CFLT - Confluent: Understanding The Business And Valuing Accordingly

• The company's Confluent Cloud and Confluent Platform are based on an enhanced version of Apache Kafka, giving it instantaneous access to an addressable market constituted by 70% of Fortune 500 companies.
• Confluent differentiates itself through dynamic and event-based data infrastructure, in contrast to more static and costly solutions by competitors.
• Growth has been in triple-digit figures, but this has come at the expense of burning cash.
• At times, high growth coupled with cash-burning can mean volatility especially in an environment where inflationary concerns remain high.
• Still, the revenue model which is about investing in scale across all organizational types using an improved product offering makes sense and the stock makes for a long-term buy.

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