Confluent(CFLT) - 2024 Q3 - Quarterly Results

Revenue Growth - Subscription revenue reached $240 million, up 27$130 million, up 42% year over year[1] - Total revenue for Q3 2024 was $250.2 million, up 25$250.2 million, up 25% from $200.2 million in Q3 2023[14] - Subscription revenue grew to$239.9 million in Q3 2024, a 26.7% increase from $189.3 million in Q3 2023[14] - Confluent Cloud revenue growth driven by increased adoption of data streaming platforms[7] Customer Metrics - 1,346 customers with$100,000 or greater in ARR, a 14% year-over-year increase[1] Financial Performance - Non-GAAP operating income improved to $15.8 million from a loss of$10.9 million in Q3 2023[3] - Free cash flow margin improved to 3.7% from -6.5% in Q3 2023[3] - Net loss improved to $74.1 million in Q3 2024, compared to a net loss of$92.7 million in Q3 2023[14] - GAAP operating loss for Q3 2024 was $93.7 million, compared to$108.6 million in Q3 2023, with GAAP operating margins improving from -54.3% to -37.4%[19] - Non-GAAP operating income for Q3 2024 was $15.8 million, a significant improvement from a loss of$10.9 million in Q3 2023, with non-GAAP operating margins improving from -5.5% to 6.3%[19] - GAAP net loss for Q3 2024 was $74.1 million, compared to$92.7 million in Q3 2023, while non-GAAP net income improved to $34.8 million from$6.3 million in the same period last year[19] - Free cash flow for Q3 2024 was $9.3 million, a significant improvement from a negative$13.1 million in Q3 2023, with free cash flow margins improving from -6.5% to 3.7%[20] - Net cash provided by operating activities in Q3 2024 was $15.6 million, compared to a negative$9.1 million in Q3 2023[20] Guidance and Targets - Q4 2024 subscription revenue guidance raised to $245-$246 million[4] - Full-year 2024 subscription revenue guidance updated to $916.5-$917.5 million[4] - Non-GAAP operating margin targeted to be positive for 2024[2] Cash Flow and Liquidity - Cash and cash equivalents decreased to $322.6 million as of September 30, 2024, down from$349.8 million at the end of 2023[13] - Marketable securities remained stable at $1.54 billion as of September 30, 2024, compared to$1.55 billion at the end of 2023[13] - Net cash provided by operating activities for the three months ended September 30, 2024, was $15.6 million, compared to a net cash used of$9.1 million in the same period in 2023[16] - Purchases of marketable securities for the three months ended September 30, 2024, were $273.2 million, compared to$235.8 million in the same period in 2023[16] - Cash paid for business combinations, net of cash acquired, for the three months ended September 30, 2024, was $115.5 million, compared to$0 in the same period in 2023[16] - Capital expenditures in Q3 2024 were $607,000, compared to$363,000 in Q3 2023[20] - Net cash used in investing activities in Q3 2024 was $21.9 million, compared to$11.5 million in Q3 2023[20] - Net cash provided by financing activities in Q3 2024 was $17.2 million, compared to$26.2 million in Q3 2023[20] Operating Expenses - Total operating expenses for Q3 2024 were $280.2 million, up 11.1$252.3 million in Q3 2023[14] - Research and development expenses increased to $102.7 million in Q3 2024, up 12.6$91.2 million in Q3 2023[14] - Stock-based compensation-related charges totaled $101.8 million in Q3 2024, up 10.7$92.0 million in Q3 2023[15] - Stock-based compensation for the three months ended September 30, 2024, was $98.3 million, up from$89.5 million in the same period in 2023[16] - Non-GAAP research and development operating expense as a percentage of total revenue for the three months ended September 30, 2024, was 21.8%, down from 24.4% in the same period in 2023[18] - Non-GAAP sales and marketing operating expense as a percentage of total revenue for the three months ended September 30, 2024, was 41.7%, down from 47.2% in the same period in 2023[18] Balance Sheet and Assets - Accounts receivable increased to $278.7 million as of September 30, 2024, up 21.2$230.0 million at the end of 2023[13] - Total assets grew to $2.61 billion as of September 30, 2024, up 6$2.46 billion at the end of 2023[13] Gross Margins - Total gross margin on a GAAP basis for the three months ended September 30, 2024, was 74.5%, up from 71.8% in the same period in 2023[17] - Non-GAAP total gross margin for the three months ended September 30, 2024, was 79.3%, compared to 76.4% in the same period in 2023[18]