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.

Total Revenue

$261M

Previous year: $213M

+22.5%

EPS

$0.09

Previous year: $0.09

+0.0%

Customers with $100K+ ARR

1.38K

Previous year: 1.23K

+12.0%

Cash and Equivalents

$386M

Previous year: $1.9B

-79.7%

Free Cash Flow

$29.1M

Previous year: $32.1M

-9.4%

Total Assets

$2.69B

Previous year: $2.46B

+9.5%

Confluent Revenue

Confluent EPS

Confluent Revenue by Segment

Confluent Revenue by Geographic Location

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.
Uncertainty in macroeconomic conditions affecting enterprise spending.
Potential risks in maintaining high growth rates in cloud revenue.