Confluent Inc. · Q3 2024 earnings

Briefing

Announced financial results for the third quarter of 2024, surpassing $1 billion in total revenue run rate.

Confluent's Q3 2024 results demonstrated robust top-line growth, achieving over $250 million in total revenue and exceeding all guided metrics. The company drove record gross margins and positive non-GAAP operating and free cash flow margins. Given this performance, Confluent is raising its full-year 2024 subscription revenue guidance and now targets positive non-GAAP operating margin and free cash flow margin for the year.

• Subscription revenue reached $240 million, a 27% increase year-over-year.
• Confluent Cloud revenue was $130 million, up 42% year-over-year.
• The company has 1,346 customers with $100,000 or greater in ARR, reflecting a 14% increase year-over-year.
• Exceeded all guided metrics for Q3, including year-over-year subscription revenue growth of 27%.

Headline financials

Revenue & EPS history

For the fourth quarter of 2024, Confluent expects subscription revenue between $245 and $246 million and a non-GAAP operating margin of approximately 2%. For the full fiscal year 2024, the company anticipates subscription revenue between $916.5 and $917.5 million and a non-GAAP operating margin of around 2%. They are also targeting positive non-GAAP operating margin and free cash flow margin for 2024.