Sandhya Singh

Sandhya Singh asked when Confluent expects growth to bottom, considering the multiple growth vectors and go-to-market rejuvenation efforts. She also questioned whether new offerings like WarpStream and Enterprise Clusters have a net accretive or cannibalistic effect on the core streaming business.

Answer

CEO Jay Kreps expressed satisfaction with strong cloud results and raised guidance, noting stable cloud growth rates when normalized for specific customer impacts. He confirmed that WarpStream and Enterprise Clusters are substantial tailwinds, driving larger workloads, better TCO, and improved gross margins, rather than cannibalizing the core business.

Sandhya Singh asked when Confluent expects growth to bottom, considering various growth drivers and go-to-market improvements. She also questioned whether new offerings like WarpStream and Enterprise Clusters are net accretive or cannibalistic to the core streaming business.

Answer

CEO Jay Kreps stated satisfaction with Q3 results and cloud strength, noting that normalizing for a specific customer shows stability in cloud growth rates. He confirmed that WarpStream and Enterprise Clusters are substantial tailwinds, leading to larger deals and improved gross margins due to their cost-effective architecture.