Confluent(CFLT) - 2024 Q4 - Annual Results

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]