Snowflake says data breach has not affected core business

In a Wednesday interview with CNBC's Jim Cramer, Snowflake CEO Sridhar Ramaswamy said the cyber attack the enterprise software company faced earlier this year has not impacted business.
"These headlines, and that's what they are, have not really affected our core business with existing or new customers," Ramaswamy said. "We obviously talk about security a lot more with customers because we want them to be safe, but the core Snowflake platform is incredibly strong and secure."

In a Wednesday interview with CNBC's Jim Cramer, Snowflake CEO Sridhar Ramaswamy said the cyber attack the enterprise software company faced earlier this year has not impacted business.

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"These headlines, and that's what they are, have not really affected our core business with existing or new customers," Ramaswamy said. "We obviously talk about security a lot more with customers because we want them to be safe, but the core Snowflake platform is incredibly strong and secure."

He said Snowflake was not to blame for the breach, saying the only customers that had their accounts breached were those that had "user IDs and passwords without things like multifactor authentication." The major cyber attack occurred in May and affected Snowflake customers including AT&T and Live Nation.

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Snowflake reported earnings after the close on Wednesday, beating Wall Street's expectations and raising its forecast for full-year product revenue. However, shares were down nearly 8% in after hours trading.

The company also guided for a lower operating margin than in the previous quarter. But Ramaswamy pushed back on the notion that the decline is a problem for the company and said Snowflake is investing in things that will help drive revenue.

"We are investing in our future, whether it is in engineering or in sales to go sell the product more," he said. "That's not a long-term worry."