Confluent stock rises on Q4 earnings beat, strong outlook
Shares of software company Confluent (CFLT) surged after the company delivered better-than-expected fourth-quarter results, followed by robust guidance for 2024. Confluent beat on both revenue, which grew to $213.2 million versus $205.5 million forecasted, and adjusted earnings per share of $0.09 compared to estimates of $0.05.
Yahoo Finance's Julie Hyman and Josh Lipton break down the details.
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Editor's note: This article was written by Angel Smith
Video Transcript
JOSH LIPTON: Shares of Confluent jumping today. That's after earnings topped estimates. And the software company said it expects revenue in 2024 of about $950 million. That is up 22% and ahead of analysts' expectations. So Confluent, let's talk application software, Julie. Let's do that.
JULIE HYMAN: Let's do that.
JOSH LIPTON: Q4 beat. Full-year revenue forecast also better than what the Street had been looking for. I'm just looking over the commentary from analysts. They seem to like what they saw in this report. Matt Hedberg over at RBC, he's a smart guy, telling clients this was-- he called it a bounce pack quarter.
Call that we also said were major milestones for Confluent, specifically, for example, cloud revenue hitting $100 million. Continues to like the opportunity. Rates just went outperform.
JULIE HYMAN: And this is an interesting one. So it was founded back in 2014. It did come public in that whole big class of 2021. In this case, in June of 2021 at $36 a share. And the stock today is having its single best day since that IPO with that big leg up that we're watching here.
The high was back in late 2021, as it was for so many of those class of 2021 IPOs, of $93.60. So, it's still below that. It's still below the IPO price, even as we see that gain here. And so it looks like analysts are viewing this as some real progress towards kind of recouping some of those losses. And some analysts talking about further upside going through the rest of the year as well.
JOSH LIPTON: Yup.
JULIE HYMAN: Yeah, interesting stuff.
