Confluent (NASDAQ: CFLT) has seen its stock price decline by 46% since its initial public offering (IPO) in June 2021 and 74% from its all-time high. The company’s valuation was originally at 37 times sales but has since fallen to just under 8 times sales, reflecting a drop in year-over-year revenue growth from 64% in 2021 to an estimated 24% for 2024. This decrease in growth is a key factor in the stock’s decline in investor favor.
Despite these challenges, Confluent’s addressable market is now estimated to exceed $100 billion, doubling its figure from four years ago. The company’s customer base grew by 20% year over year in Q1 2025, and the dollar-based net retention rate stands at 117%, indicating that existing customers are spending more. Confluent also reported a 60% increase in non-GAAP earnings, reaching $0.08 per share, with guidance for $0.36 in earnings for 2025.
