Snowflake CEO Frank Slootman said on Wednesday that shareholders need to be patient with the company’s shares because the transition to the cloud doesn’t happen overnight.
“Our business is really going to perform over long and considerable periods of time,” Slootman said in an interview with CNBC’s Jim Cramer on “Mad Money.” “This is kind of the message to investors to really understand that we are embarking on a five to ten year journey here.”
The comments came as Snowflake shares fell 8% in extended trading after the company reported its first quarter tax results.
As revenue grew 110% year-over-year to $ 228.9 million, better than expected, the data analytics software company also reported a net loss of $ 203.2 million. of dollars. This represents an increase from $ 93.6 million in the same period a year earlier. At the same time, Snowflake has also raised its annual forecast for product revenue.
Snowflake went public in September in a record IPO, with shares closing that initial trading day at $ 253.93. However, the stock was below that level at Wednesday’s close. Snowflake shares are also down 16% year-to-date as investors shifted from high-flying growth names to economically sensitive companies that stand to benefit from the Covid upturn.
Despite recent moves on Wall Street, Slootman pointed out that the company’s software is only becoming more important as companies move away from hardware-related databases.
âThese are big changes that we are experiencing in the market, and we are just very happy to be in the middle of it and to be an enabler of it,â he said, adding that Snowflake is focusing on the large-scale growth. . “We are not a growth company at all costs.”