Snowflake (SNOW) is expected to beat fiscal Q2 product revenue estimates on stronger core consumption, pipeline generation and expanding CoCo usage, Oppenheimer said in a note Wednesday.
The firm models Q2 product revenue of $1.47 billion, about 3% to 4% above consensus estimates of $1.42 billion and representing over 34% growth year over year.
Oppenheimer said it expects continued CoCo uptake, with current usage primarily coming from earlier adopters representing about 15% to 20% of Snowflake's customers. The firm also said sales is positioning CoCo with all customers, while newer users are likely to expand at slightly slower rates than early adopters.
Most large enterprises continue to operate Snowflake and Databricks in parallel, with both gaining primarily from legacy vendors, analysts said.
Snowflake said it will report its fiscal Q2 results on Sept. 2.
Oppenheimer maintained its outperform rating on Snowflake and raised its price target to $400 from $295.
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