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A Cowen analyst provided a company update on Snowflake Inc (NYSE:SNOW) ahead of the upcoming Q2 earnings, scheduled to be released on August 24.
The analyst expects a modest beat vs. their 72% product growth forecast and in-line guide. While more customers are talking about optimizing spend on Snowflake, the analyst sees ample growth drivers in the model, leading to attractive growth durability. The analyst suspects we’ll see more of an optimization cycle in 2022 given the macro, but noted that the company has always seen customers go through this phase, only to re-accelerate consumption growth once through it.
The analyst expects Q2 product revenue of $439 million, compared to the company’s guidance of $435-$440 million. Total revenue is expected to be $469 million, compared to the consensus estimate of $467 million.
For Q3, the analyst expects product revenue of $496 million and total revenue of $529 million, compared to the consensus estimate of $534 million. The analyst reiterated the Outperform rating and $230 price target.
