Confluent Stock Poised To Open At 2-Month High On Q4 Beat: Retail Lauds Company’s Consistent Performance

Confluent, Inc. (CFLT) stock rallied strongly in Wednesday’s premarket after the data streaming platform reported forecast-beating results for the fiscal year 2024 fourth quarter.

The Mountain View, California-based cloud-based software-as-a-service company reported fourth-quarter adjusted earnings per share (EPS) of $0.09, unchanged from a year ago. The results exceeded the guidance of $0.05 and the consensus estimate of $0.06.

Revenue climbed 23% year-over-year (YoY) to $261.2 million from $213.2 million last year, beating analysts’ average estimate of $256.98 million. 

Subscription revenue grew 24% to $250.6 million, more than the guided range of $245 million to $246 million. 

Confluent Cloud revenue for the quarter was up 28%.

Among key user metrics, total customers increased 17% YoY to about 5,800, with annual recurring revenue (ARR) rising 12% for $100K+ accounts and 23% for $1 million+ accounts. 

Confluent co-founder and CEO Jay Kreps said, “Confluent closed the year with a strong Q4, highlighted by beating all guided metrics and achieving 38% year-over-year Confluent Cloud revenue growth.”

“Our momentum reflects the increasing importance of a complete data streaming platform to power mission-critical and real-time AI applications.”

CFO Rohan Sivaram said the company is well-positioned to achieve its growth and profitability targets for 2025.

Confluent expects first-quarter non-GAAP EPS of $0.06-$0.07 versus the $0.07 consensus estimate, and subscription revenue of $253 million to $254 million.

The company expects full-year 2025 non-GAAP EPS guidance of $0.35 and subscription revenue of $1.117 billion to $1.121 billion. The consensus estimates are at $0.36 and $1.116 billion, respectively.

Separately, Confluence announced a strategic partnership with India’s Jio Platforms Ltd. for Jio Cloud services, making it easier for Indian businesses to get started with data streaming.

It also announced a major expansion to its partnership with data and artificial intelligence (AI) company Databricks to empower enterprises with real-time data for AI-driven decision-making. 

On Stocktwits, retail sentiment toward Confluent stock stayed ‘bullish’ (74/100), with the message volume spiking to ‘extremely high’ levels.

A  retail user said Confluent stock is on their “ breakout” watchlist following the quarterly results and Databricks deal.

Another user lauded the company for its eighth straight double beat. 

In premarket trading, Confluent stock climbed 14.05% to $34.33, marking a two-month high. The stock is up about 7.7% so far this year.

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