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Sep 30, 2023
Confluent Q3 2023 Earnings Report
Confluent announced strong Q3 2023 financial results with revenue up 32% year over year and the company's first positive non-GAAP EPS.
Key Takeaways
Confluent reported a strong third quarter with a 32% year-over-year increase in revenue, reaching $200 million. The company achieved its first positive non-GAAP EPS and improved operating margins, demonstrating efficient growth and strong demand for its data streaming platform.
Total revenue was $200 million, up 32% year-over-year.
Confluent Cloud revenue reached $92 million, a 61% increase year-over-year.
Remaining performance obligations totaled $824 million, up 24% year-over-year.
The company had 1,185 customers with $100,000 or greater in ARR, a 25% increase year-over-year.
Confluent
Confluent
Confluent Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comServices Revenue
CapyFin.com Forward Guidance
For the fourth quarter of 2023, Confluent expects total revenue between $204 and $205 million and a non-GAAP operating margin between 0% and 1%. The company anticipates a non-GAAP net income per share of approximately $0.05.
Positive Outlook
- Total revenue is expected to be between $204 million and $205 million.
- Non-GAAP operating margin is projected to be between 0% and 1%.
- Non-GAAP net income per share is expected to be $0.05.
- The company is focused on efficient growth.
- The company anticipates continued business momentum.
Challenges Ahead
- Macroeconomic uncertainty may impact customer spending.
- Higher interest rates could affect investment decisions.
- Potential lengthening of sales cycles.
- Reduced contract sizes are possible.
- Customers may prefer open-source alternatives.
Revenue & Expenses
Visualization of income flow from segment revenue to net income