Snowflake CEO Says Data Breach Didn't Impact Business

In a recent interview with CNBC's Jim Cramer, Snowflake CEO Sridhar Ramaswamy reassured stakeholders that the cyber attack the company experienced earlier this year has not adversely affected its business operations. Ramaswamy emphasized that the headlines surrounding the incident have not deterred existing or potential customers, stating, "We obviously talk about security a lot more with customers because we want them to be safe." He clarified that the breach, which occurred in May and impacted clients like AT&T and Live Nation, was not due to Snowflake's security measures but rather to customers lacking multifactor authentication. Despite the cyber incident, Snowflake reported earnings that exceeded Wall Street's expectations, prompting an upward revision of its full-year product revenue forecast. However, the company's shares fell nearly 8% in after-hours trading, reflecting investor concerns. Ramaswamy acknowledged a projected decline in operating margin compared to the previous quarter but dismissed it as a significant issue, asserting that the company is focused on long-term growth. Ramaswamy highlighted Snowflake's commitment to investing in its future, particularly in engineering and sales, to enhance product offerings and drive revenue. He maintained that these investments are essential for the company's sustained success and are not a cause for concern. The CEO's remarks aim to reassure investors and customers of Snowflake's resilience and strategic direction following the cyber attack.