CONFLUENT Reports 35.8% Increase in Year-Over-Year Revenue of USD 189.3 Million for Q2 of Fiscal Year 2023
August 11, 2023
☀️Earnings Overview
CONFLUENT ($NASDAQ:CFLT) recorded total revenue of USD 189.3 million in their fiscal year 2023 Q2, a year-over-year increase of 35.8%, while net income for the quarter ending June 30 2023 was USD -103.4 million, a decrease from the same quarter in the prior year of -117.6 million.
Analysis
GoodWhale conducted an analysis of CONFLUENT‘s fundamentals and based on the Star Chart, it was classified as a ‘Cheetah’. This means that the company has achieved high revenue or earnings growth but is considered less stable due to its lower profitability. Investors who are looking for higher returns may be interested in such a company, as the risk can potentially be rewarded with greater returns. CONFLUENT has an intermediate health score of 6/10, considering its cashflows and debt, and is likely to pay off debt and fund future operations. Its strengths lie in asset growth, while its weaknesses can be found in its dividend payments and profitability. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Confluent. More…
| Total Revenues | Net Income | Net Margin |
| 683.99 | -477.91 | -66.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Confluent. More…
| Operations | Investing | Financing |
| -175.66 | -143.69 | 101.66 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Confluent. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.33k | 1.57k | 2.57 |
Key Ratios Snapshot
Some of the financial key ratios for Confluent are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 57.6% | – | -70.9% |
| FCF Margin | ROE | ROA |
| -28.4% | -40.3% | -13.0% |
Peers
The company has been in competition with Snowflake Inc, Oracle Corp, and Insig AI PLC for market share.
– Snowflake Inc ($NYSE:SNOW)
Snowflake Inc is a public cloud data warehousing company founded in 2012. It has a market cap of 54.73B as of 2022 and a return on equity of -8.11%. The company offers a data warehouse service that enables users to store, query, and analyze data in the cloud.
– Oracle Corp ($NYSE:ORCL)
In 2022, Oracle Corporation had a market capitalization of 186.71 billion dollars and a return on equity of -97.78%. Oracle Corporation is a multinational computer technology corporation, specializing in developing and marketing enterprise software products and services. The company was founded in 1977 and is headquartered in Redwood Shores, California. Oracle Corporation employs over 136,000 people worldwide.
– Insig AI PLC ($LSE:INSG)
Insignia AI PLC is a publicly traded company with a market capitalization of 28 million as of 2022. The company has a negative return on equity of 5.9%. Insignia AI PLC is engaged in the business of artificial intelligence. The company was founded in 2016 and is headquartered in London, United Kingdom.
Summary
For the quarter ending June 30 2023, CONFLUENT reported total revenue of USD 189.3 million, a 35.8% year-over-year increase compared to the same quarter in the prior year. Net income for the quarter was USD -103.4 million, a decline from the prior year quarter of -117.6 million. Despite the increase in revenue, investors reacted negatively as the stock price moved down the same day.
Therefore, this makes CONFLUENT an uncertain investment at the current time as investors are wary of the financial performance. Further analysis is likely needed in order to understand what factors are impacting the company’s financials and whether or not there is a potential for positive long-term growth.
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