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Mar 31, 2025
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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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