The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst
: Thank you very much for a spectacular quarter. Frank, curious to get your thoughts on the Fortune 500 account base that you have, you have 223
customers. You also have at the same time about 148 customers that are doing over $1 million in product revenue. What is the overlap here? How
much more of a potential do you have in the Fortune 500 space?
Because I'm surprised that you look at the overall revenue of the company divided by the number of customers, it's about -- it's a relatively smaller
number relative to where the company can gain in terms of market share versus broader enterprise software companies, but generally could sell
up to $1 million per account. It seems to me that the penetration of wallet share is quite low, which leaves a lot of opportunity.
Can you just address that overlap between the $1 million customers and the Fortune 500 base and how much more potential there is with large
accounts?
Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst
: One follow-up for you, Mike, very quickly. As a result of the profitability inflection that we're seeing in the business, does that make you more
confident in maybe potentially think about raising the long-term cash flow margin growth that you outlined a few months back?
Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst
: Congrats on the results, really impressive. Again, like the stand out to me is the net revenue retention. So Frank, I guess the question is, as you think
about driving growth in the base, where does the discovery of new use cases typically come from? Is it mostly customer led? How much can sales
influence that expansion process? And I guess, like longer term, do you think you have to build out a customer success later over time? Would love
to just get your thoughts as you think about how this evolves over time.
Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst
: Yes, yes. That makes sense. That's helpful color. And then Mike, as a follow-up, so you made some comments with respect to how you're thinking
about Q4 consumption patterns and maybe think about complexities and forecasting a business like this.
So I guess the question really is like, do you find that it's getting easier or harder to model the business as it scales? I mean, I feel like on the one
hand, you probably benefit from customer diversity and additional data points around usage patterns. But on the other, you're constantly trying
to figure out kind of the patterns of new customers. So clearly, some puts and takes there. I would just love to get your thoughts.
Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst
: Great. Maybe I'll direct this one to Christian. The data science ML workload opportunity seems to be huge. And I think everybody on this call took
notice of your data science-related announcements at your recent Snow Day. I just wanted to ask you how ambitious Snowflake is about going
after those workloads? And how willing are you to go up against the likes of Databricks, DataRobot, DataIQ and others? Or do you view them more
as partners?
Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst
: Okay. Got it. Good luck casing that opportunity, it seems material.
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