Snowflake Inc. (SNOW): Business Model Canvas [Dec-2025 Updated]

You're looking past the hype to see exactly how the Data Cloud leader is making its money, especially now that they are making a huge pivot toward enterprise AI. Honestly, the foundation is rock-solid: they pulled in $3.46 Billion in Product Revenue for fiscal 2025, driven by a sticky consumption model that delivered a 126% Net Revenue Retention rate as of January 2025. The real question is how their core architecture supports the new strategy, like that massive $200 million investment in Anthropic's Claude models, so I've mapped out the entire business using the nine blocks below to show you the precise mechanics of their operation.

Snowflake Inc. (SNOW) - Canvas Business Model: Key Partnerships

You're looking at the critical alliances that power Snowflake Inc.'s growth engine as of late 2025. These aren't just casual relationships; they are deep integrations driving revenue and product adoption.

Cloud Hyperscalers remain foundational, as Snowflake's platform runs across AWS, Azure, and GCP. Snowflake's sales through the Amazon Web Services Marketplace alone exceeded $2 billion for the 2025 calendar year. This is part of a broader commitment structure; for instance, a prior five-year infrastructure agreement with one hyperscaler committed Snowflake to spending at least $2.5 billion from fiscal 2024 to fiscal 2028, with a projected spend of $450 million in fiscal 2025.

The focus on Artificial Intelligence is cemented by the relationship with AI/LLM Providers. Snowflake announced a multi-year partnership with Anthropic valued at $200 million. This deal brings Anthropic's Claude models to over 12,600 Snowflake customers, with thousands already processing trillions of Claude tokens monthly via Snowflake Cortex AI.

The reach into enterprise implementation is bolstered by Global System Integrators. Accenture launched the Accenture Snowflake Business Group, committing to train more than 5,000 professionals on Snowflake technology to accelerate joint customer AI value realization. For context, Accenture reported revenues of $66.2 billion in 2024 and had over 740,000 employees.

The ecosystem integration is visible through key Technology Partners. Snowflake is collaborating with Palantir Technologies on a new partnership that enables bidirectional, zero-copy interoperability between Snowflake's AI Data Cloud and Palantir's Foundry and Artificial Intelligence Platform (AIP). Furthermore, Snowflake, Salesforce, and dbt Labs are rallying behind the Open Semantic Interchange (OSI) initiative. dbt Labs was recognized as the 2025 Monetization Data Cloud Product Partner of the Year, with globally over 60,000 data teams using dbt.

The Data Providers ecosystem is thriving on the Data Marketplace. As of Snowflake Summit 2025, the Marketplace connects enterprises to over 820 providers offering more than 3,400 live, AI-ready data, agents, and integrated SaaS solutions. This marketplace activity is a key part of Snowflake's overall financial picture; for the quarter ended October 31, 2025, total revenue was $1.21 billion.

Here's a quick look at the quantifiable impact of these partner categories:

Partnership Category	Key Metric	Associated Number/Amount
AI/LLM Providers (Anthropic)	Strategic Deal Value	$200 million
Global System Integrators (Accenture)	Committed Professional Training	5,000+ professionals
Cloud Hyperscalers (AWS Marketplace)	Calendar Year 2025 Sales	Exceeded $2 billion
Data Providers (Marketplace)	Number of Providers	Over 820
Technology Partners (dbt Labs)	Partner Award Recognition	2025 Monetization Data Cloud Product Partner of the Year

The depth of these integrations is clear when you see the specific actions taken:

• Cloud hyperscaler commitments include a projected spend of $450M in fiscal 2025 with one partner.
• Claude models are now accessible to more than 12,600 Snowflake customers.
• Accenture's commitment to training 5,000+ professionals is aimed at helping joint customers realize AI value faster.
• The Data Marketplace offers more than 3,400 live, AI-ready data, agents, and integrated SaaS solutions.
• dbt Labs has won the specific Snowflake partner award for the third consecutive year.
• Snowflake's Q3 2025 product revenue grew 29 percent year-over-year to $1.16 billion.

Finance: draft 13-week cash view by Friday.

Snowflake Inc. (SNOW) - Canvas Business Model: Key Activities

You're looking at the engine room of Snowflake Inc. (SNOW), the core work that keeps the consumption flywheel spinning. This isn't about the pitch; it's about the engineering, the go-to-market execution, and the sheer volume of product iteration happening daily.

Core Platform Development: Continuous feature releases like Snowflake Postgres

Snowflake Inc. is relentlessly pushing feature velocity to broaden workload support beyond pure analytics. A major focus area, highlighted at Snowflake Build 2025, is expanding into transactional workloads with Snowflake Postgres, which was announced in Private Preview to bring PostgreSQL data onto the unified platform for context-aware AI agents. This push is part of a broader strategy to support a true lakehouse architecture, including enhanced Apache Iceberg interoperability.

The pace of innovation is high. As of late 2025, Snowflake Inc. had released 370 new Generally Available (GA) product capabilities year-to-date, representing a 35% increase compared to the prior year. Furthermore, Snowflake Unistore, powered by Hybrid Tables, achieved General Availability on Microsoft Azure.

AI/ML Innovation: Building Cortex AI and Snowflake Intelligence agents

The integration of Artificial Intelligence is now central to Snowflake Inc.'s key activities, driving both product development and sales bookings. The enterprise AI agent, Snowflake Intelligence, saw the fastest adoption ramp in the company's history, with over 1,200 customers leveraging its capabilities in the third quarter of fiscal 2026. Overall, more than 7,300 customers are using Snowflake's AI and ML technology weekly.

The financial impact of this AI focus is material. AI influenced 50% of new bookings signed during the fiscal third quarter. The company hit a significant milestone, achieving a $100 million AI revenue run rate one quarter ahead of schedule. This innovation is being cemented through strategic spending, such as the expanded, multi-year, $200 million partnership with Anthropic to bring native models into the platform. Cortex AI is a core component of this push.

Cloud Infrastructure Management: Optimizing performance across three major clouds

Managing performance and cost efficiency across Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) is a continuous, critical activity. The company is optimizing its compute layer to handle diverse workloads efficiently. Standard Warehouse Generation 2 (Gen2) is now generally available, with claims of delivering more than 2-4x faster analytics performance through hardware and software upgrades. For streaming workloads, Snowflake Streaming V2 on AWS claims a 56% reduction in query completion time.

Partnership milestones reflect deep integration and optimization on these hyperscalers. Snowflake Inc. reached a $2 billion milestone with AWS during the quarter. The platform's architecture supports independent scaling of compute and storage layers, which is key to its consumption-based financial model.

Sales and Marketing: Driving consumption-based adoption in new verticals

Sales and marketing activities are focused on expanding consumption within the existing base and acquiring new logos, all measured by consumption metrics. The consumption-based model is evident in the strong expansion rates from current users.

Here are the key commercial metrics reflecting this activity as of the third quarter of fiscal 2026:

Metric	Value	Context/Period
Product Revenue (Q3 FY2026)	$1.16 billion	Year-over-year growth of 29%
Net Revenue Retention Rate (NRR)	125%	Existing customers expanded usage by 25% annually
Customers > $1M TTM Product Revenue	688	Growth of 29% year-over-year
Total Customers	Over 12,600	Total customer base
New Customers Added (Q3 FY2026)	615	Record number of new customer additions
Remaining Performance Obligations (RPO)	$7.88 billion	Up 37% year-over-year
FY2026 Product Revenue Guidance	$4.446 billion	Implies 28% year-over-year growth

The company signed a record four nine-figure deals in the quarter. The focus is defintely on driving usage, as the consumption model means revenue is recognized as customers use compute resources.

• Financial services and technology verticals led growth in Q3.
• The company added 615 new customers in the quarter.
• 103 customers now generate over $5 million in product revenue.
• 37 customers now generate over $10 million in product revenue.

Snowflake Inc. (SNOW) - Canvas Business Model: Key Resources

You're looking at the core assets Snowflake Inc. relies on to run its business as of late 2025. These aren't just abstract concepts; they are tangible capabilities and financial backing that drive their platform's value.

Cloud-Native Architecture: Decoupled compute and storage for scalability.

The architecture itself is a primary resource, enabling the elastic scaling that customers pay for. Performance improvements are a direct result of hardware and software optimization within this structure. For instance, Standard Warehouse - Generation 2 (Gen2) delivered 2.1x faster performance for core analytics workloads on Snowflake tables over the twelve months ending May 2, 2025. Furthermore, the platform now supports scaling a warehouse up to 300 concurrent clusters, a significant increase from the previous cap of 10 clusters, allowing for massive horizontal scale. Also, the maximum size for a single VARIANT data type increased eightfold, from 16 MB to 128 MB, simplifying pipelines for large JSON/XML payloads.

Proprietary Technology: Snowgrid for cross-cloud data replication and governance.

The technology stack is constantly evolving, with new features becoming key resources. The platform is embedding AI directly into SQL via Cortex AISQL, allowing users to run functions like classify, complete, filter, and similarity directly in their queries. Cortex Agents can orchestrate multistep tasks inside Snowflake's secure perimeter. Governance is also being hardened; Storage lifecycle policies reached General Availability in November 2025, and Automatic sensitive data classification is generally available, using a system function call to suggest PII classifications.

The following table summarizes key customer metrics as of mid-to-late 2025, reflecting the scale of the deployed resource base:

Metric	Data Point (As of Jan 31, 2025)	Data Point (As of Jul 31, 2025)
Customers with $1M+ TTM Product Revenue	580	654
Forbes Global 2000 Customers	745	751
Total Customers	Over 11,000 (as of Feb 2025)	Data not available in this range

Financial Capital: $6.9 Billion in Remaining Performance Obligations (RPO).

The backlog of contracted, unearned revenue provides a clear view of committed future spending by customers. As of January 31, 2025, Snowflake reported Remaining Performance Obligations (RPO) totaling $6.9 billion, which represented 33% year-over-year growth at that time. This financial commitment underpins near-term revenue visibility.

Human Capital: Specialized engineering talent and a growing partner ecosystem.

The expertise within Snowflake Inc. and the breadth of its external network are critical. The company has a large base of customers driving significant consumption, which requires specialized talent to support and expand. The Net Revenue Retention Rate was 126% as of January 31, 2025, and 125% as of October 31, 2025, showing existing customers are increasing their spend significantly. The platform is also seeing growth in developer tooling, with Snowpark Python updates and the general availability of Run Apache Spark workloads on Snowflake.

Here are some key customer momentum statistics:

• Net Revenue Retention Rate as of January 31, 2025: 126%.
• Net Revenue Retention Rate as of October 31, 2025: 125%.
• Customers with TTM Product Revenue over $1 Million as of July 31, 2025: 654.
• The company reported reaching its $100 million AI revenue run rate target one quarter earlier than expected in Q3 FY2026.

Finance: draft 13-week cash view by Friday.

Snowflake Inc. (SNOW) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Snowflake Inc. in late 2025. It's about unification, flexibility, and paying only for what you use, all wrapped in enterprise-grade security.

Unified AI Data Cloud: Single platform for data warehousing, engineering, and GenAI.

Snowflake Inc. is positioned as the platform for the AI era, driving adoption across its entire data lifecycle capabilities.

• Total active customers as of October 31, 2025: 12,621.
• Accounts using AI capabilities weekly (Q3 FY2026): Over 7,300.
• Customers harnessing next-generation agentic AI (Snowflake Intelligence): 1,200.
• New customer wins influenced by AI (Q2 FY2026): Approximately 50%.
• Deployed use cases involving AI (Q2 FY2026): 25%.

Cross-Cloud Flexibility: Eliminates vendor lock-in across AWS, Azure, and GCP.

The ability to operate seamlessly across the major public clouds is a key differentiator, simplifying procurement and deployment.

Snowflake Inc. transaction growth through AWS Marketplace alone eclipsed $2 billion in sales within the 2025 calendar year. Azure was the fastest-growing cloud for Snowflake, showing 40% year-over-year growth in Q2 FY2026. Snowflake Inc. received 14 AWS Partner Award wins in 2025.

Consumption Pricing: Pay-per-use model directly tied to customer utility and ROI.

The model ties cost directly to utility via credits for compute, storage, and cloud services, allowing for instant scaling up or down.

Here's a look at the components driving the consumption cost:

Pricing Component	Unit/Basis	Example On-Demand Rate (Enterprise Edition, US Region)
Compute (Virtual Warehouse)	Credits per Hour (e.g., Medium = 4 credits/hr)	Approximately $3 per credit.
Storage	Per Terabyte (TB) per Month	Approximately $23 per TB/month.
Cloud Services	Credits (Billed if > 10% of daily compute)	Varies, often around 10% of compute cost.

For example, a typical Enterprise Edition setup using 10 TB of storage and running compute for 1,408 credits in a month resulted in a compute cost of $4,224 and a storage cost of $230 in one scenario.

Secure Data Sharing: Governed, zero-copy data exchange via the Data Cloud.

Customer satisfaction and continued spending are validated by the Net Revenue Retention Rate, which shows existing customers are expanding their usage significantly.

• Net Revenue Retention Rate as of October 31, 2025: 125%.
• Customers with trailing 12-month product revenue greater than $1 million: 688.
• Forbes Global 2000 customers: 766.

Enterprise AI: Run LLMs securely on governed data within the Snowflake perimeter.

The focus on AI integration is translating into tangible financial milestones, showing rapid product uptake.

Snowflake Inc. achieved a $100 million annualized AI revenue run rate one quarter earlier than anticipated. Product revenue for Q3 FY2026 was $1.16 billion, up 29% year-over-year, fueled by AI workloads. The company signed a $200 million deal with Anthropic to deepen Claude model integration.

Finance: review Q4 FY2026 cash flow projections against the $1.3 billion remaining share repurchase authorization by March 2027.

Snowflake Inc. (SNOW) - Canvas Business Model: Customer Relationships

You're looking at how Snowflake Inc. keeps its biggest spenders happy and how that translates into growth from the existing base. The relationship strategy is clearly tiered, focusing intense resources where the revenue is most concentrated.

Dedicated Account Management is reserved for the top tier. As of January 31, 2025, Snowflake Inc. had exactly 580 customers with trailing 12-month product revenue greater than $1 million. These are the accounts getting the high-touch treatment, ensuring their consumption scales with their needs.

Retention is the real story here; it shows existing customers aren't just staying, they're expanding their footprint significantly. That consumption-based model works when the product delivers, and these numbers suggest it is.

Metric	Value	Date/Period End
Net Revenue Retention Rate (NRR)	126%	January 31, 2025
Net Revenue Retention Rate (NRR)	125%	July 31, 2025
Net Revenue Retention Rate (NRR)	125%	Fiscal Q3 2026

To be fair, that 126% NRR from January 2025 is the benchmark you asked for, showing that for every $100 spent last year, customers spent $126 this year. Still, even in the most recent reported quarter (Fiscal Q3 2026), the rate held strong at 125%, which is defintely best-in-class for this scale.

Co-innovation is about building the future with key partners, often involving nine-figure commitments. Snowflake Inc. recently announced a significant expansion of its strategic partnership with Anthropic, a multi-year, $200 million agreement focused on deploying AI agents. This builds on existing work where thousands of customers process trillions of Claude tokens per month through Snowflake Cortex AI.

Also, the company struck new partnerships in Q3 2026 to ensure data access across the ecosystem. Here are some of the key strategic relationships announced:

• Expanded alliance with Accenture for agentic and generative AI.
• New partnerships with Workday, Palantir, UiPath, and Splunk.
• A new partnership with SAP to combine AI tools with SAP's Business Data Cloud.

For the broader user base, self-service tools and community support are crucial for adoption beyond the top spenders. Snowflake Inc. is clearly investing here, with Summit 2025 heavily messaging a 'Built for Builders' approach, including tools like SnowConvert AI for migrations and native dbt integration.

The developer community engagement, while broad, shows where the platform stands against competitors in terms of mindshare. In the 2025 Stack Overflow Developer Survey, 4.1% of developers reported doing extensive development work in Snowflake over the past year. This figure is lower than some traditional databases, but it reflects the platform's position as a specialized, high-value data environment rather than a general-purpose database.

Finance: draft the projected NRR impact from the new Anthropic partnership by next Tuesday.

Snowflake Inc. (SNOW) - Canvas Business Model: Channels

You're looking at how Snowflake Inc. gets its platform and services into the hands of customers; it's a multi-pronged approach that leans heavily on direct engagement for the biggest deals, but scales through the cloud providers.

Direct Sales Force: Primary channel for large enterprise contracts

The direct sales force remains the core engine for landing and expanding the largest, most complex enterprise contracts. This is where you see the focus on securing the biggest spenders in the market. As of January 31, 2025, Snowflake reported having 580 customers that generated more than $1 million in trailing 12-month product revenue. That's a significant cohort that the direct team is definitely prioritizing. Overall, the customer base reached 11,159 as of that same date, showing the breadth of the market they cover, but the high-value accounts are definitely a direct sales focus. The company also counts 745 of the Forbes Global 2000 customers as of January 31, 2025, which are prime targets for the dedicated enterprise sales teams.

Cloud Marketplaces

The cloud marketplaces are a massive accelerant, primarily by removing procurement friction for customers already committed to a hyperscaler. Honestly, this channel is performing exceptionally well. Snowflake eclipsed $2 billion in sales through Amazon Web Services (AWS) Marketplace within the 2025 calendar year. That number represents a doubling of its year-over-year transaction growth through that specific marketplace. This success is validated by AWS recognizing Snowflake across 14 Partner Award categories in 2025, including Data & Analytics Technology Partner of the Year for the third consecutive year. It just shows how critical these co-sell motions are for reaching scale quickly.

Partner Ecosystem

The partner ecosystem is where you see the true scale engine for Snowflake Inc. The network is exploding; as of mid-2025, the total partner count surpassed 12,600 worldwide. To put that growth in perspective, the Snowflake Partner Network only had about 600 partners back in 2022. The depth of engagement is also increasing, evidenced by the fact that the ecosystem now boasts over 36,000 partner credentials. This isn't just about sheer numbers, though; the top partners are investing heavily, with many doubling their practice sizes year-over-year, exceeding that 30 percent growth rate seen across the entire ecosystem. You've got GSIs (Global System Integrators) and ISVs (Independent Software Vendors) all building on the platform.

Data Cloud Marketplace

The Data Cloud Marketplace functions as the digital distribution platform for data products and applications built by partners. This is the marketplace where the ecosystem monetizes its work directly on Snowflake. As of January 31, 2025, partners had listed over 3,000 offerings on the Snowflake Marketplace. This digital storefront helps partners generate business and engage customers by making their solutions easily accessible to the existing Snowflake user base. It's a key component for driving consumption and expanding the platform's utility without requiring Snowflake to build every application itself.

Here's a quick look at the key channel metrics we're tracking for late 2025:

Channel Metric	Value/Amount	Date/Period Reference
AWS Marketplace Sales	Over $2 billion	CY2025
Total Partner Network Count	Over 12,600	Mid-2025
Partner Credentials	Over 36,000	Mid-2025
Data Cloud Marketplace Listings	Over 3,000	January 31, 2025
Customers > $1M TTM Product Revenue	580	January 31, 2025
Partner Network Count (Historical Baseline)	600	2022

The Net Revenue Retention Rate was reported at 125% as of Q3 CY2025, which suggests that even with these varied channels, existing customers are significantly increasing their consumption, which is the ultimate goal of any channel strategy.

• AWS Marketplace sales growth year-over-year: Doubled (CY2025 vs CY2024).
• Partner ecosystem growth year-over-year: Approximately 30 percent.
• Customers using AI/ML technologies weekly: More than 4,000.
• AI-related sales run rate (as of Q3 CY2025 earnings call): Reached a $100 million annual revenue run rate during the quarter.

Finance: draft 13-week cash view by Friday.

Snowflake Inc. (SNOW) - Canvas Business Model: Customer Segments

You're looking at the core of Snowflake Inc. (SNOW) customer base as of late 2025, focusing on the segments driving that 29% year-over-year product revenue growth reported in Q3 Fiscal Year 2026.

The platform's appeal spans from the largest global entities down to specialized data practitioners. As of October 31, 2025, Snowflake counted 12,621 total customers, showing a 20% year-over-year growth in the total customer count.

The concentration of high-value customers is significant. The company reported 688 customers with trailing 12-month product revenue greater than $1 million as of October 31, 2025.

Here is a breakdown of the key customer segments:

Large Enterprises

This segment represents the bedrock of the largest contract values. Snowflake Inc. has deep penetration within the world's most significant corporations.

Customer Segment Metric	Data Point (as of late 2025)
Forbes Global 2000 Customers	766
Customers with TTM Product Revenue > $1M	688
Average TTM Spend for G2000 Customers	$2.3 million

Financial Services

This vertical is a primary driver of current momentum. Financial services and technology verticals led growth in Q3 Fiscal Year 2026.

• AI is being applied to analyze unstructured data like financial documents for quant research.
• Banking and Payments use cases focus on expediting processes like home buying by parsing documents quickly.
• AI influenced 50% of bookings signed during the third quarter.

Technology and Retail

These sectors rely on the platform for speed and scale across operations. The focus here is on real-time decision-making.

• Technology verticals led growth in Q3 Fiscal Year 2026 alongside Financial Services.
• Retail and Consumer Goods leaders use the platform for supply chain optimization and intelligent demand forecasting.
• The platform enables near real-time data analysis for quick reactions to market trends.

Data Professionals

This segment includes the end-users: data scientists, engineers, and analysts who directly consume the platform's capabilities, especially its AI features.

• More than 7,300 customers are using Snowflake's AI and ML technology weekly.
• New tools like Snowflake Intelligence and the Data Science Agent are making AI accessible to these professionals.
• The platform is evolving into an AI operating system, allowing companies to build and run AI-powered apps directly on Snowflake.

The overall health of the existing customer base is reflected in the Net Revenue Retention Rate, which stood at 125% as of October 31, 2025.

Finance: draft 13-week cash view by Friday.

Snowflake Inc. (SNOW) - Canvas Business Model: Cost Structure

You're looking at the major drains on Snowflake Inc.'s top-line revenue as the company scales its AI Data Cloud. Honestly, understanding these costs is key because they directly impact the path to sustained, cash-flow-positive growth. The cost structure is heavily weighted toward the resources needed to run and expand the platform, plus the equity needed to retain top-tier talent.

The primary operational expense tied to service delivery is the cost of the underlying cloud resources. For the fiscal year 2025, the Cloud Infrastructure Costs, which represent the direct cost of revenue, are cited at $1.21 Billion. This number reflects the consumption of compute, storage, and data transfer from the hyperscalers like AWS, Microsoft Azure, and Google Cloud Platform that power the platform.

Next, you have the significant non-cash expense that fuels talent acquisition and retention in a hyper-competitive market. Stock-Based Compensation (SBC) was a high non-cash expense totaling $2.3 Billion in fiscal 2025. This expense is added back for non-GAAP metrics, but it represents a real economic cost in terms of shareholder dilution. To be fair, this is how Snowflake competes for engineers against hyperscalers and AI startups.

The investment in the future of the platform is substantial. Research and Development (R&D) spending shows heavy investment in AI and platform features. For the full fiscal year 2025, R&D expenses reached $1.783 Billion. This heavy spend is what keeps the platform competitive and drives new revenue streams, like those tied to AI model development.

Finally, the push for customer acquisition and consumption expansion requires a significant go-to-market engine. The broader Selling, General, and Administrative (SG&A) expenses, which encompass Sales and Marketing, were $2.084 Billion for the annual period of fiscal 2025. This significant spend is necessary to grow the customer base and drive consumption from the existing 11,000+ customers and the 580 customers generating over $1 million in trailing 12-month product revenue. Here's the quick math: R&D plus SG&A alone accounted for over $3.8 Billion in annual operating expenses.

Here is a breakdown of the major annual operating cost components for Snowflake Inc. in FY2025:

Cost Component	FY2025 Annual Amount (USD)	Context/Nature
Cloud Infrastructure Costs (Cost of Revenue Component)	$1.21 Billion	Direct cost for underlying cloud services consumption.
Stock-Based Compensation (SBC)	$2.3 Billion	High non-cash expense for employee and executive compensation.
Research and Development (R&D)	$1.783 Billion	Investment in AI, platform features, and engineering talent.
Selling, General & Administrative (SG&A)	$2.084 Billion	Covers Sales and Marketing spend for customer acquisition and expansion.

You can see the scale of the investment required to maintain market leadership. The company is spending heavily across the board to secure its position as the AI Data Cloud provider. The key action item here is monitoring the efficiency of the R&D and S&M spend relative to the 29.21% annual revenue growth seen in FY2025, which brought total revenue to $3.63 Billion.

• Cloud services consumption is the variable cost core to the product delivery.
• SBC is a structural cost reflecting intense competition for specialized cloud and AI talent.
• R&D investment is focused on expanding the end-to-end data lifecycle capabilities.
• Sales and Marketing spend is aimed at expanding consumption from the existing base, evidenced by a Net Revenue Retention rate of 126% as of January 31, 2025.

Finance: draft 13-week cash view by Friday.

Snowflake Inc. (SNOW) - Canvas Business Model: Revenue Streams

You're looking at the core ways Snowflake Inc. actually brings in the cash, which is key for any financial model you're building. Honestly, the model is heavily skewed toward usage, which is a double-edged sword-great when customers are expanding, but a risk if consumption dips.

Product Revenue is the engine here. This isn't a flat subscription; it's usage-based fees for compute, storage, and cloud services. You pay for what you process and keep. This structure ties Snowflake's success directly to customer data activity, which is why metrics like Net Revenue Retention Rate are so closely watched. For the full fiscal year 2025, the Total Product Revenue was set at $3.46 Billion.

To give you a clearer picture of how the revenue composition looked recently, here's a snapshot based on the Q3 fiscal year 2026 results, which gives us the latest segment breakdown:

Revenue Component	Latest Reported Amount (Q3 FY26)	Percentage of Total Revenue (Q3 FY26)
Product Revenue	$1.16 billion	96%
Professional Services and Other Revenue	$54.5 million	4%

Professional Services cover the necessary hand-holding for large enterprises. This stream includes consulting, training, and implementation support to get those massive data workloads running smoothly. While smaller than the core product revenue, this segment is growing; for instance, in Q3 fiscal year 2026, Professional Services and other revenues hit $54.5 million, showing a 30% year-over-year increase.

The final piece of the puzzle is the Marketplace Transactions. This is where Snowflake monetizes its ecosystem, taking fees from data and application exchanges hosted on its platform. It's a multiplier effect; the more valuable data partners join, the stickier the platform becomes, driving more Product Revenue usage.

Here are some key customer metrics that feed these revenue streams:

• Customers with trailing 12-month product revenue greater than $1 million: 688 as of October 31, 2025.
• Net Revenue Retention Rate as of January 31, 2025: 126%.
• Net Revenue Retention Rate as of October 31, 2025: 125%.
• Customers among the Forbes Global 2000: 766 as of October 31, 2025.

Finance: draft 13-week cash view by Friday.