WEBVTT - Snowflake CEO Sridhar Ramaswamy Talks Stock Surge, $6 Billion Amazon Deal 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news set up extraordinary.

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<v Speaker 2>You've just added twenty billion dollars to your market capitalization.

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<v Speaker 2>How does that feel?

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<v Speaker 1>Reflect for a minute. We had a landmark quarter Caroline,

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<v Speaker 1>strongest sequential dollar growth in company's history. Product revenue op

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<v Speaker 1>to one point three three four billion dollars of thirty

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<v Speaker 1>four percent. Net revenue retention rate a key metric we

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<v Speaker 1>watch up to one hundred and twenty six percent. But

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<v Speaker 1>I think the bigger news really was this is the

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<v Speaker 1>quarter where we clearly showed that AI is compounding snowflakes

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<v Speaker 1>advantage in data. We did this O questionion way by

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<v Speaker 1>creating amazing products like Snowflake Intelligence, which is our work agent,

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<v Speaker 1>which doubled it that option with respect to accounts, and

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<v Speaker 1>a coding agent which would excode our Coco which is

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<v Speaker 1>used by more than seven thousand accounts. Okay, and this

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<v Speaker 1>is what gives us confidence in the business. We raise

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<v Speaker 1>the yearly itance from twenty seven to thirty one percent.

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<v Speaker 1>Solid performance, but I think is much more of what

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<v Speaker 1>does this mean for our future? That we're very happy with.

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<v Speaker 2>When product revenues up thirty four percent on the court

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<v Speaker 2>it just reported and your stock is up thirty four

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<v Speaker 2>to thirty five percent. Right now, what exactly are your

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<v Speaker 2>clients using you for? How is this actually building productivity?

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<v Speaker 1>I mean, first of all, it's a whole lot easier

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<v Speaker 1>to get things done with Snowflake. This is what Cocoa facilitates.

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<v Speaker 1>People are literally getting jobs five to ten times faster.

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<v Speaker 1>Part of many companies and getting them to be more

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<v Speaker 1>productive is hugely impactful. Our data team, for example, has

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<v Speaker 1>been able to get through their multi year backlog in

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<v Speaker 1>a MI in a matter of a small number of quarters.

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<v Speaker 1>With products like Snowflake Intelligence. The ends of your work

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<v Speaker 1>is at your fingertip. To give you a very concrete example,

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<v Speaker 1>I was at a conference, didn't know who I was

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<v Speaker 1>going to be meeting thirty odd z. In two minutes

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<v Speaker 1>I knew which of them are customers. How much should

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<v Speaker 1>prioritize off instant access? That's really driving business results? And

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<v Speaker 1>you have great customers like now, I'm using these products

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<v Speaker 1>to great effect.

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<v Speaker 3>All right, I'm gonna say we're having a slight audio

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<v Speaker 3>issue street art. You're breaking up a little bit, and

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<v Speaker 3>hopefully we can work on that and fix it. But

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<v Speaker 3>you know, I was thinking about this story all night long,

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<v Speaker 3>because you know, for so long the narrative has been

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<v Speaker 3>AI may disrupt software, and that has now changed with

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<v Speaker 3>your results with your Amazon deal to AI may accelerate software.

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<v Speaker 3>Certainly in the case of Snowflake. What changed this quarter

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<v Speaker 3>that proves AI is now a revenue tailwind rather than

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<v Speaker 3>just a product narrative.

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<v Speaker 1>Well, first of all, we've been very very consistent data platform,

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<v Speaker 1>especially one that's based on a consumption for the value

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<v Speaker 1>that they're getting is aided by I think what we

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<v Speaker 1>also showed decisively this quarter is that ability to harness

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<v Speaker 1>AI to get more value from Snowflake. People would build

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<v Speaker 1>dashboards on top of Snowflake. Now with product like Snowflake

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<v Speaker 1>in terms all of the power of the data and

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<v Speaker 1>so much more, the applications that you need is there

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<v Speaker 1>right within that work agent. It is that combination of

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<v Speaker 1>both the secular drive that AI is providing for data

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<v Speaker 1>platforms plus our ability to harness AI ourselves and drive

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<v Speaker 1>meaningful tone consumption. For example, on.

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<v Speaker 2>Time, we are still having that audio issue. So I'm

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<v Speaker 2>going to ask this question and maybe your team can

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<v Speaker 2>just tweet some things around a little bit quickly shoot up.

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<v Speaker 2>But I'm really interested in the Amazon deal. Six billion

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<v Speaker 2>is a lot that you're committing in terms of infrastructure spend.

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<v Speaker 2>What are you getting in return? How much more efficient

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<v Speaker 2>is gravital is the Amazon chip to your cost base?

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<v Speaker 1>First of all, they're a longtime partner. They are the

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<v Speaker 1>biggest cloud service provider that we run on top of.

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<v Speaker 1>We run on top of Azure as well as GCP.

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<v Speaker 1>Really important thing with Amazon is how we go to

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<v Speaker 1>our customers together. Both the teams are extraordinary value that

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<v Speaker 1>we deliver our for our customers, and with deals like

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<v Speaker 1>this we get massive economies of scale that let us

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<v Speaker 1>pass on some of these savings back to our customers.

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<v Speaker 1>We ounced a huge change in how we price AI

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<v Speaker 1>that makes AI a lot less expensive for our customers.

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<v Speaker 1>It's aided by deals like this because of this ability

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<v Speaker 1>to bulk purchase confidently, which, as I said, in turn

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<v Speaker 1>we give to our customers, create amazing tracts on top

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<v Speaker 1>that are very cost efficient and so on.

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<v Speaker 3>So what does Amazon get out of this deal with you?

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<v Speaker 3>I mean, of course there's a massive headline of a

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<v Speaker 3>six billion dollar number, but how do they work with

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<v Speaker 3>you and collaborate.

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<v Speaker 1>This deal makes us much more effector together. Amazon is

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<v Speaker 1>interested in solving customer problems and having a data platform

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<v Speaker 1>is a key part of solving customer problems. Us being

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<v Speaker 1>able to go to market together. We work at every

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<v Speaker 1>level of the hierarchy. Matt and I are garment, the

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<v Speaker 1>CEO and I are in constant touch, but so on

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<v Speaker 1>our teams. It's that ability to collaborate at a deep

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<v Speaker 1>level to solve complex problems, for example, like better data migration,

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<v Speaker 1>that makes us pretty unique. It is truly a better

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<v Speaker 1>gather story.

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<v Speaker 2>But as together is kind of the very thesis of

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<v Speaker 2>why you're at Snowflake. Neva was the company that you

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<v Speaker 2>built in terms of AI, company that Snowflake bought and

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<v Speaker 2>you became head of AI and now CEO, and you've

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<v Speaker 2>been making other purchases and I noticed Natoma is one

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<v Speaker 2>of them. This is about managing data actions of AA

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<v Speaker 2>agents anymore M and A than we should expect straight

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<v Speaker 2>We will.

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<v Speaker 1>Continue to be very open minded about M and Anatoma

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<v Speaker 1>is a key acquisition because it what's the aperture of

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<v Speaker 1>what is visible in Snowflake Intelligence to all of the

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<v Speaker 1>data that matters to you, Caroline, everything that you have

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<v Speaker 1>in your email or perhaps your documents or other applications

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<v Speaker 1>that you use are now visible to the work agent,

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<v Speaker 1>which means that you can get much better insight. You

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<v Speaker 1>can also take actions directly from Snowflake intelligence. We will

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<v Speaker 1>continue to be very active on this front, key pieces

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<v Speaker 1>of technology as well as amazing teams that are going

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<v Speaker 1>to make us so much better, like Neva did.