Update on Snowflake $SNOW cybersecurity situation. --- I've now spoken directly with 5 founders/execs at 5 different orgs who had their Snowflake accounts breached in the past month or two. 1) In each case there was an extreme and quick uptick in Snowflake credit burn as the threat actors accessed or attempted to access data. Each of these customers will now have to buy more Snowflake credits/move forward their estimated renewal. 2) Every customer I spoke with is beyond ticked off with Snowflake. It's clear Snowflake knew for weeks that their customers were actively being targeted, going back at least as early May, 2024, yet Snowflake said nothing about this until media stories about Santander and Ticketmaster last week. 3) 3 of 5 of these Snowflake customer founders/execs plan to depart Snowflake for Google Cloud immediately; 2 don't have immediate plans and are still assessing. The 3 of 5 who plan to churn from Snowflake all use Snowflake primarily to share data with their customers because of ease of use, but this cyber incident makes ease-of-use a moot point. --- My take: Given 1), Snowflake CFO Mike Scarpelli and Chief Accounting Officer Emily Ho must immediately put out an 8-K which includes the details of the cyber incident (this is pathetic this has not been done yet) + in this filing or in a separate filing state the incremental revenue Snowflake gained + RPO fill attributed to this cyber incident. Snowflake operates a consumption revenue model in which revenue is recognized and RPOs are filled at the time the consumption resources are used. Snowflake stood to gain financially from allowing this cyber incident and choosing not to report it and keeping it under the rug, that is until the media picked up the story. -The threat actors went into Snowflake customer accounts. -The threat actors blew up one-time Snowflake spend while quickly extracting and attempting to extract data. -Snowflake knew about this and said nothing. It is completely unfathomable and impossible that Snowflake does not have their own internal analytics set up to see anomalous behavior like what occurred in this cyber incident. -Snowflake now gets to pocket this revenue and recognize it, seemingly heavily concentrated around early May, 2024. Now, when Snowflake beats their upcoming quarter, you'll know why. Snowflake needs to isolate and separate out this revenue. Anything short of this is unacceptable. --- If you're at the Snowflake Summit this week, please see the below post. Be sure to get pictures with the Polar Bear Mascot, the Superhero Mascots, the Lego Mascot, or Amelia Smart: a Canadian skier Snowflake hired to be a Temporary Mascot. There may not be a Snowflake Summit next year.