Core Insights - The article highlights the significance of Big Data in enhancing business decision-making, risk management, and operational efficiency through advanced analytics and AI technologies [3][4]. Company Summaries Confluent Inc. (CFLT) - Confluent operates a data streaming platform, providing managed cloud-native SaaS and self-managed software solutions [7]. - Expected revenue and earnings growth rates are 19% and 32.4%, respectively, for the current year, with a 20.5% improvement in earnings estimates over the past 30 days [8]. - The short-term average price target indicates a potential increase of 28.9% from the last closing price of $21.05, with a maximum upside of 71% [9]. Blackbaud Inc. (BLKB) - Blackbaud offers cloud software and services, achieving solid execution of strategic goals with organic revenue growth and stock buybacks [10][11]. - Expected revenue and earnings growth rates are -3.1% and 17.9%, respectively, with an 8.4% improvement in earnings estimates over the past 30 days [12]. - The short-term average price target suggests a 10.7% increase from the last closing price of $62.12, indicating a maximum upside of 36.8% [12]. Sprout Social Inc. (SPT) - Sprout Social provides a web-based social media management platform, offering AI-powered solutions for various social media functions [13][14]. - Expected revenue and earnings growth rates are 11.3% and 20.6%, respectively, with a 10.3% improvement in earnings estimates over the past 30 days [14]. - The short-term average price target indicates a potential increase of 30.7% from the last closing price of $21.55, with a maximum upside of 94.9% [15]. HubSpot Inc. (HUBS) - HubSpot delivers a cloud-based customer relationship management platform, experiencing steady adoption and integration of AI features [16][17]. - Expected revenue and earnings growth rates are 15.4% and over 100%, respectively, with a 49% improvement in earnings estimates over the past 30 days [18]. - The short-term average price target suggests a 19% increase from the last closing price of $621.25, indicating a maximum upside of 49.7% [18]. Teradata Corp. (TDC) - Teradata provides a hybrid cloud analytics platform, benefiting from strong cloud ARR growth and strategic partnerships with major tech companies [19][20]. - Expected revenue and earnings growth rates are -6.5% and -2.1%, respectively, with unchanged earnings estimates over the past 30 days [20]. - The short-term average price target indicates an 18.7% increase from the last closing price of $21.82, with a maximum upside of 60.4% [21].

Confluent (CFLT) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.The upward trend in estimate revisions for this data infrastructure software maker reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation bet ...

Confluent (CFLT) closed the last trading session at $19.73, gaining 0.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $28.45 indicates a 44.2% upside potential. The average comprises 29 short-term price targets ranging from a low of $22 to a high of $36, with a standard deviation of $3.47. While the lowest estimate indicates an increase of 11.5% from the current price level, the ...

Core Insights - Data streaming technology is increasingly vital for businesses, enhancing digital experiences and real-time data access [1][7] - Confluent is a leading provider in this space, with a significant addressable market valued at $100 billion, which is expected to grow as data streaming becomes integral to the AI revolution [2][19] Company Performance - Confluent reported $260.9 million in subscription revenue for Q1 2025, exceeding management's guidance and reflecting a 26% year-over-year increase [11] - The company reduced its net loss by 27% to $67.5 million on a GAAP basis, while achieving a non-GAAP profit of $28.9 million, translating to $0.08 earnings per share [13] - Despite strong performance, Confluent lowered its full-year revenue forecast from $1.12 billion to $1.11 billion due to macroeconomic challenges [14] Market Sentiment - Wall Street analysts are generally bullish on Confluent, with 20 out of 34 assigning the highest buy rating, and an average price target of $28.60, indicating a potential upside of 44% [15][16] - The stock has seen a 79% decline from its all-time high in 2021, leading to a more attractive price-to-sales (P/S) ratio of 6.3, which is among the lowest in its public history [17] Industry Trends - The shift from physical servers to centralized cloud data centers is driving the data streaming revolution, with companies like Walmart leveraging Confluent's technology for real-time inventory management [8][9] - Data streaming is essential for AI applications, enabling businesses to create custom solutions by integrating with models from developers like OpenAI [9][10]

Core Viewpoint - Confluent, Inc. (NASDAQ: CFLT) reported strong year-over-year revenue growth and improved bottom line performance in its Q1 earnings, but the stock has declined by 19% since the earnings report due to weak demand from larger customers [1] Group 1: Financial Performance - The company demonstrated strong year-over-year revenue growth in its Q1 earnings report [1] - There was an improvement in the bottom line performance compared to previous periods [1] Group 2: Market Reaction - Despite the positive earnings report, Confluent's stock price has decreased by 19% following the announcement [1] - The decline in stock price is attributed to weak demand from larger customers [1]

Group 1 - The majority of small and mid-cap software companies have reported positive earnings surprises during the Q1 earnings season, which has helped mitigate volatility in the market [1] - The volatility in the market began with the onset of Trump's new policies, impacting the technology sector [1] - Gary Alexander has extensive experience in covering technology companies and has been a contributor to Seeking Alpha since 2017, providing insights into industry trends [1]

Core Viewpoint - Confluent's stock has experienced significant declines following its first-quarter earnings report, primarily due to disappointing guidance for future growth despite positive revenue and income figures [1][2][3][4]. Financial Performance - Confluent reported double-digit percentage gains in both revenue and non-GAAP net income, exceeding average analyst expectations [3]. - The company's guidance for the year indicates lower growth in critical areas, particularly subscription revenue, which has raised concerns among investors [4]. Analyst Reactions - Following the earnings report, several analysts reduced their price targets for Confluent, with Needham's Mike Cikos lowering his target from $40 to $26 while maintaining a buy recommendation [5]. - The overall sentiment among analysts appears to be cautious, reflecting concerns over the company's growth trajectory [5]. Market Sentiment - The market reacted negatively to Confluent's earnings report, leading to a significant sell-off despite the company posting strong trailing results [2][3]. - There is a perception that Confluent may be oversold, presenting a potential opportunity for investors amid the current share price weakness [6].

Core Viewpoint - Confluent's stock is experiencing a significant decline despite reporting strong quarterly results, primarily due to disappointing forward guidance from management [1][2]. Financial Performance - Confluent reported Q1 sales of $271.1 million, exceeding Wall Street's expectations of $264.39 million, and adjusted earnings per share of $0.08, surpassing the estimate of $0.07 [3]. - The company's revenue grew 24.8% year over year, with subscription revenue increasing by 26% to $261 million, and Confluent Cloud revenue rising 34% year over year to $143 million [4]. - Adjusted earnings per share increased by 60% year over year in the quarter [4]. Growth Outlook - For Q2, Confluent expects subscription sales to be between $267 million and $268 million, indicating a growth rate of approximately 19% at the midpoint [5]. - The full-year subscription revenue projection is between $1.1 billion and $1.11 billion, reflecting an annual growth rate of 19.5% at the midpoint [6]. - The company attributes its softer growth outlook to uncertainties regarding spending from large customers, raising concerns among investors about potential macroeconomic headwinds affecting expansion [6].

Company Performance - Confluent reported quarterly earnings of $0.08 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, and up from $0.05 per share a year ago, representing an earnings surprise of 14.29% [1] - The company achieved revenues of $271.12 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.86%, and an increase from $217.24 million year-over-year [2] - Over the last four quarters, Confluent has consistently surpassed consensus EPS and revenue estimates [2] Stock Outlook - Confluent shares have declined approximately 14% since the beginning of the year, compared to a 5.5% decline in the S&P 500 [3] - The company's current Zacks Rank is 3 (Hold), indicating expected performance in line with the market in the near future [6] - The consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $277.28 million, and for the current fiscal year, it is $0.35 on revenues of $1.16 billion [7] Industry Context - The Internet - Software industry, to which Confluent belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40526 CONFLUENT, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 47-1824387 (State or othe ...