External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

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<ul><li>Confluent (CFLT) is an infrastructure software company offering managed data streaming and processing services</li><li>The company went public in 2019 and has experienced a decrease in stock price, presenting a potential opportunity for rerating</li><li>Confluent's strong product story around Apache Flink and usage by companies like FedEx and Uber position it for future growth</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

Confluent (CFLT) is an infrastructure software company offering managed data streaming and processing servicesThe company went public in 2019 and has experienced a decrease in stock price, presenting a potential opportunity for reratingConfluent's strong product story around Apache Flink and usage by companies like FedEx and Uber position it for future growthThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Confluent Inc (CFLT) - Thursday, Mar 28, 2024

Independent research on the U.S. markets, Baptista Research

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Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Confluent Inc.'s Q1 2024 performance indicates a robust start for the fiscal year, surpassing all guided metrics with a total revenue growth of 25% to $217 Million, a testament to the successful execution of the firm's strategies, especially amidst a somewhat unpredictable macro-environment.</li><li>Noteworthy in these earnings is the impressive growth of Confluent Cloud, now accounting for over half of the company's subscription revenue and emerging as the fastest-growing offering with a 45% increase to $107 Million.</li><li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li></ul>

Confluent Inc.'s Q1 2024 performance indicates a robust start for the fiscal year, surpassing all guided metrics with a total revenue growth of 25% to $217 Million, a testament to the successful execution of the firm's strategies, especially amidst a somewhat unpredictable macro-environment.Noteworthy in these earnings is the impressive growth of Confluent Cloud, now accounting for over half of the company's subscription revenue and emerging as the fastest-growing offering with a 45% increase to $107 Million.Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Confluent Inc.: Initiation of Coverage -  Shift Towards Consumption Profile & Other Pivotal Growth Drivers

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>Freshworks, a cloud-based customer services software unicorn, held its first Investor Day on September 7, 2023. Management highlighted the long-term target to deliver the Rule of 40 by 2025. </li>
<li>The 2023 Investor Day agenda included company vision and strategy, solutions in action, strategy for durable growth, customer spotlight, and financial overview, among others. </li>
<li>Management plans to deliver a long-term balance of growth and profitability, with the 2026 model leading to an FCF margin of 20%+ and $1B+ revenue. </li>
</ul>


Freshworks, a cloud-based customer services software unicorn, held its first Investor Day on September 7, 2023. Management highlighted the long-term target to deliver the Rule of 40 by 2025. 
The 2023 Investor Day agenda included company vision and strategy, solutions in action, strategy for durable growth, customer spotlight, and financial overview, among others. 
Management plans to deliver a long-term balance of growth and profitability, with the 2026 model leading to an FCF margin of 20%+ and $1B+ revenue. 


Freshworks: 2023 Investor Day and Valuation Update

<ul>
<li>I remain bullish on the stock and reiterate a $37 PT. <a href="https://www.smartkarma.com/entities/confluent-inc" target="_blank" data-smartkarma-citation="entities:33443:1" rel="noopener">Confluent (CFLT US)</a> delivered upside to total revenue, gross margin, and non-GAAP operating margin estimates.</li>
<li>The company raised guidance for CY23 total revenue and profitability. There were plenty of positives, including cloud momentum and customer demand.</li>
<li>The US-based data streaming pioneer appears well positioned to outperform my estimates, and I see a path to profitability (non-GAAP) in CY24 at the earliest.</li>
</ul>


I remain bullish on the stock and reiterate a $37 PT. Confluent (CFLT US) delivered upside to total revenue, gross margin, and non-GAAP operating margin estimates.
The company raised guidance for CY23 total revenue and profitability. There were plenty of positives, including cloud momentum and customer demand.
The US-based data streaming pioneer appears well positioned to outperform my estimates, and I see a path to profitability (non-GAAP) in CY24 at the earliest.


Confluent. 2Q Wrap: Solid Results and Leadership Position In a $60B+ TAM

High Quality Stock Setups, Weekly Stock Bull Finder

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<ul><li>After witnessing a parabolic advance at the beginning of the Federal Reserve’s tightening cycle in early 2022, the US dollar has decisely break down below prior weekly support levels in a large bearish engulfing candle last week.</li><li>This breakdown can serve as a tailwind for multi-nationals (especially technology names), commodities, emerging markets, treasuries, and cryptos.</li><li>The dollar is now sitting at a 15 month low. This decline may not be over as the MACD indicator is now crossing down.</li></ul>

After witnessing a parabolic advance at the beginning of the Federal Reserve’s tightening cycle in early 2022, the US dollar has decisely break down below prior weekly support levels in a large bearish engulfing candle last week.This breakdown can serve as a tailwind for multi-nationals (especially technology names), commodities, emerging markets, treasuries, and cryptos.The dollar is now sitting at a 15 month low. This decline may not be over as the MACD indicator is now crossing down.

United States

Confluent, Inc. operates as a software company. The Company develops cloud-native platform is designed to unleash real-time data. Confluent serves customers worldwide

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Confluent (CFLT US)

Confluent Inc (CFLT) - Thursday, Mar 28, 2024

Confluent (CFLT) is an infrastructure software company offering managed data streaming and processing services. The company went public in 2019 and...

Value Investors Club

Confluent Inc.: Initiation of Coverage - Shift Towards Consumption Profile & Other Pivotal Growth Drivers

Confluent Inc.'s Q1 2024 performance indicates a robust start for the fiscal year, surpassing all guided metrics with a total revenue growth of...

Baptista Research

Freshworks: 2023 Investor Day and Valuation Update

2023 Investor Day highlights massive TAM, ongoing business momentum, adoption of multi-product strategy, and AI monetization opportunities: PT...

Andrei Zakharov

Confluent. 2Q Wrap: Solid Results and Leadership Position In a $60B+ TAM

Confluent reported solid results and achieved sustained high growth despite a choppy macro environment and smaller average deal sizes. The company...

Andrei Zakharov

Weekly Stock Bullfinder - Week of 7/17

After witnessing a parabolic advance at the beginning of the Federal Reserve’s tightening cycle in early 2022, the US dollar has decisely break...

Weekly Stock Bull Finder

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