Snowflake · San Francisco · Fortune Technology
Snowflake CEO confirms monster quarter indicates why software companies need new pricing models to thrive in AI age
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Sridhar Ramaswamy sees the major software players beginning to sort the AI winners from the losers.
Key facts
- The results helped vault its shares up 36% and extended five-day gains past 50%
- It said in its most recent earnings that Cortex Code is in use across more than 7,100 accounts, and that accounts using Snowflake Intelligence more than doubled quarter-over-quarter
- Ramaswamy became Snowflake’s chief executive in 2024, as the AI boom was taking off
- Sridhar Ramaswamy sees the major software players beginning to sort the AI winners from the losers
Summary
Ramaswamy delivered a blowout first quarter for Snowflake, which this week reported a beat across the board. The positive results were much needed for Snowflake following a stock slump that has decimated many software-as-a-service businesses due to investor fears about AI replacing traditional software vendors. “It’s important to understand that all software companies are not the same,” Ramaswamy told Fortune on Friday, days before Snowflake is set to host its tech summit in San Francisco. The difference for Snowflake, Ramaswamy said, is that it has priced its products by consumption from the getgo.