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Dec 31, 2024
Confluent Q4 2024 Earnings Report
Key Takeaways
Confluent reported a strong Q4 2024, with total revenue growing 23% year-over-year to $261.2 million, driven by 24% growth in subscription revenue. The company also achieved a non-GAAP operating income of $13.6 million, while GAAP operating loss widened. Confluent Cloud revenue saw a significant 38% increase. Free cash flow improved notably to $29.1 million, compared to $6.8 million in Q4 2023.
Revenue by Segment
Forward Guidance
Confluent expects continued revenue growth in Q1 and FY 2025, with subscription revenue projected between $253-$254 million in Q1 and $1.117-$1.121 billion for the full year. The company anticipates maintaining profitability improvements with a non-GAAP operating margin of ~3% in Q1 and ~6% for the full year.
Positive Outlook
- Strong growth in Confluent Cloud revenue, up 38% YoY.
- Continued subscription revenue expansion, up 24% YoY.
- Improving free cash flow margin, reaching 11.1%.
- Sustained growth in high-value customers with $100K+ ARR.
- Projected non-GAAP profitability improvements in FY 2025.
Challenges Ahead
- GAAP operating losses remain significant at $105.8 million.
- Non-GAAP operating margin slightly decreased by 0.1 percentage points.
- Stock-based compensation expenses continue to weigh on profitability.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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