Confluent, Inc. (NASDAQ:CFLT) Q1 2022 Results Earnings Conference Call May 5, 2022 4:30 PM ET

Company Participants

Shane Xie - Director, Investor Relations

Jay Kreps - Co-founder and Chief Executive Officer

Steffan Tomlinson - Chief Financial Officer

Conference Call Participants

Sanjit Singh - Morgan Stanley

Jason Ader - William Blair

Derrick Wood - Cowen and Company

Michael Turrin - Wells Fargo

Phil Winslow - Credit Suisse

Rob Owens - Piper Sandler

Adam Bergere - Bank of America

Eric Heath - KeyBanc Capital Markets

Shane Xie

Hi, everyone. Welcome to the Confluent Q1 2022 Earnings Conference Call. I'm Shane Xie from investor relations. And I'm joined by Jay Kreps, Co-Founder and CEO, and Steffan Tomlinson, CFO.

During today's call, management will make forward-looking statements regarding our business, operations, financial performance, value creation potential and future prospects, including statements regarding our financial outlook for the fiscal second quarter of 2022 and fiscal year 2022, the potential growth runway for Confluent Cloud and future year outlook for non-GAAP operating margins. These forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated by these statements. Further information on risk factors that could cause actual results to differ is included in our most recent Form 10-K filed with the SEC. We assume no obligation to update these statements after today's call except as required by law.

As a reminder, certain financial measures used on today's call are expressed on a non-GAAP basis. We use these non-GAAP financial measures internally to facilitate analysis of financial and business trends and for internal planning and forecasting purposes. These non-GAAP financial measures have limitations and should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation between these GAAP and non-GAAP financial measures is included in our earnings press release and supplemental financials, which can be found on our Investor Relations website at investors.confluent.io.

With that, I'll hand the call over to Jay.

Jay Kreps

Thanks, Shane. Welcome, everyone, to our first quarter earnings call. We had a successful start to the year exceeding our guidance on all metrics. Total revenue grew 64% year-over-year to $126 million, a notable milestone as we surpassed the $0.5 billion revenue run rate mark.

Confluent Cloud grew 180% year-over-year, representing 31% of total revenue. Confluent Cloud is not only the fastest growing part of our business, it also serves the vast majority of our customers.