Financial Performance - Confluent reported revenue of $235.0 million for Q2 2024, a 24% increase from $189.3 million in Q2 2023[93]. - Total revenue for the three months ended June 30, 2024, was $235.0 million, compared to $189.3 million for the same period in 2023, reflecting a 24.2% growth[115]. - Subscription revenue for the three months ended June 30, 2024, was $224.7 million, up from $176.5 million for the same period in 2023, representing a 27.3% increase[115]. - Subscription revenue increased by $48.2 million (27%) to $224.7 million for the three months ended June 30, 2024, compared to $176.5 million for the same period in 2023[120]. - Total revenue for the six months ended June 30, 2024, was $452.2 million, reflecting an $88.6 million (24%) increase from $363.6 million in the prior year[130]. - Revenue for the year ended December 31, 2023, was $777.0 million, up from $585.9 million in 2022 and $387.9 million in 2021[167]. Customer Growth and Retention - The company had approximately 5,440 customers as of June 30, 2024, representing a year-over-year growth of 13% from 4,830 customers in 2023[93]. - The number of customers contributing $100,000 or greater in Annual Recurring Revenue (ARR) increased to 1,306 in June 2024 from 1,144 in June 2023[103]. - The dollar-based Net Retention Rate (NRR) was 118% as of June 30, 2024, indicating strong expansion within existing customers[104]. - The company relies on existing customers renewing subscriptions and expanding usage, which is critical for maintaining revenue growth[165]. Investment and Development - Confluent has made significant investments in product development, including the re-architecture of technologies like Apache Kafka and the acquisition of immerok GmbH[96]. - The company expects to continue investing in product development and international expansion, although these investments may not guarantee increased revenue[170]. - The company plans to continue significant investments in Confluent Cloud to drive market adoption and consumption, shifting to a consumption-oriented sales model[167]. Operating Expenses and Losses - Operating loss for the three months ended June 30, 2024, was $(108.3) million, an improvement from $(119.4) million in the same period of 2023[115]. - Net loss for the three months ended June 30, 2024, was $(89.9) million, compared to $(103.4) million in the same period of 2023[115]. - The company has experienced net losses in the first half of 2024 amounting to $182.9 million and $256.0 million for the same period in 2023[171]. - Research and development expenses for the three months ended June 30, 2024, were $106.1 million, compared to $85.7 million in the same period of 2023, marking a 23.7% increase[115]. Market Conditions and Challenges - Macroeconomic conditions, including high inflation and interest rates, have led to longer sales cycles and increased scrutiny on IT spending, impacting customer consumption patterns[94]. - The company faces risks related to macroeconomic uncertainty, which may impact sales cycles and customer IT budgets, particularly due to ongoing global conflicts[163]. - The company has faced challenges in customer acquisition and retention, particularly in uncertain economic environments, which may hinder revenue growth[172]. - The competitive landscape includes established public cloud providers like AWS, Azure, and GCP, which pose significant risks to Confluent's market position[183]. Strategic Focus and Future Outlook - Confluent aims to streamline operating expenses while investing in growth, including a workforce reduction in January 2023[94]. - The company expects continued growth in Confluent Cloud's contribution to revenue as organizations seek fully-managed offerings for data in motion[97]. - The company anticipates ongoing challenges in differentiating its offerings from open source alternatives, particularly Apache Kafka, which could limit growth and revenue[185]. - The company’s growth prospects are heavily dependent on the market acceptance of its data-in-motion offering compared to competitors, including open-source alternatives[176]. Compliance and Regulatory Risks - The company is subject to various contractual obligations related to data privacy and security, which may increase legal liability and compliance costs if not met[213]. - Compliance with evolving U.S. and foreign data privacy laws, such as the California Consumer Privacy Act (CCPA), could result in penalties of up to $7,500 per violation, increasing operational costs and complexity[211]. - The company faces risks related to compliance with anti-corruption and anti-bribery laws as it increases international sales, which may divert management's resources and attention[252]. Cybersecurity and Operational Risks - Cybersecurity risks are heightened due to reliance on third-party service providers, which could introduce vulnerabilities and potential security incidents[205]. - The company has experienced a significant security incident related to a third-party vendor, Codecov, which may have impacted its operations and reputation[205]. - The company faces potential legal liabilities and reputational harm from security incidents, which could disrupt operations and affect financial performance[207]. International Operations - International customers contributed 40% of total revenue for both the six months ended June 30, 2024, and the year ended December 31, 2023[245]. - As of June 30, 2024, approximately 43% of full-time employees were located outside the United States, with 16% in India and 8% in the UK[245]. - The company is expanding its international operations, which may subject it to greater than anticipated tax liabilities due to varying tax laws and potential challenges from taxing authorities[254]. Stockholder and Capital Structure - As of June 30, 2024, stockholders holding Class B common stock control approximately 74.4% of the voting power of the company's outstanding capital stock[263]. - The company does not intend to pay dividends for the foreseeable future, relying on stock price appreciation for returns[269]. - The company expects to issue additional capital stock in the future, which will result in dilution for existing stockholders[269].

Exhibit 99.1 Confluent Announces Second Quarter 2024 Financial Results • Subscription revenue of $225 million, up 27% year over year • Confluent Cloud revenue of $117 million, up 40% year over year • 1,306 customers with $100,000 or greater in ARR, up 14% year over year MOUNTAIN VIEW, Calif. -- July 31, 2024 -- Confluent, Inc. (NASDAQ: CFLT), the data streaming pioneer, today announced financial results for its second quarter of 2024, ended June 30, 2024. "Confluent had a solid second quarter, demonstrated ...

The U.S. stock market has seen significant volatility in the past few years, swinging sharply between bull and bear phases. In an uncertain market environment, it becomes essential for retail investors to find stocks that can grow in bull markets and demonstrate stability in bear markets. Palantir Growth for the company's core U.S. government business has also started reaccelerating with revenue up 8% year over year (versus 3% in the previous quarter). The company secured a $178.4 million direct contract fr ...

Let's see why investors cheered Confluent's latest results. Confluent swings to a profit and beats analysts' expectations Confluent's Q1 revenue increased 25% year over year to $217 million, and it posted a non-GAAP (adjusted) profit of $0.05 per share as compared to a loss of $0.09 per share in the prior-year period. The numbers exceeded Wall Street's expectations, as consensus estimates were modeling an adjusted profit of $0.02 per share on $211.6 million in revenue. More importantly, Confluent topped its ...

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Confluent's data streaming technology is growing in importance, and investors might do well to pay attention.Confluent (CFLT -5.19%) is a leader in data streaming, which is the technology responsible for many of our live digital experiences. For example, it's the magic behind real-time inventory information when we shop online, which tells us whether a product is in stock before we hit the buy button.Confluent just reported its financial results for the first quarter of 2024 (ended March 31), which revealed ...

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, ...