Snowflake has achieved three consecutive quarters of accelerating revenue growth, driven significantly by AI-powered products like Coco, which enhance data-related tasks and platform engagement without per-user fees. By focusing on a trusted, enterprise-grade data platform, Snowflake differentiates itself from competitors and enables customers worldwide to leverage advanced AI capabilities for transformative business outcomes.
Snowflake has experienced three consecutive quarters of accelerating product revenue growth, with the latest quarter reaching $1.49 billion, a 37% year-over-year increase. This growth was accompanied by a 400 basis point expansion in operating margin to 15%. Approximately half of this revenue beat is attributed to AI, which is creating a positive feedback loop: more customers are bringing data onto Snowflake using AI-powered products like Coco and Cowork, which in turn drives higher platform consumption and further adoption.
Coco, a coding agent integrated into Snowflake, significantly accelerates data-related tasks by five to ten times, making it a standout product in a competitive market. Unlike many other coding agents, Coco is deeply optimized for Snowflake’s environment, offering superior performance and ease of use without per-user subscription fees. Instead, it operates on a consumption-based model and is included for free with Snowflake, making it highly attractive to data teams globally.
The addition of 2,000 new accounts in one quarter reflects strong momentum, with AI revenue growing as users consume tokens through Coco. Beyond direct AI revenue, Coco drives broader platform engagement by enabling customers to bring more data into Snowflake, optimize pipelines, create interactive dashboards, and deploy AI agents to business users. This multi-layered impact is crucial for Snowflake’s sustained growth and platform expansion.
Regarding market comparisons, Snowflake differentiates itself from competitors like Databricks by focusing on a cohesive, trusted data platform tailored for enterprise needs, including governance and disaster recovery. While Databricks caters more to developers with open code bases and data sprawl, Snowflake hosts enterprises’ most valuable business data, positioning it well to move upstream and deliver transformative business outcomes through AI-driven insights and operational improvements.
Customers today can achieve capabilities with Snowflake that were not possible even a year ago, such as those demonstrated by companies like United Rentals and Indeed. Indeed has deployed Coco and Cowork across 60 countries and 28 languages, enabling ready access to data and AI-powered reasoning. This represents the cutting edge of what AI and data integration can accomplish, highlighting Snowflake’s evolution from a largely invisible tech provider to a driver of real, measurable business outcomes.