NEW YORK, Aug. 25, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Confluent, Inc. (“Confluent” or the “Company”) (NASDAQ: CFLT). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether Confluent and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining the class action] On July 30, 2 ...

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Confluent, Inc. regarding possible violations of federal securities laws and unlawful business practices affecting stockholders [1][2]. Investigation Details - The investigation is focused on whether Confluent has engaged in practices that may have harmed investors, particularly in light of recent financial disclosures [2]. - Investors who have suffered losses and are interested in discussing their legal rights are encouraged to contact the law firm [3]. Company Financial Performance - On July 30, 2025, Confluent announced its second-quarter financial results, revealing that consumption growth was negatively impacted by ongoing optimization efforts and a shift by an AI-native customer towards self-management of data platforms [6]. - Following this announcement, Confluent's stock price dropped by $8.68 per share, or 32.86%, closing at $17.73 per share on July 31, 2025 [6].

LOS ANGELES, Aug. 19, 2025 (GLOBE NEWSWIRE) -- The Law Offices of Frank R. Cruz continues its investigation of Confluent, Inc. (“Confluent” or the “Company”) (NASDAQ: CFLT) on behalf of investors concerning the Company’s possible violations of federal securities laws. IF YOU ARE AN INVESTOR WHO LOST MONEY ON CONFLUENT, INC. (CFLT), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS. What Is The Investigation About? On July 30, 2025, after market hours, Confluent released its secon ...

NEW YORK, Aug. 09, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of  Confluent, Inc.  (“Confluent” or the “Company”) (NASDAQ: CFLT).  Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether Confluent and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining the class action] On July 30 ...

Financial Data and Key Metrics Changes - Subscription revenue grew 21% to $270.8 million, representing 96% of total revenue [26] - Confluent Cloud revenue increased 28% to $150.5 million, accounting for 56% of subscription revenue compared to 52% in the previous year [26] - Non-GAAP operating margin improved to 6%, up approximately six percentage points [5][28] - Adjusted free cash flow margin increased to 3.9% [28] - Net income per share was $0.09 with a diluted share count of approximately 380 million [28] Business Line Data and Key Metrics Changes - Confluent Platform revenue grew 12% to $120.3 million, driven by strong performance in financial services and OEM partners [26] - Flink ARR grew approximately 3x over the past two quarters, approaching $10 million [5][16] - RPO growth accelerated to 31%, indicating deepening customer relationships [8] Market Data and Key Metrics Changes - Revenue from the US grew 15% to $164.3 million, while revenue from outside the US grew 29% to $117.9 million [27] - Total customer growth was in line with the average growth rate of the previous four quarters [29] - 20k+ ARR customer count grew approximately 8% to 2,497, representing over 95% of ARR [29] Company Strategy and Development Direction - The company is focusing on three key areas: replacing CSP streaming offerings, enhancing the partner ecosystem, and expanding Flink [10][12][34] - The partner ecosystem has sourced over 20% of the business in the past year, with significant partnerships established [14][35] - The company aims to capture a meaningful share of the $100 billion data streaming market [24] Management's Comments on Operating Environment and Future Outlook - Management noted that larger customers are optimizing their usage, which is expected to impact consumption growth in the near term [6][30] - Despite consumption headwinds, management remains confident in the strength of the business and the potential for growth in AI workloads [23][34] - The outlook for Confluent Cloud assumes month-over-month growth rates will remain notably below historical averages for the remainder of the year [31] Other Important Information - The company is seeing early success in operational enhancements aimed at improving customer engagement and driving use case expansions [9][33] - The Flink offering is central to the company's strategy for real-time data processing, with significant growth observed [17][34] Q&A Session Summary Question: Can you elaborate on the consumption optimization trends? - Management indicated that the optimization is a broader trend seen across various companies, with some customers reducing their Confluent Cloud usage due to internal changes [37][40] Question: How do you see production AI workloads impacting subscription growth? - Management believes that the relevance of streaming and processing in AI applications will positively impact subscription growth moving forward [43][45] Question: What is the outlook for NRR and GRR metrics? - Management expects near-term pressure on NRR and GRR due to current consumption patterns but sees potential tailwinds from operational improvements and customer commitments [98][99] Question: How is the company addressing the challenges in the 20k+ customer segment? - Management acknowledged the need to focus on this segment and is implementing strategies to drive growth, particularly through CSP takeouts [78][80]

Financial Data and Key Metrics Changes - Confluent reported a 21% growth in subscription revenue, reaching $270.8 million, which represented 96% of total revenue [25] - Non-GAAP operating margin increased to 6%, up approximately six percentage points year-over-year [4][28] - Adjusted free cash flow margin rose to 3.9%, reflecting operational efficiencies [28] Business Line Data and Key Metrics Changes - Confluent Cloud revenue grew 28% to $150.5 million, accounting for 56% of subscription revenue, up from 52% in the previous year [25] - Confluent Platform revenue increased by 12% to $120.3 million, driven by strong performance in financial services and OEM partnerships [25] - Flink ARR grew approximately 3x over the past two quarters, approaching $10 million [15][31] Market Data and Key Metrics Changes - Revenue from the US grew 15% to $164.3 million, while revenue from outside the US increased by 29% to $117.9 million [26] - Total customer growth remained consistent with previous quarters, with 20k+ ARR customer count growing 8% to 2,497 [29] Company Strategy and Development Direction - The company is focusing on enhancing operational efficiencies and improving coverage ratios between account executives and post-sales roles to drive customer engagement [6][7] - Confluent is doubling down on three strategic areas: replacing CSP streaming offerings, expanding the partner ecosystem, and growing the Flink business [8][12][15] - The partner ecosystem has sourced over 20% of business in the past year, indicating a strong collaborative approach to market penetration [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged near-term consumption headwinds but expressed confidence in the long-term growth trajectory, particularly in AI workloads and DSP monetization [22][35] - The company expects production AI use cases to grow 10x across a few hundred customers, indicating a significant market opportunity [19][33] - Management raised full-year growth expectations for Confluent Platform, reflecting strong pipeline visibility [31] Other Important Information - The company ended the quarter with $1.94 billion in cash, cash equivalents, and marketable securities, providing a strong financial position [29] - Non-GAAP net income per diluted share was reported at $0.09, with expectations for continued growth in the upcoming quarters [28][31] Q&A Session Summary Question: Can you elaborate on the consumption optimization trends? - Management noted that optimization efforts are similar to trends seen across the industry, with some customers focusing on maximizing value from existing purchases [40][41] Question: How do you see production AI workloads impacting subscription growth? - Management believes that the relevance of streaming in AI applications will positively influence subscription growth moving forward [43][45] Question: What is the outlook for net revenue retention (NRR)? - NRR is expected to face near-term pressure due to current consumption patterns, but management is optimistic about future tailwinds from operational improvements and customer commitments [93][94] Question: How is the go-to-market strategy evolving? - Management indicated that changes in sales compensation to focus on incremental consumption have been beneficial, and they are optimistic about driving new use cases [62][63] Question: What are the expectations for structural changes from field realignment efforts? - Management is already seeing positive momentum from recent changes and expects these adjustments to yield meaningful results in the near future [107][108]

Financial Performance - Confluent's Q2 2025 revenue reached $282.3 million, a 21% year-over-year increase[9,58] - Cloud revenue was $150.5 million, representing a 28% year-over-year growth[9,56] - The company achieved a Non-GAAP operating margin of 6.3%, a 6 percentage point increase year-over-year[9] - Adjusted Free Cash Flow Margin was 3.9%, a 3 percentage point increase year-over-year[9] - Subscription revenue for Q2 2025 was $270.8 million[54,79] Customer Growth and Retention - Net Retention Rate was 114%[9] - The number of customers contributing $100,000 or more in ARR grew by 24% year-over-year[60] - Customers with >= $1M in ARR increased by 10% YoY[60] Market and Strategy - Confluent estimates a total addressable market (TAM) of over $100 billion[46,70] - The company is focused on expanding its Data Streaming Platform (DSP) capabilities[8,21] - Confluent is transitioning to "Act 3," focusing on a complete Data Streaming Platform[8,48] Revenue Mix - In Q2 2025, US revenue accounted for 53% and International revenue accounted for 47% of the total revenue[58] - Confluent Cloud accounted for 50% of the revenue, Confluent Platform accounted for 46% and Services accounted for 4% of the total revenue in Q2 2025[58]

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].

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].

Financial Data and Key Metrics Changes - Q1 subscription revenue grew 26% to $261 million, exceeding guidance and representing 96% of total revenue [23] - Confluent Cloud revenue increased 34% to $143 million, accounting for 55% of subscription revenue [23] - Non-GAAP operating margin improved by 6 percentage points to 4% [4][26] - Subscription gross margin increased by 100 basis points to 81.7% [25] - Adjusted free cash flow margin was 1.8%, impacted by a compensation change [26] Business Line Data and Key Metrics Changes - Confluent Platform revenue reached a record $118.2 million, with growth accelerating to 18% [23] - The number of customers increased to approximately 6,140, with a net addition of 340 customers, the highest since Q1 2022 [27] - The count of $1 million plus ARR customers grew to 210, marking the best quarter for net additions in this cohort [28] Market Data and Key Metrics Changes - Revenue from the U.S. grew 23% to $156.4 million, while revenue from outside the U.S. grew 28% to $114.7 million [24] - The gross retention rate remained above 90%, demonstrating the mission-critical nature of the data streaming platform [6][28] Company Strategy and Development Direction - The company focuses on enabling customers to build next-generation applications efficiently, particularly in the age of AI [4] - Confluent aims to capture the $100 billion addressable market opportunity by leveraging Apache Kafka as a foundational technology [6] - The strategy includes a hybrid business model that allows flexibility in deployment across on-prem, cloud, and hybrid environments [12] Management's Comments on Operating Environment and Future Outlook - Management noted a slowdown in new use case additions among larger customers, while smaller customers showed stable consumption [29] - The company expects subscription revenue for Q2 2025 to be in the range of $267 million to $268 million, representing approximately 19% growth [28] - For fiscal year 2025, subscription revenue is expected to be between $1.1 billion and $1.11 billion, indicating growth of approximately 19% to 20% [29] Other Important Information - The company was named Google Partner of the Year for the sixth time, reflecting strong partnerships with leading cloud service providers [21] - Ryan McBann was promoted to Chief Revenue Officer, tasked with leading global field strategy [20] Q&A Session Summary Question: What is the status of existing use cases and consumption run rates? - Management observed lower consumption in larger customers but stable consumption in smaller ones, indicating a cycle of optimization and growth [35][36] Question: How does the company view the future of Confluent regarding diskless Kafka? - Management confirmed that both cloud and WarpStream are utilizing intelligent storage solutions, optimizing cost and performance [42][44] Question: Can you quantify the growth of DSP offerings like Flink and TableFlow? - DSP offerings are significantly outgrowing the core cloud business, with early traction noted in both cloud and Confluent Platform [48][50] Question: How does the company view customer additions versus net revenue retention (NRR)? - The company expects NRR to remain stable around 17%, supported by a strong gross retention rate [58] Question: What is the outlook for the Confluent Platform (CP) performance? - CP showed strong performance with an 18% growth, driven by multi-year deals and a balanced customer mix [99]