Confluent, Inc. (NASDAQ:CFLT) Q4 2024 Earnings Conference Call February 11, 2025 4:30 PM ET Company Participants Shane Xie - Investor Relations Jay Kreps - Co-Founder & Chief Executive Officer Rohan Sivaram - Chief Financial Officer Conference Call Participants Matthew Hedberg - RBC Michael Turrin - Wells Fargo Brad Zelnick - Deutsche Bank Sanjit Singh - Morgan Stanley Raimo Lenschow - Barclays Pinjalim Bora - JPMorgan Robbie Owens - Piper Sandler Kash Rangan - Goldman Sachs Howard Ma - Guggenheim Gregg Mos ...

For the quarter ended December 2024, Confluent (CFLT) reported revenue of $261.22 million, up 22.5% over the same period last year. EPS came in at $0.09, compared to $0.09 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $256.83 million, representing a surprise of +1.71%. The company delivered an EPS surprise of +80.00%, with the consensus EPS estimate being $0.05.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Str ...

Confluent (CFLT) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 80%. 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 $0.10, delivering a surprise of 100%.Over the last four quarte ...

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’ ...