What's Going On With Confluent Shares Wednesday?

Confluent, Inc. CFLT shares traded higher on Wednesday after the company reported better-than-expected 2024 fiscal-year fourth-quarter earnings on Tuesday after the market closed.

What To Know: Confluent reported adjusted earnings per share of 9 cents, beating analysts’ estimate of 6 cents. In addition, the company reported sales of $261.22 million, beating analysts’ estimate of $256.83 million.

Confluent reported subscription revenue of $251 million, up 24% year-over-year. It also reported free cash flow of $29.1 million and an adjusted operating income of $13.6 million.

Confluent CFO Rohan Sivaram said the company has become “a major data platform” for the enterprise, with thousands of customers relying on its data streaming platform to “win in the era of cloud, data, and AI.”

“This has enabled an important combination of growth, scale, and double-digit expansion for both operating and free cash flow margins in 2024. Building on this momentum, we are well-positioned to achieve our growth and profitability targets for 2025.”

Analyst Changes: Following the earnings report, several analysts issued price target adjustments.

• Morgan Stanley analyst Sanjit Singh maintained an Equal-Weight rating on Confluent and raised the price target from $30 to $32.
• Truist Securities analyst Miller Jump maintained a Buy rating on Confluent and raised the price target from $35 to $40.
• UBS analyst Karl Keirstead maintained a Neutral rating on Confluent and raised the price target from $26 to $34.
• RBC Capital analyst Matthew Swanson maintained an Outperform rating on Confluent and raised the price target from $36 to $41.

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Price Action: Confluent stock closed 25% higher at $37.65, according to data from Benzinga Pro.

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