NASDAQ$CFLT

Confluent Inc. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Confluent's Q4 2022 financial results were announced, showing significant revenue growth and margin improvements.

Confluent reported a 41% year-over-year increase in Q4 revenue, reaching $169 million. Confluent Cloud revenue grew by 102% year-over-year. The company is focused on achieving breakeven non-GAAP operating margin by the end of 2023.

  • Q4 revenue reached $169 million, a 41% increase year-over-year.
  • Confluent Cloud revenue for Q4 grew by 102% year-over-year.
  • The company had 991 customers with $100,000 or greater in ARR, a 35% increase year-over-year.
  • Remaining performance obligations reached $741 million, a 48% increase year-over-year.

Headline financials

Total Revenue

$169M

Previous: $120M+40.6%
EPS (adj)

-$0.09

Previous: -$0.19+52.6%
Customers with $100K+ ARR

991

Previous: 734+35.0%
Capital Expenditures

$1.01M

Previous: $1.36M-26.2%
Free Cash Flow

-$28.1M

Previous: -$26.7M-5.1%
Net Income

-$106M

Previous: -$114M+7.5%
Operating Income

-$115M

Previous: -$114M-1.1%
Gross Profit

$115M

Previous: $73.8M+55.5%
Cash & Equivalents

$436M

Previous: $1.38B-68.3%
Total Assets

$2.34B

Previous: $2.34B+0.1%
Stock-Based Comp

$76M

Previous: $58.1M+30.9%

Revenue & EPS history

Confluent · Revenue · Quarterly

$169M

Q4 2022+40.6%vs Q4 2021
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 Q1 2023, Confluent expects total revenue between $166 million and $168 million and a non-GAAP operating margin of approximately -27%. For fiscal year 2023, the company expects total revenue between $760 million and $765 million and a non-GAAP operating margin between -15% and -14%.

Tailwinds

  • Total Revenue $166-$168 million
  • Total Revenue $760-$765 million
  • Non-GAAP Operating Margin ~ (27%)
  • Non-GAAP Net Loss Per Share $(0.15)-$(0.13)
  • Non-GAAP Net Loss Per Share $(0.28)-$(0.22)

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 Q4 2022

Historical avgQ4 2022

-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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