The company pulled off its offering in late May at $18. The oil and gas sector is a bit of a laggard, when it comes to digital process optimization and wider adoption of IT services management or ITSM, according to the chief executive of one of the biggest players in the industry. As of now, the stock is trading for [...], Indian Billionaire Urges Government To Impose Lockdowns In India As New Covid Deaths Reach Another High, The Bumble IPO And Blackstone’s Private Equity Gold Mine, Why Andy Jassy’s Appointment Signals That Cloud, Not E-Commerce, Is Amazon’s Future, Bachelor of Science, Erasmus University Rotterdam, The Netherlands; Master of Science, Erasmus University Rotterdam, The Netherlands. Cloud leaders including Snowflake's Frank Slootman weigh in on Jassy's new role, and predict his likely successor. In the memo, he updates employees on things that are happening internally and offers observations about the market. Palantir's landed the following day. See Bio. Cisco multiplied its spending on Snowflake by almost 40-fold last year to $4.8 million, and expects to spend $2.8 million in the quarter ending October, according to the filing. In his initial introduction to the company after Muglia's abrupt departure, Slootman told employees that company-wide meetings would move from every two weeks to once a quarter. Frank Slootman. All Rights Reserved. "There's no doubt that this crisis is going to accelerate the trend towards digital transformation and everything that is associated with that," Slootman, who owns 5.9% of the company, told CNBC's "Squawk Alley" in an interview in late March, two weeks after major U.S. cities instituted shelter-in-place restrictions. Cisco relies on Snowflake for everything from consolidating e-commerce data to improving cloud security. Sixteen months ago, Slootman was named CEO of Snowflake, which gives businesses new ways to store and access data, rather than relying on clunky databases tied to hardware. And, CEO Frank Slootman was willing to say it will stay over 160% for the entirety of 2021, a very bold statement that speaks to SNOW's potential. Chief Financial Officer. Some point to Snowflake's IPO as the latest and biggest example of lost billions in an IPO pop. Slootman was intrigued by Snowflake's rapid ascent and was feeling the itch to get back in the game. Frank has over 25 years of experience as an entrepreneur and executive in the enterprise software industry. When Snowflake finally made a public statement on the matter at the end of June, it came via a blog post from Eve Besant, the company's vice president of worldwide sales engineering. The supercharge was underway. Whether he will stick around with a company as it hits speed bumps and has to manage a wider assortment of annoying personnel issues and administrative challenges is unclear. The numbers go up every year, reaching $350 million by 2025. Frank has over 25 years of experience as an entrepreneur and executive in the enterprise software industry. Snowflake declined to make Slootman available for an interview for this story. Also, the opportunity is massive. "When you get him going on something, there's so much substance.". Slootman's voice was notably absent. Data Domain was around $80 million. Get this delivered to your inbox, and more info about our products and services. As Slootman says himself, he's more Marine Corps than Peace Corps. Businesses have been forced to adopt tools that can help them manage remote workforces and collect data in ways that are accessible to people spread all over the place. We are incredibly situational. Denise Persson. Slootman has a tight executive crew from his many years as a CEO. Chief Revenue Officer. But some insiders describe a CEO who lacks emotion and is singularly focused on winning, a characteristic that has led to internal turmoil, culture clashes and a hefty dose of employee turnover. Snowflake is committed to spending $1.2 billion with Amazon over the next five years on a cloud infrastructure contract. Benoit Dageville. It's been an issue for Slootman at Snowflake. Snowflake is winning a lot of business from companies transitioning off legacy databases like Oracle and Teradata and into the cloud. Data is a real-time snapshot *Data is delayed at least 15 minutes. In an era of founder-led tech companies, Snowflake's Frank Slootman is a corporate throwback. Snowflake said in its prospectus, filed publicly on Monday, that revenue in the first half of 2020 more than doubled to $242 million from $104 million a year earlier. Chief Human Resources Officer. In an exclusive interview, Frank Slootman, President and CEO of [...], With tech stocks flying, bubble calls are multiplying, but ServiceNow's Frank Slootman says his business is 'bulletproof. Before he arrived, the company, guided by former Microsoft executive Bob Muglia, was already valued at about $4 billion by venture investors. With $80 billion Snowflake, the biggest software IPO ever, he’s rewritten the playbook. She now manages financial assets with a … Slootman embraces the contrast with many other Silicon Valley tech leaders, who proudly lure recruits with promises of yoga, massage and top-shelf snacks. Frank Slootman. With his company-wide correspondence limited to Zoom, Slack and email, Slootman now sends a note of 10 paragraphs or so every Monday, according to former and current staffers. ', ServiceNow (NYSE:NOW) will likely turn out to be one of this year's top IPOs. "He's one of the most impressive, most accomplished, most respected CEOs in enterprise tech," said Asheem Chandna, a software investor at Greylock Partners, which invested in the first two companies Slootman took public, Data Domain (later acquired by EMC and now part of Dell) and ServiceNow. Before accepting the Snowflake CEO job, Slootman was retired and racing sailboats competitively in the San Francisco Bay Area. What trends will drive the next decade of innovation? How much more do CEOs at America's highest-grossing companies earn compared to their workers? Software CEOs and venture investors heap praise on Slootman's resume. Upon joining Snowflake, he told some senior executives that he's too old to work with new people. A Division of NBCUniversal. Frank Slootman is preparing to take Snowflake public 13 years after his first tech IPO, Data Domain, and eight years after his second, ServiceNow. In the post, titled "A Time for Reflection and Action," Besant announced the formation of Snowflake's first diversity council and its mission to improve skill development and bolster diversity and inclusion. By February, the eight-year-old company lifted its valuation to $12.4 billion in a round led by Salesforce as part of a product partnership. There's tremendous power in terms of what enterprises can extract from that.". Lunch was downgraded from catered local fare to an in-house cafeteria, and sales reps could no longer freely spend thousands of dollars a year on football tickets without showing a valid business reason. Slootman, who boasts more than 25 years’ experience as an entrepreneur and executive in the enterprise software industry, joined Snowflake in May 2019. Following the lead of other tech companies, ServiceNow started publishing an annual diversity report and implemented efforts to put more women in leadership, declaring "diversity, inclusion, and belonging as a business imperative. The IPO was the third for Dutch-born Slootman, who moved to California for a job at Compuware in the dotcom boom, then worked at Borland Software. Covid-19 has ravaged the broad economy, but cloud software continues to thrive. Slootman made over $550 million from his ServiceNow stock sales, and he now owns 5.9% of Snowflake. He still owns 3.3% of the company. We review Zoom Video, Okta, Snowflake, Crowdstrike, Zscaler and Elastic. As he told Fortt: "A lot of people think I have a playbook, like a football coach. © 2021 CNBC LLC. Some people who were at Snowflake for the transition from Muglia to Slootman described a culture of fear that took over after the reshuffling, with employees, particularly in sales, just trying to keep their heads down and their jobs intact long enough for the company to go public and their options to vest. "He's a take-no-prisoners leader. At Snowflake, Slootman saw a product that customers wanted and that power users were consuming in bulk. Co-Founder & President of Products. While serving on the board of Medallia, he helped recruit Leslie Stretch to join as CEO in 2018. Frank Slootman currently serves as Chairman and CEO at Snowflake. I've been making twists and turns in my professional life for more than 20 years, and I've picked up a few tidbits of wisdom along the way. "We're going through this shift and Snowflake is right at the center of it," said Wagner, a founding partner of venture firm Wing VC. As a former senior employee described the situation, the board saw Muglia taking Snowflake to the moon and believed Slootman could pilot the ship to Mars. When protests erupted over the police killing of George Floyd, an unarmed Black man, in May, many tech CEOs spoke out on the need to improve diversity and more actively combat racism. Prior to this, Frank served as a partner with Greylock Partners from January 2011 to April 2011, and served as an advisor to EMC Corporation from January 2011 to February 2012. Muglia was informed of the move on a Wednesday, just two days before Slootman was introduced to employees in an all-hands meeting, according to people familiar with the matter. Including his options, Slootman owns about 10% of Snowflake. "I'm very excited to see the ongoing success of Snowflake and am very supportive of the team going forward," Muglia told CNBC, although he didn't comment on the circumstances of his departure. From day one, he invested in making sure that clients, the big ones in particular, were getting their money's worth. The Leukemia & Lymphoma Society BrandVoice, The Outsider: How CEO-For-Hire Frank Slootman Turned Snowflake Into Software’s Biggest-Ever IPO, Meet Frank Slootman: The CEO Behind Software's Biggest IPO, Qualtrics (Finally!) Slootman takes seat on board at Instacart Online grocery platform Instacart has welcomed Frank Slootman, Chairman and Chief Executive Officer of Snowflake, to its Board of Directors. It's really not like that. Slootman, a Dutchman who moved to Silicon Valley in 1997, was enjoying his time sitting on corporate boards and racing his sailboat, The Invisible Hand, which he led to victory in the Transpac Honolulu race in 2017. He can point at a hill and inspire the entire team to follow him to take the hill.". CEO Frank Slootman strongly disputes the argument. Along with size comes a more complicated competitive landscape. He had no tolerance for ineffective sales reps and was quick to show them the door, according to people familiar with the matter. Snowflake's annual ski trip to Tahoe was canceled. ", "I can't think of anybody who is more content-dense when he speaks than Frank," said Grady. Headcount jumped by more than 50% to just over 2,000. In October, months before the crisis struck, Slootman told CNBC's Jon Fortt that an IPO would either take place by early summer or after the presidential election in November. The pandemic has spurred new kinds of workloads as well. That approach caused tension at ServiceNow as the company grew from a late-stage start-up into an enterprise with thousands of employees, according to people with knowledge of the matter. We can literally vacate 2,000 people out of their offices and continue to operate not just our data servers but all our internal systems.". But as companies make the move, they can also choose Amazon's cloud data warehouse offering, a product called Redshift. PayScale compares CEO salaries to the median salary of their workers in this new report. So far, only a handful of India's 29 states have imposed some form of Covid-19 lockdown during the new wave of infections. In 2003, he became CEO of storage startup Data Domain, taking it public in 2007 and selling it to EMC in 2009 for $1.8 billion. We deal with the situation that we encounter. Snowflake CEO Frank Slootman, far right, addresses the team at an all-hands meeting. Slootman never expected to be in this spot. Frank Slootman currently serves as Chairman and CEO at Snowflake. Frank Slootman on the CC, We have long sold almost exclusively on architectural distinction, which has served us well and we will continue to do so in situations that warranted. The early summer window came and went without a filing, but companies are now lining up to debut ahead of the election, as U.S. stock indexes trade at a record and investors pile into high-growth tech companies. Of the three companies Slootman has taken public, Snowflake has by far the largest balance sheet ahead of its IPO. CNBC talked to more than 20 people who have worked for Slootman at Snowflake or ServiceNow, as well as some investors and personal friends. But no CEO has a better track record of turning the ideas of others into jackpots. He had earned over $550 million from his sale of ServiceNow shares, according to SEC filings, and that was after leading the $2.4 billion sale of Data Domain to EMC in 2009. In a LinkedIn post in 2018, reflecting on his years as CEO, he wrote, "We valued people for their contribution to our goal, not because they had a preferred skin color, gender or ethnic background.". "He knows what he's doing when it comes to software and sailing.". Snowflake's outsized IPO will mean huge wins for its founders, investors and not one, but two CEOs. I'd stepped down from my role at ServiceNow, had no plans, was not looking.". Snowflake and its culture belong to each of us: We 'own it.'". ServiceNow was running at just about $200 million in annual revenue when it went public in 2012. Slootman, 61, is a professional CEO. One big question for Slootman is — does he want to run a big company and can he do it successfully? He said Slootman's commentary on operational details was so insightful that he would take notes and circulate them to his partners, with subject lines like, "lessons from Frank. Chris Degnan. But people who attended in prior years described the trip as fruitful for team building and brainstorming. (Derk Lupinek, another former ServiceNow executive, is listed as general counsel in the prospectus.). They love to just do a victory lap. "Increasingly value is accruing to that data layer. Peter Wagner, an early Snowflake investor, said there's likely to be plenty of competition from Redshift and other players, but Snowflake is winning its fair share of deals. Sales and marketing costs came to 130% of revenue a year earlier, and fell to just below 80% of revenue in the second quarter — still high, but more palatable for public investors. © 2021 Forbes Media LLC. Hear from technology experts, partners, and customers, while engaging in over 50 breakout sessions and workshops. 4.6 out of 5 stars ... I’ve been online a few years longer than the author and my career has some parallels (multiple startups, stints at larger companies) and while I haven’t (yet) founded a billion dollar corporation my advice to company executives as a part time CTO/COO is nearly identical to much of this book. ", Wadors told CNBC that companies have a "maturity curve" that dictates "what they do to survive and thrive in that time." After stepping down as ServiceNow CEO in 2017, he was retired and plenty wealthy. In an era of founder-led tech companies, Snowflake's Frank Slootman is a corporate throwback. Now the 3x IPO veteran is exclusively sharing his playbook. Now, as Snowflake heads out on its virtual roadshow, Slootman is gearing up for his third IPO in what many investors say is the hottest tech deal of the year, even with Airbnb, Palantir, and Asana — all run by founders — in the pipeline. ", WATCH: Snowflake CEO Frank Slootman on the company's funding round. Frank Slootman serves as ServiceNow's President and Chief Executive Officer and as a director. "He's a brilliant competitor," Stretch said. That's a giant bet by Snowflake that, over the next half decade, it can fend off Amazon's database competition while also growing rapidly enough to comfortably pay it hundreds of millions of dollars a year for critical cloud services. Join thousands of your peers at Snowflake’s two day virtual user conference. 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