NASDAQ$CFLT

Confluent Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Confluent had a solid second quarter, demonstrated by revenue growth and substantial operating margin and free cash flow expansions.

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.

Headline financials

Total Revenue

$235M

Previous: $189M+24.1%
EPS

-$0.28

Previous: -$0.32+12.5%
Capital Expenditures

-$1.29M

Previous: -$1.36M+4.7%
Free Cash Flow

-$18.7M

Previous: -$108M+82.8%
Net Income

-$89.9M

Previous: -$103M+13.1%
Operating Income

-$108M

Previous: -$119M+9.2%
Gross Profit

$170M

Previous: $131M+29.4%
Cash & Equivalents

$311M

Previous: $313M-0.4%
Total Assets

$2.53B

Previous: $2.33B+8.6%
R&D Expense

$106M

No prior period
Stock-Based Comp

$99.1M

Previous: $92.2M+7.5%

Revenue & EPS history

Confluent · Revenue · Quarterly

$235M

Q2 2024+24.1%vs Q2 2023
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Confluent · $200M total across 2 segments · Q3 2023

  • Subscription Revenue
    $189M+36.4%
  • Services Revenue
    $10.9M-16.1%

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.

Tailwinds

  • 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

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 17 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-0.2%

Avg return

Earnings day

-1.1%

Avg return

5 days after

+1.4%

Avg return

30 days after

60%

12 / 20 earnings

Positive

+38.7%

Q4 2023

Best reaction

-43.7%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q4 2025+0.1%+0.6%+0.6%
Q3 2025+7.8%+6.2%-1.0%
Q2 2025-32.8%-35.0%-24.8%
Q1 2025-18.4%-17.1%-3.3%
Q4 2024+25.1%+15.8%-12.4%
Q3 2024+13.6%+15.6%+33.9%
Q2 2024-15.1%-23.1%-12.6%
Q1 2024+9.6%+2.8%-9.4%
Q4 2023+38.7%+34.2%+38.7%
Q3 2023-43.7%-39.0%-21.0%
Q2 2023+8.6%+3.9%+0.2%
Q1 2023+13.2%+10.6%+68.6%
Q4 2022-1.7%+0.8%+5.7%
Q3 2022-12.2%-19.8%-12.1%
Q2 2022+20.5%+25.0%-7.9%
Q1 2022-29.1%-41.0%-35.2%
Q4 2021-23.7%-23.2%-58.5%
Q3 2021+22.3%+17.5%-5.1%
Q4 2020+6.9%+21.6%+42.2%
Q2 2021+6.9%+21.6%+42.2%
Q1 2021
Q3 2020
Q2 2020
Q1 2020

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