Financial Data and Key Metrics Changes - Subscription revenue grew 26% to $922.1 million for fiscal year 2024, with Q4 subscription revenue increasing 24% to $250.6 million, exceeding guidance [28][29] - Non-GAAP operating margin improved by 10 percentage points to 2.9% for fiscal year 2024, with Q4 operating margin at 5.2%, surpassing guidance of approximately 2% [28][32] - Free cash flow margin reached 11.1% in Q4, marking a significant improvement [32] Business Line Data and Key Metrics Changes - Confluent Cloud revenue grew 38% to $137.9 million in Q4, accounting for 55% of subscription revenue, up from 49% a year ago [29] - Confluent Platform revenue increased by 10% to $112.7 million, representing 45% of subscription revenue [29] - DSP cloud consumption, which includes Connect, Process, and Govern, accounted for approximately 13% of cloud business, growing faster than overall cloud [29][36] Market Data and Key Metrics Changes - Revenue from the U.S. grew 20% to $153.7 million, while revenue from outside the U.S. accelerated to 26%, reaching $107.5 million [30] - The company announced a multi-year strategic partnership with Jio Platforms to enhance its presence in India [31] Company Strategy and Development Direction - The company is focusing on a complete data streaming platform to address customer needs for real-time data and AI-driven applications [5][10] - A major expansion of the strategic partnership with Databricks aims to integrate Confluent's data streaming platform with Databricks' data intelligence platform [6][8] - The company is transitioning to a consumption-based go-to-market model, which is expected to drive growth and profitability [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the market and demand across customer segments, expecting this trend to continue into 2025 [76] - The company anticipates that 2025 will be a pivotal year for its data streaming platform, with expectations for significant growth in DSP consumption [40][41] Other Important Information - The company ended Q4 with $1.91 billion in cash, cash equivalents, and marketable securities, indicating a strong balance sheet [33] - The win rate for new business increased significantly, remaining well above 90% against competitors [35] Q&A Session Summary Question: Insights on the relationship with Databricks and customer use cases - Management highlighted the importance of real-time data for AI applications and the integration of Confluent's offerings with Databricks' ecosystem [46][48] Question: Confidence in growth trends for DSP - Management noted qualitative and quantitative evidence of growth, including strong customer interest and increased consumption of DSP products [49][50] Question: GenAI use cases for streaming technology - Management discussed the evolution of AI applications and the need for real-time data processing to enhance operational efficiency [53][55] Question: Changes in go-to-market strategy for 2025 - Management indicated that adjustments would be minor, focusing on fine-tuning incentives and supporting use cases that drive DSP consumption [66][68] Question: Flink's role and future momentum - Management expressed satisfaction with Flink's progress and its relevance in the cloud data processing landscape [81][83] Question: Importance of real-time data processing for decision-making - Management acknowledged the growing significance of real-time data processing in business operations and its application in various workflows [90][92]

Confluent exceeded expectations in the fourth quarter thanks to significant cloud subscription growth and improved cash flow.Confluent (CFLT -4.32%), operator of a cloud-centric data streaming platform, delivered its fourth-quarter earnings results on Feb. 11. The company reported non-GAAP earnings per share (EPS) of $0.09, which was well above the analysts' consensus estimate of $0.06 and also exceeded the company's guidance of $0.05. Total revenue for the quarter grew 23% year over year to $261.2 million, ...

Revenue Growth - Fourth quarter subscription revenue reached $250.6 million, a 24% increase year-over-year, with Confluent Cloud revenue growing 38% to $138 million[6] - For fiscal year 2024, subscription revenue totaled $922.1 million, up 26% year-over-year, while total revenue increased 24% to $963.6 million[7] - Total revenue for Q4 2024 was $261.2 million, a 22.5% increase from $213.2 million in Q4 2023[20] - Subscription revenue reached $250.6 million, up 23.5% from $202.8 million year-over-year[20] Profitability and Losses - The company reported a GAAP operating loss of $(105.8) million in Q4 2024, compared to $(84.7) million in Q4 2023, reflecting a $(21.1) million increase in losses[5] - Non-GAAP operating income for Q4 2024 was $13.6 million, up $2.4 million from $11.2 million in Q4 2023, with a non-GAAP operating margin of 5.2%[5] - GAAP net loss per share improved to $(0.27) in Q4 2024 from $(0.30) in Q4 2023, while non-GAAP net income per diluted share remained at $0.09[5] - Net loss for the year ended December 31, 2024, was $345.1 million, an improvement from a net loss of $442.7 million in 2023[20] - Non-GAAP net income for Q4 2024 was $31,064,000, slightly down from $32,169,000 in Q4 2023, a decrease of 3.4%[25] Cash Flow and Financial Position - Free cash flow for Q4 2024 was $29.1 million, significantly up from $6.8 million in Q4 2023, resulting in a free cash flow margin of 11.1%[5] - Cash and cash equivalents at the end of Q4 2024 were $386.0 million, up from $349.8 million at the end of Q4 2023[22] - Total assets increased to $2.7 billion in 2024 from $2.5 billion in 2023[18] - Total stockholders' equity rose to $961.2 million in 2024, compared to $810.4 million in 2023[18] - Free cash flow margin for Q4 2024 was 11.1%, compared to 3.2% in Q4 2023, indicating improved cash flow efficiency[26] Expenses - Research and development expenses for the year were $421.2 million, a 20.8% increase from $348.8 million in 2023[20] - The company reported stock-based compensation-related charges of $417.1 million for the year, up from $360.9 million in 2023[20] - Research and development operating expenses on a GAAP basis for Q4 2024 were $114,886,000, up from $86,948,000 in Q4 2023, a rise of 32%[24] - Sales and marketing operating expenses on a GAAP basis for Q4 2024 were $145,194,000, compared to $119,911,000 in Q4 2023, an increase of 21%[24] Future Outlook - Confluent expects Q1 2025 subscription revenue to be between $253 million and $254 million, and fiscal year 2025 subscription revenue to range from $1.117 billion to $1.121 billion[8] - The company anticipates a non-GAAP operating margin of approximately 3% for Q1 2025 and around 6% for fiscal year 2025[8] - The company highlighted its strategic partnerships and product innovations as key drivers for future growth and market leadership in the data streaming sector[4] Gross Profit - Gross profit for the year ended December 31, 2024, was $706.2 million, representing a 28.9% increase compared to $547.3 million in 2023[20] - Total GAAP gross profit for Q4 2024 was $193,655,000, up from $156,127,000 in Q4 2023, representing a 24% increase[24] - Non-GAAP total gross profit for the year 2024 reached $753,759,000, compared to $585,821,000 in 2023, reflecting a 28.6% growth[24]

In its upcoming report, Confluent (CFLT) is predicted by Wall Street analysts to post quarterly earnings of $0.05 per share, reflecting a decline of 44.4% compared to the same period last year. Revenues are forecasted to be $256.83 million, representing a year-over-year increase of 20.5%.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1.8% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during ...

Data streaming is a little-known technology that plays a big role in everyday lives. It allows e-commerce websites, stock trading platforms, and even artificial intelligence (AI) app developers to create live experiences for their users.Confluent (CFLT 3.03%) is the leading provider of data streaming technology, and it believes the industry could be worth more than $100 billion this year. Based on the company's current revenue, it has barely scratched the surface of that opportunity so far.Confluent stock i ...

The technology sector is a dynamic and ever-evolving market terrain where innovation is paramount to survival and growth. Cutting-edge developments are revolutionizing industries, creating a wealth of unique opportunities for investors who know where to look. Three companies are at the forefront of this transformation, each a leader in its respective field: Confluent Inc. NASDAQ: CFLT, SentinelOne Inc. NYSE: S, and Coupang Inc. NYSE: CPNG. All three companies demonstrate impressive growth trajectories and p ...

Confluent (NASDAQ: CFLT ) is a company that has recently come to my radar. The company generated free cash flow for the first time on a trailing twelve-month basis. I believe that the company’s data streaming offering couldNine to 5 by day. Hobbyist stock trader by night. I got an MBA and a CFA ... so that should count for something. I only care about my own greedy interests and I love feeding trolls. Not your financial advisor. Information for entertainment purposes only. Diamond hands are forever.Analyst’ ...

It has been a year since I last wrote about Confluent shares for Seeking Alpha. In that time, the company’s shares have seen a fairBert Hochfeld graduated with a degree in economics from the University of Pennsylvania and received an MBA from Harvard. Mr. Hochfeld has enjoyed a long career in the tech world, working for IBM, Memorex/Telex, Raytheon Data Systems, and BMC Software. Starting in the 1990s, Mr. Hochfeld worked as a sell-side analyst and won awards from the Wall Street Journal for his coverage of ...

Investors looking for a growth stock may be tempted to buy this company, but they shouldn't ignore one key factor.Data streaming platform provider Confluent (CFLT -1.62%) is seeing a remarkable turnaround in its fortunes on the stock market of late. After rising rapidly earlier in 2024, the stock started going downhill and was underperforming the broader technology sector recently, but it has made a huge jump since the beginning of October.More specifically, Confluent stock is up 45% since Oct. 1 (as of thi ...

New offering intended to protect against projected $40 billion in AI-powered fraud by 2027.PALO ALTO, Calif., Nov. 14, 2024 /PRNewswire/ -- Oscilar, the AI Risk Decisioning™ pioneer, today unveiled its groundbreaking Cognitive Identity Intelligence Platform to combat the rising tide of AI-powered fraud. The platform's proprietary "Digital & Behavior Identification" technology fundamentally transforms digital identity verification in an era where traditional solutions are increasingly vulnerable to sophistic ...