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Despite uncomfortable guidance, Snowflake CEO says he is optimistic about the future

After an earnings tale that saw a beat on revenue nonetheless uncomfortable guidance, CEO of recordsdata cloud company Snowflake Frank Slootman develop into resolute in his optimism about the company’s future.

“Whereas you happen to were to zoom out a little bit bit and dispute, ‘let me take a five-one year explore of the growth right here,’ it’s tidy,” Slootman instructed CNBC’s Jim Cramer. “Very tidy secular traits, very colossal markets are forming right here, and we can not lose survey of that by looking out at a single period, so I am astronomical optimistic about the run that we’re on.”

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Snowflake reported $624 million in fiscal first-quarter revenue on Wednesday, exhibiting forty eight% development one year over one year, and comfortably topped the consensus Refinitiv estimate of $608 million. On the other hand, 2d-quarter and plump-one year guidance fell attempting expectations, sending shares down 12% in prolonged procuring and selling.

Slootman additionally mentioned the groundbreaking doubtless of generative artificial intelligence for Snowflake. He mentioned the company is experiencing “tidy gravitational pull” by manner of generative AI, as the devices prepare successfully on Snowflake’s “extremely curated, extremely optimized” recordsdata.

The company CEO went up to now as to dispute Snowflake is with out note turning into an AI company besides a recordsdata company.

“Or no longer it’s very difficult because we went public with the tagline, ‘Mobilizing the World’s Files,’ and we have alternatives to mobilize recordsdata in methods shall we no longer possess foreseen accurate a few days up to now,” he mentioned. “This is amazingly empowering to folks and to industries and to actually every thing that strikes.”

Snowflake additionally announced Wednesday that it develop into procuring search startup Neeva, announcing in a weblog post that this is able to “infuse and leverage” the company’s AI-equipped search products.

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