Latest news with #CFLT
Globe and Mail
07-07-2025
- Business
- Globe and Mail
Confluent to Announce Second Quarter 2025 Financial Results on July 30, 2025
Confluent, Inc. (NASDAQ: CFLT), the data streaming pioneer, today announced it will release financial results for its second quarter of 2025, which ended June 30, 2025, after the U.S. market close on Wednesday, July 30, 2025. Confluent will host a live video webcast to discuss the results. Video Webcast Information Date: Wednesday, July 30, 2025 Time: 1:30 p.m. PT / 4:30 p.m. ET Webcast: Prior to the commencement of the webcast, Confluent's earnings press release and supplemental materials will be accessible from its investor relations website at A replay of the webcast will also be accessible from Confluent's investor relations website a few hours after the conclusion of the live event. About Confluent Confluent is the data streaming platform that is pioneering a fundamentally new category of data infrastructure that sets data in motion. Confluent's cloud-native offering is the foundational platform for data in motion – designed to be the intelligent connective tissue enabling real-time data, from multiple sources, to constantly stream across the organization. With Confluent, organizations can meet the new business imperative of delivering rich, digital front-end customer experiences and transitioning to sophisticated, real-time, software-driven backend operations. To learn more, please visit
Globe and Mail
24-06-2025
- Business
- Globe and Mail
Better Cloud Stock: Docusign vs. Confluent
Docusign (NASDAQ: DOCU) and Confluent (NASDAQ: CFLT) both help companies streamline their businesses with their cloud-based services. Docusign is the world's largest provider of e-signature services, while Confluent's platform processes real-time data as it flows between different applications across an organization. But over the past 12 months, Docusign's stock price rose 44% as Confluent's stock slumped 13%. Let's see why the e-signature services leader outperformed the "data in motion" company by such a wide margin -- and if it will remain the better investment over the next few years. The differences between Docusign and Confluent Docusign serves over 1.4 million customers in 180 countries, and it's been used in more than a billion transactions. It generates most of its revenue from subscriptions to its e-signature platform, its contract lifecycle management (CLM) tools, and other cloud-based services. Confluent served 6,140 customers in its latest quarter. Its namesake platform runs on Apache Kafka, an open-source platform for streaming data, but it adds additional analytics tools to differentiate itself from other "Kafka-as-a-service" providers. It generates its revenue from a mix of subscriptions and more flexible consumption-based fees. Which company is growing faster? Docusign's growth is driven by the growing usage of digital documents and e-signatures as they replace their pen-and-paper counterparts. Confluent's growth is fueled by a need to evaluate data as it streams across the silos of a large organization. That real-time analysis gets everyone on the same page to make faster decisions. From fiscal 2021 to fiscal 2025 (which ended this January), Docusign's revenue grew at a CAGR of 20% as its adjusted gross margin rose from 79% to 82%. It also turned profitable on a generally accepted accounting principles (GAAP) basis over the past two fiscal years as it downsized its workforce and streamlined its spending. But from fiscal 2025 to fiscal 2028, analysts expect Docusign's revenue to grow at a slower CAGR of 8% as its core market matures, it laps some earlier-than-expected contract renewals from fiscal 2024, cautiously expands its new AI-driven Intelligent Agreement Management (IAM) platform, and deals with tougher competitive and macro headwinds. Analysts expect its GAAP EPS to decline in fiscal 2026 as it expands its lower-margin IAM platform while lapping some big buybacks and one-time tax benefits. But over the following two years, they expect its EPS to grow at a CAGR of 41% as it scales up its IAM platform and streamlines its spending. From 2020 to 2024, Confluent's revenue rose at a CAGR of 42% as its adjusted gross margin expanded from 70% to 79%. That growth was driven by the accelerating adoption of real-time data streaming services (especially among larger enterprise customers), the expansion of its higher-margin cloud-based ecosystem with more analytics tools, and its new overseas customers. But it's still never been profitable on a GAAP basis. From 2024 to 2027, analysts expect its revenue to grow at a CAGR of 19% as it gradually narrows its net losses. Its biggest potential catalysts include the growth of its cloud platform, fresh tailwinds from the booming AI market, and the expansion of its enterprise and overseas businesses. Which stock is a better value right now? Docusign's stock trades at 61 times forward earnings and 5 times this year's sales. Confluent can't be valued by its profits, but it trades at 7 times this year's sales. However, Docusign's insiders sold nearly 2.1 million shares over the past 12 months while only buying around 1,300 shares. Confluent's insiders bought 17.2 million shares and sold 17.6 million shares during the same period. That warmer insider sentiment suggests that Confluent might have a bit more upside potential than Docusign. The better buy: Confluent Docusign's stock rose over the past year as the bulls cheered the growth potential of its IAM platform in the AI market, but it's still being valued as a growth stock as its core business matures. Confluent should continue growing at a faster rate as its cloud platform expands, and its stock seems more reasonably valued relative to its growth potential. I wouldn't rush to buy either of these cloud-oriented stocks right now. But if I had to choose one over the other, I'd probably avoid Docusign and bet on a stronger recovery for Confluent -- which stands to process a lot more streaming data as the cloud and AI markets expand. Should you invest $1,000 in Docusign right now? Before you buy stock in Docusign, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Docusign wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025
Yahoo
24-06-2025
- Business
- Yahoo
Better Cloud Stock: Docusign vs. Confluent
Docusign's business is maturing, but its profits are rising. Confluent is growing at a faster rate, but it isn't profitable yet. Insiders are fleeing one stock a lot faster than the other. 10 stocks we like better than Docusign › Docusign (NASDAQ: DOCU) and Confluent (NASDAQ: CFLT) both help companies streamline their businesses with their cloud-based services. Docusign is the world's largest provider of e-signature services, while Confluent's platform processes real-time data as it flows between different applications across an organization. But over the past 12 months, Docusign's stock price rose 44% as Confluent's stock slumped 13%. Let's see why the e-signature services leader outperformed the "data in motion" company by such a wide margin -- and if it will remain the better investment over the next few years. Docusign serves over 1.4 million customers in 180 countries, and it's been used in more than a billion transactions. It generates most of its revenue from subscriptions to its e-signature platform, its contract lifecycle management (CLM) tools, and other cloud-based services. Confluent served 6,140 customers in its latest quarter. Its namesake platform runs on Apache Kafka, an open-source platform for streaming data, but it adds additional analytics tools to differentiate itself from other "Kafka-as-a-service" providers. It generates its revenue from a mix of subscriptions and more flexible consumption-based fees. Docusign's growth is driven by the growing usage of digital documents and e-signatures as they replace their pen-and-paper counterparts. Confluent's growth is fueled by a need to evaluate data as it streams across the silos of a large organization. That real-time analysis gets everyone on the same page to make faster decisions. From fiscal 2021 to fiscal 2025 (which ended this January), Docusign's revenue grew at a CAGR of 20% as its adjusted gross margin rose from 79% to 82%. It also turned profitable on a generally accepted accounting principles (GAAP) basis over the past two fiscal years as it downsized its workforce and streamlined its spending. But from fiscal 2025 to fiscal 2028, analysts expect Docusign's revenue to grow at a slower CAGR of 8% as its core market matures, it laps some earlier-than-expected contract renewals from fiscal 2024, cautiously expands its new AI-driven Intelligent Agreement Management (IAM) platform, and deals with tougher competitive and macro headwinds. Analysts expect its GAAP EPS to decline in fiscal 2026 as it expands its lower-margin IAM platform while lapping some big buybacks and one-time tax benefits. But over the following two years, they expect its EPS to grow at a CAGR of 41% as it scales up its IAM platform and streamlines its spending. From 2020 to 2024, Confluent's revenue rose at a CAGR of 42% as its adjusted gross margin expanded from 70% to 79%. That growth was driven by the accelerating adoption of real-time data streaming services (especially among larger enterprise customers), the expansion of its higher-margin cloud-based ecosystem with more analytics tools, and its new overseas customers. But it's still never been profitable on a GAAP basis. From 2024 to 2027, analysts expect its revenue to grow at a CAGR of 19% as it gradually narrows its net losses. Its biggest potential catalysts include the growth of its cloud platform, fresh tailwinds from the booming AI market, and the expansion of its enterprise and overseas businesses. Docusign's stock trades at 61 times forward earnings and 5 times this year's sales. Confluent can't be valued by its profits, but it trades at 7 times this year's sales. However, Docusign's insiders sold nearly 2.1 million shares over the past 12 months while only buying around 1,300 shares. Confluent's insiders bought 17.2 million shares and sold 17.6 million shares during the same period. That warmer insider sentiment suggests that Confluent might have a bit more upside potential than Docusign. Docusign's stock rose over the past year as the bulls cheered the growth potential of its IAM platform in the AI market, but it's still being valued as a growth stock as its core business matures. Confluent should continue growing at a faster rate as its cloud platform expands, and its stock seems more reasonably valued relative to its growth potential. I wouldn't rush to buy either of these cloud-oriented stocks right now. But if I had to choose one over the other, I'd probably avoid Docusign and bet on a stronger recovery for Confluent -- which stands to process a lot more streaming data as the cloud and AI markets expand. Before you buy stock in Docusign, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Docusign wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Docusign. The Motley Fool recommends Confluent. The Motley Fool has a disclosure policy. Better Cloud Stock: Docusign vs. Confluent was originally published by The Motley Fool
Yahoo
18-06-2025
- Business
- Yahoo
1 Under-the-Radar AI Stock With 50% Upside Potential
In today's increasingly digital world, the speed at which data is captured, processed, and acted upon is critical. That's where Confluent (CFLT), a technology company valued at a market capitalization of $8.1 billion, enters the picture. Founded by the original creators of Apache Kafka, Confluent provides a cloud-native data infrastructure platform that enables organizations to connect, store, and process real-time data streams at scale. Confluent stock has dipped 14% year-to-date (YTD), compared to the S&P 500 Index's ($SPX) gain of 1.9% YTD. Nonetheless, Wall Street believes CFLT stock has more than 50% upside potential over the next year. Let's see whether the stock is currently a buy. Confluent follows a hybrid business model, providing both a self-managed software platform and a fully managed cloud offering. Subscriptions and usage-based pricing, which are increasingly popular among large enterprises due to their flexibility and scalability, generate revenue for the company. Is Palantir Stock Poised to Surge Amidst the Israel-Iran Conflict? CoreWeave Stock Is Too 'Expensive' According to Analysts. Should You Sell CRWV Now? Grains, Unrest, & Gold: What Middle East Tensions Mean for Your Portfolio Now Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Despite a cautious enterprise cloud-spending environment, the company's first-quarter results for fiscal 2025 showed increasing momentum in subscription revenue, hybrid deployments, and new-generation offerings such as Apache Flink and Tableflow. Total revenue increased 25% year on year to $271.1 million, with adjusted earnings increasing by an impressive 60% to $0.08 per share. During the Q1 earnings call, management emphasized that the company's focus on long-term platform expansion is beginning to pay off, despite the fact that macroeconomic pressures remain, particularly in large-scale enterprise consumption. Net retention reached 117% in Q1, demonstrating customer trust in Confluent's platform. Confluent generated $260.9 million in subscription revenue during Q1, up 26% year on year (YOY) and accounting for 96% of total revenue. Confluent Cloud, a fully managed, cloud-native product, generated $142.7 million, a 34% increase YOY. Furthermore, demand for hybrid and on-premises deployments enabled the company's self-managed Confluent Platform to generate a healthy $118.2 million in revenue, up 18% from the previous year. Management stated that Confluent Platform had its best first-quarter performance in three years. Confluent's growth strategy is heavily reliant on migrating the estimated 150,000 organizations that still use open-source Kafka. Confluent added 340 net new customers during the period, marking its best quarterly performance in three years. Confluent's balance sheet showed $1.9 billion in cash, cash equivalents, and marketable securities at the quarter's end. The company also generated $4.9 million in positive free cash flow (FCF) during the quarter, a sign of cost discipline. Management reaffirmed its fiscal 2025 guidance with cautious optimism. Subscription revenue could increase by 19% to 20%, reaching $1.1 billion. Likewise, adjusted net income per share could be around $0.36 per share, compared to $0.29 in fiscal 2024. Additionally, analysts predict earnings will rise by 30.7% to $0.47 by fiscal 2026. Despite being a small company, Confluent is rapidly growing. Its inclusion in mission-critical workloads is what distinguishes it. This technology is not experimental. In fact, it provides real-time network solutions to a variety of industries, including telecommunications, retail logistics and supply chain, and financial services fraud detection. On Wall Street, CFLT stock is rated as a 'Moderate Buy.' Of the 31 analysts covering the stock, 20 rate CFLT as a 'Strong Buy,' three recommend it as a 'Moderate Buy,' seven call it a "Hold,' and one suggests that it is a 'Moderate Sell.' The average target price of $28.14 per share suggests an upside of 17.5% above current levels. The Street-high target price of $36 implies that shares could rally 50.4% over the next 12 months. As the demand for real-time data infrastructure increases, particularly in artificial intelligence (AI) and edge computing, so will the demand for the Confluent's services. For long-term investors, Confluent provides an appealing combination of secular tailwinds, a deep technical moat, high gross margins, and a strong cloud growth engine. However, as a high-growth stock, it trades at a premium of 66x forward earnings. Consequently, risk-averse investors may want to wait for a better entry point. On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Globe and Mail
13-06-2025
- Business
- Globe and Mail
Where Will Confluent Stock Be in 3 Years?
It has been just under four years since Confluent (NASDAQ: CFLT) made its stock market debut in June 2021. A look at its stock price chart will show that investors in the data streaming specialist have endured a difficult time since November of that same year. Confluent stock was in fine form in 2021 following its initial public offering. However, like many other young tech stocks in late 2021, the stock price began a downhill run late in the year. Some of these stocks eventually recovered. In Confluent's case, the stock lost 46% of its value since its initial public offering (IPO) and 74% when compared to its all-time high. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Let's check why that has been the case and see if this cloud computing stock has the ability to regain its mojo and jump higher over the next three years. Confluent's expensive valuation has been the stock's undoing Confluent was trading at a whopping 37 times sales in 2021, which means that it needed to maintain high growth rates to justify its rich valuation. However, its sales growth rates have been dropping over the years, as we can see from the table below. Data source: Confluent quarterly reports. The reduction in Confluent's top-line growth is a big reason why the stock has fallen out of investors' favor. As a result, it is now trading at just under 8 times sales, which is lower than its five-year average price-to-sales ratio of 12. Another thing worth noting is that Confluent's sales multiple is now in line with the U.S. technology sector's average sales multiple. Buying Confluent at its current valuation could turn out to be a smart long-term move, as the company is now sitting on an added catalyst in the form of artificial intelligence (AI). Confluent's cloud-based data streaming platform is used by customers to bring data out of silos and connect it in real time to make decisions quickly. The company's platform finds applications in multiple areas such as inventory management, fraud detection, and customer service. It's now being applied in generative AI and agentic AI applications as well, as Confluent's platform allows customers to use relevant data in real time for training large language models (LLMs) and AI agents. As a result, Confluent is now winning a bigger share of customers' wallets, along with bringing new customers into its fold, which should set the company up for robust long-term growth. A massive addressable market points toward better times for the company Confluent now sees its addressable market exceeding $100 billion this year. That's double its estimated addressable market four years ago. Even better, the accelerated growth in its customer base suggests that it is well on track to capitalize on this massive opportunity. Confluent's overall customer base jumped by 20% year over year in the first quarter of 2025. That was a major improvement over the 9% year-over-year increase in its customer base in the year-ago period. Importantly, Confluent is gaining more business from its existing customers. This can be judged from the company's dollar-based net retention rate of 117%, a metric that compares its annual recurring revenue (ARR) from customers at the end of a quarter to the ARR from the same customer cohort in the year-ago period. So, an ARR of more than 100% suggests that existing customers are spending more money with Confluent. The higher spending by Confluent's older customers is also driving a solid bump in its margins. The company's non- GAAP operating margin increased by six percentage points year over year in Q1. This explains why the company's non-GAAP earnings increased by 60% from the year-ago period to $0.08 per share. The company has guided for $0.36 per share in earnings for 2025, which points toward a 24% increase from last year. However, don't be surprised to see Confluent doing better than that following the healthy increase in Q1, especially considering the pace at which it is adding new customers and encouraging existing ones to spend more money. Not surprisingly, analysts are forecasting an acceleration in Confluent's bottom-line growth over the next couple of years. Data by YCharts. The stronger growth in Confluent's earnings in 2026 and 2027 points toward better times for the stock over the next three years, as the market could reward this impressive bottom-line jump with healthy gains. As such, buying Confluent right now makes sense from a long-term point of view. The correction in the company's stock price since its IPO has made it a better buy, considering its lucrative end-market opportunity and bright prospects. Should you invest $1,000 in Confluent right now? Before you buy stock in Confluent, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Confluent wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,871!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $875,479!* Now, it's worth noting Stock Advisor 's total average return is998% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
