Confluent (CFLT) AI Stock Analysis

• Market Cap: $7.89B
• Dividend Yield: N/A
• Average Volume (3M): 9.16M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.92
• Revenue Growth: 21.58%
• EPS Growth: 18.88%
• Country: US
• Employees: 3,060
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.13
• Shares Outstanding: 298,746,300
• 10 Day Avg. Volume: 11,696,278
• 30 Day Avg. Volume: 9,163,697
• PEG Ratio: 0.96
• Price to Book (P/B): 9.36
• Price to Sales (P/S): 9.34
• P/FCF Ratio: 948.39
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 5.36
• Enterprise Value/Gross Profit: 7.22
• Enterprise Value/Ebitda: -17.52
• 1Y Price Target: $27.68
• Price Target Upside: 22.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 26
• EPS Forecast (FY): 0.4
• Revenue Forecast (FY): $1.16B

• Rating: 67 Neutral
• Price Target: $24.00 ▲(6.15% Upside)

Confluent's strong earnings call performance and positive technical indicators are the most significant factors driving the stock score. The company's robust growth in cloud revenue and strategic advancements in AI and partnerships are key strengths. However, ongoing net losses and negative valuation metrics present challenges that moderate the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Flow Improvement

Improved cash flow enhances financial flexibility, enabling strategic investments and reducing reliance on external financing.

AI and Product Innovation

Innovations in AI and streaming agents position Confluent as a leader in data streaming, driving future growth and competitive advantage.

Negative Factors

Net Losses

Ongoing net losses indicate challenges in achieving profitability, which could affect long-term financial health and investor confidence.

Negative Return on Equity

Negative ROE suggests inefficiency in generating returns from shareholders' equity, potentially impacting future capital raising efforts.

Federal Revenue Dependency

Low federal revenue dependency limits growth opportunities in government sectors, posing a risk if federal spending decreases.

Confluent Business Overview & Revenue Model

Company Description

Confluent, Inc. operates a data streaming platform in the United States and internationally. It offers Confluent Cloud, a managed cloud-native service for connecting and processing data; and Confluent Platform, an enterprise-grade self-managed software that connects and processes data in real-time with the foundational platform for data in motion. It also provides Kafka Connect that enables to build connectors to integrate Apache Kafka with other apps and data systems; ksqlDB, a database for stream processing applications; and stream governance, a solution that is designed for the intricacies of streaming data, which allows teams to expand usage of real-time data without bypassing requirements for risk management and regulatory compliance. In addition, it also offers training and professional services. The company was formerly known as Infinitem, Inc. and changed its name to Confluent, Inc. in September 2014. Confluent, Inc. was incorporated in 2014 and is headquartered in Mountain View, California.

How the Company Makes Money

Confluent generates revenue primarily through a subscription-based business model. Its key revenue streams include subscriptions to Confluent Cloud and the Confluent Platform. Confluent Cloud offers a pay-as-you-go pricing model based on the volume of data processed, while the Confluent Platform typically involves annual subscription fees based on the number of nodes or usage levels. Additionally, the company earns revenue from professional services, including training and consulting, which help organizations implement and optimize their data streaming solutions. Significant partnerships with major cloud providers, such as Amazon Web Services (AWS), Google Cloud Platform (GCP), and Microsoft Azure, further enhance its market presence and contribute to its earnings by integrating Confluent's services within these platforms, thus expanding its customer base.

Confluent Financial Statement Overview

Summary

Confluent shows promising revenue growth and improved cash flow metrics, with a strong gross profit margin of 74.22%. However, the company faces challenges with net losses and negative returns on equity, indicating ongoing struggles with operational profitability.

Income Statement

Confluent has shown consistent revenue growth, with a TTM growth rate of 4.54%. Gross profit margins are strong at 74.22% TTM, indicating efficient cost management. However, the company is still operating at a net loss, with a net profit margin of -29.27% TTM. The negative EBIT and EBITDA margins suggest ongoing challenges in achieving operational profitability.

Balance Sheet

The company's debt-to-equity ratio has improved slightly to 1.04 TTM, indicating a better balance between debt and equity compared to previous years. However, the return on equity remains negative at -31.29% TTM, reflecting ongoing losses. The equity ratio is not explicitly calculated, but the improvement in stockholders' equity suggests a positive trend.

Cash Flow

Confluent's cash flow position has improved significantly, with a free cash flow growth rate of 75.19% TTM. The operating cash flow to net income ratio is positive at 0.07, indicating better cash generation relative to net income losses. The free cash flow to net income ratio of 0.65 TTM suggests improved cash efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.11B	963.64M	776.95M	585.94M	387.86M	236.58M
Gross Profit	825.34M	706.17M	547.28M	383.53M	250.57M	161.10M
EBITDA	-340.35M	-397.06M	-430.01M	-455.05M	-335.99M	-231.61M
Net Income	-304.08M	-345.06M	-442.75M	-452.55M	-342.80M	-229.83M
Balance Sheet
Total Assets	2.88B	2.69B	2.46B	2.34B	2.34B	526.12M
Cash, Cash Equivalents and Short-Term Investments	1.99B	1.91B	1.90B	1.93B	2.02B	288.55M
Total Debt	1.11B	1.11B	1.11B	1.12B	1.12B	50.93M
Total Liabilities	1.76B	1.73B	1.65B	1.58B	1.49B	832.37M
Stockholders Equity	1.12B	961.23M	810.41M	769.48M	850.28M	-306.25M
Cash Flow
Free Cash Flow	48.13M	9.49M	-124.34M	-171.79M	-114.00M	-86.71M
Operating Cash Flow	57.37M	33.46M	-103.66M	-157.33M	-105.06M	-82.06M
Investing Cash Flow	-157.00M	-74.98M	-84.85M	-865.80M	-400.58M	-176.86M
Financing Cash Flow	76.14M	79.81M	102.37M	82.24M	1.84B	276.76M

Confluent Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 22.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CFLT, the sentiment is Neutral. The current price of 22.61 is below the 20-day moving average (MA) of 22.88, above the 50-day MA of 21.24, and below the 200-day MA of 23.56, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 53.21 is Neutral, neither overbought nor oversold. The STOCH value of 21.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CFLT.

Confluent Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDB	74 Outperform	$28.50B	―	-3.65%	―	21.90%	67.81%
CFLT	67 Neutral	$7.89B	―	-29.62%	―	21.58%	18.88%
EVCM	67 Neutral	$2.09B	―	-1.92%	―	-7.25%	51.12%
CRWD	66 Neutral	$134.05B	―	-8.99%	―	23.46%	-270.07%
NET	64 Neutral	$80.04B	―	-8.88%	―	28.06%	-7.44%
OKTA	63 Neutral	$15.36B	101.25	2.61%	―	12.68%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Confluent Corporate Events

Confluent, Inc. Reports Strong Q3 Earnings Call

Confluent, Inc. recently held its earnings call, reflecting a positive sentiment driven by a robust quarterly performance. The company showcased significant growth in key segments such as Confluent Cloud and Flink, alongside strategic advancements in AI and partnerships. Despite facing a notable impact from a large AI customer’s transition, Confluent’s overall growth trajectory remains strong.

Confluent Reports Strong Q3 2025 Financial Growth

Confluent, Inc. is a data streaming platform company that specializes in providing real-time data infrastructure solutions, primarily serving the technology sector with its cloud-native offerings.

Confluent, Inc. Earnings Call: Growth Amid Challenges

Confluent, Inc. recently held its earnings call, revealing a mixed sentiment among stakeholders. The call underscored robust growth in subscription and cloud revenue, driven by new Flink offerings and strategic partnerships. However, this optimism was tempered by challenges in customer optimization and a significant shift by a major AI customer, which could impact future cloud revenue. The overall sentiment suggests a cautious outlook, balancing between promising growth and notable challenges.

Confluent Reports Strong Q2 2025 Financial Growth

Confluent, Inc., a pioneer in data streaming technology, provides a cloud-native platform designed to facilitate real-time data streaming across organizations. The company operates within the data infrastructure sector, offering solutions that enable businesses to deliver digital experiences and enhance backend operations.