Confluent shares surge 16% on strong Q3 results, raised guidance

MOUNTAIN VIEW, Calif. - Confluent, Inc. (NASDAQ:CFLT) saw its shares soar nearly 16% in after-hours trading on Wednesday after the data streaming platform provider reported better-than-expected third quarter results and raised its full-year outlook.

The company posted adjusted earnings of $0.10 per share for Q3, beating analyst estimates of $0.05 per share. Revenue came in at $250.2 million, surpassing the consensus forecast of $245.05 million and representing a 25% YoY increase.

"We exceeded all guided metrics for Q3, including year-over-year subscription revenue growth of 27%," said Jay Kreps, co-founder and CEO of Confluent.

Confluent Cloud revenue grew 42% YoY to $130 million in the quarter. The company also reported 1,346 customers with $100,000 or greater in annual recurring revenue, up 14% from the prior year.

For Q4, Confluent expects revenue between $245-$246 million, below analyst estimates of $257.1 million. However, the company raised its full-year 2024 revenue guidance to $916.5-$917.5 million, up from its previous outlook.

"Given our third quarter performance, we are raising our full-year 2024 subscription revenue guidance, and are now targeting positive non-GAAP operating margin and free cash flow margin for 2024," said CFO Rohan Sivaram.

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Source: Investing.com