The S&P 500 (^GSPC 0.24%) continues to set new record highs, extending the raging bull market which began when the index bottomed in October 2022. However, not every stock has followed along.Confluent (CFLT 0.26%) stock is still trading 62% below its best-ever level which was set during the tech frenzy in 2021. It was undeniably overvalued back then, but the company's industry-leading data streaming technology has found a new use case thanks to artificial intelligence (AI), so now might be a great time for ...

Revenue Recognition and Financial Performance - Confluent Cloud's revenue recognition is based on actual consumption over the last three months, leading to potential fluctuations in annual recurring revenue (ARR) and net revenue retention (NRR) due to customer consumption variability [134]. - The company has observed a shift towards usage-based consumption models, which may result in less predictable revenue recognition compared to traditional subscription models [135]. - Revenue from Confluent Platform subscriptions is recognized upfront for term-based licenses, while post-contract support and maintenance revenue is recognized ratably, contributing to revenue fluctuations [137]. - Seasonality affects new customer bookings, with a higher percentage of subscriptions typically sold in the fourth quarter, influenced by customer procurement and budgeting cycles [148]. - The company's dollar-based net retention rate has historically fluctuated and may decline due to various factors, including customer satisfaction and competitive pressures [207]. - The company's subscription revenue for the year ended December 31, 2024, was $922 million [430]. Market and Competitive Landscape - The competitive landscape is influenced by the ability to integrate with third-party products and services, necessitating continuous enhancements to maintain compatibility [144]. - The company must adapt to rapid technological changes and evolving customer needs to remain competitive, particularly in the context of emerging technologies like artificial intelligence [141]. - The company faces risks related to longer sales cycles and complex customer requirements when selling to enterprise customers [199]. - The company’s brand recognition is critical for market adoption, especially against competitors like AWS, Azure, and GCP [196]. - The company faces intense competition for skilled personnel, particularly in engineering and sales, which could hinder its growth if it fails to attract and retain talent [238]. Regulatory and Compliance Risks - The company faces risks in heavily regulated industries, requiring significant resources to comply with governmental regulations, which may impact market share and operational costs [147]. - Compliance with evolving data privacy and security laws is becoming increasingly complex and costly, potentially leading to regulatory investigations and legal risks [183]. - The California Consumer Privacy Act (CCPA) imposes penalties of up to $7,500 per violation, increasing the legal risks and compliance costs for the company [184]. - Noncompliance with the EU GDPR could result in fines of up to 20 million Euros or 4% of global annual revenues, impacting the company's financial stability [186]. - The company is subject to various contractual obligations related to data privacy, which may increase operational complexity and legal liability if not met [189]. Cybersecurity and Operational Risks - Cybersecurity risks are heightened due to reliance on third-party service providers, which could lead to security incidents affecting the company's operations [169]. - The company faces unique threats as a data streaming software provider, including vulnerabilities in its offerings and customer misuse [166]. - Security incidents could result in loss of customer confidence, damage to the brand, and significant legal liabilities [174]. - The company may incur substantial costs related to notifying stakeholders of security incidents, which could lead to negative publicity and loss of customer trust [175]. - The company is facing potential security incidents that could undermine its competitive advantage and market position due to sensitive information being leaked or inferred from public sources [176]. Growth and Strategic Initiatives - The growth of the professional services business is crucial for customer adoption, but managing this growth and improving profit margins remains a challenge [145]. - The company plans to expand its direct sales force and invest significantly in sales and marketing programs to enhance productivity and market acceptance of its offerings [195]. - The company acquired WarpStream in September 2024, enhancing its offerings with a BYOC data streaming solution [154]. - The company’s future success depends on existing customers renewing subscriptions and expanding their use of offerings [207]. International Operations and Market Expansion - Customers outside the United States generated 40% of the company's revenue for both the years ended December 31, 2024 and 2023 [240]. - The company is expanding its international operations, which may subject it to greater than anticipated tax liabilities due to varying tax laws and potential challenges from taxing authorities [258]. - The company anticipates needing to establish new channel partnerships to expand into certain countries, which is critical for executing its growth strategy [240]. Financial Position and Capital Structure - The company has net operating loss (NOL) carryforwards of $1,403.6 million for federal income tax purposes and $560.8 million for state income tax purposes as of December 31, 2024 [262]. - The company expects to issue additional capital stock in the future, which may dilute existing stockholders' ownership interests [283]. - The market price of Class A common stock may be highly volatile due to various factors, including financial performance fluctuations and changes in market conditions [277]. - The company incurs significant costs as a public entity, impacting management's time and resources due to compliance with regulations [285]. Intellectual Property and Legal Risks - The company relies on third-party open source software, including Apache Kafka, Apache Flink, and Apache Iceberg, which may expose it to legal risks and impact its ability to sell offerings [214]. - There is a risk of litigation related to the use of open source software, which could be costly and harm the company's reputation and financial condition [215]. - The company may inadvertently use third-party open source software inconsistently with licensing terms, leading to potential claims of intellectual property rights infringement [215]. - The company’s ability to protect its intellectual property rights is crucial for maintaining its competitive advantage, but it may face challenges in enforcement and protection [219]. Internal Controls and Financial Reporting - The effectiveness of the company's internal control over financial reporting is subject to evaluation, and any identified material weaknesses could harm investor confidence and the market price of its Class A common stock [270]. - The company is required to maintain effective internal controls, and failure to do so could result in sanctions or investigations by regulatory authorities [271]. - The audit included testing the effectiveness of controls related to the revenue recognition process, including the development of SSP estimates [433].

Data streaming company Confluent (CFLT -3.77%) was streaming stock market success in recent trading sessions. Following the release of its fourth-quarter and full-year 2024 financial results, investors leaped on the stock; as of early Friday morning its price had risen by almost 21% week to date, according to data compiled by S&P Global Market Intelligence.A solid quarter, and a pair of new collaborationsConfluent's quarterly performance impressed not only investors, but a swarm of analysts that published b ...

Over the past months, I’ve been bullish on Confluent, Inc. (NASDAQ: CFLT ) thanks to its consumption-based revenue model and its potential to report record Q4 2024 revenues. My bullish thesis has been proven by the company’s latest Q4 andAs a former managing editor at a financial media publication focused on mid and small caps, I am using my experience to present investment opportunities in undervalued companies. My experience, combined with my academic background in financial markets and institutions, allo ...

Shares of Confluent (CFLT 21.89%) are seeing explosive gains in Wednesday's trading. The data streaming specialist's share price was up 20% as of 11:45 a.m. ET today. Meanwhile, the S&P 500 index was down 0.7%, and the Nasdaq Composite index was down 0.4%.Confluent published its fourth-quarter results after the market closed yesterday and reported sales and earnings for the period that beat Wall Street's expectations. The company also announced some new partnerships that appear to have investors excited.Con ...

CANADA - 2025/02/10: In this photo illustration, the Confluent, Inc. logo is seen displayed on a ... [+] smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesConfluent (NASDAQ: CFLT), a data streaming company, recently announced its Q4 results, surpassing market expectations for both revenue and earnings. The company reported $261 million in revenue and adjusted earnings of $0.09 per share, slightly above analysts' consensus ...

Investor Presentation February 11, 2025 Disclaimer This presentation includes express and implied forward-looking statements. All statements contained in this presentation other than statements of historical facts, including expectations of Confluent, Inc. ("we,ˮ "us,ˮ "our,ˮ or "Confluentˮ) regarding our revenue, revenue mix, revenue growth, expenses and other results of operations; total customers; net dilution; operating margins and margin improvements, targeted or anticipated margin levels; future finan ...

Confluent, Inc. (NASDAQ:CFLT) Q4 2024 Earnings Conference Call February 11, 2025 4:30 PM ET Company Participants Shane Xie - Investor Relations Jay Kreps - Co-Founder & Chief Executive Officer Rohan Sivaram - Chief Financial Officer Conference Call Participants Matthew Hedberg - RBC Michael Turrin - Wells Fargo Brad Zelnick - Deutsche Bank Sanjit Singh - Morgan Stanley Raimo Lenschow - Barclays Pinjalim Bora - JPMorgan Robbie Owens - Piper Sandler Kash Rangan - Goldman Sachs Howard Ma - Guggenheim Gregg Mos ...

For the quarter ended December 2024, Confluent (CFLT) reported revenue of $261.22 million, up 22.5% over the same period last year. EPS came in at $0.09, compared to $0.09 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $256.83 million, representing a surprise of +1.71%. The company delivered an EPS surprise of +80.00%, with the consensus EPS estimate being $0.05.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Str ...

Confluent (CFLT) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 80%. A quarter ago, it was expected that this data infrastructure software maker would post earnings of $0.05 per share when it actually produced earnings of $0.10, delivering a surprise of 100%.Over the last four quarte ...