EP price and a low value price we suggest that US cargos may remain competitive on a landfill price basis into China despite the negotiation continues, the market has regained balance and has been trending onwards since the tariff reduction. While the potential impact of future trade tensions remains uncertain, we are positive in our outlook for the market in 2025. US production and exports are set to increase, supported by terminal capacity expansions scheduled in the second half of the year, alongside Asia continuing to drive growth with new PDH plants coming online in China and sustained competitiveness of propane and butane versus naphtha in both East and West, increasing the overall demand. Additional support comes from a Panama Canal at the moment operating at maximum efficiency does a limited downside and limited newbuilding deliveries, as mentioned by John in contributes to a favorable supply-demand that, I will pass over to Mr. John Lycouris. John Lycouris Thank you, Tim. At Dorian LPG, we are committed to continuously improving energy efficiency and advancing the sustainability of our operations and our vessels. We've maintained a daily focus on optimizing vessel operational efficiency, whether on the way or import while continuously incorporating insights from our crew to ensure comprehensive performance monitoring, we leverage both proprietary tools and third-party platforms to assess the efficiency of the hall, main engine, auxiliary engines, boilers and the integrity of data performance is assessed by monitoring frictional resistance with careful consideration of trim and speed optimization. We consistently monitor and clean the how and propeller to optimize performance and minimize overall fuel consumption. We conduct regular monitoring of the main engine, auxiliary engines and boiler focusing on performance metrics such as utilization, power loads and lubrication scrubber vessel savings for the first quarter of 2025 amounted to $1.37 million or about $1,174 per calendar day per vessel, net of all scrubber operating expenses. Fuel differentials between high sulfur fuel oil and very low sulfur fuel oil averaged $67 per metric ton, while the differential of LPG as fuel versus the very low sulfur fuel oil stood at about $93 per metric ton, making LPG economically attractive for our dual fuel and now operate 16 scrubber-fitted vessels and 4 dual-fuel LPG vessels. We have now completed the second VLGC vessel upgrade to carry ammonia cargo, and the third vessel is planned to be upgraded during its dry docking in the fourth quarter of 2025. Once this last vessel is completed, 4 VLCC vessels in our Dorian LPG fleet will be able to carry ammonia cargoes in addition to our new building VLGC BLAC vessels delivering in 2026. We believe that the cargo fitness upgrades to include the ammonia cargo capability, enhance the fleet's commercial optionality and readiness for employment when the first ammonia projects developed and when the large ammonia cargo markets are MEPC 83 during April 2025, member state finalized and approved the draft legal text for the IMO net 0 framework. As part of the IMO's midterm greenhouse gas reduction measures to be added as a new chapter 5 to MARPOL Annex VI. Key features includes a mandatory well to wake greenhouse gas fuel intensity standard, which is called GFI, effective first of January due compliance tiers are based in a direct with annual tightening reduction factors through 2035. Three, remedial units at USD100 per ton for every CO2 equivalent unit and USD380 per ton for each carbon CO2 equivalent units Tier 2 for compliance shortfalls payable into the IMO Net-Zero fund. That's number 4. Credits of overcompliance aiming to accelerate zero and near-zero carbon fuel uptake. We get implementation and verification guidelines for the IMO Net-Zero framework are due to be finalized in mid-2025 ahead of former Dutch at the extraordinary MEPC session to be scheduled in October IMO committee also adopted resolution MEPC 400 which sets out annual CII reduction factors relative to the 2019 reference line at 13 5/8 in 2027, increased incrementally by 25% each year to reach 21.5% in 2030 compared to the 2019 continued focus on energy and emission savings reflects our belief that our environmental responsibility are aligned with long-term value creation for our now I would like to pass it over to John Hadjipateras for final comments. John Hadjipateras Thank you all, Taro, John, Tim and Ted. Nick, we can open up for questions. . Operator (Operator Instructions)Omar Nokta, Jefferies. Omar Nokta I wanted to just ask a bit about the volatility that we've been seeing in the VLGC market. Obviously, there's always volatility that just seems to be much more extreme perhaps recently. But One thing is clearly the spot rates have exceeded many expectations. And right now, we're in over 50,000 a day, it seems on the spot market. Ted, you mentioned you booked 79% of the quarter at $42, seems that the rates are basically much stronger than anticipated. Could you maybe -- I know, Tim, you talked about this a little bit, but could you talk about what's driving this market strength here recently? And is this sort of -- are there any kind of trade pattern changes that have evolved out of what happened in April between China and the US? Can you just give a bit more context as to what's driving this latest upswing? John Hadjipateras Thank you. Thanks for the question, Omar. I think Ted -- I mean, sorry, I think Tim is best positioned to answer you this. He is on the front line. And obviously, it's something on everybody's Tim, can you take it, please? Tim Hansen Yeah. Omar, as you said, it has gone up quite a lot lately. I mean, we see that tightening that we still see these trade flows had that altered when the high tariff was in place and China put on the statutory tariffs. So we're still seeing a lot of cargoes going from the US to India and to Southeast that, of course, gives a lot of ton miles. So I think there's still a balance between whether it makes sense to swap the tonnes or from -- and with a 10% tax whether it makes sense to use US origins into China or whether it's better to take and supplement out of there doesn't seem to be demand construction, but some of the cargoes are still going the longer route around the Cape to Southeast Asia and to India, particularly. And that also means that you have more than miles out of the AG when they go to China, which would normally go for example, to on top of that, I mean, the reduction is still very strong, and we have -- before we talked about tariffs expected a strong year of 2025 and which -- which has seemed to be a little bit forgotten in all the noise on the tariff trade. But we have -- I mean 2025 was predicted to be relatively tight compared to '24 with a limited newbuilding deliveries. And you can say that the previous little jump in newbuilding deliveries have been absorbed now from '23-'24 and production is still quite as John mentioned also, you do have a lot of drydocking coming this year and even more next year. So -- so we did have kind of a firm outlook for '25 already. And yes, with the change in trade routes, that has definitely helped, especially as we haven't seen any destruction of demand here in China. Omar Nokta Yes, sorry, go ahead. John Hadjipateras No, I was going to say, even at the best of times, it's very difficult to kind of make a projection on rates. But right now, it's even more. But we all else, things are staying the way they are, which they really do. We feel that these rates are sustainable. Omar Nokta Yeah, yeah. Got it. And so I guess maybe just kind of on that, you talked a bit about the kind of the reshuffling perhaps of a vessel capacity kind of moving into different trade routes. You have a longer ton this US-China trade deal over the kind of beginning of last week, have you seen kind of like a flood of inquiry or a flood of fixtures on the part of Chinese buyers again? Have you seen a noticeable pickup? Or are these trade lanes kind of perhaps becoming more saturated and how they've been developing in the past several months. John Hadjipateras Tim? Tim Hansen Yeah. I think it seems to have kind of settled now. I mean, when you have the high 45% to 25% tariffs, definitely, we didn't see any US going into China now. I think you we do towards it seems to have already shifted and and people seem content to keep selling to India. I guess also expectation of things could change as long as it's on balancess, you could say, it was immaterial, whether you go one or the other places. You will probably still try to place US tonnes outside China just to make sure that no surprises bring upon you. So we have seen a change in the trade routes and also the way that Indians import have taken advantage of the US-China trade war. Omar Nokta Got it. Okay. And then a final one. I think, Ted, you may have mentioned in your opening comments the side amount of dividend was made before the China US trade that perhaps maybe a hint that you're more comfortable with something different, something higher, perhaps, especially given the rate improvement we've seen recently? Theodore Young I wouldn't want to commit, the Board or anybody. I just think that, obviously, it did change things, as you just talked about. And so the Board made the decision with the best information available at the time. And I wanted folks to have the benefit of understanding that. And how the Board at its discretion decides to evaluate the environment when the next meets, we'll obviously, it is a better rate outlook, as John said. But as John also said, things rarely stay the same. So we shall see. Operator We show no further questions at this time. I will turn the call back to management for closing remarks. John Hadjipateras Thank you, Nikki, for running a good show for us. And thank you, Omar, as always for your difficult and incisive questions, and have a good summer. Talk to you in late July or early August. . Operator Thank you. And this does conclude today's program. Thank you for your participation. You may disconnect at any time.
Yahoo
22-05-2025
- Business
- Yahoo
Q1 2026 Snowflake Inc Earnings Call
Jimmy Sexton; Head of Investor Relation; Snowflake Inc Sridhar Ramaswamy; Chief Executive Officer, Director; Snowflake Inc Michael Scarpelli; Chief Financial Officer; Snowflake Inc. Christian Kleinerman; Executive Vice President - Product Management; Snowflake Inc Sanjit Singh; Analyst; Morgan Stanley Kirk Materne; Analyst; Evercore ISI Raimo Lenschow; Analyst; Barclays Karl Keirstead; Analyst; UBS Equities Mark Murphy; Analyst; JPMorgan Kash Rangan; Analyst; Goldman Sachs Michael Richards; Analyst; RBC Capital Markets Brad Zelnick; Analyst; Deutsche Bank Bo Yin; Analyst; Jefferies Patrick Colville; Analyst; Scotiabank GBM Alex Zukin; Analyst; Wolfe Research Joel Fishbein; Analyst; Truist Securities Brad Reback; Analyst; Stifel Nicolaus and Company, Incorporated Tyler Radke; Analyst; Citi Operator Good afternoon and thank you for attending the Snowflake Inc. Q1 fiscal year '26 earnings call. My name is Matt, and I'll be the moderator for today's call. (Operator Instructions) I'd now like to pass the conference over to our host, Jimmy Sexton, Head of Investor Relations. Jimmy, please go ahead. Jimmy Sexton Good afternoon and thank you for joining us on Snowflake's Q1 fiscal 2026 earnings call. Joining me on the call today are Sridhar Ramaswamy, our Chief Executive Officer; Mike Scarpelli, our Chief Financial Officer; and Christian Kleinerman, our Executive Vice President of Product, who will participate in the Q&A. During today's call, we will review our financial results for the first quarter of fiscal 2026 and discuss our guidance for the second quarter and full year fiscal 2026. During today's call, we will make forward-looking statements, including statements related to our business operations and financial performance. These statements are subject to risks and uncertainties, which could cause them to differ materially from our actual results. Information concerning these risks and uncertainties is available in our earnings press release, our most recent Forms 10-K and 10-Q and other SEC reports. All our statements are made as of today based on information currently available to us. Except as required by law, we assume no obligation to update any such statements. During today's call, we will also discuss certain non-GAAP financial measures. See our investor presentation for a reconciliation of GAAP to non-GAAP measures and business metric definitions, including adoption. The earnings press release and investor presentation are available on our website at A replay of today's call will also be posted on the website. With that, I would now like to turn the call over to Sridhar. Sridhar Ramaswamy Thanks, Jimmy, and hi, everyone. Thank you, all, for joining us today. We are off to a strong start to the year and I couldn't be more proud of our team. Our core business is very strong, our product delivery remains in overdrive, and our go-to-market engine continues to get stronger and stronger. We are in the zone and there's still an enormous opportunity ahead. At Snowflake, our mission is to empower every enterprise to achieve its full potential through data and AI. Our AI data cloud helps customers get more value out of their data, innovate faster and remove friction from their business operations. And as I have shared in the past few quarters, we are extending that value throughout the data life cycle. We remain disciplined in driving operational rigor across our business, gaining greater efficiency even as we continue to invest aggressively in growth. We are building our strength in executing with urgency and focus to capture the opportunities ahead and sustain durable momentum. Product revenue for Q1 was $997 million, up a strong 26% year-over-year. Excluding the impact of leap year, product revenue grew 28% year-over-year. Our growth rate was stable quarter-over-quarter, showing no deceleration. Remaining performance obligations totaled $6.7 billion with year-over-year growth of 34%. Our net revenue retention was a very healthy 124%. As you can see, we have started the year with strong revenue growth, and overall, very healthy results. And we are increasing our growth expectations for the year. As I've shared in the past few quarters, Snowflake is obsessed with creating product cohesion to make it easier and easier for our customers to innovate faster and unlock more value from their data from ingestion to Enterprise leaders like Canva and JPMorgan Chase bet their business on Snowflake because our platform is easy to use, connected to enable fluid access to data wherever it sits, and trusted by companies of all sizes and industries. And we are continuing to deliver on our vision of being the end-to-end technology provider for our customers' data journey. We've made important progress in delivering an accessible and flexible connectivity platform, both unstructured as well as structured data. Snowflake connectors, which leverages the technology from our acquisition of Datavolo enables customers with seamless connectivity and data integration with key platforms like Google Drive, Workday, Slack, SharePoint and more to tap into critical data across the business. Global pharmaceutical leader, AstraZeneca, for example, can now analyze critical business data from systems like SAP and Workday with ease. And customers like CloudZero leverage hundreds of powerful, active data sharing connections to securely exchange data with their partners and customers, driving value across our ecosystem. As our data engineering business continues to show strength, we are helping our customers streamline and scale their data pipeline with less and less friction and realize meaningful cost savings. By consolidating data in Snowflake, Dentsu, a global marketing agency managing data for numerous Fortune 500 clients, reduced costs by 30% from simplified data architecture and reduced dependence on third-party tools. They now use Snowflake Data Clean Room to help global brands securely combine customer data without compromising privacy, enabling more personalized marketing campaigns while reducing risk. On the analytics front, our world-class solutions continue to power mission-critical operations for our customers. Global technology leader, Siemens, is collaborating with Snowflake to help manufacturers unlock new levels of operational efficiency and scale. This enables customers to unify their information technology data such as supply chain management and financial data with operational technology data like data from systems and industrial equipment, leveraging Siemens' industrial edge and Snowflake AI data cloud to gain better insight, improve machine performance and optimize production processes across their business. And as AI reshapes the enterprise, Snowflake is helping our customers lead the way with AI-ready data. Take Samsung a leader in connected TV advertising. They leveraged Snowflake to connect advertisers with millions of Samsung consumers while upholding strict privacy standards. By unifying their data on Snowflake, Samsung drives innovation in personalized customer experiences and accelerates the development of new AI and ML-forward advertising features, enabling advertisers to deliver more relevant content and enhance the advertising We have an incredible product momentum, and we are continuing to innovate at lightning speed. In fact, this quarter alone, we have brought over 125 product capabilities to market, a 100% increase over what we delivered in Q1 of last year. We continue to see strong adoption of open data formats, especially truly open modern table formats like Apache Iceberg. We recently announced that our customers can now leverage many of Snowflake's core capabilities including data sharing, security and performance optimization using Apache Iceberg, giving them even more flexibility to manage and query data at scale. When it comes to AI, pretty amazing to see our progress. A year ago, we were just getting started. Now we have over 5,200 accounts using our AI and machine learning on a weekly basis. Cortex AI has gone from a nascent product area to a foundational pillar of enterprise AI strategies for customers around the world. It's accelerating clinical research for health care companies with unified access to information and turning automotive customer reviews into actionable insights to help them personalize their service. As one of the world's largest food and beverage company, Kraft Heinz, is leveraging Snowflake Cortex to empower its employees with innovative AI tools like or -- their new internal AIS system. This initiative is designed to revolutionize internal workflows, enhance efficiency and drive AI adoption across the organization, paving the way for future advancement in agentic AI. Earlier this year, we launched Cortex Agent, which is now helping customers like Luminate Data, a leading provider of entertainment insights, scale how they process and retrieve both unstructured and structured data. That foundation is critical for developing, deploying and orchestrating the data agents driving their AI applications. And we have further solidified our leadership by continuing to integrate cutting-edge models into Cortex, ensuring day one availability of Meta's Llama 4 model. As I shared last quarter, we announced an expanded partnership with Microsoft to host OpenAI models on Microsoft Azure. We continue to provide our customers with choice and flexibility to leverage the world's leading models for their enterprise AI applications. We also launched the first of our AI-powered migration enhancement. Now our customers can use Cortex to test and review issues during their migration journey, making a time-intensive process much more efficient. And this is just the start of what AI can do to make migrations go fast. All of these innovations are focused on driving real value for our customers. We are making it easy to tap into structured data. We are making it easy to tap into unstructured data as well. And we're helping our customers build a strong foundation to lead in the era of agentic AI. We're continuing on this momentum, and you'll see even more from us in just a few weeks. During the first week of June, we'll be joined by tens of thousands of customers, partners and developers at Snowflake Summit, a four-day event, one of our biggest yet, where we will reveal some truly exciting new capabilities we are bringing to market to support our customers at every stage of their data journey. As we innovate, we remain committed to scaling efficiently. Under the leadership of our new Chief Revenue Officer, Mike Gannon, we have renewed focus and rigor across our go-to-market case. We're growing our go-to-market operations while maintaining our close collaboration across engineering, product marketing and sales to bring products to market effectively. This ensures that we are able to deliver greater value to our existing customers while continuing to win new ones. We're also expanding our addressable market. With the launch of Snowflake Public Sector Inc., and our recent Department of Defense Impact Level provisional authorization, we're now equipped to deliver mission-critical data and AI solutions to the national security community, including the United States Department of Defense, its military branches and industry partners. We also introduced new automotive solutions as part of our AI data cloud for manufacturing. These solutions empower companies like CarMax and Nissan with advanced data and AI solutions to drive innovation and efficiency. And they are using our own AI internally to boost productivity. Our go-to-market teams use our sales knowledge assistant powered by Cortex to access insights from our sales knowledge phase using natural language with fast apps like our Customer 360 app, they can tap into rich insight on customer consumption front. I'm proud of the discipline and efficiency we have built across the business. We've got a strong operational rhythm, we're investing strategically for growth, and we are laying the groundwork for scale. Mike, why don't you take us through more of the financial details? Michael Scarpelli Thank you, Sridhar. In Q1, product revenues grew 26% year-over-year to reach $997 million. As Sridhar mentioned, we saw no deceleration in the business when adjusting for leap day. We continued to see meaningful growth from new product offerings. Both Snowpark and Dynamic Tables outperformed expectations in Q1. Other areas of strength included technology and retail sectors. Q1 was a strong quarter for bookings. On our last call, I noted two large customers ran out of capacity in Q4 and elected to delay their larger renewals. As expected, both of these accounts signed $100 million-plus contracts in Q1. We view this variability in bookings as normal for our model. Our focus on new customer acquisitions is yielding positive results. We added 451 net new customers in Q1, growing 19% year-over-year. Turning to margins. In Q1, our non-GAAP product gross margin was 75.7%. Our non-GAAP operating margin was 9%, up 442 basis points year-over-year. We continue to focus on driving greater efficiency across the entire company while investing for growth. Non-GAAP adjusted free cash flow margin was 20%. As discussed on our last earnings call, we had several large customers purchase as they consumed in Q4. This booking behavior impacts the seasonality of our free cash flow. We expect this year to be more second half weighted. In Q1, we used $491 million to repurchase 3.2 million shares at an average weighted price per share of $152.63. We still have $1.5 billion remaining on our authorization through March 2027. We ended the quarter with $4.9 billion in cash, cash equivalents, short-term and long-term investments. Now moving to our outlook. We expect Q2 product revenue between $1.035 billion and $1.04 billion, representing 25% year-over-year growth. We expect Q2 non-GAAP operating margin of 8%. For FY26, we are increasing our revenue guidance to $4.325 billion, representing 25% year-over-year growth. As always, we forecast based on observed customer behavior. We expect non-GAAP gross -- product gross margin of approximately 75%, non-GAAP operating margin of 8%, non-GAAP adjusted free cash flow margin of 25%. Finally, we will host our Investor Day on June 3 in San Francisco in conjunction with Snowflake Summit. If you are interested in attending, please e-mail ir@ Before opening up the line for questions, I just want to update you on my transition as mentioned on the Q4 conference call last quarter. We are in the process of interviewing many great candidates, and we will make an announcement in the future when we have more firm details to share. With that, operator, you can now open up the line for questions. Operator (Operator Instructions) Keith Weiss, Morgan Stanley. Sanjit Singh This is Sanjit Singh for Keith Weiss. Congrats on an outstanding Q1. Sridhar, I want to talk about some of the trend lines of the business, particularly around consumption as it progressed through the quarter. How was consumption sort of exiting the quarter and through the month of May? That's my first question, then I have a follow-up. Sridhar Ramaswamy As you know, we don't comment on consumption within a quarter. Overall, Q1 consumption was very strong coming out of the holiday period, and you see that in our results. Of course, Q1 had one less day compared to Q1 last year. But overall, we feel very good about our consumption. Michael Scarpelli And I would say, Sanjay, we just gave guidance for the quarter and that's based upon the customer behaviors we're seeing through today. Sanjit Singh Yes, and that Q2 guide was very strong so I think there's a lot to take away from there. And then, Sridhar, on the product front, you mentioned about the adoption of Cortex continuing to build. I was wondering to see what are sort of the monetization trends associated with Cortex. And to what extent are customers making commitments associated with Cortex in mind and driving that into their sort of overall consumption of Snowflake? Sridhar Ramaswamy I would split that into a few parts, Sanjay. One is that it is very, very clear that people invest in Snowflake. People invest in data systems not just for what they used to be able to do before, which is things like analytics and machine learning, but increasingly for what they will be able to do today and in the future. And part of what I tell our customers is that by working with us, by bringing data into Snowflake, they are making their data, they are making their processes AI-ready as a firm. And we have taken a very measured approach to how we have had our customers use AI. As you know, we don't sell AI separately. It's not a SKU. Customers are not signing up for contracts on AI so it's on their existing spend. We have focused a lot on use cases that deliver value today. I've talked about some of these examples. It's everything from being able to create chatbots on documents like our own internal enablement or Siemens has created for all of the PDF manuals of their 150,000 devices. Two, putting business data directly into the hands of end users without needing analyst or BI tools in the mix. We are beginning to see compound systems get adopted, where you bring in more than one data source that can integrate between the kind of questions that the user has, or multi-step flows where you take data from one source and use that to answer questions or do follow-ups from others. So it's very graduated from that perspective. But the overall point that I want to make is that every user of data, every CTO, including our own, now realizes that their data strategy, especially one with Snowflake, is a direct unlock for whatever they're going to do with AI, both today and several years down the road. So in that sense, I think the road maps are emerging. It's not do AI separately on the side. It is more of invest in Snowflake to get your data house in gear and realize value from AI as we go along. Operator Kirk Materne, Evercore ISI. Kirk Materne Congrats on a nice start to the year. Sridhar, I was wondering if you could just dive in a little bit on the comment around Snowpark and Dynamic Tables outperforming. I was just curious, and I'm sure it's a bit of both, how much is just the product maturation and sort of the readiness for customers to take those on versus some of the things you guys have got done on the go-to-market side over the last year in terms of enablement and sales enablement with those products? Sridhar Ramaswamy Good question. It's clearly going -- clearly, it's going to be -- it's both. You need great products that drive utilities. And in addition to those features that you mentioned, Snowpark and Dynamic Tables, I would say that our investments in things like also vastly increased the scope of the kinds of things that our customers can do with the data. And similarly, Snowflake connectors is then going to make more and more data available for these data engineering tools as well as. And this is why Christian and I stress the end-to-end data life cycle a lot. And so our motto often is we want to be there from injection to insight when it comes to data. Having said that, we have hired, in addition to Mike, amazing leaders of sales that are in charge of driving these more specialized motions. Yes, not everybody in the Snowflake sales team is going to become an expert on our AI product or the latest advancements in Snowflake connectors out of the box. So we have a specialist motion that is very targeted, that identifies the highest value use cases that our customers have, pioneers' implementations for them so that they can be used as a template to be repeated in other places and increasingly with our GSI partners. And so you need to be able to do both. You need to create products that create value but then a go-to-market team that can initiate the value and do the hard work of both establishing the flagship customers and then driving sales across the sales teams. Kirk Materne See you in a couple of weeks. Operator Raimo Lenschow, Barclays. Raimo Lenschow Perfect. Sridhar, if you -- looking at Snowpark and adoption there, how do you see this playing out at the moment and maybe more in the future in terms of like going wall to wall with one vendor versus kind of having different pockets of data that are sitting in your system versus kind of other systems? How do you -- what are you seeing there at the moment and how do you think that will evolve? Sridhar Ramaswamy First of all, I think one of the things that is making us successful, Snowflake as a company is our acknowledgment and willingness to work with customers that have complex data ecosystems. It's always going to be just actually true that there are on-prem legacy systems in most large customers, or that there are large data estates that are sitting in cloud storage. But I think what is unique about this moment is that customers are a little unhappy about needing to stitch together many different tools in order to achieve even relatively simple things. If you think about it, if you wanted -- if you and your company wanted to build a chatbot on a corporate sitting in SharePoint, it's sort of painful if you have to use four different tools in order to produce that. And at the end of it, you won't even have your governance right because you have to go Part of what we want to be able to do for cases like that is have Snowflake connectors point to the SharePoint repository. And if there is any augmentation or transformation of the data that is needed, you get that done, for example, with Snowpark, and then you create an index with Cortex Search and hook it up to a chatbot. I think we will continue to see specialist players that exist. And we partner with them, and we value our partnerships with them. But there are also a number of use cases that are ripe for effectively like ease of use and consolidation. And that's the thing that we are leaning in. Anything to add, Christian? Christian Kleinerman Maybe super quickly, the other investment that we made is around Iceberg, which also creates customers who have an open architecture and be able to mix and match technologies as they see fit. Raimo Lenschow Yes. Okay, perfect. And then one quick one for Mike. Obviously, it was very good opportunistic on the share buyback side this quarter. How do you think about that traction there for the rest of the year now that shares are starting to look better? Michael Scarpelli We will continue to evaluate share buyback on a quarterly basis, and we have no plans right now. We've been more opportunistic in terms of the buyback, but we do fully anticipate between now and 2027, we will utilize that. Operator Karl Keirstead, UBS. Karl Keirstead Okay, great. Mike, in the comments from you and Sridhar, there was really no mention of macro per se and no evidence in the numbers that you guys really saw much pressure. You certainly did back in 2022, 2023. And I'm just curious, Mike, how you would draw a contrast. Is it that a lot of the post-COVID optimization efforts are now largely behind you, Snowflake just in a better place in terms of the product portfolio? Or maybe just the degree of macro pressure, the wobbliness we've all seen in the last couple of months is just not as severe as you had to deal with in that post-COVID downturn? Some contrast might be helpful. Michael Scarpelli I would say coming out of COVID, I think it was very different. In that environment, we had a lot of digitally native well-funded start-ups that were spending crazy and weren't really focused on costs as much. Our customer base has really evolved into the -- some of the largest companies in the world that are much more mature, that are much more cost-focused. And I am not seeing any big optimizations plan within our customers like what we saw coming out of COVID with those. But I will remind you, our customers are constantly optimizing. That may be a little bit, but they're always looking to do things more efficiently and that will continue. I would say in terms of the macro right now, we really have not seen the impact of anything with the current -- the news on tariffs and other things today. I think if we would have seen that, we would have saw in the new -- number of new customers. We have a great new customer add and we had great additions to RPO with this confidence, and that shows the confidence our customers have on making big bets with Snowflake. Sridhar Ramaswamy The only small comment I might add is that this is something that our sales team practices as well, which is to make sure that whenever a use case gets implemented, that they actually take the trouble to tidy things up and make sure that things are optimized because our sales team has learned, thanks to 2022 and 2023, that inefficient spend from customers inevitably leads to a contraction later anyway. And we are better off making sure that it is always efficient spend. Karl Keirstead Okay. And maybe as a follow-up to Mike. Mike, did Snowflake have any exposure to any of the larger AI natives that on the margin might have given you a little extra oomph this quarter? Michael Scarpelli Nothing extraordinary. We do have a number of the AI companies, our customers, but none of them that are all less than 1% of our revenue. Operator Mark Murphy, JPMorgan. Mark Murphy Congrats on the great execution, Mike. Even if we were expecting a strong start to the year in terms of the hiring in sales and marketing, I don't think we would have pictured these many hires. It's a very big number. Can you speak to that dynamic and just whether -- are you hiring into a pipeline that is strengthening around Cortex or Snowpark or some other opportunity that you see opening up? Michael Scarpelli What I would say, Mark, is just our we have in the business, and it's not just AI, it's everything that we're seeing in Snowflake. And as you know, Q1 is always our biggest hiring from a sales and marketing perspective because we try to get those people on board at the beginning of the year to deal -- so they can be part of our sales kickoff and all of our sales and enablement that we do with the employees in the beginning of the year call the new features and stuff. So I wouldn't read that much other than the confidence we see in our business. But as you know and we talked about, we're still really looking for operational excellence, and we are constantly looking at productivity of people and we will add people, and we will stop adding if we don't see productivity pay off with those people. Mark Murphy Okay, understood. And then Sridhar, can you speak to the federal government opportunity because you had touched on it in your comments? Do you think that DOGE is going to run through this initial process of eliminating wasteful spend and then maybe pivot back towards issuing some new RFPs? And then you've got the right certifications. I'm just curious if you think some agencies might be moving off-legacy on-prem data warehouses and maybe moving some of that on the Snowflake a little later in the year. Sridhar Ramaswamy This is an active topic of conversation with many departments in the government. I think -- I was in DC a few weeks ago, met with a number of folks, and there is both an increasing awareness of what Snowflake can do. The fact that we have very low operational overhead figures prominently. And there's also a little bit of an astute change where they're very much focused on how do we make sure that our data infrastructure is run efficiently. There's also a desire for things like cross-department sharing of data because that just leads to more efficiency. We'll have more to say on this topic. And Mike, our new CFO, is certainly actively looking at this area as well. We are optimistic and hopefully, we'll have more to say about this in the coming quarters. Operator Kash Rangan, Goldman Sachs. Kash Rangan It's really heartening to see the positive shift in the narrative strategic positioning and the execution and handling of everything, so good to see that. Two things still, regardless of, although you're approaching $4 billion run rate and growing 26%, 27%, which is remarkable, if I could take the liberty of poking at the NER, so 124% is good. Not many companies even reach that number at your scale if they reach your scale. But you have had [137] new products launched in the most recent quarter, and Scarpelli will be quick to point out that the NER metric is more of a 24-month trailing metric, which I completely appreciate. But why wouldn't and why shouldn't NER be better, given the tail effect of new product introduction, you're landing customers at a record pace, and to Mike's point, the yield of enterprise customers is higher quality? You've got AI which didn't exist in 2022. Volatility, which should play to your advantage. So anything on that front? And anything that your new CRO could do to land that number, as good as it is, even higher? And I have a very quick follow-up question. Michael Scarpelli What I would say on that is a number of our newer customers that are not in that cohort are contributing to our growth beyond what the NRR is. And there was one of our large customers that grew so much last year. In this year, they're still doing very well but they didn't grow as much this year. And that's really the dynamics. It's those newer customers coupled with that. But once again, over time, NER and revenue growth rate will converge as we become a more mature company. Kash Rangan Got it. And maybe one for you -- Thank you, Mike. Good to hear your voice. One for you, Sridhar. When you look at what's happening with the hyperscalers, Microsoft certainly talked about Fabric yesterday, on and build, certainly seem to be making a lot of progress in the idea of data fabric at scale, truly open to enable AI agentic architecture. It's a thing that's not lost on the big guys. Where does that lead Snowflake? And what is going to be the one or two or three things that the Snowflake's platform would do better so you can build your vision towards being a $10-plus billion revenue company? Sridhar Ramaswamy Just like the hyperscalers are formidable, they are amazing both from an engineering execution and business perspective, but they also work with Anthropic and OpenAI because they are the best -- among the best model makers in the world. Similarly, we are very uniquely positioned in terms of being the excellent data platform that is. And we've also learned how cooperating really leads to a better outcome, whether it is with AWS, which is our biggest partner, or more and more with Azure. There are many customers that Azure not play is just a better outcome for everybody that is involved. And we have deep partnerships between the team. I think it was six, seven months ago that we announced, for example, that from Snowflake, you could read tables that are in one lake. And we are also actively talking to them about one lake being the data layer for Snowflake that's at the bottom. We also collaborate with them at the top, where we have things like Cortex analysts and Cortex agents be available as components in Office Copilot, for example. So we very much take this approach of finding customers, for example, who are on a modernization routine or who want to get value, AI value from data and figure out how we can work together. Yes, there is competition, but I think there are more cases than not where we are very, very effectively working together, and it's on the uptick, especially with Azure. Operator Matthew Hedberg, RBC. Michael Richards This is Mike Richards on for Matt. Congrats on the results here. You've clearly made great progress on the products front here, but I'm just curious how you feel about the maturity of the go-to-market motion to support your AI developments. That's it for me. Sridhar Ramaswamy I'm actually even more pleased with how we've been able to seize the AI opportunity. I've spoken to you, folks, previously about how we created what we then called the AI ninjas, which were a group of solution engineers that were deeply versed with our AI products, that could be very close to our sales teams around the globe and just the excitement that our sales team feels about AI, but more importantly, the ability to drive AI use cases at scale to both pitch the vision, but also run POCs for them, win them and get them into production. That's been a pretty remarkable transformation for us. And we are now in the process of making this kind of specialized knowledge available to more and more of the sales team. I think it is this combination of specialist teams that know more about a sophisticated area like AI, again doing the initial work, but having more of the team participate in it. That's been hugely positive for us. And we apply similar techniques in data engineering, though with data engineering, I would say it's much closer to the knowledge and skill set of more of our sellers. In some sense, it's more natural to them. But AI is doing exceptionally well as well. And we have assembled a team of both specialist sellers and AI but also specialist technical experts that are driving change across the whole sales organization. That combined with an increasing understanding of what it takes to drive great use cases in general, not just in AI and data engineering but also across other areas like analytics, really heralds a new era of data-driven go-to-market, which I'm very, very happy about. Operator Brad Zelnick, Deutsche Bank. Brad Zelnick Congrats on a good start to the year. Sridhar, as we think -- I just want to follow up on Kirk's question. As we think about Snowpark adoption from here, beyond capturing maybe the Spark jobs where data was moving off platform, can you talk about success that you're seeing in penetrating, where are the media or data science use cases and any anecdotal evidence that you're winning over the data science crowd and maybe the impact that notebooks are having would be great? Sridhar Ramaswamy Yes. I'll start the answer. Christian can add on. Our notebooks are doing very well. Several thousand customers are actively using them. And there is increasing ability, for example, to train larger and larger machine learning mark. As you folks know, like the world has made enormous amount of progress on the basis of machine learning, even though AI is all the hotness these days. But when it comes to many, many interesting use cases, for example, next best action prediction, which the likes of Hilton do, are how to route guests to the next ride, which customers like Disney do. These are all things that we have gained increasing market share around. Notebooks continue to expand. We continue to add product capabilities for training bigger, better, faster models on machines running and container services. These tend to be more technical in terms of the kind of people that are involved, the implementations that happen but definitely appealing to the developers, the data scientists, that sort of product-led motion is something that is going on pretty well. Christian? Christian Kleinerman Yes. [One book] addition is Snowpark is a collection of libraries and capabilities that help customers do a variety of activities. We see lots of people leveraging it for unstructured data processing, which is a core part of what we're doing. As Sridhar said, we're making more unstructured data available to customers. So Snowpark for extracting structure and signal and doing traditional ML on structured common use case we're seeing. Brad Zelnick Maybe just a quick follow-up, Mike. Guidance implies a robust ramp through the remainder of the year. And I think we all see the pace of innovation. Excited for what's to come at Summit. But what, if anything, would you call out that underpins your confidence things we might not be thinking about or any key assumptions worth calling out? Michael Scarpelli I would just say, as I said, our guidance is based upon the observed behavior we see within our customers, coupled with we spend a lot of time than we have for the last five quarters now, in really identifying new workloads going to production. We have a pretty good visibility of those, and we're very close with our customers, and we know what we're doing. Migrations are moving nicely. We announced where we've made Snow Convert available to all of our customers and partners, and we're seeing an uptick in the amount of usage around that, and that's what gives us the confidence in the guidance that we gave. Operator Brent Thill, Jefferies. Bo Yin This is Bo Yin on for Brent Thill. With features like Cortex AI analyst and Cortex agents that can help users to write more efficient queries, like are you seeing more query optimization as Cortex AI adoption picks up? And what's been a net impact on usage so far in terms of net new queries and query optimization? Sridhar Ramaswamy With things like Cortex analyst, if anything, the end users are a step removed from writing the SQL query. The user semantic model to aid in figuring out the intent of the user query and then auto-generate the SQL from it. Certainly, we've made available Copilot-like, both for what we call worksheets, which is where people write SQL or Python, but also inside notebook. To be honest with you, I think there is a huge amount of innovation that is coming there, some of which we will show at Summit. The bar for people being able to write code now are modern dollar per platforms like Cursor, which -- and get a Copilot and others, which can massively increase productivity in terms of the volume of queries that can be written as well as the amount of work that can be done. While we don't have concrete measurements of this leads to X percent more query, we are very happy about being able to help our customers write queries faster or write code faster and be able to debug as faster as well. Christian Kleinerman Yes. We're saying in these calls and other forums that our preference, our goal is to make sure that customers are optimized all the time. I think none of us like to go and spend money and then optimize and go up and down. So we put a lot of effort in technology, some of the core examples that you have are part of that, but query insights, cost insights, governance insights all over this product, how we help customers be in a better optimized state all along. Operator Patrick Colville, Scotiabank. Patrick Colville I guess my one is for Sridhar. Last year, the Arctic LLM was launched. My question is how important are first-party foundation models to Snowflake's strategy as of today? Or is there like a slight pivot more to kind of partnering with third-party foundation models? Sridhar Ramaswamy I said this before, I think the business of training a truly large foundation model has gotten to be a very expensive proposition. We have an amazing team of AI researchers, but they tend to focus more on things like training. We have always blogged, for example, about how we can be much more efficient, like much more correct at generating SQL queries by using post training techniques. This makes Cortex analyst better. I think at least for now, the era of us training, let's call it, frontier foundation models is not something that we are actively looking at. But the research team continues to do amazing work, as I said, in post training but also in areas like inference optimization, which has a huge impact on latency, it has a huge impact on margins in AI. So we continue to have a robust presence in the area but we work with partners. Meta is a big partner. We were a day one launch partner for the Llama 4 model that came on. We actively collaborate with Anthropic, with OpenAI. Mistral lots of model providers. The one fun thing I'll add is that in the area of embedding models, these are small unsung heroes, but they are the models that essentially produce fingerprints of documents that you want to index for a chatbot, for example. We have robust embedding models that we have open source. We have to be opportunistic about where we can create value because can't afford to spend the billions of dollars that it takes to be a part of research today. Patrick Colville Crystal clear. And can I just squeeze in a follow-on for Mike? I mean, the bottom line is clearly less of a focus when you're growing the top line 26% with the possibility to reaccelerate in the back half of the fiscal year. But one key operating margin was strong. Nonetheless, the fiscal year op margin was left unchanged, as was the fiscal year free cash flow margin target. So I guess, what were the puts and takes there as to why leave those targets unchanged? Michael Scarpelli Well, what I would say is in Q2 is when we have a big user event, and that's a very expensive event, Summit that we operate, and that typically has an impact on our operating margin in Q2. And that's factored in. And we'll just continue to revise our forecast for the year on a quarterly basis going forward. Sridhar Ramaswamy I actually think that we are being pretty thoughtful when it comes to expanding our operating margin. It was 4% in Q1 last year. It's 9% Q1 this year. And this is part of the benefit of practicing what we preach around AI. We spend a lot of time figuring out how engineers can be more productive with AI, how we can get small work done. Similarly in the sales team, we want to automate many of the tasks that our sales team doesn't like to do anyway so that they can be more productive in front of sellers. We feel that we are in quite a bit of a Goldilocks moment where we can continue to grow revenue very strongly while continuing to be very efficient when it comes to operating margin and free cash flow. Operator Alex Zukin, Wolfe Research. Alex Zukin Maybe just a high-level one first for you, Sridhar or Mike. I guess again, it seems like what we're seeing -- what we're hearing from you is the demand environment is really unchanged, untouched by all the macro headlines. You're seeing new product adoption ahead of expectations. So maybe just the first one, are you seeing a change? Like is this being driven by any kind of identifiable AI tailwinds? You're seeing a change with how customers are either investing in their AI stack with Snowflake or building agents? Specifically, they're building more on data rather than just focusing on the models. Like maybe just help us understand and conceptualize the AI tailwind or you're placed within these AI budgets that a lot of your large customers clearly are making those bets. Sridhar Ramaswamy As I was saying earlier, I think more and more people have internalized that to be good at AI, your data needs to be in here. And what we have done on our side is to create a product, whether it's a semantic model that is very close to the data, usable by anyone, mind you, not just by Snowflake, but also products like Cortex Analyst that can actually unlock the value of that data, both by immediate use, like a chatbot on a specific data set but much more importantly for use in an agentic workflow. So more and more of our conversations can now focus on what creates value from a business perspective. So AI for Snowflake, rather than being this additional thing that we do, in some ways, becomes the natural end state for what investing well in data means. And of course, we are using AI ourselves both within the company but also in different aspects of the product. We talked about code generation and notebooks being accelerated by Cursor-like experiences. On the other hand, we make Snow Convert, our conversion tool free, so that anyone could use them. And we're bringing agentic workflows into Snow Convert so that people can do things like testing with synthetic data far sooner than what they would have done in a traditional waterfall-style migration. I'd say it's a combination of all of these trends that are driving Snowflake forward. Alex Zukin Excellent. And maybe just as a follow-up, maybe Sridhar for you or for Christian. There's been a lot of excitement that we've sensed around [Gen 2] and particularly the performance improvements that your customers are seeing. I guess maybe just touch on, is this potentially leading to unlocking new use cases around the capabilities introduced? Or how should we think about the potential for some of these new functions as they percolate in the platform? Christian Kleinerman Yes, Christian here. The best way to think about Gen2 is our latest and greatest compute environment. What we've done is we've combined the latest hardware instances that we can get from the cloud providers, which are often faster but also more expensive with a good number of software and improvements that we have, and at the end of the day is part of our eternal ongoing promise to customers to always deliver the best price performance of the market. Some of the benchmarks that we have on Gen2 are completely phenomenal relative to both to Snowflake, say, a year ago, but also to many of the competitive patterns there. So think of it as price performance, which continues to correlate with time to insight and time to value, and it's a material step forward. Operator Joel Fishbein, Truist. Joel Fishbein Mike, you mentioned earlier on the call you had the strongest new logo quarter, which was fantastic. Just a question around that. Are you seeing -- is this a result of better, stronger execution and strategic focus? Are you seeing a more favorable win rate in competitive environment? And just as a follow-up, too, to that is of those two $100 million deals, can you just tell us which verticals they were in? Michael Scarpelli So on the $100 million deals, they were both in the financial services vertical. And what I would say on the number of new customers, this is not a result of something we put in place this quarter. We started last year with really breaking out an acquisition team that is just focused on new logos, and we're seeing the benefits of the groundwork that we put in place last year and we're pleased with the results. I think we have a very good leader there, and we're replicating what we're doing in North America and in EMEA as well, too. So we're pleased with the number of new logos that we've added and it's a big focus of ours. Operator Brad Reback, Stifel. Brad Reback Last quarter, Mike, you talked about some changes to the sales force comp plan as related to bookings and commits, not just consumption. Maybe an update on how that's tracking and if that had any impact on the strong bookings in the quarter. Michael Scarpelli Yes. Obviously, I think it helped, but the real strong bookings for those twp big deals that we knew were going to come in, I would say, I think in general, salespeople are happy with having a bookings component but still the principal driver is consumption revenue. And as a reminder, we paid on bookings (inaudible) last year. So it's not like we weren't doing it last year. We just are giving them a quote for bookings as well, too. And I think it's going to take some time to see the real roots of that change, whether that worked or not, but I'm pleased for Q1. I think they had a very solid Q1 and it definitely helped. Brad Reback That's great. And then just a quick one, getting into the weeds a little bit. CapEx was up a bunch to a fairly high number. Is there onetime items there, or is this the new level? Michael Scarpelli No. The CapEx was really associated with our new headquarters in San Mateo. As I spoke about previously, we signed a new lease in a Menlo Park office and there's a fair bit of CapEx that went into that as well as in Bellevue. I talked about that before, too. That really -- that just opened this week, that office, and there was a fair bit of CapEx that went into that as well, too. I'm not expecting any major office buildouts the next couple of years actually now. Operator Tyler Radke, Citi. Tyler Radke Mike, you talked about some strength in technology customers in the quarter. I was wondering if you could double-click on that. And what are you seeing specifically among kind of larger AI native customers in terms of their consumption? Michael Scarpelli It's good. But as I called it before, we have a number of AI companies and they're still less than 1% of our Tyler Radke Okay, great. And the follow-up question I had was for Sridhar. We recently saw Databricks acquire Neon, which was a company that Snowflake Ventures had invested in. And I'm just curious if we can get an update on your strategy around Unistore. And just sort of your view on the positioning or some of these serverless databases that are out there in the market. Sridhar Ramaswamy We believed in transactional systems for this is why we got to work on Unistore [about five] years ago. Unistore, the product, is doing very well. as a standard is nothing to be scoffed at and it's adopted widely. But we are very happy with what we have invested in terms of transactional stores so far. And we will continue to invest in the area because it's a very natural addition to what we do. Operator Thank you for your question. There are no additional questions waiting at this time, so I'll pass the call back to Sridhar for any closing remarks. Sridhar Ramaswamy Thank you. In closing, Snowflake is at the center of today's enterprise AI evolution. Our focus on making Snowflake easy to use, connected to enable fluid access to data wherever it sits and trusted for enterprise-grade performance is what makes us differentiated and beloved by our customers. And we are committed to supporting them through their end-to-end data journey from inception to insights. Our product revenue growth and strong outlook for FY26 demonstrates our continued ability to execute at scale. Our pace of innovation coupled with our ability to bring products to market quickly is driving high growth, and we are committed to maintaining that momentum. We believe Snowflake's long-term profile is one that showcases durable, high growth and continued margin expansion. It's an exciting time for our company. I look forward to sharing more of our progress in the quarters ahead. Thank you all for joining us. Operator That concludes the call. Thank you for joining. You may now disconnect your lines.
Yahoo
01-05-2025
- Business
- Yahoo
RTX Board of Directors Increases Quarterly Cash Dividend
ARLINGTON, Va., May 1, 2025 /PRNewswire/ -- RTX (NYSE: RTX) announced today that its Board of Directors declared a dividend of 68 cents per outstanding share of RTX common stock, which represents an increase of 7.9 percent over the prior quarter's dividend amount. The dividend will be payable on June 12, 2025 to shareowners of record at the close of business on May 23, 2025. "Today's dividend increase reflects our confidence in executing on RTX's robust backlog, the long-term cash generation power of our company, and our continued commitment to returning capital to shareowners," said RTX Chairman and CEO Chris Calio. RTX has paid cash dividends on its common stock every year since 1936. About RTXWith more than 185,000 global employees, RTX pushes the limits of technology and science to redefine how we connect and protect our world. Through industry-leading businesses – Collins Aerospace, Pratt & Whitney, and Raytheon – we are advancing aviation, engineering integrated defense systems, and developing next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2024 sales of more than $80 billion, is headquartered in Arlington, Virginia. Cautionary Statement Regarding Forward-Looking StatementsThis release includes statements related to dividends that constitute "forward-looking statements" under the securities laws. All forward-looking statements involve risks, uncertainties and assumptions that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Past dividends provide no assurance as to future dividends. The timing, payment and amount of future dividends, if any, could vary significantly from past dividends due to a number of risks and uncertainties. These factors include those described under the caption "Risk Factors" in our reports on Forms 10-K, 10-Q and 8-K filed with the SEC from time to time. Media ContactC: 202.384.2474 Investor ContactC: 781.522.5123 View original content: SOURCE RTX
Malaysian Reserve
25-04-2025
- Business
- Malaysian Reserve
Urban One, Inc. First Quarter 2025 Results Conference Call
SILVER SPRING, Md., April 24, 2025 /PRNewswire/ — Urban One, Inc. (NASDAQ: UONEK; UONE) will be holding a conference call for investors, analysts and other interested parties to discuss its results for the first fiscal quarter of 2025. The conference call is scheduled for Tuesday, May 13, 2025, at 10:00 a.m. EDT. To participate on this call, U.S. callers may dial toll-free +1-888-596-4144; international callers may dial direct +1-646-968-2525. The Access Code is 7968738. A replay of the conference call will be available from 2:00 p.m. EDT May 13, 2025, until 11:59 p.m. EDT May 20, 2025. Callers may access the replay by calling +1-800-770-2030; international callers may dial direct +1-609-800-9909. The replay Access Code is 7968738. Access to live audio and a replay of the conference call will also be available on Urban One's corporate website at The replay will be made available on the website for seven days after the call. Cautionary Note Regarding Forward-Looking Statements The Company cautions you certain of the statements in this press release may represent 'forward-looking statements' as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. These statements are based on assumptions believed by the Company to be reasonable and speak only as of the date on which such statements are made. Without limiting the generality of the foregoing, words such as 'expect,' 'believe,' 'anticipate,' 'intend,' 'plan,' 'project,' 'will' or 'estimate,' or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. Except as required by law, the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date and cautions investors not to place undue reliance on any such forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements based on factors, including but not limited to the following: economic, public health, and/or political conditions that impact consumer confidence and spending; the cost and availability of capital or credit facility borrowings; the ability to obtain equity financing; general market conditions; the adequacy of cash flows or available debt resources to fund operations; and other risk factors described from time to time in the Company's Forms 10-K, Forms 10-Q, and Form 8-K reports (including all amendments to those reports). About Urban One: Urban One Inc. ( together with its subsidiaries, is the largest diversified media company that primarily targets Black Americans and urban consumers in the United States. The Company owns TV One, LLC ( a television network serving more than 37 million households, offering a broad range of original programming, classic series and movies designed to entertain, inform, and inspire a diverse audience of adult Black viewers. As of March 31, 2025, we owned and/or operated 72 independently formatted, revenue producing broadcast stations (including 57 FM or AM stations, 13 HD stations, and the 2 low power television stations) branded under the tradename 'Radio One' in 13 urban markets in the United States. Through its controlling interest in Reach Media, Inc. ( the Company also operates syndicated programming including the Rickey Smiley Morning Show, and the DL Hughley Show. In addition to its radio and television broadcast assets, Urban One owns iOne Digital ( our wholly owned digital platform serving the African American community through social content, news, information, and entertainment websites, including its Cassius, Bossip, HipHopWired and MadameNoire digital platforms and brands. Through our national multi-media operations, we provide advertisers with a unique and powerful delivery mechanism to the African American and urban audiences.
Yahoo
29-03-2025
- Business
- Yahoo
MicroAlgo Inc. plans to issue additional new shares at an offering price of $0.8 per share.
SHENZHEN, China, March 21, 2025 /PRNewswire/ -- MicroAlgo Inc. (NASDAQ: MLGO), (the "Company"or "MicroAlgo"), today announced the plan to issue more new shares, considering that MicroAlgo Inc. entered into a convertible bond purchase agreement with creditors on October 7, 2024, with a total amount of US$20 million. These bonds have a maturity period of 360 days. According to the convertible bond purchase agreement, the bonds are convertible into common shares at a conversion price equal to 70% of the lowest closing market price during the 60 trading days preceding the conversion request. MicroAlgo Inc. has received notice from the creditors under this US$20 million convertible bond purchase agreement, requesting the company to issue new shares at $ 0.8 per share to repay the debt in accordance with the agreement terms. The company plans to fulfill the relevant clauses of this US$20 million convertible bond purchase agreement and will issue new shares at $ 0.8 per share for debt repayment. This serves as a risk disclosure in accordance with the Form 6-K filing submitted to the U.S. Securities and Exchange Commission (SEC) on October 9, 2024. About MicroAlgo Inc. MicroAlgo Inc. (the "MicroAlgo"), a Cayman Islands exempted company, is dedicated to the development and application of bespoke central processing algorithms. MicroAlgo provides comprehensive solutions to customers by integrating central processing algorithms with software or hardware, or both, thereby helping them to increase the number of customers, improve end-user satisfaction, achieve direct cost savings, reduce power consumption, and achieve technical goals. The range of MicroAlgo's services includes algorithm optimization, accelerating computing power without the need for hardware upgrades, lightweight data processing, and data intelligence services. MicroAlgo's ability to efficiently deliver software and hardware optimization to customers through bespoke central processing algorithms serves as a driving force for MicroAlgo's long-term development. Forward-Looking Statements This press release contains statements that may constitute "forward-looking statements." Forward-looking statements are subject to numerous conditions, many of which are beyond the control of MicroAlgo, including those set forth in the Risk Factors section of MicroAlgo's periodic reports on Forms 10-K and 8-K filed with the SEC. Copies are available on the SEC's website, Words such as "expect,""estimate,""project,""budget,""forecast,""anticipate,""intend,""plan,""may,""will,""could,""should,""believes,""predicts,""potential,""continue," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, MicroAlgo's expectations with respect to future performance and anticipated financial impacts of the business transaction. MicroAlgo undertakes no obligation to update these statements for revisions or changes after the date of this release, except as may be required by law. View original content: SOURCE
