Why Confluent Stock Is Climbing Higher Today
What happened
Shares of Confluent (NASDAQ: CFLT), a data streaming company, were rising fast today after the company reported better-than-expected results for its first quarter and issued strong guidance for the full year.
The tech stock was up by 12.7% as of 11:36 a.m. ET.
So what
Confluent's sales rose 38% in the first quarter to $174 million, which was higher than Wall Street's consensus estimate of $167 million for the quarter. Additionally, the company's non-GAAP (adjusted) loss of $0.09 was better than analysts' average estimate of a loss of $0.14 per share.
The strong quarter was highlighted by the fact that Confluent increased the number of customers with $100,000 or greater in annual recurring revenue by 34%, reaching 1,075.
"Achieving this high growth as companies scrutinize every dollar spent is a testament to the mission criticality of our cloud-native platform and the lower total cost of ownership customers receive from using Confluent," the company's co-founder and CEO Jay Kreps said in a press release.
In addition to reporting strong customer growth and outpacing Wall Street's expectations for the quarter, Confluent's management also issued strong guidance. The company expects a loss of between $0.20 to $0.14 for the full year, which is better than analysts' average estimate of a loss of $0.26 per share.
Additionally, Confluent's leadership says sales will be $762.5 million at the midpoint of guidance, ahead of Wall Street's average estimate of $761.8 million.
Now what
Investors should certainly be pleased with Confluent's latest quarterly results and the company's outlook. At a time when many other companies are reporting worse-than-expected results and issuing disappointing guidance, Confluent appears to be thriving despite a difficult macroeconomic environment.
10 stocks we like better than Confluent
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Confluent wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of May 1, 2023
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Confluent. The Motley Fool has a disclosure policy.
