Data software company Confluent late Tuesday reported first-quarter earnings and sales that exceeded expectations. Confluent stock jumped in late trading.
The Mountain View, Calif.-based company said that it earned an adjusted 5 cents per share on sales of $217 million for the March-ended quarter. On average, analysts projected Confluent would post adjusted earnings of 2 cents per share on sales of $211.6 million, according to FactSet.
Sales increased 25% from the same quarter a year earlier. Earnings, meanwhile, swung from an adjusted loss of 9 cents per share for the first quarter in 2023.
For the current quarter, Confluent guided for sales of $229.5 million. Analysts were projecting Confluent would tally $228.7 million in sales for the June-ending quarter, according to FactSet.
On the stock market today, Confluent stock is up more than 6% at 29.54 in recent after-hours action.
Confluent Cloud Business Grows
Confluent offers what is known as data streaming software, which it describes as a central nervous system for an enterprise's data. The company has the attention of some investors as an artificial intelligence play. Its software is utilized by a list of firms that includes OpenAI to help move and sort data in real-time.
In its news release, the company highlighted the growth of its Confluent Cloud subscription product. Confluent Cloud revenue grew 45% year over year to $107 million in the first quarter.
Confluent Cloud "now accounts for the majority of our subscription revenue and remains our fastest growing offering," Chief Executive Jay Kreps said in a news release. "These results show the critical role data streaming plays in the modern technology landscape."
Confluent Stock: Technical Ratings
Prior to earnings, Confluent stock fell 2.7% in Tuesday trading. Shares have gained 19% this year compared to an 8.8% gain for the S&P 500. Confluent stock is up 22.8% in the past 12 months, compared to a 25% gain for the S&P 500.
Coming into the report, Confluent stock had an IBD Composite Rating of 98 out of a best-possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
Further, Confluent's IBD Relative Strength Rating was 85 out of 99.
