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Mar 31, 2024
Confluent Q1 2024 Earnings Report
Confluent's first quarter 2024 results demonstrated strong growth in Confluent Cloud and subscription revenue, indicating successful consumption transformation.
Key Takeaways
Confluent reported a strong start to fiscal year 2024, with total revenue of $217 million, a 25% year-over-year increase. Confluent Cloud revenue grew by 45% year-over-year, accounting for the majority of subscription revenue. The company also saw an increase in customers with $100,000 or greater in ARR, up 17% year-over-year.
Total revenue reached $217 million, representing a 25% increase year-over-year.
Subscription revenue grew to $207 million, a 29% increase year-over-year.
Confluent Cloud revenue increased by 45% year-over-year, reaching $107 million.
Customers with $100,000 or greater in ARR increased by 17% year-over-year, totaling 1,260 customers.
Confluent
Confluent
Confluent Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comServices Revenue
CapyFin.com Forward Guidance
For the second quarter of 2024, Confluent expects total revenue between $229 million and $230 million, subscription revenue between $217 million to $218 million, a non-GAAP operating margin of approximately negative 1%, and non-GAAP net income per diluted share between $0.04 to $0.05. For fiscal year 2024, Confluent expects total revenue of approximately $957 million, subscription revenue of approximately $910 million, a non-GAAP operating margin of approximately 0%, and non-GAAP net income per diluted share between $0.19 to $0.20.
Positive Outlook
- Total revenue expected between $229 million and $230 million for Q2 2024.
- Subscription revenue expected between $217 million to $218 million for Q2 2024.
- Non-GAAP operating margin expected to be approximately negative 1% for Q2 2024.
- Non-GAAP net income per diluted share expected between $0.04 to $0.05 for Q2 2024.
- Total revenue expected to be approximately $957 million for fiscal year 2024.
Challenges Ahead
- Non-GAAP operating margin expected to be approximately 0% for fiscal year 2024.
- Non-GAAP net income per diluted share expected between $0.19 to $0.20 for fiscal year 2024.
- Transitioning revenue outlook from total revenue to subscription revenue.
- Second quarter of 2024 will be the final quarter for which Confluent provides total revenue outlook for the quarter and fiscal year 2024.
- Confluent will provide only total subscription revenue outlook beginning with outlook for the third quarter of 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income