Snowflake’s Shares Plum as CEO Frank Slootman Retires; Former Google Ad Chief Sridhar Ramaswamy to Replace Him
Snowflake, a leading cloud software company, revealed on Wednesday that CEO Frank Slootman, who spearheaded its journey since 2019 and led its landmark IPO in 2020, is retiring. Slootman, 65, will be succeeded by Sridhar Ramaswamy, former Google ad chief. The announcement caused Snowflake’s shares to plummet by 24% in extended trading.
In response to the leadership transition, Slootman expressed confidence in Ramaswamy’s ability to steer Snowflake through its next phase of growth, particularly in AI and machine learning. Snowflake’s fourth-quarter financial results revealed a 32% increase in sales year over year, reaching $774.7 million. However, operating losses for the quarter rose to $275.5 million.
Looking ahead, Snowflake anticipates first-quarter product revenue between $745 million and $750 million, slightly below analysts’ expectations. Additionally, the company forecasted an adjusted operating margin of 3%, lower than analysts’ estimates of 7.2%.
Slootman’s compensation in 2023 amounted to $23.7 million, primarily from stock and option awards. As of February 9, he owned 10.6 million Snowflake shares, valued at approximately $2.4 billion.
Slootman’s tenure at Snowflake marked a significant milestone in his illustrious career, having previously led ServiceNow and Data Domain to successful public offerings. Snowflake, however, emerged as his most ambitious venture, achieving the largest software IPO ever and doubling its value upon debut. Slootman will continue to serve as chairman of the board.
Ramaswamy, 57, brings a wealth of experience from his 15-year tenure at Google, where he spearheaded the ads and commerce business until 2018. He later co-founded Neeva in 2019, a venture aimed at challenging Google in the search engine domain. Snowflake’s acquisition of Neeva in June 2023 for $185 million underscores Ramaswamy’s strategic prowess.
Slootman’s departure marks the end of an era for Snowflake, which experienced a significant transformation under his leadership. Ramaswamy’s appointment signals a new chapter for the company as it navigates evolving market dynamics and pursues continued growth and innovation in the cloud software space.
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