Confluent, Inc. (NASDAQ: CFLT), a provider of prepackaged software services, announced the appointment of Kong Phan as its new Chief Accounting Officer.
Phan, who has served as the company's Corporate Controller since April 2017, will take on the role effective immediately, succeeding Rohan Sivaram, who retains his position as Chief Financial Officer.
Phan, 42, brings a wealth of experience to his new position, having previously held various accounting roles at notable companies such as Polyvore Inc., Electronic Arts (NASDAQ:EA), Gap Inc (NYSE:GAP)., and Ernst and Young, LLP. He is a Certified Public Accountant in California and holds a B.S. from Sonoma State University.
Confluent has entered into a promotion letter agreement with Phan, which includes an annual base salary of $350,000, an annual target bonus of 50% of his base salary, and a grant of restricted stock units valued at $1,340,000, vesting quarterly beginning December 20, 2024, contingent upon continued service.
Confluent's board of directors confirmed there are no familial ties between Phan and any current director or executive officer, nor are there any reportable transactions between him and the company that would necessitate disclosure under SEC regulations.
In other recent news, Confluent reported strong second-quarter earnings that exceeded expectations, with a notable 27% increase in subscription revenue to $225 million and a 40% rise in Confluent Cloud revenue to $117 million.
The company also added 320 new customers during this period. However, Confluent's net revenue retention (NRR) of 118% fell slightly short of its target range. Despite this, the company anticipates Q3 subscription revenue to be between $233 million and $234 million and projects full-year 2024 subscription revenue to reach approximately $910 million.
Analysts also provided their insights on Confluent's performance. Baird initiated coverage on Confluent shares, acknowledging the company's leading position in the managed data streaming service market and its potential for strong revenue growth, but expressed concerns about industry competition. The firm assigned a Neutral rating to the company's stock. Citi, while maintaining a Neutral rating, reduced Confluent's price target to $24, citing concerns for the fourth quarter and the full year. TD Cowen, despite lowering the price target from $34 to $31, retained a Buy rating, attributing the company's subscription revenue growth to new go-to-market strategies.
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