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Confluent Inc Cl A(CFLT-Q)

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Confluent (CFLT) To Report Earnings Tomorrow: Here Is What To Expect

StockStory - Tue Oct 31, 2023

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Data infrastructure software company, Confluent (NASDAQ:CFLT) will be reporting earnings tomorrow after market hours. Here's what investors should know.

Last quarter Confluent reported revenues of $189.3 million, up 35.8% year on year, beating analyst revenue expectations by 3.75%. It was a decent quarter for the company, with a beat on quarterly revenue as well as RPO (remaining performance obligations, a leading indicator of revenue). Forward guidance was also bullish, with next quarter and the full year non-GAAP operating profit guidance particularly impressive vs. Wall Street expectations. The company added 69 enterprise customers paying more than $100,000 annually to a total of 1,144.

Is Confluent buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Confluent's revenue to grow 28.6% year on year to $195.2 million, slowing down from the 47.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 per share.

Confluent Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 6.22%.

With Confluent being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for data and analytics software stocks, but the whole sector has been hit hard on fears of higher interest rates, with stocks down on average 8.09% over the last month. Confluent is down 6.48% during the same time, and is heading into the earnings with analyst price target of $38.2, compared to share price of $27.7.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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The author has no position in any of the stocks mentioned.