What happened
Shares of Confluent (CFLT -1.90%), a data streaming company, were rising fast today after the company reported better-than-expected results for its first quarter and issued strong guidance for the full year.
The tech stock was up by 12.7% as of 11:36 a.m. ET.
So what
Confluent's sales rose 38% in the first quarter to $174 million, which was higher than Wall Street's consensus estimate of $167 million for the quarter. Additionally, the company's non-GAAP (adjusted) loss of $0.09 was better than analysts' average estimate of a loss of $0.14 per share.
The strong quarter was highlighted by the fact that Confluent increased the number of customers with $100,000 or greater in annual recurring revenue by 34%, reaching 1,075.
"Achieving this high growth as companies scrutinize every dollar spent is a testament to the mission criticality of our cloud-native platform and the lower total cost of ownership customers receive from using Confluent," the company's co-founder and CEO Jay Kreps said in a press release.
In addition to reporting strong customer growth and outpacing Wall Street's expectations for the quarter, Confluent's management also issued strong guidance. The company expects a loss of between $0.20 to $0.14 for the full year, which is better than analysts' average estimate of a loss of $0.26 per share.
Additionally, Confluent's leadership says sales will be $762.5 million at the midpoint of guidance, ahead of Wall Street's average estimate of $761.8 million.
Now what
Investors should certainly be pleased with Confluent's latest quarterly results and the company's outlook. At a time when many other companies are reporting worse-than-expected results and issuing disappointing guidance, Confluent appears to be thriving despite a difficult macroeconomic environment.
