2024-05-25 05:24:05 ET
Summary
- Confluent's Q1 FY24 earnings show strong revenue growth, particularly in Confluent Cloud, indicating success in its consumption-oriented go-to-market strategy.
- The company's product innovation, including the general availability of Apache Flink and early availability of Tableflow, is driving customer adoption as it leads to superior business outcomes.
- Confluent's long path to profitability and potential macroeconomic and competitive threats pose challenges, but the risk-reward looks attractive where I will maintain my 'buy' rating.
Introduction & Investment Thesis
I initiated a “buy” rating on Confluent ( CFLT ) on April 21, where my bullish thesis was predicated on my belief that the company should continue to gain market share as it transitions to a fully consumption-oriented go-to-market model to focus on driving new logo acquisition and new workloads across use cases on its platform, coupled with robust product innovation with its fully-managed Apache Flink offering....
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Confluent: Q1 Review, Cloud Revenue Sees Acceleration, Maintaining 'Buy' Rating