By coinnews 
00:00 Speaker A
First of all, just sort of give us your high level um reaction to these Snowflake numbers that at first blush seemed pretty strong.
00:08 Patrick Moorhead
It looks great, right? So um, good for Snowflake. The um, you know, last quarter they grew 28% and uh this quarter, I think it worked out to 26. So people were expecting to go down to 22. They’re growing faster than people um had expected. And it it suggests that for this company at least, the the uh the macro hasn’t um impacted them too badly. And we can certainly talk about why.
00:41 Speaker A
So fill that in for us, Patrick. How come?
00:46 Patrick Moorhead
Yeah. So I think look, every company right now is talking about agents, right? And and the key insight that that we learned this quarter as we were doing all of our work, talking to industry experts is that if you want an agent to do its job, it needs data. And that data in a lot of companies resides inside of Snowflake. So as as companies all over the economy are trying to figure out, how do we have these these AI agents do um, how do I get a late checkout at Marriott, you know, would be one example. Why Why can’t that be done by an agent? Well, that that that agent then has to go into some data source and find out, well, you know, what is Mr. Wallraven’s status? Who’s coming to this room next, right? What time is the next person coming to the room? So that that all the focus on AI and agents is driving the need for the data that Snowflake provides.
01:51 Speaker A
Yeah, and and from personal experience, you still need a human to do most of that stuff that the AI or or just the automated agents is not quite yet up to the task, at least not in my experience. But I, you know, so how is Snowflake then stacking up to competitors who are attempting to do the same thing? Like, so who should we think of as sort of leading in this area besides a Snowflake?
02:26 Patrick Moorhead
The the two dominant companies in this space are Snowflake and a San Francisco company that your viewers I’m sure are quite familiar with, that’s private, called Databricks, right? And Databricks is about three billion in revenue. Um, they disclosed that in the October quarter they grew 60%. And um, they were last valued at like 62 billion. Snowflake by comparison has four and a half billion in revenue, you know, just grew in the in the high 20s and is valued uh a little higher than that. But but these two are neck and neck. Snowflake is a little better on the data warehouse side and um having a really easy to use solution. And Databricks is a little better on the um uh the AI and um data science side. And um, so those are the two big players in this space. They’re both having user conferences in San Francisco in June, one right after the other one.