Confluent, Inc. (CFLT)- Signs of Weakness Remain
The balance sheet is still signaling potentially weak revenue growth
We first mentioned Confluent (CFLT) in our 5/24/2024 piece, Confluent, Inc. (CFLT)- Questioning the Quality of the 1Q24 Beat in which we warned that several of the company's balance sheet accounts were pointing to a slowdown in sales growth. A few weeks later, the company reported Q2'24 sales and earnings that were slightly ahead of consensus expectations. However, disappointing revenue guidance led to a 25% hit to the stock price.
The stock has since more than recovered the lost ground and is selling for over 40 times forward non-GAAP earnings. However, a year later we still see signs of weakness in the company's balance sheet that we believe investor should be watching going into next week's Q2'25 earnings announcements.
Let's get behind CFLT's Q1 numbers…