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Mar 31
Confluent Q1 2025 Earnings Report
Announced financial results for its first quarter of 2025
Key Takeaways
Confluent reported solid first-quarter 2025 results, with total revenue up 25% year-over-year, driven by strong subscription revenue growth of 26%. The company also achieved non-GAAP operating income and positive adjusted free cash flow, demonstrating improved profitability and financial health.
Total revenue reached $271.1 million, a 25% increase year-over-year.
Subscription revenue grew 26% year-over-year to $260.9 million.
Non-GAAP operating income was $11.6 million, a significant improvement from a loss in the prior year.
Adjusted free cash flow turned positive at $4.9 million.
Confluent
Confluent
Confluent Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comServices Revenue
CapyFin.com Forward Guidance
For the second quarter and fiscal year 2025, Confluent provided guidance for subscription revenue, non-GAAP operating margin, and non-GAAP net income per diluted share.
Positive Outlook
- Q2 2025 subscription revenue is expected to be between $267 million and $268 million.
- FY 2025 subscription revenue is expected to be between $1.10 billion and $1.11 billion.
- Q2 2025 non-GAAP operating margin is expected to be approximately 5%.
- FY 2025 non-GAAP operating margin is expected to be approximately 6%.
- Q2 2025 non-GAAP net income per diluted share is expected to be between $0.08 and $0.09.
Challenges Ahead
- FY 2025 non-GAAP net income per diluted share is expected to be approximately $0.36.
- Reconciliation of forward-looking non-GAAP measures to GAAP is not available due to high variability of certain items.
- Stock-based compensation and related taxes are expected to significantly impact future GAAP results.
- Timing of employee stock transactions and stock price fluctuations are unpredictable.
- Certain income tax effects are difficult to predict.
Revenue & Expenses
Visualization of income flow from segment revenue to net income