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 Q1. Today we are looking at the data infrastructure stocks, starting with Confluent (NASDAQ:CFLT).
Generating insights from system level data is an increasing priority for most businesses, but to do so requires connecting and analyzing piles of data stored and siloed in separate databases. This is the demand driver for cloud based data infrastructure software providers, who can more readily integrate, distribute and process information vs. legacy on-premise software providers.
The 4 data infrastructure stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 1.78%, while on average next quarter revenue guidance was 0.1% under consensus. There has been a stampede out of high valuation technology stocks as raising interest rates encourages investors to value profits over growth again, but data infrastructure stocks held their ground better than others, with the share prices up 24.1% since the previous earnings results, on average.
Best Q1: 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 $174.3 million, up 38.2% year on year, beating analyst expectations by 4.13%. It was a strong quarter for the company, with a decent beat of analyst estimates. In addition, revenue guidance for the next quarter and full year were in line with Consensus estimates, and the EPS outlook surpassed expectations.
“Confluent started fiscal year 2023 with a strong first quarter, beating all guided metrics and highlighted by 89% year-over-year growth in Confluent Cloud revenue,” said Jay Kreps co-founder and CEO, Confluent.
Confluent pulled off the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise of the whole group. The company added 84 enterprise customers paying more than $100,000 annually to a total of 1,075. The stock is up 70.2% since the results and currently trades at $33.97.
Is now the time to buy Confluent? Access our full analysis of the earnings results here, it's free.
Teradata (NYSE:TDC)
Part of point-of-sale and ATM company NCR from 1991 to 2007, Teradata (NYSE:TDC) offers a software-as-service platform that helps organizations manage their data across multiple storages and analyze it.
Teradata reported revenues of $476 million, down 4.03% year on year, in line with analyst expectations. It was a decent quarter for the company, with first-quarter annual recurring revenue (ARR), revenue, gross margin, and free cash flow surpassing expectations.
The stock is up 25.3% since the results and currently trades at $51.48.
Is now the time to buy Teradata? Access our full analysis of the earnings results here, it's free.
Weakest Q1: C3.ai (NYSE:AI)
Founded in 2009 by enterprise software veteran Tom Seibel, C3.ai (NYSE:AI) provides software that makes it easy for organizations to add artificial intelligence technology to their applications.
C3.ai reported revenues of $72.4 million, flat year on year, beating analyst expectations by 1.5%. It was a weaker quarter for the company, with full year guidance missing analysts' expectations and a decline in gross margin.
C3.ai had the weakest full year guidance update in the group. The stock is up 8.65% since the results and currently trades at $43.47.
Read our full analysis of C3.ai's results here.
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 $279.9 million, up 17% year on year, in line with analyst expectations. It was a mixed quarter for the company, with an acceleration in customer growth. However, full year revenue guidance missed analysts' expectations.
The company added 50 enterprise customers paying more than $100,000 annually to a total of 1,160. The stock is down 7.77% since the results and currently trades at $66.04.
Read our full, actionable report on Elastic here, it's free.
The author has no position in any of the stocks mentioned