MAD MONEY 文字起こし　26MAY21　Okta CEO, Snowflake CEO & Workday CEO インタビュー

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Mad Money w/ Jim Cramer - Okta CEO, Snowflake CEO & Workday CEO on Stitcher

0:46
Cramer, welcome to Mad Money. Welcome to America. I'll be one of my friends. I'm just trying to make money. My job is not just entertain, educate and teach you so call me one 807 43 CNBC or tweet me at Jim Cramer. This market has some of the ABS solute dumbest sellers I have ever seen nothing. Oh no, I'm not talking about the whole market where we got a battle again between the dovish Federal Reserve and angry hedge funds.

1:15
who see bond yields should be soaring in response to rapid inflation. And it's not happening that took more plays out every day including the today dow gained 11 points s&p rose point one 9% the NASDAQ which is historically cheap if rates remain this low rally point five 9%.

1:34
I think that Jeep j pal is right and the question the question he says are mistaken.

1:41
But reasonable people can disagree about monetary policy. Now that's not what I'm talking about. That said planners are your old dads I can see it. If I get something it's like. It's like a perpetual sound machine. No, I am talking about the idiotic sellers. Yes, I mean, the shorts and the brain dead plain vanilla sellers who keep selling the sainted stocks of AMC and GameStop to the mobs mobs who are determined to take in high hair, they want them higher. Listen, I know these stocks are too expensive based on traditional valuation metrics. They mean nothing. Who wants to go back to amc movie theaters now. We've spent over a year perfecting our home entertainment setup, getting used to longer form productions like like a mayor of East town, or the crown queens Gambit. Who wants to pay 20 bucks for a couple of waters and a box of raisin ads. Plus the few cut the film companies will they've changed the game right? They don't want their first run superior in their own streaming services loss. You think Amazon won't do that with MGM they buy that if you want to see the next bond, you need prime, which is a heck of a lot cheaper than going to the movies. Alexa play Goldfinger. So Believe me, I get the bear case. I get why so many hedge fund managers think that AMC is like The Walking Dead Season Aladdin, even with the Crafty Adam, Aaron running and join. If you only cared about the fundamentals, including the debt laden balance sheet, you would have thought betting against this stock would be like, yes, shooting fish with a machine guide

3:15
in a barrel. But Eric took one look at the hopelessness of the situation. He put his best face on to talk about any state that opened a movie theater anywhere. He'd rip the hopes that well you know what the customers will will take these like, Hey, I take this to every movie theater, a lot of carried in. Anyway, what he didn't count on was the most amazing force I've seen in ages.

3:42
A group of ferocious buyers who hated the short sellers, visceral asleep

3:50
and allowed AMC to raise cash by selling stock in the open market and mostly, normally most bars would run away from supposedly Doom situation. But the tip sheet that is Wall Street bets, a wonderful site for scatological improved and horrible things that I hope my kids never see. A created a cadre of buyers who didn't care about the usual standards. You don't like things like sales, revenue, cash flow, cash balance sheets, these outdated silly little things. No, they lapped up all the stock that AMC sold 43 million shares it just around 10 and they saved the day for the happy warrior. It was brilliant. They got him a great price and then the stock was free to ramp higher and it has ever ramped higher what a rocket to the moon diamond something. At this point it should be obvious that if you try to short AMC, you're going to end up just like the guys who short and January here in at the wall street bets crew will run you over just like the tanks rolled over half of soldiers in World War Two. If anything, shorting this kind of stock is what sends it higher that's can go up to 70% when they raise capital, because when the bulls crush you, it's pinpoint a partner. You got to buy back your shares at a higher price in order to close

5:00
out your position. Have you ever been to it? So Longhorns? Holy cow, they kill you just to get the box and doughnuts in your hands? So why the heck did many so many hedge fund managers try to short this thing again? Why are regular sellers offering stock? Well, it could have just gotten out of the way. Instead, they turn themselves into fodder for the Wall Street bets cohort, which is why AMC was up 19%. Just today, they can probably get it up to the mid 20s. From the back of this latest short squeeze at the plain vanilla sellers. Just walk away. Wow. You know what? memo to all the sellers tomorrow, take a breather, go to the movies, do something interesting. I don't know what's interesting, watching, watching Netflix, go to work even. But stop selling your AMC and see what happens. And we're seeing the same thing with the stock at gamestop. Now I was actually worried about this video game retailer because this loss is reason for be in a world where everybody just downloads their games online. These days, you don't need GameStop except for for hardware, and anybody can sell you hardware. But GameStop

6:05
it's got a Savior, the insurgent turn insider who nobody knows called Ryan Cohen, a man of great mystery, who's also decide to sell company stock in order to fix the balance sheet. Just like at America, the Wall Street that's crowd helped make it happen, then increase the lap up that stopped this being offered. And now that the balance sheet can be fixed by that not that it was all that bad. And all that stock is now placed with the Wall Street bets people, this thing can boom again along with the ball. Game Stop could potentially turn itself around. Although we have no idea what we'll turn stuff around into. Is it really worth 17 billion abstraction? Who cares? At that second question is irrelevant, because this is an investing. This is the oldest stock Fight Club. You think I learned this stuff wearing a suit at Goldman Sachs the two things that make them really hate me. But last time a bunch of hedge funds shorted GameStop the bulls practically drove them out of business. You think it would be a cautionary tale, right? Don't try to short something was such a rabid fan base. Keep your stock stay out of the ring. Get these money managers and individuals keep selling the stock like there's nothing going on here. Like oh man, let's offer some stock. Maybe the buyers will take us Are you out of your minds. Listen to me sunshine, this thing going higher. What kind of showerheads offer stock at 225 or 235. It closed up 33 to 42 to a group of buyers who are desperate to drive their price targets 250 or 300 now on wall street that this price target so I'm taking my price target up for Nvidia 700 these guys have real price targets and firepower. I've never seen anything like this a group of buyers with no sensitivity or price they'd rather pay 280 than 240 imagine that can actually go into a store and you say well, how much is that sweater and they say $30 it can be 50 How much is that? You know I got this one? Is it for gamma right 180 bucks. Hey, you know what? He might have I paid 300 for that

7:55
one Okay, now these people don't have unlimited firepower, but they've got enough firepower to engineers short squeeze anytime a bunch of professionals decide to bet against this thing. Sellers go away Come back went back kept I was trying to do like a video like that. You know, like that sell in May nonsense that didn't work sellers go away. Come on back another day when game stops at 300.

8:17
Now it's not that the bulls know some secret about Ryan Cohen's turnaround plan. They're just committed to buying this thing and they steamroll the shorts and they hate and lob up the long stock and they think you're stupid, often much harder than you thought possible. Anyone who tries to fight this move is out of their minds. Just let it go up already. You can regress your higher level. I'm tired of you. Now there's one thing I don't understand. The main stock leavers only seem to like AMC and GameStop. But now they've got a lot of new capital thanks to these rallies, right. They can train their guns on any number of stocks. I've got a couple for him. It just because I they may take them just because they hate me. And then spite me by saying that I said sell them because they love truth, because it's periodically interesting to them. But here we go. First, they could open up the howitzers on the people selling beyond me, which is gigantic, 22% short position, even though it's doing some incredible deals to McDonald's just now. How about that champs China KFC, Neil wowza. Plus the great reopening with our CEO Ethan Brown, to sell into all the different cafeterias that are back in business. In the meantime, beyond meat as lowered prices improve the taste of its plant based substitute. I think it'd be very easy for the Wall Street bets. They done this one engineer short squeeze, wipe out the shorts, make a lot of people pay and then go home and have

9:33
a bit of Weird News back in their

9:36
second, Ford or here's a stock that jumped 8.5% today. They liked that. After CEO Jim Farley announced that he wants to be second to none in electric vehicles here in the US. He's throwing down the gauntlet against Ilan musk. More important for all you can pull up this transformation the company will be able to plow even more money into Eevee. So it's a virtuous circle. He intends to outsell Tesla

10:00
New cybertruck with the electric pipe f150 truck now 70,000 reservations. Okay, so maybe it should be at 2350 I don't know, but it's working sellers Get out of the way you're coming up Bronco, the Mustang Mach E and the F 150.

10:15
America's most popular truck. Why Silva's? Not here walk away? Let me take the 15 all right finally how about Roblox now I am relentless in this Roblox has it it's going higher when the online gaming company came public via direct listen it started so very little stuff there believers. The only real stock for sale is from investors who bought it earlier now reading the register thinking it's a good trade. I think that's nuts. Roblox is putting up some stunning numbers again, it'd be easy for the Wall Street bets crew to sop up a couple of days where the stock take it to 90 take the 110 practically overnight, then write all about it and say I hate Kramer he said this. He said to sell robots that we bought it. That way they get everything their whole sight dates in there, they're even happy because they can trash me. And I like that because I'm from Philadelphia. Honestly, the craziest thing about the Wall Street beds crowd is that they don't know their own strength. Maybe they're worried that they don't have enough ammo to take on more than two stocks. I think they're wrong. I think they're selling themselves short. Here's the bottom line. Anyone shorting AMC or GameStop is out of the mind anyone selling just walk away and walk out? Hi I can take it well see pets is too powerful and trying to bet against them. Right now it's just giving them more ammo I'm just surprised they don't apply the same playbook to the Cramer Wall Street back faves to the man diamond hands emoji emoji emoji beyond me for Roblox How's that? That's why I went to Harvard Harvard Law to get stupid

11:37
Charlie in New York Charlie

11:39
oh yeah Jimmy chill. My call man. No problem. First and foremost, I want to give a big shout out to my dad Charlie Jr. got me started with investing not so long ago with the help of Jimmy chill. We've done fairly well for ourselves. So I want to hear that's what I want to hear like that. And walk away from stop being they want that day at 400 Let's give them their due.

12:04
Jim my questions about an airline stock this this stock is taken off. Did you suggested it back in January as a reopening play. How much more room on the runway to Southwest Airlines got Do you still love it as by love it? I love it even more i luv which happens to be the stock symbol? It's in 61. I think it goes to 75. Yeah, look, this is Gary Keller. He knows how to run an airline even when everyone's running out of business. He be the man to back and I say backup. Alright, listen to me while she says cut. I know you love me. And I feel the same, obviously. Right? And I'm just surprised you're not targeting beyond me. Oh, come on. 22% shortcoming. You're salivating or do you really have to have GMO in your meat? Ford Motor. Hey, you know what got the momentum going against musk good narrative. They're roadblocks. I know. You probably don't like games that are safe. But a lot of parents. Oh, my buddy tonight. It's a big day. For some of you. I take that back. I didn't mean and I'm covering all the bases. You're first up. I'm sitting down with the CEO of workday to find out what's working in its most recent quarter. Then I'm talking to all the things identity with the CEO of Okta and dissect his high octane report, and a blizzard May. I'm talking to the CEO of snowflake. To find out more about the quarter. So stay with Kramer.

13:23
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13:48
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14:09
In the last few months, the cloud based software stocks at open hammered as part of this kind of rotation of the stay at home stocks into the great reopening stocks. But what are some of these software's a service plays could also be reopening plays take workday, the cloud based software company that helps businesses automate back office jobs and financial planning and human resources. This is one of our cloud kings. But last year it lagged because its peers. its peers because workday tends to sign big complicated deals with its customers details Welcome to Fergus enterprises had just shipped their tech budgets toward collaboration software, and of course cybersecurity. Now the world's going back to normal workday just reported good quarter after the close today. More importantly, the subscription revenue growth guidance for the next quarter came in higher than expected they raised their full year forecast we got some accelerated revenue growth here the margins are looking better to plus management now the ambitious plan i think is most important to expand this workforce by

15:00
20% this year, and not the same kind of people you think that always get these. So let's take a closer look with a Neil bush reads the co founder, Chairman and CEO of workday for more about the quarter where you're heading, Mr. Bush fu Welcome back to Mad Money.

15:16
Great to be with you, gentlemen. And Neil, I always felt that you were at a tremendous disadvantage during the pandemic, because your products are complex. They involve the digital backbone of institution. And that while zoom is a terrific, terrific product, I would like to think that if I was the head salesperson for workday, I want to be in the face of the person. Well, now you're going to so shouldn't I presume it? These are the numbers you can do on zoom? How much better Can you do face to face?

15:43
So So first of all, we saw the acceleration we were hoping for in new bookings. And so that was a really good sign. During the worst parts of the pandemic, our HR product line actually held up pretty well, because people were focused on understanding how their employees were doing employee experience, employee engagement was everything, but finance lagged. And what we saw the first quarter was, the transformation of the CFO office is back in full force and expect us to have a very good year. Now, when you say we have two people understand us we do finance, a lot of times, that's because two companies merge, and maybe you come out ahead, I've seen that time. And again, a lot of it's just because people are somewhat actually not realizing that there's a digital component to this. And you have to do what I regard as almost missionary work. How does that go? Well, so so we are definitely going through a digital transformation of, of the Office of the CFO, the tools of the past, if they were lacking before the pandemic, they were shown to be extremely lacking during the pandemic, they were not flexible. If you had a plan multiple times, which almost all companies had to replan.

17:01
They just couldn't keep up. And so now we see great demand for this digital transformation in the cloud, with flexible, modern applications. And you know, what guys message has been the same for for a while now. You can plan execute and analyze all in one system. And that message is really resonating. And and it's, it's manifesting itself in the numbers. And I think during the pandemic, these projects were large projects, and some of them some of them got put on hold. But now they're now they're being opened up and released again. And so we're very optimistic. Well, it sounds like you're seeing people traveling again, a lot of people said it wouldn't happen. We had zoom, and people would resume travel. That's not the case.

17:44
People are people are traveling, I think it's a combination of vaccinations and and COVID rates going down.

17:52
And, you know, just having a handle on on on COVID. We're seeing travel again. But we're also seeing businesses look forward and being optimistic and investing again, that's probably an even more important sentiment that that we're all looking forward. We're all looking for growth, all the economic indicators are positive. And when that happens, that usually bodes well for companies like workday. Yeah, you're right. There were too much in the paper today, five stories on catbacks he spent on not enough on yours. Now I want to talk about a blog that you and Mr. Fernandez wrote, there's a paragraph here that troubles me. Because I think it's truth. And I don't want it to be truth. As we look to the future of work, we see the talent is everywhere. But opportunity is not and we are committed to closing that gap. If we are companies, and we want to make a profit, and we want to have sales, and we want to expand How come we're not hiring these people.

18:51
You know, I think this is this is not just working this is this is the entire, you know, world of corporate america and and global organizations. We tend to hire the ones that that fit perfectly and look perfect on resumes. But there's a ton of talent out there, whether they're whether it's it's a it's veterans or, you know, folks that have gone home for a while to take care of caretakers and our back in the workforce. Or just folks that did not go to the right schools and didn't have the right opportunities. Well, they're still really valuable employees going forward and all of us just need to figure out how to embrace them. And workday as a leader in HR. I think it's our job not just to do it at workday, but to help our customers do it as well. But whether it's through training, whether it's through you know, just just education, we can we can make we can just make everything better. double the number of black and Latino leaders in the US by 2023. That is one awesome and difficult goal. Why said it's so good, so close.

20:00
Why don't I say 2025? Why not give yourself some breathing room?

20:05
Oh, you know, goal goals have to be aggressive if you really want to drive results, and it's an aggressive goal, but I think it's absolutely achievable. We're a company that's known as a great place to work. We've been on those great place to work lists, almost since we started the company, a big part of our success has been diversity. And I frankly, would like our employee base over time to resemble the diversity of the country more so than it does today. I mean, we're better than most Silicon Valley companies, but not by a lot. And I'd like us to be more representative of, of, of our of our population. And, you know, whenever we set aggressive goals, we've figured out a way to get there. Alright. Well, when I was at Goldman Sachs, in 1986, I was tasked to get as many people including people of color at Cornell at Harvard, a bunch of schools, all the schools, we know that you called the right schools, which we know are no longer the right schools. But I couldn't find anybody to get or if I was up against the same companies. You know, the Credit Suisse, I was up against Morgan Stanley, where are you going to go to find these amazing people? Because a lot of them are at high schools with guidance counselor's that. Don't tell them listen, you could go to Stanford, they look at how many people going to Stanford in that school, they see none. And they send the person to another fine school, but it's not on your radar screen.

21:22
Well, so that's it. You nailed it, Jim, we're extending our, our our net or our reach to schools that may not typically be on the list, we're recruiting at some of the historically black colleges and universities. We're moving our operations route moving on, but we're not just centered in California more, we have a big operation in Boulder. We're building offices in Atlanta. As you know, as I think, you know, we have a big office in Dublin, in Dublin, Ireland. And so in, in many, in many cases, we're going to where the talent is not not forcing them to come out to California. I think that's a, that's a tough one. That's That's tough. Cost of living is high here. People want to stay close to their families. So we have to go where the talent is. And so what I think you'll see over time is us diversifying our locations around the country and around the globe. One last question. Did what happened at the PGA help you thinking?

22:19
Getting some recruits?

22:22
Well, I'll tell you, I can tell my voice is raspy. But was rooting really hard for my buddy Phil. And what an amazing accomplishment. He's a class act. He handled himself with such grace. And at the at the core, he's just an innovator. And, you know, we pride ourselves in innovation. He innovated a new way to add 50 to win. And I would say just watch out. I think he's onto something. And I think you'll see a lot more of fill in in the next five years, doing hung out with Tom Brady, you know, the guy who is just permanently young. Listen, I think what you're doing is as admirable as the numbers you delivered, if not more so, and Neil butchery the chairman and co founder of workday. wda. Why thank you so much, Neil, good to see you.

23:09
Oh, it's good to be with you. Companies that take this forward block. Recognize that our country is not what it was when I was in a position of a wedge in corporate power. And it's so great to see people change. They have bunnies back in.

23:26
Coming up, activate your sharpest investing instincts. Can this company activate some serious returns in your portfolio? Kramer with a high octane earnings report. Next.

23:41
Get an edge invest like a pro access CNBC is live streams around the globe, unparalleled access to CNBC experts actionable investor insight and ideas. start your free trial today@cnbc.com slash Pro.

24:02
The last couple of weeks to turbocharge growth, stocks have finally started rebounding off their lows. But can we keep climbing that up? We got results from October the cyber security company that handles identity management for the enterprise comm report excellent numbers nairaland expected loss higher than expected sales of 37% year over year guidance for both the next quarter and the full year some people sharing mixed I don't know. I mean, they're talking a little bit about better sales but larger losses I look at I look at the at certain bookbuilding numbers called remaining performance obligations and they're very good. So what do we make these numbers? Let's check in with Todd McKinnon. He's the chairman co founder and CEO of Okta hear more about the quarter where his company's headed Mr. Kidd, welcome back to Mad Money.

24:43
Jim, it's great to be here. Thanks for having me. Oh, absolutely tied, you know, tied. I'm reading about these different break ins the colonials, whatever we know that going all over the place. People are even going to store some Bitcoin on their balance sheet so they can pay off. I'm thinking that a lot of what's happened is these people are getting in and they are in

25:00
personating other people, and if they did have Okta, they couldn't be impersonated true or false. It's the all these cybersecurity issues and the importance of cybersecurity as companies go with more modern cloud technology is they want to transform their customer experience to include websites and mobile apps, identity is at the center of all that you have to log that customer in securely, you have to get that employee connected to their cloud application securely. So that's an identity challenge. And all these cyber attacks, as you mentioned, whether it's the colonial attack, or it's the, it's the the solar winds attack, or the exchange tag, they always they may break in through a network or get installed lists of malware. But what they do quickly is they go after the identity system, whether it's a legacy Active Directory, on premise, or it's another identity system, and they get through those weak identity systems and spread around. So identity is the key to many, many things. Security being just one of them. Hold on, I have to tell you, if I were the Justice Department, I would have to try and find some way for them to hire you. And the way to do it is to go after them for paying off like ransom, the corrupt government Act, the 90 the corner set this up, you weren't allowed to pay ransom. That's how they stopped that these people are plant paying ransom to governments. Rather than spending the money on aka to eliminate the possibility of impersonation. I don't get it. But is it going to come to that? It is the one thing I know for sure. Jam is that, you know, people talk about how these cybersecurity issues are helping cybersecurity companies sell more products. But when I sit next to these customers that I go talk to, when I sit next to them and look them in the eye, they're very, very concerned, they want to get to the zero trust environments. They're being hit by these supply chain attacks, these ransomware attacks, and they need help. And I think that help can come from many fronts. It could come from identity, they can get great identity from Okta, they can get better security from everyone in the ecosystem, they can get better government response. So it's really a collective thing we have to do together because customers and government agencies and public sector and our companies need help. Yes, it's bad for governments not gonna play hardball, it's not going to go away. A lot of people are tired bases on different metrics, you know, and on that of that game, I want to see cash flow, and your cash flow is great. I want to see real remaining performance obligations, I happen to be a subscription guy. I know that's the key number 52% is the number that that really jumps out at me, that pretty much assures you're gonna have some great quarters coming ahead.

27:37
Yeah, it's the backlog is the remaining performance obligations. So how much is remaining on the sign contract. So it shows the things I get excited about when I hear that number is customer success, because that means we not only have customers signing up for large deals, but they're over a long duration of time, which means there's a commitment to opt in, we have a commitment to them to make them successful over the long term. Now, we had seascale on last night, too. I know they partner with you. I mean, obviously there's been a big step up, step up in spending in your space correct, since these incidents.

28:07
You're seeing it across the board. Yeah, these these customers need to solve these problems. They need to have great identity, they need to have great security across the board. And you know, z scalar is a great partner of ours. And that's one of the examples of where we're working together to bring a better environment and a better tech stack to all the customers. Right now. There have been few bigger fans than media have often than I am. So that allows me to ask the tough question. Mr. Mike Corey, CFO, obviously terrific bands, done some great things was on your audit committee for years knows your company. He's now departing after a very small, small, short period of time. Now you're getting a terrific person might know from Salesforce. But do we when we see that kind of turnover? You know, it does raise eyebrows?

28:51
Yeah, absolutely. And it wasn't something we planned. I've known Mike for a long time. Mike is a great guy is a friend of mine. He's a friend to Okta. I think that we learned a lot working closely together, it's different than the board relationship, the management relationship is different. And I think we learned working together that it was probably better for us to stay friends and having mutual party. And a big part of that, too, is that Brett is really ready to step up as in this interim role. And if you figure out what Brett did, he ran f PNA. And one of the key things we have to get right over the next, you know, several quarters is the model and the integration with AWS zero. And so there's no better guy to lead us through that than Brett. So I'm excited to be working with him as the interim CFO, and we'll go out and survey the market for the best person in the world. And there's there's a good chance right as a strong candidate for the permanent job like that is true, I should have I should have considered the oxyr because that's the last question want to ask you. Are you happy with how that acquisition is working out? Well, we closed it on on the third of this month, so three weeks working closely together. And besides the great feeling with the people and the the meaning of the minds in terms of culture, the most powerful

30:00
thing is that when you talk to customers, it's very clear. First of all, it's very clear that their prospect of customer list and their customers does not overlap that much with ours. There's some overlap, but they're kind of distinct markets, this developer centric customer identity market. And this our approach to sign up to customer identity was low code, more automated. And they're really separate segments of this $30 billion Tam. So we're collaborating Well, on the on the deals we were both trying to sell to you and sorting that out and getting the customer the right solution. And when you look at the guy for the year now, that includes that really that that off zero factor, which is going to be accelerated growth, as we're going to really take over this $30 billion Tam and bring great value to customers. Well, I think that it's going to get better and better as the economy opens up so you can go fly face to face because you are very convincing person. Because you're an honest, straightforward person who works real hard. He's got a great product. That is Todd McKinnon, Chairman, CEO of aka, love seeing you on the program. Thank you, Todd. Good to see you.

31:02
Thanks, Jim. Good to be here. Guys. This is one of those you kind of hope it comes down so you can buy more man monies back into the break. Coming up. Each quarter is unique in its own special snowflake joins the show to break down what makes this one different from all the others next.

31:27
So when's it gonna be safe to circle back to the formerly high flying cloud stocks that have been hammered this year? Take snowflake total Kramer fav cloud based data warehousing leader that came public with a bang last September. This is one of the most compelling growth stories I have ever seen. This is the fastest major growth company in the market. But great growth stories become toxic when everybody's worried about inflation. They're all about future earnings many years down the road and inflation erodes the value of those returns. So stuff I spent months getting clobbered into a couple weeks ago, when we started seeing signs that inflation might be a bit on its own. Since then, the stock has rallied and quick 27% but then tonight, so like important numbers and selling off little after what happened while the company delivered spectacular sales up a stunning 110% year over year fastest in the in the ball 2021 guidance solid. Okay, so it wasn't a knock your socks off center numbers though, I thought it was given how much the stock could run in the last couple of weeks. So I did some Google looking for monster blowout doesn't help the snowflake and it's fast growing compadres, nowhere to get the benefit of doubt in this market. At some point though, this group will come back in style. And when it does, this will be the one so let's think deeper. with Frank slumber. He's the chairman CEO of snowflake. Find out more about the quarter where his company's headed Mr. Sullivan, welcome back to Mad Money.

32:39
Good to be back, Jim. Alright, so Frank, How's it possible, given the savings, given the amount of things you need? Because data, data drives operations? It is still the super early innings and going to the cloud and looking at stuff like?

32:57
Yeah, absolutely. There's a whole bunch of sort of mega trends that are operating on our space, obviously, on the one hand, the modernization moved from on premise to cloud scale computing. And now we have the rise of data science, people are really trying to drive the value, you know, from data sciences. And there's, there's a lot of enabling technology needs to be in place to do that. And the value of being able to enrich data, put data in context, and it's opening people's eyes to to opportunities that have never had before. So we're going through a bit of a Renaissance, if you will, people really discovering the true value of data. It's very exciting to to be in the business. this day and age, I am shocked what's been going on in Europe and Asia that day woke up, because these are spectacular numbers. Well, you know, we we were operationally, you know, not set up the way we needed to be, you know, this, to put it mildly. And we've made a lot of moves and changes in leadership in different places. And when you have a great product like snowflake, it doesn't take long before you start seeing the effects of that. So we're pleased with the progress we're making Deborah's much more to come. Now. And it's very clear with the number of huge seven figure deals you did versus previous. It's almost as if someone flipped the switch and realized, you know, what, we had no choice we have to leave who were using, and we have to go to stoke like and it happened this quarter.

34:25
Well, it's, it's not all this.

34:29
It's not that simple. A lot of what you're seeing, it's sort of the tip of the iceberg, right? It's all queuing up over periods of time or sales cycles

34:37
are long, it's just every quarter, you know, you should I get to see, you know, what we, you know, what we're being able to harvest in that particular period. But, you know, our business is going to conduct itself really over, you know, considerable long periods of time. That's sort of the message to investors this, you know, to really understand, you know, we're signing on here for joining it, as you know, five to 10 years

35:00
It's not an overnight, you know, throw in a quick switch and everything is great these are these are big, big changes. That's where we are experiencing in the marketplace. And we're just super happy to be in the middle of that and being an enabler of that. And we know that they're big companies, we've got a doordash, which is something grown unbelievably a Comcast, which we work for. But you know, what I like in Rise of the Data Cloud, your book, you talk about democracy of data, you can be a one man band, and you Snoke like, I feel very open to snore over the store, on, let's say, Shopify, I could hire you and only have to pay the minutes I need you. So you wouldn't bankrupt me. That's what my business would grow.

35:44
Yeah, it's very unusual, in the world of software, at least in my experience, which is a long time, unfortunately, these days is that you see a single product that can handle the largest data states in the world. But it can also do the smallest. And that's sort of have expanded our market opportunity dramatically. And we have a very large business in software companies that are they're quite small, they're just getting started. They're consuming small amounts, but obviously, they have huge aspirations, and they can really grow to very large heights. You know, as they go along, and the platform really reaches down, you know, to the, to that level. That's, that's really great. Well, let me ask you about something we had axon report today, I always love the quote your book, which talks about how oil drove economic progress in 20th century, data is driving progress. Today, I saw Exxon, they had some board members made a challenge. That's a new board members that are more ESG oriented, I am conscious that in your book, you say, and this is your philosophy book, I'm here to run the business as the CEO, I only have one job, and that is to increase the value of the franchise. It's not about profits or revenues, per se, the investors want to maximize what their investment is potentially worth has that gone out of style and a lot of companies.

36:56
You know, I think privately when you talk to CEOs, you know, that's exactly how they feel, they understand they know what their job is, it's just an idea in the public rearm. It's a little bit more difficult, you know, as we all know, you know, to, to reflect that, but yeah, it's hard enough to make your way in the world as it is right now. And for not to have your total focus committed, you know, to the, to the to the mission of running the business. So, I think we all know, you know, which way is up? Yeah, well, I mean, look, it's important. Like, for instance, you have experienced one of the clients as Barry Diller Okay, Barry Diller is one of the toughest pieces, it's tough his shoe, all right. He doesn't want to hear that you're busy doing something that is not really involved with his account when he wants you on your account. I think a lot of people have to realize as much as we want to devote as much time as we can to causes. They're our clients. And we work for the clients. And we work for the shareholders. So sometimes we don't have the choice that people think we have. Now, that's, that's, that's absolutely true. I'm actually heartened by the fact that we're starting to come around, sort of rediscover that look at you know, we're hired hands here, we're here to do a job. And, you know, that's, we're doing it, we're doing it to the best of our abilities. That's what we do. And we get up every day. We you know, I mean, a lot of people are saying to me, how can you be with this snowflake today? Yeah, they didn't make the stock went up. And then my damn why Cerrone? Frank, you are the fastest growing publicly traded billion dollar company in the world right now.

38:28
Yes, exactly. You know, growth at scale is a is a rare thing. And, you know, we're not a growth at all costs. Company, you see are improving efficiencies at the gross margin line at the operating line, as well as on cash flow. So you know, we're trying to be a fast investor, but we want to do it, you know, very with high yield and with high efficiency. And you're seeing that in a numbers were really approved improving across the board, not just at the top end. Yeah. I mean, if you everyone expected the stock, you know, 1000 day one, they haven't studied Frank data domain, we had a Neil bush for you. And that was a win for you. And they hadn't studied how to make really big money in the market. And that's just stick with the guy who knows how to do it. Frank slovan, Chairman, CEO of snowflake, thank you for coming on the show Friday. You bet thanks to those of you who jumped ship because the stock goes down a little bit. I want you to stay away from this one. I don't want you to make the money and Frank students gonna make their money back so

39:25
stick around, man make a suggestion. I would stay with the lightning round is coming up next.

39:46
And then the lightning round is over. Are you ready skate?

39:51
with john in New York, john.

39:54
Oh, yeah. Jim been a fan for over a decade long term. What do you think about $74 a share to you

40:00
has one of those businesses where you sign up for auto renewal. Whatever new is the single most profitable form of business in the world today? I am a shoe a Joe in Florida Joe. Hello, Mr. Kramer, my my son Anthony, is he has money in a index fund. All right, he bought, he purchased 10 shares of trade desk at 498. Oh, he bought it when it was down. That was smart. I think it may come back the quarter wasn't nearly as bad as the stock indicated. I think your son's God or sans j in Florida, J.

40:37
Hey Cramer, Jr. in Florida. Thanks for taking my call. What's going on?

40:43
What are your thoughts on ADP app loving? Man? How'd you find that one? I mean, that's just another one of those stocks and I got to do work on because it sounds like all the other stocks. I'll come back. I'll do homework and that later.

41:01
lightning round is sponsored by TD Ameritrade

41:06
coming on, chomp into greatness. Cramer dreams big on how Fang is brushing into the future where the sharpest is from Microsoft next.

41:24
Tomorrow kick off the trading day was squawk on the street. While I mean it's sometimes difficult to meet with my partner's really out of touch with the people who go to Burlington I hear Oregon.

41:36
He thinks Burlington is a town in Vermont.

41:39
It is.

41:42
It is it all starts at 9am. Eastern.

41:46
Jim Cramer, you're one of my heroes. I look forward to your show every week night. Thank you so much for helping beginning investors like me, when you talk about the market. I just believe that you're spot on. Oh, I love it. Thank you so much every night we want to I have learned and earned.

42:14
You never want to take great companies for granted. But you see a lot of that in the way we judge big tech. When it comes to bang plus m my acronym for Facebook, Amazon, apple, Netflix, Google and Microsoft. They don't get much credit for the fact that you're taking over the world. Instead, they're often written off is has been just exhausted dinosaurs. Now no more for savage government inquiries than genuine innovations. There's a lot of myopic focus on their minor missteps and not much excitement for everything that they're doing right. I think that's a mistake. Now don't get me wrong. These are some of the richest companies in the world. Sometimes they do things that are, let's say, eccentric. When Amazon spends 8.4 5 billion on a film and TV studio like to do with MGM. I regard as a real head scratcher created Amazon has failed to scale and entertainment this deal could help. It'd be nice to ask Alexa, Alexa, please put on gold finger and have it might work. It could work. But MGM is not known for its great productions these days. Still, 8 billion is a rounding error for these guys. And maybe they see something that are missing. They certainly need to change things up in sports or game because they're squandering their NFL rights by having nothing special surrounding the games. But then you get some little notice things out of Fang that you really should take your breath away, but you probably don't even read them. Case in point this morning, The Wall Street Journal reported that Google's partner with HCA, that's a gigantic hospital chain, to take patient records and use them to make health care algorithms that help improve efficiency and produce better outcomes. The patient data will be stripped of identifying information. So there's no HIPAA violation. Thank heavens. Now I think this is amazing. We've got a treasure trove of healthcare data that can be stored in Google Cloud and then analyze so that the hospitals can figure out how to do a better job with patients. Who knows this could even help develop medicines without additional human guinea pigs. Now, I know IBM tried to do something similar with Watson A while ago, but they weren't able to pull it off. I think this is one of those things. That's a great idea. But it can't work unless you get buy in from the healthcare professional because IBM didn't have Google's problem program. It's actually the opposite. It's as if Watson landed the biggest possible client and is now going to use artificial intelligence to help them do a better job. The great thing about this MOOC from Google, unlike IBM's, earlier attempts, they're not trumpeting anything here. They're just talking about algorithms that makes your eyes glaze over. Totally non promotional. I've been waiting for Google to do something big in healthcare besides partnering with dexcom for diabetes analytics. I've been waiting for years. I think this is it. You've got to understand the healthcare industry has all these electronic medical records, and they don't do anyone. There's so much useful data in here that can help you

45:00
The patient, when you go to the doctor, they'll often give you advice. It's based on their own experience. That's called anecdotal. If you ask for something more empirical that makes it less of a guessing game, but it isn't there. That's what Google's doing with this program. If it works, it is a gigantic deal. Honestly, this is a kind of incredible thing that Fang plus Microsoft come up with routinely, yet you rarely hear much about it. It's the kind of thing that makes you want to buy the stock. And even though Google's 36% for the year, you know what, I think it's got a lot more room to run. I'd like to say there's always a more market summer and I promised I'd find it just for you right here on Mad Money. I'm Jim graver cinnamal. The newest list Shepard Smith starts now.