Call Start: 16:30 January 1, 0000 5:33 PM ET

Confluent, Inc. (NASDAQ:CFLT)
Q3 2024 Earnings Conference Call
October 30, 2024 16:30 ET

Company Participants

Shane Xie - Investor Relations
Jay Kreps - Co-Founder & Chief Executive Officer
Rohan Sivaram - Chief Financial Officer

Conference Call Participants

Sanjit Singh - Morgan Stanley
Matt Hedberg - RBC
Pinjalim Bora - JPMorgan
Raimo Lenschow - Barclays
Brad Zelnick - Deutsche
Jason Ader - William Blair
Michael Turrin - Wells Fargo
Ittai Kidron - Oppenheimer
Gregg Moskowitz - Mizuho
Rudy Kessinger - D.A. Davidson
Mike Cikos - Needham
Derrick Wood - TD Cowen

Shane Xie

Welcome to the Confluent Third Quarter 2024 Earnings Conference Call. I'm Shane Xie from Investor Relations and I'm joined by Jay Kreps, Co-Founder and CEO; and Rohan Sivaram, CFO.

During today's call, management will make forward-looking statements regarding our business, operations, sales strategy, market and product positioning, financial performance and future prospects, including statements regarding our financial guidance for the fiscal fourth quarter of 2024 and fiscal year 2024. 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-Q filed with the SEC. We assume no obligation to update these statements after today's call, except as required by law. Unless stated otherwise, certain financial measures used on today's call are expressed on a non-GAAP basis and all comparisons are made on a year-over-year basis. We use these non-GAAP financial measures internally to facilitate analysis of our 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 IR website at investors.confluent.io. And finally, we will post the Confluent earnings report to our IR website after our prepared remarks.

And with that, I'll turn the call over to Jay.

Jay Kreps

Thanks, Shane. Good afternoon, everyone. Welcome to our third quarter earnings call.

Subscription revenue grew 27% to $240 million. Confluent Cloud revenue grew 42% to $130 million and non-GAAP operating margin expanded approximately 12 percentage points to 6.3%. And I'm proud to report that total revenue grew 25% to $250 million, surpassing a $1 billion revenue run rate in just 10 years since Confluent was founded. In Q3, we hosted Current 2024, the only industry event fully dedicated to all things data streaming. More than 4,200 people from 1,200 companies participated, making it our biggest and best current yet. Data leaders from Mercedes-Benz R&D North America, Viacom 18 and Accenture joined me on the keynote stage to discuss how Confluent sits at the heart of their companies, allowing them to push the boundaries of what's possible for their customers.