Streaming Industry Overview - Streaming stocks are shares of publicly traded companies primarily delivering audio, video, or live content over the internet, with notable examples including Netflix and Spotify [2] - Investors focus on metrics such as subscriber growth, engagement, churn, content, and marketing spend, as these factors drive recurring revenue and influence valuations and volatility [2] Company Summaries Spotify Technology (SPOT) - Spotify Technology S.A. provides audio streaming subscription services globally, operating through two segments: Premium and Ad-Supported [3] - The Premium segment offers unlimited online and offline streaming access to its music and podcast catalog without commercial breaks [3] Confluent (CFLT) - Confluent, Inc. operates a data streaming platform both in the U.S. and internationally, providing platforms for customers to connect applications, systems, and data layers [3] - Key offerings include Confluent Cloud, a managed cloud-native software-as-a-service, and Confluent Platform, an enterprise-grade self-managed software [3] Roku (ROKU) - Roku, Inc. operates a TV streaming platform in the U.S. and internationally, divided into two segments: Platform and Devices [4] - The Platform segment includes digital advertising services, media and entertainment promotional spending, and revenue shares from streaming services [4] Franco-Nevada (FNV) - Franco-Nevada Corporation is a gold-focused royalty and streaming company operating in various regions including South America, Central America, and the U.S. [5] - The company manages a portfolio focused on precious metals and engages in the sale of crude oil, natural gas, and natural gas liquids [5] Logitech International (LOGI) - Logitech International S.A. designs, manufactures, and markets software-enabled hardware solutions for gaming, streaming, and other applications [6] - Product offerings include gaming peripherals, streaming services, and various types of speakers and webcams [6][7]

Barclays analyst sets a price target of $27 for Confluent, Inc. (NASDAQ:CFLT), indicating a potential upside of 22.28%.Confluent reports a 30% earnings surprise in Q3 2025, with EPS of $0.13, surpassing the Zacks Consensus Estimate.Revenue growth highlighted by a 24% year-over-year increase in Confluent Cloud revenue and consistent outperformance of consensus revenue estimates.Confluent, Inc. (NASDAQ:CFLT) is a prominent player in the data streaming industry, providing a platform that enables real-time data ...

Core Insights - Confluent Inc reported better-than-expected earnings for Q3, with earnings of 13 cents per share, surpassing the analyst consensus estimate of 10 cents per share [1] - The company achieved quarterly sales of $298.537 million, exceeding the analyst consensus estimate of $292.871 million [1] - Confluent raised its FY2025 adjusted EPS guidance from $0.36 to a range of $0.39-$0.40 [1] Financial Performance - Confluent experienced a 24% year-over-year growth in Confluent Cloud revenue [2] - There was a 43% year-over-year growth acceleration in remaining performance obligations, indicating strong consumption growth and customer commitment [2] Market Reaction - Following the earnings announcement, Confluent shares increased by 11% to $24.51 in pre-market trading [2] Analyst Ratings and Price Targets - Morgan Stanley maintained an Equal-Weight rating and raised the price target from $25 to $27 [5] - Piper Sandler maintained an Overweight rating and increased the price target from $27 to $28 [5] - Baird maintained a Neutral rating and raised the price target from $20 to $26 [5] - Stephens & Co. maintained an Overweight rating and boosted the price target from $25 to $29 [5] - Barclays maintained an Overweight rating and increased the price target from $24 to $27 [5]

Core Insights - Confluent reported revenue of $298.52 million for the quarter ended September 2025, reflecting a year-over-year increase of 19.3% and surpassing the Zacks Consensus Estimate of $292.05 million by 2.22% [1] - The company's EPS for the quarter was $0.13, an increase from $0.10 in the same quarter last year, resulting in an EPS surprise of 30% compared to the consensus estimate of $0.10 [1] Revenue Breakdown - Revenue from Services was $12.19 million, exceeding the average estimate of $10.4 million by analysts, representing a year-over-year increase of 17.8% [4] - Subscription revenue reached $286.34 million, surpassing the average estimate of $281.42 million, with a year-over-year growth of 19.4% [4] - Revenue from Confluent Cloud was $161 million, exceeding the estimated $157.67 million, marking a significant year-over-year increase of 24.1% [4] Stock Performance - Confluent's shares have returned 15.2% over the past month, outperforming the Zacks S&P 500 composite, which saw a change of 2.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Q3 subscription revenue grew 19% to $286.3 million, with Confluent Cloud revenue increasing 24% to $161 million, representing 56% of subscription revenue compared to 54% in the previous year [21][24] - Non-GAAP operating margin expanded 3 percentage points to approximately 10%, with subscription gross margin at 81.8% [4][22] - Adjusted free cash flow margin increased 450 basis points to 8.2%, and net income per share was $0.13 [22] Business Line Data and Key Metrics Changes - Confluent Platform revenue grew 14% to $125.4 million, driven by demand in financial services [21] - Flink ARR for Confluent Cloud grew more than 70% sequentially, with over 1,000 customers using Flink [27][28] - The count of $100K+ ARR customers increased to 1,487, marking the largest sequential increase in two years [23] Market Data and Key Metrics Changes - Revenue from the U.S. grew 13% to $172.1 million, while revenue from outside the U.S. grew 29% to $126.4 million [22] - The net retention rate stabilized at 114%, with gross retention rate remaining close to 90% [23] Company Strategy and Development Direction - The company is focused on tightening field alignment to drive more use cases into production and expanding its Data Streaming Platform (DSP) specialist team for multi-product selling [5][6] - The partner ecosystem sourced over 25% of new business in the last 12 months, indicating strong growth potential [9][29] - The company aims to position its Data Streaming Platform as the context layer for enterprise AI, enhancing real-time data capabilities [19][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong cloud consumption growth and the traction of the Data Streaming Platform, particularly with Flink [19][30] - The outlook for Q4 2025 includes expected subscription revenue in the range of $295.5 million to $296.5 million, representing growth of approximately 18% [24] - For fiscal year 2025, subscription revenue is expected to be in the range of $1.1135 billion to $1.1145 billion, representing growth of approximately 21% [25] Other Important Information - The company reported a record operating margin of 9.7%, exceeding guidance by 270 basis points [22] - The WarpStream acquisition has seen 8x growth in consumption over the past year, indicating successful integration and market demand [12][30] Q&A Session Summary Question: Insights on go-to-market changes and pipeline conversion trends - Management highlighted the successful implementation of a specialization model for DSP and the importance of field execution in driving consumption pipeline [33] Question: RPO as a leading indicator for growth - RPO is considered a key leading indicator for Confluent Platform, while for Confluent Cloud, the focus is on the momentum of new use cases moving into production [37] Question: Growth stabilization and cannibalization effects - Management noted that new offerings have proven to be a substantial tailwind, leading to larger deal sizes and increased customer engagement [43] Question: Flink's growth and future potential - The company expressed excitement about Flink's growth trajectory and its potential to capture a significant market opportunity in real-time data processing [57] Question: Impact of U.S. Federal shutdown on guidance - Management indicated that the federal performance in Q3 was in line with expectations, and the impact of the shutdown is accounted for in Q4 guidance [80]

Financial Data and Key Metrics Changes - Q3 subscription revenue grew 19% to $286 million, representing 96% of total revenue [24][4] - Confluent Cloud revenue increased 24% to $161 million, accounting for 56% of subscription revenue compared to 54% in the previous year [24][4] - Non-GAAP operating margin expanded three percentage points to approximately 10% [4] - Subscription gross margin was 81.8%, above the long-term target of 80% [26] - Operating margin increased 340 basis points to a record 9.7%, exceeding guidance by 270 basis points [26] - Adjusted free cash flow margin increased 450 basis points to 8.2% [26] Business Line Data and Key Metrics Changes - Confluent Platform revenue grew 14% to $125.4 million, driven by demand in financial services [24] - Flink ARR for Confluent Cloud grew more than 70% sequentially, with over 1,000 customers using Flink [31][7] - The number of customers with $100k+ ARR increased to 2,533, up 36 sequentially [27] - The number of customers with $1 million+ ARR increased to 234, representing a growth acceleration of 27% [27] Market Data and Key Metrics Changes - Revenue from the U.S. grew 13% to $172.1 million, while revenue from outside the U.S. grew 29% to $126.4 million [24] - Net retention rate stabilized at 114%, with gross retention rate close to 90% [27] Company Strategy and Development Direction - The company is focused on tightening field alignment to drive more use cases into production and expanding its DSP specialist team for multiproduct selling [6][7] - The partner ecosystem sourced over 25% of new business in the last twelve months, indicating strong growth potential [10][11] - The company aims to position itself as a leader in providing real-time data context for AI applications, emphasizing the importance of data streaming in AI deployment [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong cloud consumption growth and the overall performance of the data streaming platform [22][36] - The company expects subscription revenue for 2025 to be in the range of $295.5 million to $296.5 million, representing approximately 18% growth [29] - For fiscal year 2025, subscription revenue is expected to be between $1.1135 billion and $1.1145 billion, indicating approximately 21% growth [29] Other Important Information - The company highlighted the successful integration and growth of WarpStream, which has seen eightfold growth in consumption since its acquisition [14][35] - The company has maintained a win rate above 90% in replacing CSP streaming offerings, with average deal sizes more than doubling over the past two quarters [11][12] Q&A Session Summary Question: Insights on go-to-market changes and pipeline conversion trends - Management noted that the specialization model for DSP and field execution improvements have driven strong pipeline progression, with high confidence in the late-stage pipeline [40][41] Question: RPO and CRPO as leading indicators - Management confirmed that RPO is a key leading indicator for the Confluent platform, while for Confluent Cloud, the focus is on new use cases moving into production [45][46] Question: Growth outlook and cannibalization effects - Management indicated that new offerings have proven to be a substantial tailwind, leading to larger deal sizes and increased customer engagement [54] Question: Flink adoption and future business impact - Management expressed excitement about Flink's growth and its potential to drive significant business opportunities in the future [76][78] Question: AI use cases and customer readiness - Management highlighted various AI use cases across industries, emphasizing the importance of data flow and quality in achieving successful AI deployments [86][87]

Investor Presentation October 27, 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, expenses and other results of operations; net dilution; future financial performance, business strategy and plans; potential market and growth opportunities; our growth drivers; compet ...

Core Insights - Confluent, Inc. is a significant player in the data streaming industry, offering solutions for real-time data processing [1][4] - The consensus price target for Confluent's stock has fluctuated, with a recent increase to $24 from $22, indicating a shift in analyst sentiment [1][5] - Confluent has a substantial addressable market of $100 billion and serves blue-chip customers, enhancing its business model [4] Price Target and Analyst Sentiment - The average price target for Confluent's stock was $24 last month, up from $22 in the previous quarter, but down from $27.63 a year ago [1][5] - Analyst Rudy Kessinger from D.A. Davidson has set a price target of $44 for Confluent, reflecting a positive outlook despite recent fluctuations [2] Stock Performance and Market Conditions - Confluent's stock saw a 7.6% increase in its price during the last trading session, driven by higher-than-average trading volume [3][5] - Current trends in earnings estimate revisions may not support a continued upward trajectory in the near term, suggesting caution for investors [3] Financial Position and Valuation - Confluent holds nearly $2 billion in cash reserves, indicating a strong financial position [4][5] - The company trades at low enterprise value to revenue multiples of 5.2x for fiscal year 2025 and 4.4x for fiscal year 2026, making it an attractive investment opportunity [4]

Gold Market - Gold prices have reached record levels above $4,000 for the first time, with a return of over 50% in 2025 alone [6][7][8] - Experts suggest that gold should be a permanent position in diversified portfolios, typically around 5% allocation, due to its historical role as a store of value [8][9][10] - The gold market is estimated to be $25 trillion, about half the size of the US stock market, indicating significant potential for growth as it catches up with stock market performance [11] Tesla - Tesla has unveiled cheaper versions of its Model Y and Model 3 in an effort to boost sales following the expiration of the federal EV tax credit [42][44] - Analysts predict that while these cheaper models may help sales volume marginally, a significant drop in sales is expected due to the tax credit expiration and cooling EV sales overall [43][44][48] - Concerns have been raised about Tesla's stagnant vehicle portfolio, with only one new model introduced in over five years, leading to a loss of market share to competitors [51][53] Coffee Industry - Dunkin' has opened its 10,000th US location and plans to double its footprint, targeting growth in the afternoon segment with a new pilot program [60][61][62] - The company emphasizes its market leadership in coffee sales and aims to compete effectively against rivals like Starbucks and Dutch Bros by enhancing its afternoon offerings [63][64] - Dunkin' is leveraging its rewards program and targeted offers to maintain consumer engagement and manage costs amid rising commodity prices [68][70] Luxury Housing Market - The luxury housing market is experiencing a paradox where prices are rising by 4% year-over-year, yet sales have fallen to their lowest levels in over a decade [79][80] - Economic uncertainty and concerns about a potential downturn are causing buyers to hesitate, leading to a decrease in demand despite elevated inventory levels [81][84] - Regional variations exist, with some areas like West Palm Beach seeing price increases while others, such as Tampa, are experiencing declines [86] Stable Coins - The total market capitalization for stable coins has surpassed $300 billion, with predictions that it could reach $1.5 trillion by 2030 [24][26] - Stable coins are primarily used for trading within the crypto markets, cross-border payments, and digital commerce, providing a stable alternative to more volatile cryptocurrencies [27][28] - Major players in the stable coin market include Tether and Circle, which together control over 80% of the market, with significant backing from US Treasury bills [29][30]

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving Confluent, Inc. and its officers or directors, following a significant drop in the company's stock price after disappointing financial results [1][3]. Financial Performance - On July 30, 2025, Confluent reported its second-quarter financial results, indicating that consumption growth was negatively affected by ongoing optimization efforts, with month-over-month trends lagging behind previous years [3]. - The company's Chief Financial Officer noted that an AI-native customer shifted towards self-management of internal data platforms, leading to a reduction in Confluent Cloud usage [3]. - Following the earnings announcement, Confluent's stock price decreased by $8.68 per share, representing a decline of 32.86%, closing at $17.73 per share on July 31, 2025 [3].