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

Adam Hejl 2022/05/04 7:47 am EDT

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

Last quarter Confluent reported revenues of $119.9 million, up 70.5% year on year, beating analyst revenue expectations by 9.22%. Despite trading down on the results, it was a very strong quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth. The company added 70 enterprise customers paying more than $100,000 annually to a total of 734.

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 53.8% year on year to $118.4 million, in line with the 51.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.21 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 since going public on average by 12.4%.

Looking at Confluent's peers in the data and analytics software segment, only Commvault Systems has so far reported results, delivering top-line growth of 7.63% year on year, and beating analyst estimates by 1.96%. Commvault Systems traded flat on the results. Read our full analysis of Commvault Systems's earnings results here.

The technology sell-off has been putting pressure on stocks since November and software stocks have been swept alongside with it, with share price down on average 16.6% over the last month. Confluent is down 26.1% during the same time, and is heading into the earnings with analyst price target of $71.3, compared to share price of $31.

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.

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