Difficult times reveal true friends, the saying goes, and Sridhar Ramaswamy can certainly attest to that.

The CEO of Snowflake (SNOW) has had a rough few days after the cloud storage and analytics company reported in May that it had been hit by a cyberattack.

Related: Analysts Revise Snowflake Price Target After Earnings

“Nothing shows the strength and trust of a relationship like working through challenges together,” Ramaswamy told analysts during the company’s second-quarter earnings call in Bozeman, Montana on Aug. 21. “We clearly had some tough headlines in the quarter as some of our customers faced the cybersecurity threat.”

Google Cloud’s cybersecurity consulting arm Mandiant said in June that it had notified about 165 organizations that their data may have been exposed.

AT&T (T) was one of those organizations. The telecommunications giant said in a July 12 regulatory filing that hackers stole six months of call and text message data from nearly every customer on AT&T’s mobile network.

“While the data does not contain customer names, there are often ways to find the name associated with a specific phone number using publicly available online tools,” the company said.

Mandiant attributed the hack to a financially motivated group it called UNC5537, which had members in North America and Turkey.

Sridhar Ramaswamy, CEO of Snowflake

Snowflake/TheStreet

Snowflake CEO: ‘We’re all in this together’

The FBI, the U.S. Department of Justice and the Federal Communications Commission are investigating the incident.

“As has been widely reported, the issue was not on the Snowflake side,” Ramaswamy said on the call. “After multiple investigations by internal and external cybersecurity experts, we found no evidence that our platform was breached or compromised. However, we understand that we are all in this together when it comes to cybersecurity.”

Related: Analysts Revise CrowdStrike Price Targets After Lawsuit

“My number one request to all companies in the world, whether they are Snowflake customers or not, is to enable and enforce multi-factor authentication in your organization and ensure that your network policies are as strong as possible. At Snowflake, we have supported this since 2016,” he added.

Mike Scarpelli, Snowflake’s chief financial officer, said the impact of CrowdStrike IT last month (CRWD) The outage, in which a faulty update caused a massive global shutdown, was “minimal.”

“It was a day with a few customers, but nothing substantial,” he said. “And it never really affected us.”

Snowflake reported adjusted earnings of 18 cents a share in the second quarter, compared with 22 cents in the same period a year earlier. Analysts polled by FactSet expected Snowflake to earn 16 cents a share.

Revenue totaled $868 million, up 29% from a year earlier and beating Wall Street expectations of $852 million in revenue.

Ramaswamy reminded analysts of “many bright spots in the quarter,” none more notable than the time he spent with more than 100 clients, “many of them during my travels to the UK, Germany, Canada and across the US. And of course a Snowflake Summit in June.”

“The affinity for our product is incredible,” he said. “And the consistent theme I hear from the C-suite across all industries and geographies is that Snowflake delivers ease, efficiency and reliability to their business.”

Snowflake shares were down 13% at last check to $117.39. The stock has fallen nearly 41% this year and 23% from a year earlier.

TheStreet Pro’s Bruce Kamich reviewed Snowflake’s results, writing in his August 22 column that “despite a better rating, traders sold off the stock Thursday morning.”

“Is the early August low being retested?” he asked. “Maybe. Is this drop a buying opportunity? It’s too early to tell. Overall, the charts and indicators are mixed to bearish and traders should focus on other opportunities.”

Analysts update price targets for Snowflake

Several analysts updated their price targets for the company following the earnings report.

Wedbush analyst Taz Koujalgi lowered his price target on Snowflake from $210 to $140 and maintained a neutral rating on the stock.

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Snowflake’s second-quarter numbers were above Wall Street estimates/guidance for product revenue and margins, but the quarter-over-quarter increase in product revenue in dollars was lower than the quarter-over-quarter increase in dollars in the prior quarter, he said.

“Normally, quarter-on-quarter growth in product revenues is always higher in Q2 than in Q1, and hence this raises questions about the slowdown in usage/consumption,” Koujalgi said.

Snowflake told investors in a research note that the security breaches reported in the quarter had no impact on usage and that the impact of the CrowdStrike outage was minimal.

Bernstein cut its price target on Snowflake to $130 from $185 and affirmed a market perform rating, essentially neutral, on the stock after the company reported a smaller-than-normal beat on estimates and a weaker outlook than Wall Street had expected, the investment firm said.

However, the company said the real issue is what it calls a “disconnect” between the strength of its remaining performance obligations and net sales retention versus guidance.

In addition, the company as a whole and its artificial intelligence strategies “are still difficult to understand and new products are still too small to have a major impact on revenue next year,” the company said.

According to Bernstein, there is still uncertainty about what to expect from Snowflake.

JMP analyst ‘continues to like the story’

JMP Securities analyst Patrick Walravens lowered his price target on Snowflake to $190 from $235 and maintained an outperform rating on the stock.

Snowflake reported mostly strong quarterly results, but with a “narrower” product revenue win than in the past. And it had to work through some “rough headlines” as its customers dealt with cybersecurity threats and data breaches, the analyst said.

Walravens said he still values ​​that story because the core business drives significant customer value, reflected in 30% revenue growth, nine-figure customers and particular strength in the financial services and technology segments.

Under Ramaswamy, who became CEO in February, the company has ramped up innovation and product delivery with new products and capabilities such as Cortex, Managed Iceberg Tables, support for unstructured data and Notebooks, the analyst said.

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