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

Total Revenue

$261M

Previous: $213M+22.5%
EPS (adj)

$0.09

Previous: $0.09+0.0%
Net Income

-$88.1M

Previous: -$94.1M+6.4%
Operating Income

-$106M

Previous: -$84.7M-24.9%

Revenue & EPS history

Confluent · Revenue · Quarterly

$261M

Q4 2024+22.5%vs Q4 2023
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

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

Historical avgQ4 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

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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro