What To Expect From Confluent's (CFLT) Q1 Earnings

Data infrastructure software company, Confluent (NASDAQ:CFLT) will be announcing earnings results tomorrow after the bell. Here’s what you need to know.

Confluent beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $261.2 million, up 22.5% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ billings estimates but revenue guidance for next quarter missing analysts’ expectations significantly. It added 35 enterprise customers paying more than $100,000 annually to reach a total of 1,381.

Is Confluent a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Confluent’s revenue to grow 21.6% year on year to $264.3 million, slowing from the 24.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Confluent has missed Wall Street’s revenue estimates twice over the last two years.

With Confluent being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for data and analytics software stocks. However, investors in the segment have had steady hands going into earnings, with share prices up 1.2% on average over the last month. Confluent is up 2.7% during the same time and is heading into earnings with an average analyst price target of $33.51 (compared to the current share price of $24.08).

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