NASDAQ$CFLT

Confluent Inc. · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Confluent's revenue increased significantly, driven by strong growth in Confluent Cloud and a high dollar-based net retention rate.

Confluent announced its Q3 2021 financial results, reporting a total revenue of $103 million, up 67% year-over-year. Confluent Cloud revenue grew by 245% year-over-year, reaching $27 million. The company's remaining performance obligations increased by 75% year-over-year to $385 million, and it had 664 customers with $100,000 or greater in ARR, a 48% increase year-over-year.

  • Total revenue reached $103 million, a 67% increase year-over-year.
  • Confluent Cloud revenue grew by 245% year-over-year to $27 million.
  • Remaining performance obligations increased by 75% year-over-year to $385 million.
  • Customers with $100,000 or greater in ARR increased by 48% year-over-year, reaching 664.

Headline financials

Total Revenue

$103M

Previous: $61.5M+66.8%
EPS (adj)

-$0.17

Previous: -$0.62+72.4%
Customers with $100K+ ARR

664

Previous: 449+47.9%
Capital Expenditures

-$2.24M

No prior period
Free Cash Flow

-$83.4M

No prior period
Net Income

-$95.7M

Previous: -$138M+30.7%
Operating Income

-$94.8M

Previous: -$140M+32.3%
Gross Profit

$65.3M

Previous: $42.4M+53.8%
Cash & Equivalents

$583M

No prior period
Total Assets

$1.31B

No prior period
Stock-Based Comp

$49.7M

No prior period

Revenue & EPS history

Confluent · Revenue · Quarterly

$103M

Q3 2021+66.8%vs Q3 2020
Beat estimate in 10 of 11 quarters(91%)
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 fourth quarter of 2021, Confluent expects total revenue of $108-$110 million and a non-GAAP operating loss of $(59)-$(57) million. For the full fiscal year 2021, Confluent expects total revenue of $376-$378 million and a non-GAAP operating loss of $(170)-$(168) million.

Tailwinds

  • Total revenue is expected to be between $108 million and $110 million.
  • Non-GAAP operating loss is projected to be between $(59) million and $(57) million.
  • Non-GAAP net loss per share is expected to be between $(0.23) and $(0.21).
  • Total revenue is anticipated to be between $376 million and $378 million for the full year.
  • Non-GAAP operating loss is projected to be between $(170) million and $(168) million for the full year.

Headwinds

  • Non-GAAP operating loss is expected for Q4 2021.
  • Non-GAAP net loss per share is expected for Q4 2021.
  • A reconciliation of forward-looking non-GAAP operating loss and non-GAAP net loss per share to the most directly comparable GAAP measures is not available without unreasonable effort.
  • Stock-based compensation expense specific to equity compensation awards and employer payroll tax-related items on employee stock transactions are directly impacted by the timing of employee stock transactions and unpredictable fluctuations in our stock price.
  • These factors are expected 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 Q3 2021

Historical avgQ3 2021

-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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