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Confluent, Inc. (CFLT) Q1 2025 Earnings Call Transcript

The headline numbers for Confluent (CFLT) give insight into how the company performed in the quarter ended March 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

Confluent (CFLT) came out with quarterly earnings of $0.08 per share, beating the Zacks Consensus Estimate of $0.07 per share. This compares to earnings of $0.05 per share a year ago.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Confluent, Inc. (NASDAQ: CFLT), the data streaming pioneer, today announced financial results for its first quarter of 2025, ended March 31, 2025. “Confluent started the year with solid momentum, achieving subscription revenue growth of 26% year over year,” said Jay Kreps, co-founder and CEO, Confluent. “Our growth at scale amid heightened macroeconomic uncertainty demonstrates the mission-critical nature of data streaming and our significant product lead.

Looking beyond Wall Street's top -and-bottom-line estimate forecasts for Confluent (CFLT), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended March 2025.

Confluent (CFLT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

I initiate coverage on Confluent with a Buy rating and $36 PT, predicated on cloud momentum and a 21.5% CY25E revenue estimate. Confluent trades at a 19.1% discount to peer group despite strong fundamentals (45% YoY cloud growth, $1.01bn RPO, 58% CY25E revs visibility). Cloud, now 55% of sub revs, is a key lever for Confluent growth, supported by non-GAAP operating margin expansion and enterprise demand for AI/ML workloads.

Confluent (CFLT) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.

Confluent (CFLT) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

Artificial intelligence (AI) stocks haven't been performing well on the market in 2025 amid the tariff-fueled turmoil that threatens to send the U.S. economy into a recession. Share prices of cloud infrastructure provider Oracle (ORCL -0.81%) are down nearly 20% so far in 2025 as of this writing, while data streaming platform provider Confluent (CFLT 1.41%) has dipped more than 23%.