Confluent (NASDAQ:CFLT) shares skyrocketed nearly 24% in the early session today after the data streaming platform operator delivered an impressive set of numbers for the fourth quarter. Revenue increased by 26% year-over-year to $213 million. The figure exceeded estimates by $7.7 million. In sync, EPS of $0.09 landed past expectations by $0.04.
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During the quarter, Subscription revenue increased by 31% to $203 million, and Confluent Cloud revenue shot up by 46% to $100 million. Notably, the company’s number of customers with ARR (Annual Recurring Revenue) of $100,000 or higher ticked up by 21% to 1,229.
This uptick in revenue helped Confluent narrow its GAAP operating loss to $84.7 million from $115 million in the year-ago period. At the same time, its non-GAAP operating margin improved to 5.3% from -21.5% a year ago. For the upcoming quarter, Confluent foresees total revenue in the range of $211 million to $212 million. Adjusted EPS for the quarter is anticipated between $0.00 and $0.02. For Fiscal Year 2024, Confluent anticipates an adjusted EPS of $0.17 on total revenue of $950 million.
Is CFLT Stock a Good Buy?
Overall, the Street has a Moderate Buy consensus rating on Confluent alongside a $28.50 average price target. However, with today’s mega price gains, CFLT stock is potentially set to open above this price level.
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