Confluent, Inc. (NASDAQ: CFLT) delivered better-than-expected results for the fourth quarter of 2022. The real-time big-data streaming tools provider witnessed strong customer growth during the quarter.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Revenues came in at $168.7 million, up 41% year-over-year, and also surpassed the analysts’ estimates of $164.9 million. Higher revenues can be attributed to a 43.6% rise in subscription revenues.
Meanwhile, the company posted an adjusted net loss of $0.09 per share, narrower than the Street’s estimate of a loss of $0.14 per share. Also, the reported figure compares favorably with a loss of $0.19 in the prior-year quarter.
Confluent witnessed 35% growth in customers, with $100,000 or greater in ARR. The company said that customer additions were driven by its Confluent Cloud unit. Furthermore, the company doubled its more than $5 million in ARR customers year-over-year.
Regarding the outlook, the company expects total revenue in the first quarter of 2023 to be between $166-$168 million, while adjusted net loss is anticipated to be in the range of $0.13 to $0.15.
Recent Development
Confluent recently announced plans to slash its global workforce by about 8% with a view to cutting costs and achieving breakeven in the adjusted operating margin. Most of the layoffs are expected to occur by the second quarter of 2023.
Is Confluent Stock a Good Buy?
The stock has a Moderate Buy consensus rating based on 11 Buys and six Holds. The average CFLT stock price forecast is $29.88, implying an upside potential of 29.7% at current levels.
