Shares of the Bozeman, Montana, company were down 8.14% to $256.70 on Friday.
The report said that Snowflake's signings growth slowed from the first quarter, while consumption growth was likely similar, at best, to first-quarter levels, according to Bloomberg.
The report also said that the company’s partners were seeing sales cycles elongate on increased competition from the hyperscalers, particularly Google’s (GOOGL) - Get Alphabet Inc. Class A Report BigQuery cloud data warehouses.
Snowflake didn't immediately respond to a request for comment.
Snowflake's shares took a hit in June when analysts reacted to the company’s long-term forecast of 10% operating margin and 30% product-sales growth.
The revenue forecast “represents a scaling function well ahead of prior generations of growth software” and may be an underestimate, Morgan Stanley said. “The harder part of the equation may be justifying the valuation based on these targets.”
Snowflake’s estimates showed strong conviction about continuing revenue growth, but the margin forecast was less robust, Citi analysts said at the time.
Snowflake is scheduled to report second-quarter results on Aug. 25. In May, the company reported stronger-than-expected first-quarter results and forecast slowing product-sales growth.
The company reported a first-quarter adjusted net loss of 12 cents a share on revenue of $228.9 million. Analysts surveyed by FactSet were expecting a loss of 15 cents a share on revenue of $212.6 million.
Analysts affirmed their ratings on Snowflake but were concerned about the stock's valuation.