- After data cloud company Snowflake’s earnings report showed revenue down but poor guidance, CEO Frank Slootman told CNBC’s Jim Cramer that he remains upbeat about the future.
- Snowflake on Wednesday reported revenue of $624 million, up 48% year over year, comfortably beating the consensus estimate.
Frank Slootman, CEO of data cloud company Snowflake, expressed firm optimism about the company’s future after an earnings report showing a drop in revenue but poor guidance.
“If you zoom out a little and say, ‘Let me look at the growth here over a five-year period,’ that would be tremendous,” Slootman told CNBC’s Jim Cramer. “There are very big secular trends emerging here, very big markets, and we mustn’t lose sight of that by just looking at a single period. So I am very optimistic about the path we are on.”
Snowflake on Wednesday reported revenue of $624 million for the fiscal first quarter, up 48% year over year, and comfortably beating Refinitiv’s consensus estimate of $608 million. However, guidance for the second quarter and full year fell short of expectations, causing shares to fall 12% in extended trading.
Slootman also discussed the groundbreaking potential of generative artificial intelligence for Snowflake. He said the company is seeing “tremendous pull” when it comes to generative AI because the models train well on Snowflake’s “heavily curated, highly optimized” data.
The company’s CEO even went so far as to say that Snowflake is fast becoming both an AI company and a data company.
“It’s very exciting because we went public with the slogan ‘Mobilizing the World’s Data’ and we now have opportunities to mobilize data in ways that we couldn’t have foreseen just a few days ago,” he said . “It gives incredible power to individuals, industries and literally anything that moves.”
Snowflake also announced its acquisition of search startup Neeva on Wednesday, saying in a blog post that it will “embed and leverage” the company’s AI-enabled search products.
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