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Jun 30, 2024
Confluent Q2 2024 Earnings Report
Confluent had a solid second quarter, demonstrated by revenue growth and substantial operating margin and free cash flow expansions.
Key Takeaways
Confluent's Q2 2024 financial results showed a solid performance with 40% year-over-year revenue growth for Confluent Cloud and the largest sequential increase in total customer count in two years. The company delivered solid subscription revenue growth and substantial operating margin and free cash flow expansions.
Subscription revenue was $225 million, up 27% year-over-year.
Confluent Cloud revenue was $117 million, up 40% year-over-year.
The company had 1,306 customers with $100,000 or greater in ARR, up 14% year-over-year.
Delivered solid subscription revenue growth and substantial operating margin and free cash flow expansions.
Confluent
Confluent
Confluent Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comServices Revenue
CapyFin.com Forward Guidance
For the third quarter and fiscal year 2024, Confluent expects subscription revenue of $233-$234 million and $910 million respectively, Non-GAAP operating margin of 0% for both, and Non-GAAP net income per share of $0.05 and $0.20 respectively.
Positive Outlook
- Subscription Revenue Q3 2024: $233-$234 million
- Subscription Revenue FY 2024: $910 million
- Non-GAAP Operating Margin Q3 2024: 0%
- Non-GAAP Operating Margin FY 2024: 0%
- Non-GAAP Net Income Per Share Q3 2024: $0.05
Challenges Ahead
- A reconciliation of forward-looking non-GAAP operating margin, free cash flow margin and non-GAAP net income per share to the most directly comparable GAAP measures is not available without unreasonable effort
- Certain items cannot be reasonably predicted because of their high variability, complexity and low visibility.
- The measures and effects of our stock-based compensation-related charges are directly impacted by the timing of employee stock transactions and unpredictable fluctuations in our stock price
- Stock-based compensation-related charges include stock-based compensation expenses, employer payroll taxes on employee stock transactions, and amortization of stock-based compensation capitalized in internal-use software
- We expect to have a significant impact on our future GAAP financial results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income