Confluent(US:CFLT)2025-04-30 20:31Financial Performance - Confluent reported revenue of $271.1 million for the three months ended March 31, 2025, representing a year-over-year growth of 25% compared to $217.2 million in the same period of 2024[129]. - Total revenue for the three months ended March 31, 2025, reached $271.1 million, up 25% from $217.2 million in the prior year[160]. - Subscription revenue for the three months ended March 31, 2025, was $260.9 million, a 26% increase from $206.9 million in the same period of 2024[160]. - Gross profit for the three months ended March 31, 2025, was $202.0 million, representing a 29% increase from $156.0 million in the same period of 2024[166]. - The net loss for the three months ended March 31, 2025, was $67.6 million, an improvement from a net loss of $93.0 million in the same period of 2024[160]. - The company reported a loss before income taxes of $80.8 million, an improvement of $9.7 million from the previous year's loss of $90.5 million[174]. Customer Growth - The company had approximately 6,140 customers as of March 31, 2025, reflecting a year-over-year growth of 20% from 5,120 customers in 2024[129]. - The number of customers contributing $100,000 or greater in Annual Recurring Revenue (ARR) increased to 1,412 as of March 31, 2025, compared to 1,260 in 2024[141]. - Confluent aims to maintain its product leadership and brand strength to drive revenue growth, with a focus on increasing customer adoption and usage expansion[133]. Revenue Composition - Confluent Cloud revenue accounted for 53% of total revenue for the three months ended March 31, 2025, up from 49% in the same period of 2024[134]. - The dollar-based net retention rate (NRR) was 117% as of March 31, 2025, indicating strong expansion within existing customers[142]. Expenses and Profitability - Total operating expenses for the three months ended March 31, 2025, were $303.2 million, compared to $267.4 million in the prior year[160]. - Research and development expenses increased by $19.2 million to $116.8 million, representing 43% of revenue, compared to 45% in the previous year[169]. - Sales and marketing expenses rose by $14.9 million to $146.3 million, accounting for 54% of revenue, down from 60%[170]. - General and administrative expenses increased by $1.7 million to $40.1 million, making up 15% of revenue, compared to 18% last year[171]. - Subscription gross margin increased to 78% for the three months ended March 31, 2025, compared to 77% in the prior year[166]. Cash Flow and Financial Position - As of March 31, 2025, the company had cash, cash equivalents, and marketable securities totaling $1,916.6 million[178]. - The company generated net cash used in operating activities of $26.8 million for the three months ended March 31, 2025, compared to $26.0 million in the same period last year[180]. - Cash used in investing activities was $112.0 million, primarily due to purchases of marketable securities totaling $405.2 million[185]. - Cash provided by financing activities was $30.8 million, driven by $16.6 million from stock option exercises and $14.2 million from the employee stock purchase plan[188]. - The company has an accumulated deficit of $2,056.8 million as of March 31, 2025, indicating significant operating losses and negative cash flows from operations[179]. Market Conditions - Confluent's business model is impacted by macroeconomic conditions, leading to longer sales cycles and increased scrutiny on IT spending from customers[130]. - The company expects fluctuations in total revenue based on new subscriptions, customer renewals, and consumption trends[147]. - The company expects to continue investing in growth while optimizing for profitability and cash flow amid challenging macroeconomic conditions[138]. - Confluent's consumption-oriented sales model allows for flexibility in customer contracts, which may lead to revenue fluctuations based on usage patterns[128]. Strategic Investments - The company has made significant investments in its Data Streaming Platform, including the acquisition of immerok GmbH to enhance its Apache Flink offerings[133]. - The company is focused on expanding its customer base through self-service cloud adoption and free trials, which has led to increased consumption and adoption of its Data Streaming Platform[129].