NASDAQ$CFLT
Confluent Inc. · Q4 2024 earnings
Q4 2024 earnings · · After market close · Investor relations
Briefing
Confluent reported a strong Q4 2024, with total revenue growing 23% year-over-year to $261.2 million, driven by 24% growth in subscription revenue. The company also achieved a non-GAAP operating income of $13.6 million, while GAAP operating loss widened. Confluent Cloud revenue saw a significant 38% increase. Free cash flow improved notably to $29.1 million, compared to $6.8 million in Q4 2023.
Headline financials
Revenue & EPS history
Confluent · Revenue · Quarterly
$261M
Revenue by segment
Confluent · $200M total across 2 segments · Q3 2023
- Subscription Revenue$189M+36.4%94.5%
- Services Revenue$10.9M-16.1%5.5%
Forward guidance
Confluent expects continued revenue growth in Q1 and FY 2025, with subscription revenue projected between $253-$254 million in Q1 and $1.117-$1.121 billion for the full year. The company anticipates maintaining profitability improvements with a non-GAAP operating margin of ~3% in Q1 and ~6% for the full year.
Tailwinds
- Strong growth in Confluent Cloud revenue, up 38% YoY.
- Continued subscription revenue expansion, up 24% YoY.
- Improving free cash flow margin, reaching 11.1%.
- Sustained growth in high-value customers with $100K+ ARR.
- Projected non-GAAP profitability improvements in FY 2025.
Headwinds
- GAAP operating losses remain significant at $105.8 million.
- Non-GAAP operating margin slightly decreased by 0.1 percentage points.
- Stock-based compensation expenses continue to weigh on profitability.
- Uncertainty in macroeconomic conditions affecting enterprise spending.
- Potential risks in maintaining high growth rates in cloud revenue.
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 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
| Quarter | Report date | Reaction (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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