Confluent, Inc. (CFLT) shares tumbled 5.50% in after-hours trading on Wednesday, despite the company reporting better-than-expected first-quarter results. The sharp decline suggests investors may be focusing on other factors, potentially including the company's forward guidance.

For the first quarter of 2025, Confluent reported adjusted earnings per share of $0.08, surpassing the analysts' estimate of $0.07. Revenue came in at $271.1 million, also beating the expected $264.6 million. The company's adjusted operating income was $11.6 million, higher than the estimated $8.39 million, with an adjusted operating margin of 4.3%.

Despite these positive results, the after-hours plunge indicates that investors might be concerned about Confluent's future outlook. The company provided full-year guidance for adjusted EPS of about $0.36 and an adjusted operating margin of 6%. While these figures represent growth, they may not have met the market's more optimistic expectations, potentially explaining the stock's negative reaction post-earnings announcement.