Financial Data and Key Metrics - Total revenue for Q4 2023 grew 26% YoY to $213 2 million, with subscription revenue growing 31% to $202 8 million [9][47] - Confluent Cloud revenue reached $100 million for the first time, growing 46% YoY, and now represents 47% of total revenue [9][19] - Non-GAAP operating margin turned positive for the first time at 5 3%, improving 27 percentage points YoY [9][20] - Full-year 2023 revenue grew 33% to $777 million, with Confluent Cloud revenue growing 65% to $348 8 million [17] - Non-GAAP operating margin for FY2023 improved 23 percentage points to negative 7 4%, with Q4 achieving the first positive margin [17] - Free cash flow margin turned positive in Q4, improving 21 percentage points to 3 2% [58] Business Line Data and Key Metrics - Confluent Platform revenue grew 18% YoY to $102 8 million, representing 48% of total revenue, driven by demand in regulated industries [47] - Confluent Cloud revenue grew 46% YoY to $100 million, exceeding guidance of $97 5 million [19] - Total customer count grew 9% YoY to approximately 4,960, with customers generating $100k+ in ARR growing 21% to 1,229 and $1M+ ARR customers growing 24% to 158 [49] - Net Revenue Retention (NRR) was slightly above 125%, exceeding the mid-term target threshold [59] Market Data and Key Metrics - Revenue from the US grew 27% YoY to $127 6 million, while international revenue grew 25% to $85 5 million [57] - Strong growth in India, particularly in the digital native segment, with one e-commerce brand growing its customer base by 100% in the last 18 months [39] Company Strategy and Industry Competition - The company is transitioning to a fully consumption-oriented go-to-market model, focusing on driving incremental consumption and new logo acquisition [6][10] - Confluent is positioning itself as a leader in the $60 billion data streaming platform market, with Forrester recognizing it as a leader in streaming data platforms and cloud data pipelines [11] - The company is investing in Flink, which is seen as the emerging de facto standard in stream processing, with nearly 1 million unique downloads in 2023 [1][41] - Confluent is leveraging its leadership in Kafka to capture the emerging stream processing market, similar to how databases combined storage and processing [68] Management Commentary on Operating Environment and Future Outlook - Management is confident in the company's ability to capture the $60 billion data streaming platform opportunity, driven by cloud migration and generative AI trends [60] - The company expects to achieve breakeven non-GAAP operating margin and free cash flow margin in 2024, with total revenue growth of 22% [61][62] - Confluent is focused on making its platform easier to adopt, reducing friction for customers, and driving higher velocity in customer acquisition [133] - The company sees generative AI as a significant growth driver, with partnerships with OpenAI, Anthropic, and Pinecone validating the strategic role of data streaming in AI applications [3][69][71] Other Important Information - The company acquired Notable in Q4 2023, which did not have a material financial impact but added a team focused on no-code data visualization [22] - Confluent expects Confluent Cloud revenue to grow approximately 43% in Q1 2024 to $105 million [53] - The company plans to transition fully to subscription revenue guidance starting in Q3 2024 [52] Q&A Session Summary Question: What drove the partnerships with OpenAI, Anthropic, and Pinecone? - These partnerships are driven by the need for data streaming in generative AI applications, particularly in integrating proprietary data with large language models [56][69][90] Question: How is the sales team adapting to the consumption-oriented model? - The sales team has responded positively to the new model, with no significant attrition and early signs of success in driving consumption [89][98] Question: What is the importance of Flink in Confluent's platform? - Flink is critical as it generalizes both streaming and batch processing, making it easier for developers to handle real-time data processing [151][156] Question: How is the company addressing the complexity of its technology portfolio? - Confluent is simplifying the adoption process by making its cloud services easy to use, reducing the operational complexity for customers [156] Question: What are the expectations for Flink's revenue contribution? - Material revenue contributions from Flink are expected in fiscal year 2025, with early adoption and application development starting in 2024 [160]

Shares of Confluent CFLT, +3.45% rose late Wednesday after the data-streaming company forecast more than 20% revenue growth in 2024 and its first breakeven year based on certain metrics. The stock was up 20%, to $29.12, in after-hours trading, following a 3.4% rise at Wednesday’s close. Shares are up 3.8% since the start of the year. Confluent said it expects revenue to grow more than 22%, to about $950 million, in 2024, ahead of analysts’ expectations. Finance Chief Rohan Sivaram said the company is con ...

Estimated Average ARR per Company(2) 28 | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|---------------------------------------------------|-------|-------|-------|-------|-------|-----------------------------------------------------------------------|-------| | 47% | Fully managed, cloud-native Rev Rec: Consumption | | | | | | Confluent Platform \nSelf-managed software Rev Rec: Upfront & ratable | | | | | | | | | | VM | | | | | | | | | | | | | 5% | Services | | | | | | | | 29 | --- | --- | ...

Confluent, Inc. (CFLT) will release fourth-quarter 2023 results on Feb 7, 2024, after the bell.The company has had an impressive earnings surprise history. It outperformed the Zacks Consensus Estimate in three of the trailing four quarters and matched once, delivering an earnings surprise of 108.9% on average.Q4 ExpectationsThe Zacks Consensus Estimate for the top line in the to-be-reported quarter is currently pegged at $204.6 million, indicating 21.3% growth from the year-ago reported quarter. The top lin ...

Wall Street analysts expect Confluent (CFLT) to post quarterly earnings of $0.05 per share in its upcoming report, which indicates a year-over-year increase of 155.6%. Revenues are expected to be $204.62 million, up 21.3% from the year-ago quarter.The consensus EPS estimate for the quarter has undergone an upward revision of 1.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Before a ...

The market expects Confluent (CFLT) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released ...

Confluent, Inc. (NASDAQ:CFLT) Q3 2023 Results Conference Call November 1, 2023 4:30 PM ET Company Participants Shane Xie - IR Jay Kreps - Co-Founder and CEO Rohan Sivaram - CFO Conference Call Participants Sanjit Singh - Morgan Stanley Brad Zelnick - Deutsche Kash Rangan - Goldman Sachs Michael Turrin - Wells Fargo Pinjalim Bora - JPMorgan Brad Sills - Bank of America Jason Ader - William Blair Derrick Wood - TD Cowen Raimo Lenschow - Barclays Shane Xie Hi, everyone. Welcome to the Confluent Q3 2023 Earning ...

Table of Contents (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR CONFLUENT, INC. (Exact Name of Registrant as Specified in its Charter) Securities registered pursuant to Section 12(b) of the Act: Condensed Consolidated Statements of Stockholders' Equity for the Three and Nine Months Ended September 30, 2023 and 2022 7 • our expectations regarding our revenue, revenue mix, expenses, and other results of ...

Q2 2023 Earnings Call August 2, 2023 2 As a reminder, certain financial measures we use on our call today and in the presentation are expressed on a non-GAAP basis. We use these non-GAAP financial measures and other key metrics internally to facilitate analysis of our financial and business trends and for internal planning and forecasting purposes. We believe these non-GAAP financial measures, when taken collectively, may be helpful to investors because they provide consistency and comparability with past f ...

Confluent, Inc. (NASDAQ:CFLT) Q2 2023 Earnings Conference Call August 2, 2023 4:30 PM ET Company Participants Shane Xie - Investor Relations Jay Kreps - Co-Founder and Chief Executive Officer Steffan Tomlinson - Chief Financial Officer Rohan Sivaram - Incoming Chief Financial Officer Conference Call Participants Jason Ader - William Blair Kash Rangan - Goldman Sachs Raimo Lenschow - Barclays Brad Zelnik - Deutsche Bank Rob Owens - Piper Sandler Gregg Moskowitz - Mizuho Michael Cikos - Needham Bradley Sil ...