Snowflake likely to have 'strong but decelerating growth' in Q2: Monness, Crespi, Hardt
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Snowflake (NYSE:SNOW) scheduled to report second-quarter results on August 24 and investment firm Monness, Crespi, Hardt said the data warehousing company is "well positioned" for long-term trends, but it could report decelerating top-line growth.
Analyst Brian White, who has a neutral rating on Snowflake (SNOW), noted that Snowflake (SNOW) is likely to generate $479.5M in revenue during the quarter, up 76% year-over-year and 14% sequentially, but that is below the three-year average of 26%. White also noted that the expected operating margin of 1% is "well below" the 20.8% that Datadog (DDOG) reported in its most recent quarter and even the 22.8% for Palantir (PLTR).
"Although Snowflake enjoys rapid growth, execution has proven less consistent relative to our software coverage at large and the spending environment has now turned less generous," White wrote in a note to clients, adding that the broader software space has started to see a bit of a downturn with the release of June quarter results. 
Looking to the third-quarter, White projects Snowflake (SNOW) to generate $553.6M in revenue, up 66% year-over-year, including $517.1M in product revenue, up 65% year-over-year.
Earlier this month, investment firm BTIG downgraded Snowflake (SNOW), noting a downtick in recent field checks for the data warehousing company.