WEBVTT - Snowflake CEO Sridhar Ramaswamy Talks Earnings, AI Demand

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. Snowflake another of the

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<v Speaker 1>tech names that released earnings yesterday after the bell and

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<v Speaker 1>as investors look for signs of AI adoption or disruption.

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<v Speaker 1>It's forecast product revenue for the current quarter will be

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<v Speaker 1>about one point two six billion dollars. That's up twenty

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<v Speaker 1>seven percent. They reported more than nine thousand accounts using

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<v Speaker 1>Snowflake AI features shares you can see of three point

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<v Speaker 1>seven percent. Let's bring in the Snowflake CEO Shida Ramaswami. Shida,

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<v Speaker 1>I'm reading notes from zoo Ho saying bookings were a standout.

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<v Speaker 1>They're talking about the seven nine figure deals that have come.

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<v Speaker 1>Where are those deals coming from? What are those customers

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<v Speaker 1>demanding of you?

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<v Speaker 2>Great to see you, Caroline.

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<v Speaker 3>Yes, we had seven nine figure deals, including a man

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<v Speaker 3>of four hundred million dollar deal. It reflects the confidence

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<v Speaker 3>that our customers have both in where Snowflake is right now,

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<v Speaker 3>but importantly where we are going. We all understand and

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<v Speaker 3>that software is being disrupted by AI in.

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<v Speaker 2>A very very big way.

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<v Speaker 3>But what our customers understand is that for enterprise AI

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<v Speaker 3>to truly succeed, they need a single source of enterprise true.

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<v Speaker 3>They need built in security, auditibility, trust and access. Of course,

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<v Speaker 3>you also need the best models. That's what Snowflakes provides

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<v Speaker 3>for them. And we're creating great products, products like Snowflake

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<v Speaker 3>Intelligence that put the power of data into the hands

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<v Speaker 3>of every business user. The healthcare company, I mean the

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<v Speaker 3>health company loves using us, and there are lots of

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<v Speaker 3>partners that are using products like Cortex Code to speed

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<v Speaker 3>up what can be done with Snowflake. They're really looking

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<v Speaker 3>to the future and making sure that we can deliver

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<v Speaker 3>value with Snowflake, and we are creating the products that

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<v Speaker 3>help them deliver that kind of value, Dane, and they are.

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<v Speaker 3>That's why you are seeing companies, as you said, make

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<v Speaker 3>commitments of four hundred plus million dollars with Snowflick.

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<v Speaker 1>I'm really interested in codex Code with something that was

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<v Speaker 1>talked a lot about and people are adopting swiftly. But

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<v Speaker 1>that partnership model that you have, the fact that you

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<v Speaker 1>have integrations with Anthropic, OpenAI Cloud, also Google Cloud, but

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<v Speaker 1>some of these have very good coding tools of their own.

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<v Speaker 1>How do you see this ecosystem evolving? Because customers get it,

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<v Speaker 1>but the investments have been questioning whether they'll take away

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<v Speaker 1>your market.

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<v Speaker 3>Shaed Well, so there are a lot of things that

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<v Speaker 3>are specific to Snowflake and to data. Absolutely, there are

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<v Speaker 3>coding agents that are often provided by the model companies themselves,

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<v Speaker 3>but we know a lot about how data systems are

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<v Speaker 3>supposed to work, about how Snowflake is supposed to work,

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<v Speaker 3>and Cortex Code is super tightly integrated with the customer's

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<v Speaker 3>Snowflake account.

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<v Speaker 2>Data does not go anywhere. And remember we have earned the.

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<v Speaker 3>Trust of all of these customers with certifications, with the

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<v Speaker 3>guarantee around things like AIUS. We never use customer data

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<v Speaker 3>for things like training models. They get the superior models

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<v Speaker 3>that we get through partnerships with these folks.

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<v Speaker 2>But we also add the secret sauce of data of.

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<v Speaker 3>How Snowflake works into products like Cortex Code, and we're

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<v Speaker 3>seeing amazing wins both internally and also externally. One of

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<v Speaker 3>our partners told us that having Cortex Code was like

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<v Speaker 3>Snowflake supplying them with bulldozers were previously they had shovels.

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<v Speaker 4>SHOULDA One of the core pillars for you to grow

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<v Speaker 4>is to go out and find new customers. And I

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<v Speaker 4>wondered if you just give some detail on what's happening

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<v Speaker 4>in the world of technology in AI that would bring

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<v Speaker 4>a customer to Snowflake for the first time. What is

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<v Speaker 4>it that they need that they didn't before.

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<v Speaker 3>Typically they come to us because they need better insight

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<v Speaker 3>into data it is sitting somewhere. It's hard for them

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<v Speaker 3>to get these insights. But increasingly what we're able to

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<v Speaker 3>do is have our sales team build an honest to

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<v Speaker 3>goodness customize demo of something like a Snowflake Intelligence on

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<v Speaker 3>data that on the kind of data that a customer.

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<v Speaker 2>Is going to have.

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<v Speaker 3>It is that easy access that really is the big

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<v Speaker 3>winner for our customers. And smart customers are also quickly

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<v Speaker 3>realizing that having data in Snowflake means that they can

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<v Speaker 3>think about how this data is going to be used

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<v Speaker 3>in ways that they had not done before.

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<v Speaker 2>Santa Fe, which is an.

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<v Speaker 3>Existing customer, is now is now using Snowflake Intelligence our

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<v Speaker 3>AI products to redefine a lot of workflows, replacing a

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<v Speaker 3>lot of existing software. These are the use cases that

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<v Speaker 3>drive these customers to come to Snowflake and adopt it.

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<v Speaker 2>Shriidah.

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<v Speaker 4>Last night, Jensen Wang, who you know very well, talked

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<v Speaker 4>about profitable tokens, the idea that the output of an

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<v Speaker 4>AI model is worth paying for. Customers do pay, and

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<v Speaker 4>they pay it a price that is greater than the

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<v Speaker 4>compute used to generate it. Are you able to give

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<v Speaker 4>me any evidence through snowflakes lens that you actually see

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<v Speaker 4>that in the real world.

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<v Speaker 3>Well, what I can assure you is getting projects done

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<v Speaker 3>as being changed dramatically. Something like setting up a pipeline

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<v Speaker 3>used to be a multi week task, We can get that.

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<v Speaker 2>Done in a small number of hours.

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<v Speaker 3>My team's come to me just last weekend with speed ucks,

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<v Speaker 3>going from four weeks for a software engineering project that

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<v Speaker 3>they did down to forty minutes.

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<v Speaker 2>That is one hundred x speed up, and we.

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<v Speaker 3>Are happy to spend any number of tokens in those

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<v Speaker 3>forty minutes to save that kind of time. I think

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<v Speaker 3>coding agents are really quite magical in the value that

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<v Speaker 3>they deliver, and I think it's only going to accelerate

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<v Speaker 3>from here, and so these investments are going to be

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<v Speaker 3>pretty foundational in every company you know succeeding and thriving.

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<v Speaker 2>And that's why we're so bullish about codex.

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<v Speaker 1>Code and how much you have to invest in your

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<v Speaker 1>own business. I mean, the bullet case for many is

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<v Speaker 1>you need to keep up with a furious pace of innovation.

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<v Speaker 1>Can you at this moment?

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<v Speaker 3>Briefly, we can because we are organized to drive rapid innovation.

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<v Speaker 3>The team that is driving a product like Snowflake Intelligence

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<v Speaker 3>is not that, but we have structured it in such

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<v Speaker 3>a way that they can make rapid progress. And it

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<v Speaker 3>is more the meta structure of how you set up

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<v Speaker 3>environments where people can get work done quickly and effectively.

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<v Speaker 3>That matters a lot more than things like how much

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<v Speaker 3>hardware you are investing in and things like that. The

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<v Speaker 3>current moment is magical because all of us have access

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<v Speaker 3>to great tools. It really comes down to how effectively

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<v Speaker 3>we set up teams on projects to get things done.

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<v Speaker 3>And that's why we are very bullish on how we

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<v Speaker 3>have set things up at Snowflake because we now have

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<v Speaker 3>a demonstrated capability to be right at the cutting edge

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<v Speaker 3>of where AI is having impact.

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<v Speaker 4>Snowflake CEO Shreeta Ramaswami. Great to have you back on

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<v Speaker 4>Bloomberg Tech. Thank you very much.