Where Will Confluent Stock Be in 3 Years?

Core Viewpoint - Confluent has experienced a significant decline in stock value since its IPO, but it may have potential for recovery due to its expanding addressable market and applications in artificial intelligence [2][10][15] Financial Performance - Confluent's stock lost 46% of its value since its IPO and 74% from its all-time high [2] - The company's sales growth rates have decreased from 64% in 2021 to a projected 24% in 2024 [6] - Currently, Confluent is trading at just under 8 times sales, lower than its five-year average of 12 [6] Market Opportunities - Confluent's addressable market is now over $100 billion, double the size from four years ago [10] - The company has seen a 20% year-over-year increase in its customer base in Q1 2025, up from 9% in the previous year [11] Customer Engagement - Confluent's dollar-based net retention rate is 117%, indicating existing customers are increasing their spending [11][12] - The company's non-GAAP operating margin improved by six percentage points year-over-year in Q1, contributing to a 60% increase in non-GAAP earnings to $0.08 per share [12] Future Outlook - Confluent has guided for earnings of $0.36 per share in 2025, suggesting a 24% increase from the previous year [13] - Analysts expect an acceleration in Confluent's bottom-line growth over the next few years, indicating potential stock price appreciation [15]