Confluent exceeds Q1 2024 expectations with strong revenue growth By Investing.com

Confluent, Inc. (CFLT), a leading data streaming platform, has reported robust financial results for the first quarter of 2024, surpassing its own guidance with a 25% increase in total revenue to $217 million. The company’s cloud offering, Confluent Cloud, saw a significant revenue growth of 45% to $107 million, now constituting the majority of subscription revenue.

With a non-GAAP operating margin improvement of 22 percentage points and the addition of 160 new customers, Confluent is confident in its strategy and its position in the data streaming platform market. The company’s forward-looking guidance anticipates continued growth, with total revenue expected to be between $229 million and $230 million for Q2 and approximately $957 million for the full year.

Key Takeaways

• Confluent’s total revenue increased by 25% to $217 million in Q1 2024.
• Confluent Cloud revenue grew by 45%, now representing the majority of subscription revenue.
• Non-GAAP operating margin improved by 22 percentage points.
• 160 new customers were added in Q1, marking the largest sequential customer growth since Q1 2023.
• The company launched new features, including Tableflow and Flink availability.
• Positive momentum in multi-product adoption and customer acquisition strategies.
• Full-year revenue guidance increased to approximately $957 million.

Company Outlook

• Q2 revenue is projected to be between $229 million and $230 million.
• Full-year revenue is expected to be around $957 million.
• Confluent is focused on driving efficient growth and capturing a significant market share.
• The company anticipates Flink to materially contribute to revenue in fiscal year 2025.
• Confluent expects to achieve break-even margins for the full year.

Bearish Highlights

• Confluent Platform experienced a sequential step down in revenue.

Bullish Highlights

• Strong customer growth and momentum in multi-product adoption.
• Positive early indicators from go-to-market changes.
• Growth of cloud adoption in the financial services vertical.
• Plans to establish a formalized reference architecture program.

Misses

• Tableflow is in early access, with pricing yet to be announced.

Q&A Highlights

• Executives discussed the potential growth of their cloud offering and the addition of Apache Iceberg.
• Confidence expressed in meeting fiscal year guidance.
• Emphasis on driving adoption of additional components and improving customer experience.
• Mention of positive…