Mid-Term Long-Term Represent the number of customers that contributed $100,000 or more in ARR as of period end. ( CONFLUENT 38 This presentation includes express and implied forward-looking statements. All statements contained in this presentation other than statements of historical facts, including expectations of Confluent, Inc. ("we," "us," "our," or "Confluent") regarding our revenue, revenue mix, revenue growth, expenses and other results of operations; operating margins and margin improvements, target ...

Financial Data and Key Metrics - Total revenue grew 25% YoY to $217.2 million, with subscription revenue growing 29% to $206.9 million [104][117] - Confluent Cloud revenue grew 45% YoY to $106.8 million, accounting for 49% of total revenue [204] - Operating margin improved 22 percentage points to -1.5%, marking the fourth consecutive quarter of over 20 points improvement [128] - Gross margin was 76.9%, up 470 basis points, with subscription gross margin at 80.7%, up 320 basis points [171] - Free cash flow margin improved 33 percentage points to -14.6% [205] Business Line Data and Key Metrics - Confluent Platform revenue grew 15% YoY to $100.1 million, representing 46% of total revenue [104] - The three DSP products (Connect, Process, Govern) accounted for approximately 10% of cloud revenue in Q1 2024, with a faster growth rate than the overall cloud business [55] - Customers using three or more products in the 100K+ ARR cohort increased 47% YoY, with NRR substantially higher than the company average [225] Market Data and Key Metrics - Revenue from the U.S. grew 23% to $127.4 million, while revenue from outside the U.S. grew 28% to $89.8 million [105] - Total customer count increased by 160 sequentially to 5,120, the largest sequential growth since Q1 2023 [194] - Customers with $100K+ in ARR grew 17% to 1,260, and customers with $1M+ in ARR grew 24% to 168 [185] Company Strategy and Industry Competition - The company is focusing on driving durable and efficient growth, with a strong emphasis on multi-product adoption and consumption-based revenue models [9][66] - Confluent is leveraging its position as a leader in real-time data streaming, with innovations like Flink and Tableflow enhancing its competitive differentiation [22][200] - The company is targeting high-potential customers and incentivizing the sales team to drive adoption of new products like Flink and Kafka [19][99] Management Commentary on Operating Environment and Future Outlook - Management highlighted early positive signals from the consumption transformation, including stabilization in consumption trends and increased new customer acquisition [66][216] - The company expects Flink to contribute meaningfully to revenue in 2025, with 2024 focused on adoption [107][212] - Full-year 2024 guidance includes total revenue of approximately $957 million, representing 23% growth, and subscription revenue of $910 million, representing 25% growth [60] Other Important Information - The company hosted Kafka Summit London and Bangalore, with over 7,000 attendees, showcasing innovations like Flink and Tableflow [170][197] - Confluent is integrating AI capabilities into its platform, with Flink SQL supporting AI models and remote inference, enhancing real-time data processing for AI applications [125][180] - The company is working on reducing friction in the land-and-expand process, with pricing adjustments and system changes to facilitate easier customer onboarding [41][66] Q&A Session Summary Question: How is the adoption of Flink progressing, and what is the expected revenue contribution? - Flink has seen strong early adoption, with nearly 600 prospects and customers trying it since its preview. Revenue contribution is expected to ramp up in 2025 [54][212] Question: What are the key drivers behind the growth in Governance products? - The rise of GenAI and increasing complexity around data security and regulation are driving demand for Governance products, which have seen the fastest revenue growth of any product launched to date [186][145] Question: How is the shift to consumption-based revenue models impacting customer acquisition? - The shift has led to higher-quality customer additions, with the sales team incentivized to target high-potential customers, resulting in both increased volume and better targeting [114][216] Question: What are the expectations for Tableflow adoption and monetization? - Tableflow is in early access, with strong customer interest. Monetization opportunities will be announced as the product matures, with potential for significant revenue contribution [190][199] Question: How is the financial services vertical performing, particularly in cloud adoption? - Cloud adoption in financial services has been strong, starting with smaller banks and spreading to larger institutions, with Confluent well-positioned to meet their real-time data needs [14][152]

Confluent (CFLT) reported $217.24 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 24.6%. EPS of $0.05 for the same period compares to -$0.09 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $211.57 million, representing a surprise of +2.68%. The company delivered an EPS surprise of +150.00%, with the consensus EPS estimate being $0.02.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- a ...

Confluent (CFLT) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to loss of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 150%. A quarter ago, it was expected that this data infrastructure software maker would post earnings of $0.05 per share when it actually produced earnings of $0.09, delivering a surprise of 80%.Over the last four quarters, ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q Table of Contents SPECIAL NOTE ABOUT FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations and financial condition, business ...

[First Quarter 2024 Financial Highlights](index=1&type=section&id=First%20Quarter%202024%20Financial%20Highlights) Confluent reported strong Q1 2024 financial performance, with total revenue up **25% to $217.2 million**, driven by subscription and cloud growth, and improved profitability Q1 2024 Key Financial Metrics | Metric | Q1 2024 | Q1 2023 | Y/Y Change | | :--- | :--- | :--- | :--- | | Total Revenue | $217.2M | $174.3M | 25% | | Subscription Revenue | $206.9M | $160.6M | 29% | | Confluent Cloud Revenue | $107.0M | - | 45% | | GAAP Operating Margin | (51.3%) | (95.3%) | +44.0 pts | | Non-GAAP Operating Margin | (1.5%) | (23.1%) | +21.6 pts | | GAAP Net Loss Per Share | $(0.30) | $(0.52) | +$0.22 | | Non-GAAP Net Income Per Share | $0.05 | $(0.09) | +$0.14 | | Free Cash Flow | $(31.7)M | $(82.9)M | +$51.2M | - The number of customers with $100,000 or greater in Annual Recurring Revenue (ARR) grew to **1,260**, an increase of **17% year-over-year**[1](index=1&type=chunk) - Management highlighted that the company's consumption transformation is showing early signs of success, with strong subscription revenue growth and the largest sequential increase in total customers since Q1 2023[1](index=1&type=chunk) - CEO Jay Kreps noted that Confluent Cloud now accounts for the majority of subscription revenue and remains the fastest-growing offering[6](index=6&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) Confluent provided Q2 and FY2024 guidance, projecting continued revenue growth and improved profitability, while announcing a shift to subscription revenue-focused reporting - Confluent will transition its revenue outlook to focus solely on subscription revenue starting with its guidance for Q3 2024. The second quarter of 2024 will be the last period for which total revenue outlook is provided[2](index=2&type=chunk) [Q2 2024 Outlook](index=2&type=section&id=Q2%202024%20Outlook) Confluent projects Q2 2024 total revenue between **$229 million and $230 million**, with subscription revenue of **$217 million to $218 million**, and improved non-GAAP profitability Q2 2024 Financial Outlook | Metric | Guidance Range | | :--- | :--- | | Total Revenue | $229M - $230M | | Subscription Revenue | $217M - $218M | | Non-GAAP Operating Margin | Approx. -1% | | Non-GAAP Net Income per Diluted Share | $0.04 - $0.05 | [Fiscal Year 2024 Outlook](index=2&type=section&id=Fiscal%20Year%202024%20Outlook) Confluent targets FY2024 total revenue of approximately **$957 million** and subscription revenue of **$910 million**, aiming for a **0% non-GAAP operating margin** Fiscal Year 2024 Financial Outlook | Metric | Guidance | | :--- | :--- | | Total Revenue | Approx. $957M | | Subscription Revenue | Approx. $910M | | Non-GAAP Operating Margin | Approx. 0% | | Non-GAAP Net Income per Diluted Share | $0.19 - $0.20 | [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents Confluent's unaudited consolidated financial statements for Q1 2024, detailing its financial position, performance, and cash flows [Statements of Operations](index=8&type=section&id=Statements%20of%20Operations) Confluent's Q1 2024 Statement of Operations shows total revenue of **$217.2 million** and improved GAAP operating and net losses compared to Q1 2023 Condensed Consolidated Statements of Operations (in thousands) | Line Item | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Total Revenue | $217,237 | $174,302 | | Gross Profit | $156,016 | $116,158 | | Total Operating Expenses | $267,367 | $282,251 | | Operating Loss | $(111,351) | $(166,093) | | Net Loss | $(92,967) | $(152,555) | | Net Loss Per Share | $(0.30) | $(0.52) | [Balance Sheets](index=7&type=section&id=Balance%20Sheets) As of March 31, 2024, Confluent's balance sheet shows strong liquidity with **$1.91 billion** in cash and equivalents, and **$2.44 billion** in total assets Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash, cash equivalents & marketable securities | $1,906,959 | $1,900,770 | | Total Assets | $2,439,629 | $2,460,809 | | Total Liabilities | $1,594,412 | $1,650,394 | | Total Stockholders' Equity | $845,217 | $810,415 | [Statements of Cash Flows](index=9&type=section&id=Statements%20of%20Cash%20Flows) Confluent's Q1 2024 cash flow statements show improved cash management, with net cash used in operating activities decreasing to **$26.0 million** and improved free cash flow Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(25,954) | $(77,772) | | Net cash used in investing activities | $(16,765) | $(52,483) | | Net cash provided by financing activities | $30,004 | $37,729 | | Net decrease in cash and cash equivalents | $(13,388) | $(92,321) | | Cash and cash equivalents at end of period | $336,373 | $343,460 | [Reconciliation of GAAP to Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section reconciles GAAP to non-GAAP financial measures, adjusting for items like stock-based compensation to provide a clearer view of core operational performance Reconciliation of GAAP to Non-GAAP Operating Loss (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | GAAP Operating Loss | $(111,351) | $(166,093) | | Stock-based compensation | $102,985 | $82,952 | | Acquisition-related expenses | $4,587 | $9,317 | | Restructuring charges | - | $33,382 | | Non-GAAP Operating Loss | $(3,277) | $(40,329) | Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Loss) (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | GAAP Net Loss | $(92,967) | $(152,555) | | Total Adjustments | $108,767 | $127,065 | | Non-GAAP Net Income (Loss) | $15,800 | $(25,490) | Reconciliation to Free Cash Flow (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(25,954) | $(77,772) | | Less: Capitalized internal-use software costs | $(5,539) | $(4,556) | | Less: Capital expenditures | $(186) | $(546) | | Free Cash Flow | $(31,679) | $(82,874) | [Legal and Definitional Disclosures](index=3&type=section&id=Legal%20and%20Definitional%20Disclosures) This section outlines forward-looking statement risks, explains non-GAAP financial measures, and defines key operational metrics like Annual Recurring Revenue (ARR) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section details forward-looking statements, emphasizing inherent risks and uncertainties that could cause actual results to differ materially from projections - The report includes forward-looking statements concerning financial outlook, market leadership, investment plans, and the effectiveness of its go-to-market strategy[10](index=10&type=chunk)[13](index=13&type=chunk) - Key risks that could cause actual results to differ include limited operating history, ability to manage rapid growth, uncertain macroeconomic conditions, competition, and reliance on third-party cloud infrastructure[14](index=14&type=chunk) [Non-GAAP Financial Measures Explanation](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) Confluent uses non-GAAP financial measures to supplement GAAP results, providing a consistent view of core operations by excluding specific non-recurring or non-cash items - The company uses non-GAAP financial measures internally to analyze business trends and for planning purposes, believing they provide consistency and comparability for investors[15](index=15&type=chunk) - Non-GAAP measures are defined as the respective GAAP measures adjusted for items including stock-based compensation, amortization of acquired intangibles, acquisition-related expenses, and restructuring charges[11](index=11&type=chunk) [Key Metrics Definition (ARR)](index=5&type=section&id=Key%20Metrics%20Definition%20(ARR)) This section defines Annual Recurring Revenue (ARR), a key metric, detailing its calculation methodology for both Confluent Platform and Confluent Cloud offerings - Annual Recurring Revenue (ARR) is defined as the sum of (1) contractually committed revenue over the following 12 months for Confluent Platform customers and (2) annualized actual consumption over the last three months for Confluent Cloud customers[26](index=26&type=chunk)

The time to jump into a red-hot growth prospect is usually right now...before any more investors identify the opportunity.They're often grouped together, but not all growth stocks are the same. Indeed, they're each dramatically different in terms of risk, potential, and longevity. One's not inherently as good as another.With that as the backdrop, here's a closer look at three hot growth stocks that are screaming buys right now. All three may pose above-average risk, but if you can stomach it, the prospectiv ...

Wall Street analysts forecast that Confluent (CFLT) will report quarterly earnings of $0.02 per share in its upcoming release, pointing to a year-over-year increase of 122.2%. It is anticipated that revenues will amount to $211.57 million, exhibiting an increase of 21.4% compared to the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.B ...

imaginima Introduction & Investment Thesis Confluent (NASDAQ:NASDAQ:CFLT) is a data infrastructure platform focused on data in motion. The company has outperformed the S&P 500 and Nasdaq 100 YTD. It reported its Q4 FY23 earnings report in February, where revenue grew 33% YoY for the full fiscal year, while non-GAAP Operating Margin improved 2300 basis points to -7.4%, up from -30.4% a year earlier. The company expects to grow its revenue by 22.3% YoY to $950M, while breaking even on non-GAAP operating i ...

The cloud software company is facing challenges, but Mizuho remains optimistic.Analysts at Mizuho have become a bit less optimistic about Confluent (CFLT 0.80%). On Monday, they lowered their price target on the data streaming company's shares from $38 to $36. However, that new target still represents a potential upside of 26% from the current price, and Mizuho maintained its buy rating on the stock.A mixed bagConfluent specializes in helping enterprises handle complex data streaming workloads using Apache ...