Confluent Shares Surge 16% on Strong Q3 Results and Upgraded Guidance

MOUNTAIN VIEW, California - Data streaming platform provider Confluent, Inc. (NASDAQ:CFLT) saw its shares rise by about 16% in after-hours trading on Wednesday following better-than-expected third-quarter results and an upward revision of its full-year guidance. The company reported a third-quarter adjusted earnings per share of $0.10, surpassing analysts' forecast of $0.05. Revenue came in at $250.2 million, exceeding the consensus expectation of $245.05 million and representing a 25% year-over-year increase.

Confluent's co-founder and CEO, Jay Kreps, stated, "We exceeded all of the metrics we guided for in the third quarter, including a 27% year-over-year growth in subscription revenue." Confluent Cloud revenue rose by 42% year-over-year to $130 million for the quarter. The company also reported that the number of customers with annual recurring revenue of $100,000 or more grew by 14% year-over-year to 1,346.

Confluent expects fourth-quarter revenue to range between $245 million and $246 million, falling short of analysts’ estimate of $257.1 million. However, the company raised its full-year 2024 revenue guidance to between $916.5 million and $917.5 million, revising it upward from previous estimates.

CFO Rohan Sivaram commented, "In light of our third-quarter performance, we are raising our full-year subscription revenue guidance for 2024, and now we are targeting a positive non-GAAP operating margin and free cash flow margin for 2024."