Confluent shares sink to record low on disappointing forecast

Confluent

02/11/2023 15:48

** Shares of software developer Confluent  CFLT.O  down
43.3% at $16.0 - hits lowest price on record 
    ** Co reports Q3 revenue of $200.2 mln vs analysts' estimate
of $195.4 mln, as per LSEG data 
    ** CFO Rohan Sivaram said in a post-earnings conference call
the co expects revenue between $204 mln and $205 mln in Q4,
missing analyst est of $206.9 mln 
    ** Sivaram also warned of headwinds from a volatile
macroeconomic, geopolitical environment as well as risks from
move to a fully consumption-oriented business in FY 2024
    ** Co expects revenue in FY24 to grow ~22% year-over-year
    ** "While we continue to hold a positive fundamental bias
for Confluent's technology stack, the potential slowdown in 
growth next year especially without any free cash flow support,
will likely make the stock a bit rudderless, at least over the
next couple of quarters," J.P. Morgan analysts wrote in a note 
    ** CFLT had a market cap of $11 bln during its debut in June
2021; it was last valued $4.77 bln 
    ** Median PT is $26.50, while avg rating of 24 analysts
covering the stock is "buy", as per LSEG data 
    ** Stock down 28.5% YTD 

 (Reporting by Sruthi Shankar in Bengaluru)
 ((sruthi.shankar@thomsonreuters.com;))