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Winners And Losers Of Q3: Confluent (NASDAQ:CFLT) Vs The Rest Of The Data and Analytics Software Stocks


Kayode Omotosho /
2022/01/14 6:06 am EST
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As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q3. Today we are looking at the data and analytics software stocks, starting with Confluent (NASDAQ:CFLT).

Data is the lifeblood of the internet and software, and its importance to businesses continues to accelerate. Tracking sensors, ubiquitous mobile devices, and every action in every app are producing an explosion of analyzable data which increasingly gets stored in public cloud environments. This drives demand for a variety of software solutions, from databases to analytics software, which help companies derive actionable nsights from the data to better understand customer preferences, supply chains, and forecast at ever more granular levels to improve their competitive advantage.

The 12 data and analytics software stocks we track reported a decent Q3; on average, revenues beat analyst consensus estimates by 4.41%, while on average next quarter revenue guidance was 3.21% above consensus. Tech stocks have had a rocky start in 2022 and data and analytics software stocks have not been spared, with share price down 24.9% since earnings, on average.

Confluent (NASDAQ:CFLT)

Started in 2014 by the team of engineers at LinkedIn who originally built it as an internal tool, Confluent (NASDAQ:CFLT) provides infrastructure software for organizations that makes it easy and fast to collect and move large amounts of data between different systems.

Confluent reported revenues of $102.5 million, up 66.7% year on year, beating analyst expectations by 13%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and a very optimistic guidance for the next quarter.

“Harnessing the power of data in motion is a major factor in determining which organizations win in the modern era,” said Jay Kreps, co-founder and CEO, Confluent.

Confluent Total Revenue

Confluent pulled off the strongest analyst estimates beat and highest full year guidance raise of the whole group. The company added 47 enterprise customers paying more than $100,000 annually to a total of 664. The stock is down 14.2% since the results and currently trades at $63.11.

Is now the time to buy Confluent? Access our full analysis of the earnings results here, it's free.

Best Q3: Snowflake (NYSE:SNOW)

Founded in 2013 by three French engineers who spent decades working for Oracle, Snowflake (NYSE:SNOW) provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real time.

Snowflake reported revenues of $334.4 million, up 109% year on year, beating analyst expectations by 9.24%. It was an impressive quarter for the company, with an exceptional revenue growth and a strong beat of analyst estimates.

Snowflake Total Revenue

Snowflake scored the fastest revenue growth among its peers. The company added 32 enterprise customers paying more than $1m annually to a total of 148. The stock is down 0.81% since the results and currently trades at $308.01.

Is now the time to buy Snowflake? Access our full analysis of the earnings results here, it's free.

Weakest Q3: Commvault (NASDAQ:CVLT)

Originally formed in 1988 as part of Bell Labs, Commvault (NASDAQ:CVLT) provides enterprise software used for data backup and recovery, cloud and infrastructure management, retention and compliance.

Commvault reported revenues of $177.8 million, up 3.91% year on year, missing analyst expectations by 3.75%. It was a weaker quarter for the company, with a miss of the top line analyst estimates and a slow revenue growth.

Commvault had the weakest performance against analyst estimates and slowest revenue growth in the group. The company lost 22 enterprise customers paying more than $100,000 annually and ended up with a total of 163. The stock is down 8.43% since the results and currently trades at $69.31.

Read our full analysis of Commvault's results here.

Domo (NASDAQ:DOMO)

Founded by Josh James after selling his former business Omniture to Adobe, Domo (NASDAQ:DOMO) provides business intelligence software that allows managers to access and visualize critical business metrics in real-time, using their smartphones.

Domo reported revenues of $65 million, up 21.3% year on year, beating analyst expectations by 1.19%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter.

Domo had the weakest full year guidance update among the peers. The stock is down 31.8% since the results and currently trades at $44.29.

Read our full, actionable report on Domo here, it's free.

Elastic (NYSE:ESTC)

Started by Shay Banon as a search engine for his wife's growing list of recipes at Le Cordon Bleu cooking school in Paris, Elastic (NYSE:ESTC) helps companies integrate search into their products and monitor their cloud infrastructure.

Elastic reported revenues of $205.9 million, up 42.1% year on year, beating analyst expectations by 5.86%. It was a solid quarter for the company, with an exceptional revenue growth.

The company added 50 enterprise customers paying more than $100,000 annually to a total of 830. The stock is down 22.2% since the results and currently trades at $108.21.

Read our full, actionable report on Elastic here, it's free.

The author has no position in any of the stocks mentioned