Data infrastructure software company, Confluent (NASDAQ:CFLT) will be reporting earnings tomorrow after market close. Here’s what to expect.

Confluent beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $250.2 million, up 25% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates. It added 40 enterprise customers paying more than $100,000 annually to reach a total of 1,346.

Is Confluent a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Confluent’s revenue to grow 20.4% year on year to $256.8 million, slowing from the 26.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Confluent has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Confluent’s peers in the data and analytics software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Commvault Systems delivered year-on-year revenue growth of 21.1%, beating analysts’ expectations by 6.9%, and Palantir reported revenues up 36%, topping estimates by 6.8%. Commvault Systems traded down 7.5% following the results while Palantir was up 23.7%.

Read our full analysis of Commvault Systems’s results here and Palantir’s results here.

There has been positive sentiment among investors in the data and analytics software segment, with share prices up 10.6% on average over the last month. Confluent is up 15.7% during the same time and is heading into earnings with an average analyst price target of $33.18 (compared to the current share price of $31.19).

Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.