NASDAQ$CFLT

Confluent Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Confluent announced strong Q3 2023 financial results with revenue up 32% year over year and the company's first positive non-GAAP EPS.

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.

Headline financials

Total Revenue

$200M

Previous: $152M+31.9%
EPS (adj)

$0.02

Previous: -$0.13+115.4%
Customers with $100K+ ARR

1.2K

Previous: 921+28.7%
Capital Expenditures

-$1.72M

Previous: -$3.12M+44.8%
Free Cash Flow

-$118M

Previous: -$133M+11.8%
Net Income

-$92.7M

Previous: -$116M+20.1%
Operating Income

-$109M

Previous: -$119M+8.6%
Gross Profit

$144M

Previous: $98.6M+45.7%
Cash & Equivalents

$317M

Previous: $503M-37.0%
Total Assets

$2.36B

Previous: $2.31B+2.1%
R&D Expense

$91.3M

No prior period
Stock-Based Comp

$89.5M

Previous: $75.4M+18.7%

Revenue & EPS history

Confluent · Revenue · Quarterly

$200M

Q3 2023+31.9%vs Q3 2022
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 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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 2023

Historical avgQ3 2023

-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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