Confluent (CFLT) Q4 Earnings: What To Expect

Anthony Lee /
2024/02/06 2:02 am EST

Data infrastructure software company, Confluent (NASDAQ:CFLT) will be announcing earnings results tomorrow afternoon. Here's what investors should know.

Last quarter Confluent reported revenues of $200.2 million, up 31.9% year on year, beating analyst revenue expectations by 2.6%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and decelerating growth in large customers. The company added 41 enterprise customers paying more than $100,000 annually to a total of 1,185.

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 21.7% year on year to $205.3 million, slowing down from the 40.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 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 4.9%.

Looking at Confluent's peers in the data and analytics software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Palantir delivered top-line growth of 19.6% year on year, beating analyst estimates by 0.9% and Commvault Systems reported revenues up 11.1% year on year, exceeding estimates by 4.1%. Commvault Systems was flat on the results, and Palantir was up 11.7%.

Read our full analysis of Palantir's results here and Commvault Systems's results here.

There has been positive sentiment among investors in the data and analytics software segment, with the stocks up on average 3.2% over the last month. Confluent is up 6% during the same time, and is heading into the earnings with analyst price target of $26.7, compared to share price of $23.9.

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