Confluent (CFLT) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Zacks Equity Research
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For the quarter ended September 2023, Confluent (CFLT) reported revenue of $200.18 million, up 31.9% over the same period last year. EPS came in at $0.02, compared to -$0.13 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $194.82 million, representing a surprise of +2.75%. The company delivered an EPS surprise of +300.00%, with the consensus EPS estimate being -$0.01.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Confluent performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Customers with $100,000 or greater in annual recurring revenue (ARR): 1 compared to the 1 average estimate based on two analysts.

  • Remaining performance obligations (RPO): $824.10 million versus the two-analyst average estimate of $861.94 million.

  • Revenue- Services: $10.91 million versus the seven-analyst average estimate of $13.16 million. The reported number represents a year-over-year change of -16.1%.

  • Revenue- Subscription: $189.27 million compared to the $181.63 million average estimate based on seven analysts. The reported number represents a change of +36.4% year over year.

  • Revenue- Confluent Cloud: $91.60 million versus $92.12 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +60.7% change.

View all Key Company Metrics for Confluent here>>>

Shares of Confluent have returned +2.2% over the past month versus the Zacks S&P 500 composite's -2.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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