What Happened:
Shares of data infrastructure software company, Confluent (NASDAQ:CFLT) jumped 8.87% in the after-market session after the company reported second-quarter results that exceeded analysts' revenue, operating income, and earnings per share expectations. This was a welcome sign given some missteps thus far for other SaaS companies reporting earnings. As a negative, cash burn increased. Despite this, revenue guidance for the next quarter and full year were in line with Consensus estimates, and the EPS outlook surpassed expectations. Overall, it was a strong quarter for the company.
What is the market telling us:
Confluent's shares are very volatile and over the last year have had 87 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Confluent is up 3.56% since the beginning of the year, but at $22.02 per share it is still trading 34.7% below its 52-week high of $33.73 from August 2022. Investors who bought $1,000 worth of Confluent's shares at the IPO in June 2021 would now be looking at an investment worth $490.67.
Is now the time to buy Confluent? Access our full analysis of the earnings results here, it's free.