Last year, one of the biggest concerns Snowflake (NYSE: SNOW) investors had was how quickly its revenue growth rate was decelerating. But to the data cloud specialist's credit, the company seemed to get this problem under control in late fiscal 2024. Indeed, Snowflake's top-line growth rate actually accelerated in the first quarter of fiscal 2025 compared to the fourth quarter of fiscal 2024.

But this still misses the full picture. The revenue growth rate Snowflake has stabilized at is impressively high. The tech company grew its fiscal first-quarter revenue 33% year over year -- one percentage point faster than it grew in the fourth quarter of fiscal 2024. Management even recently raised its full-year fiscal 2025 revenue guidance.

But there's one glaring problem: achieving these growth rates is going to be costly.

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Source Fool.com