What happened
Business processing and analysis company Confluent (CFLT 2.98%) has been doing some solid business lately, and on Thursday shareholders rewarded it handsomely. They collectively traded its stock price up by more than 16%, in sharp contrast to the 0.3% slump of the S&P 500 index. The reason for the stock's leap on the day was Confluent's latest earnings release.
So what
In its second quarter, Confluent earned $189 million in revenue. This was up a very strong 36% year over year and comfortably exceeded the average analyst estimate of just over $182 million.
On the bottom line it flipped to a non-GAAP (adjusted) net profit of $58,000 ($0.00 per share), versus the more than $45 million loss it posted in the same quarter a year ago. Prognosticators had been modeling a $0.06 per-share deficit.
Confluent said it is benefiting from a right time and place situation just now, as it operates in a data streaming market it says is currently worth $60 billion. The company was aided by a notable rise in its Confluent Cloud service; this product's revenue grew by 78% year over year during the quarter.
Now what
In addition to beating on trailing estimates, Confluent is also well ahead of the game as far as full-year 2023 is concerned. The company proffered guidance for the period of $767 million to $772 million in revenue, well above the consensus analyst projection of $693 million. As for adjusted net loss, this should be $0.02 to $0.05 per share; those prognosticators are estimating a much deeper shortfall of $0.15.
