Data infrastructure software company, Confluent (NASDAQ:CFLT) reported Q1 CY2025 results topping the market’s revenue expectations , with sales up 24.8% year on year to $271.1 million. On the other hand, next quarter’s revenue guidance of $267.5 million was less impressive, coming in 3.9% below analysts’ estimates. Its non-GAAP profit of $0.08 per share was 18.3% above analysts’ consensus estimates.

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Confluent (CFLT) Q1 CY2025 Highlights:

“Confluent started the year with solid momentum, achieving subscription revenue growth of 26% year over year,” said Jay Kreps, co-founder and CEO, Confluent.

Company Overview

Started in 2014 by the team of engineers at LinkedIn who originally built it as an internal tool, Confluent (NASDAQ:CFLT) provides infrastructure software for organizations that makes it easy and fast to collect and move large amounts of data between different systems.

Sales Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Over the last three years, Confluent grew its sales at an excellent 32.5% compounded annual growth rate. Its growth beat the average software company and shows its offerings resonate with customers, a helpful starting point for our analysis.

This quarter, Confluent reported robust year-on-year revenue growth of 24.8%, and its $271.1 million of revenue topped Wall Street estimates by 2.6%. Company management is currently guiding for a 13.8% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 19.8% over the next 12 months, a deceleration versus the last three years. Still, this projection is noteworthy and implies the market sees success for its products and services.

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