Matthew Craig Miller, a director at Confluent , Inc. (NASDAQ:CFLT), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Miller sold a total of 2,134,486 shares of Confluent's Class A common stock over two days, November 6 and November 7, 2024. The shares were sold at prices ranging from $27.1522 to $27.512 per share, resulting in a total transaction value of approximately $58.3 million.
The sales were conducted through investment vehicles associated with Sequoia Capital, where Miller holds a position as a director and stockholder. Following these transactions, Miller's indirect ownership in Confluent through these vehicles was reduced to zero shares.
In other recent news, Confluent Inc (NASDAQ:CFLT). reported strong growth in its third-quarter earnings for 2024. The data streaming company's subscription revenue grew by 27% to $240 million, while total revenue increased by 25% to $250 million. Remarkably, Confluent Cloud revenue surged by 42% to $130 million, accounting for over half of the total revenue.
The company now serves all top 10 U.S. banks, with average annual recurring revenue (ARR) exceeding $5 million. The customer count also increased by 16% to approximately 5,680, largely from the healthcare and technology sectors.
Looking ahead, management projects Q4 2024 subscription revenue to be between $245 million and $246 million, and full-year subscription revenue to be $916.5 million to $917.5 million, reflecting a 26% growth. Despite a slight decrease in net revenue retention (NRR) from 118% to 117% and a failed expansion into a new international market by a strategic partner, more than 40% of Fortune 500 companies are utilizing Confluent's services, indicating a strong demand for their platform and cloud offerings.
InvestingPro Insights
While Matthew Craig Miller's significant stock sale might raise eyebrows, it's essential to consider Confluent's current financial position and market performance. According to InvestingPro data, Confluent boasts a market capitalization of $8.7 billion, reflecting substantial investor interest in the company.
Despite not being profitable over the last twelve months, Confluent has shown impressive revenue growth. The company's revenue for the last twelve months as of Q3 2023 stood at $915.61 million, with a robust revenue growth rate of 25.01%. This growth trajectory aligns with an InvestingPro Tip indicating that analysts predict the company will be profitable this year.
Interestingly, Confluent's stock has demonstrated strong performance recently, with a 27.1% return over the last month and a 56.9% return over the past year. This positive momentum is further supported by another InvestingPro Tip, which notes that 10 analysts have revised their earnings upwards for the upcoming period, suggesting growing optimism about the company's financial prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Confluent, providing deeper insights into the company's financial health and market position. These tips can be particularly valuable in understanding the context of insider transactions like Miller's recent sale.
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