Trade Confluent, Inc. - CFLT CFD

Confluent, Inc. Company profile

Track the Confluent share price today and spot the best levels for profitable CFD trades.

Confluent Inc is a Silicon Valley technology company founded in 2014 by former LinkedIn software engineers Jay Kreps, Jun Rao, and Neha Narkhede. The three formed Confluent after the success of Narkhede’s flagship project, Apache Kafka. They quickly secured their first round of seed funding for $500,000 from their former employer, LinkedIn, making the social media company their first investor. The same year Confluent was able to raise an additional $6.9m via venture capital company Benchmark. The company also raised an additional $250m through early investors ahead of their initial public offering (IPO).  

Confluent enables companies to seamlessly integrate data from multiple ‘sensors’, like inventory rooms and production floors, located throughout their operation into central storage points. This real-time data allows companies to fully capitalise on continuous flow analytics, referred to as data-in-motion. Data-in-motion is based on the idea that data stored in a central silo location is no longer valuable and that continuously updated analytics, which can improve systems based on real-time information, are the way of the future. 

Confluent has successfully monetised a subscription-based business model that bundles together its operating platform, cloud-based software, support services and customised open-source software. 

The Confluent IPO was launched on the NASDAQ exchange under the ticker CFLT on 24 June 2021 with the company offering 23million class A shares. The Confluent Inc share price was expected to open at $29–$33 per share and raise over $700m. You can check the latest price of Confluent on the CFLT stock chart . 

After accounting for the outstanding 229 million class B shares, the company now has a market capitalisation of almost $7.6bn following the IPO. Confluent stated that class A shares entitle the holder to a single vote, while each class B share carries 10 votes, effectively giving the existing owners 99% of voting rights in the new public company. 

Before the IPO, Confluent declared  that revenue had increased from $149.8m in 2019 to $236.6m in 2020, representing year-over-year growth of 58%. Expenses also rose sharply and the company posted a net loss of $229m for the 2020 financial year, an increase of over 141% from 2019. 

Confluent has publicly stated that the capital raised by the IPO will be utilised to continue its growth and customer acquisition strategy through financial restructuring, improved cash flow and working capital. It will also allow for possible acquisitions in the future.  

In addition, Confluent needs to fund significant infrastructure expenditures to continue on its current growth trajectory and expand the existing strategic partnerships with tech giants. IBM has already repackaged and offered Confluent’s platform to its customer base, while Microsoft gave Confluent the right to offer its platform as a managed service through the Microsoft Azure cloud. 

Track the Confluent share price today and decide whether to include this infrastructure software company into your investment portfolio. Note that CFD trading is risky and you should conduct your own analysis before opening a trade.