Artificial intelligence is reshaping enterprise software and Snowflake Inc. (NYSE: SNOW) CEO Sridhar Ramaswamy believes the shift could make data more valuable - not less.
Snowflake CEO Says Data Will Matter More In AI Era
On Wednesday, Ramaswamy made the comments during Snowflake's fiscal second-quarter earnings call, responding to a question about traditional SaaS companies partnering with large language models and moving deeper into database functionality.
As AI makes software easier to create, Ramaswamy argued that companies' underlying data and the context surrounding it will become increasingly important.
Snowflake sees its extensive customer data footprint, combined with access to leading AI models, as a key advantage.
"It's the data and semantics that acquire more and more importance," Ramaswamy said.
He also stressed the importance of controlling how customers interact with that data. "I've been very, very consistent for now, two-plus years in my conviction, in our conviction that owning the user experience is critical," he stated.
Snowflake Pushes Beyond Data Warehousing
Ramaswamy pointed to Snowflake's AI products, including CoCo and CoWork, as examples of how the company wants to move beyond its traditional data-platform role.
At the same time, he acknowledged that Snowflake must work alongside the broader software ecosystem rather than replace every application customers use.
EVP of Product at Snowflake Christian Kleinerman said companies are unlikely to copy the same data into multiple applications simply because those applications are adding database capabilities.
Instead, Snowflake is positioning itself as a centralized data layer, supported by bidirectional, zero-copy partnerships with software providers.
Hybrid Tables, Postgres Could Power AI Agents
The CEO also highlighted Snowflake's investments in application development, saying the company can support both analytical and operational applications.
He pointed to Hybrid Tables and Postgres as foundational technologies for what Snowflake sees as a new generation of agentic applications - including applications with or without traditional user interfaces.
Snowflake Beats Estimates, Raises Full-Year Margin Outlook
Snowflake reported second-quarter revenue of $1.55 billion, beating estimates of $1.48 billion, while adjusted EPS of 62 cents topped expectations of 45 cents.
For the third quarter, Snowflake expects product revenue of $1.588 billion to $1.593 billion, up about 37.5% year over year.
It projects an adjusted operating margin of 15.5% for the quarter and 14.5% for the full year, up from its previous forecast of 13.5%.
Price Action: Snowflake shares closed at $305.84 on Wednesday, while after-hours trading saw the stock surge 23.14% to $376.60, according to Benzinga Pro.
According to Benzinga Edge Stock Rankings, Snowflake ranks in the 94th percentile for Momentum, with gains across short-, medium- and long-term periods.