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CFLT (Confluent) Profitability Rank : 3 (As of Mar. 2025)


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What is Confluent Profitability Rank?

Confluent has the Profitability Rank of 3. It has had trouble to make a profit.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Confluent's Operating Margin % for the quarter that ended in Mar. 2025 was -37.32%. As of today, Confluent's Piotroski F-Score is 6.


Competitive Comparison of Confluent's Profitability Rank

For the Software - Infrastructure subindustry, Confluent's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Confluent's Profitability Rank Distribution in the Software Industry

For the Software industry and Technology sector, Confluent's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Confluent's Profitability Rank falls into.


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Confluent Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Confluent has the Profitability Rank of 3. It has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Confluent's Operating Margin % for the quarter that ended in Mar. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2025 ) / Revenue (Q: Mar. 2025 )
=-101.178 / 271.12
=-37.32 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Confluent has an F-score of 6 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

Confluent Inc operating margin is expanding. Margin expansion is usually a good sign.

4. Consistency of the profitability

5. Predictability Rank


Confluent Profitability Rank Related Terms

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Confluent Business Description

Traded in Other Exchanges
Address
899 West Evelyn Avenue, Mountain View, CA, USA, 94041
Confluent Inc provides a data streaming platform that enables customers to connect their applications, systems, and data layers and can be deployed as a fully managed cloud-native software-as-a-service (SaaS) offering. Its products include Confluent Cloud, a self-managed software offering, Confluent Platform, a managed service offering where the raw data resides inside a customer's cloud environment, and WarpStream, among others. Confluent also offers professional services and education services. The company generates revenue from the sale of subscriptions and services. Geographically, it generates a majority of its revenue from its business in the United States and the rest from International markets.
Executives
Rohan Sivaram officer: Chief Financial Officer C/O CONFLUENT, INC., 899 W. EVELYN AVENUE, MOUNTAIN VIEW CA 94041
Edward Jay Kreps director, 10 percent owner, officer: Chief Executive Officer C/O CONFLUENT, INC., 899 W. EVELYN AVENUE, MOUNTAIN VIEW CA 94041
Eric Vishria director, 10 percent owner 2965 WOODSIDE ROAD, WOODSIDE CA 94062
Neha Narkhede director C/O CONFLUENT, INC., 899 W EVELYN AVENUE, MOUNTAIN VIEW CA 94041
Erica Schultz officer: President, Field Operations C/O NEW RELIC, INC., 188 SPEAR STREET, STE. 1200, SAN FRANCISCO CA 94105
Jonathan Chadwick director 3401 HILLVIEW AVENUE, PALO ALTO CA 94304
Michelangelo Volpi director C/O HORTONWORKS, INC., 3640 W. BAYSHORE RD., PALO ALTO CA 94303
Matthew Craig Miller director, 10 percent owner 2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Lara Caimi director C/O CONFLUENT, INC., 899 W EVELYN AVENUE, MOUNTAIN VIEW CA 94041
Stephanie Buscemi officer: Chief Marketing Officer C/O IHS INC., 15 INVERNESS EAST WAY, ENGLEWOOD CO 80107
Chad Verbowski officer: SVP of Engineering C/O CONFLUENT, INC., 899 W. EVELYN AVENUE, MOUNTAIN VIEW CA 94041
Ying Christina Liu officer: Chief Accounting Officer C/O ZENDESK, INC., 1019 MARKET STREET, SAN FRANCISCO CA 94103
Steffan Tomlinson officer: Chief Financial Officer PALO ALTO NETWORKS, INC., 3300 OLCOTT STREET, SANTA CLARA CA 95054
Sequoia Capital Fund, L.p. 10 percent owner 2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Index Ventures Vii Parallel Entrepreneur Fund (jersey), L.p. 10 percent owner C/O EFG WEALTH SOLUTIONS (JERSEY) LTD, NO. 1 SEATON PLACE, ST. HELIER Y9 JE4 8YJ