Confluent, Inc. (CFLT) is a technology company specializing in real-time data streaming platforms that enable organizations to process and manage data as it is generated. The company provides tools and services that help businesses build data-driven applications, improve operational efficiency, and enhance customer experiences. Confluent's offerings are designed to differentiate from open-source alternatives by focusing on ease of use, expanded functionality, and product innovation.
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Subscription Revenue - Offers access to Confluent Platform and Confluent Cloud, enabling customers to build and operate real-time data streaming applications.
- Confluent Platform - Provides on-premises and hybrid solutions for managing and processing real-time data streams.
- Confluent Cloud - Delivers a fully managed, cloud-native data streaming service for seamless scalability and integration.
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Services Revenue - Provides professional services and training to help customers implement and optimize their use of Confluent's data streaming solutions.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Jay Kreps ExecutiveBoard | CEO and Chairman | None | Co-founder of Confluent and one of the original creators of Apache Kafka. Has led Confluent since its inception in September 2014. | View Report → |
Erica Schultz Executive | President, Field Operations | Board Member at Amplitude, Inc.; Vice Chair of Dartmouth College Trustees | Joined Confluent in October 2019. Oversees global sales and field operations. Previously held senior roles at New Relic, LivePerson, and Oracle. | |
Rohan Sivaram Executive | CFO | None | Joined Confluent in October 2020. Promoted to CFO in August 2023. Previously held senior finance roles at Palo Alto Networks and Symantec. | |
Stephanie Buscemi Executive | Chief Marketing Officer | None | Joined Confluent in March 2021. Former CMO at Salesforce and held senior marketing roles at IHS Markit, SAP, and Hyperion. | |
Alyssa Henry Board | Director | Board Member at Intel Corporation | Joined Confluent's Board in May 2021. Former CEO of Square (Block, Inc.) and VP at Amazon Web Services. | |
Eric Vishria Board | Director | General Partner at Benchmark; Board Member at Amplitude, Inc. | Joined Confluent's Board in September 2014. General Partner at Benchmark and serves on the boards of several technology companies. | |
Greg Schott Board | Director | None | Joined Confluent's Board in June 2020. Former CEO of MuleSoft and held leadership roles at Salesforce. | |
Jonathan Chadwick Board | Director | Board Member at Zoom Video Communications, ServiceNow, and Samsara | Joined Confluent's Board in August 2019. Former CFO at VMware and Skype. Extensive experience in financial and operational leadership. | |
Lara Caimi Board | Director | President of Worldwide Field Operations at Samsara Inc.; Board Member at ServiceNow, Samsara, and Zoom Video Communications | Joined Confluent's Board in December 2020. Extensive leadership experience in software and field operations. Former Chief Customer and Partner Officer at ServiceNow. | |
Matthew Miller Board | Director | Partner at Sequoia Capital | Joined Confluent's Board in March 2017. Partner at Sequoia Capital, with extensive experience in venture capital and technology investments. | |
Michelangelo Volpi Board | Director | Director at Sonos, Aurora Innovation, and Ferrari N.V. | Joined Confluent's Board in April 2015. Retired Partner at Index Ventures. Extensive experience in venture capital and technology leadership. | |
Neha Narkhede Board | Director | CEO of Oscilar, Inc. | Co-founder of Confluent and served as Chief Technology and Product Officer until December 2019. Currently CEO of Oscilar, a risk management platform. |
- The company mentioned a one-time low seven-figure revenue benefit in Q3; can you specify the exact amount and explain how it impacted Confluent Cloud revenue growth this quarter?
- Net Revenue Retention (NRR) was 117% in Q3, which is lower than some industry benchmarks; what strategies are you implementing to improve NRR and drive higher expansion within your existing customer base?
- You highlighted over 90% win rates against startup competitors, including renewals; excluding renewals, how do your win rates compare, and are you facing any increased competition affecting new customer acquisitions?
- Unlike previous years, you're not providing early guidance for fiscal year 2025; given the macroeconomic uncertainties and the stabilization trends you've noted, what factors are causing you to withhold guidance, and should investors be concerned about potential headwinds next year?
- Regarding the WarpStream acquisition, you stated it won't have a material impact on financials in fiscal year 2024 but expect it to be a growth driver over time; can you provide specifics on when WarpStream will meaningfully contribute to revenue and how it will be integrated to drive adoption across your customer base?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
WarpStream Labs, Inc. | 2024 | Confluent acquired WarpStream Labs to integrate its BYOC data streaming solution into its portfolio, valued at $135.1 million (comprising $132.5 million in cash and $2.6 million in stock) with additional holdback agreements and technology/talent assets aimed at expanding their market reach for high-scale workloads. |
Immerok GmbH | 2023 | Confluent acquired all of Immerok GmbH's outstanding shares for $54.9 million in cash, including holdback agreements of up to $52.3 million, to bolster its stream processing capabilities with Apache Flink, integrating vital technology and talent for future commercial product releases. |
Recent press releases and 8-K filings for CFLT.
- Real-time data streaming focus: Confluent described its mission to serve as the central nervous system for organizational data by bridging operational and analytical estates, addressing the “big spaghetti mess” of legacy data architecture.
- Robust growth strategy: The company highlighted its durable growth approach, noting a revenue run rate of over $1 billion ARR and expanding market opportunities driven by cloud, AI, and real-time data needs.
- Diversified product and competitive strategy: Confluent emphasized its managed cloud service that differentiates itself from open source Kafka by offering a scalable, multi-product streaming platform and strategic partnerships with hyperscalers and system integrators.
- Total Revenue: Q1 2025 revenue reached $271.1M, driven by strong subscription performance ($260.9M, 26% YoY growth) and Confluent Cloud revenue of $143M
- Record Platform Revenue: Confluent Platform posted a record $118.2M in revenue, growing 18%
- Profitability & Efficiency: Achieved a subscription gross margin of 81.7%, non-GAAP operating margin of 4.3%, and non-GAAP operating income of $11.6M
- Guidance: Q2 2025 subscription revenue is projected between $267M–$268M, with FY 2025 subscription revenue expected to hit $1.1–1.11B
- Customer Expansion: Added 340 new customers and broadened its base with 2,487 customers over $20K ARR, 1,412 over $100K ARR, and 210 over $1M ARR
- Financial Strength: Ended the quarter with about $1.92B in cash and equivalents
- Confluent detailed how its unified data streaming platform is transforming real-time operations with continuous, low-latency data flows that power AI use cases, integrating both operational and analytical environments.
- The presentation highlighted new innovations including enhanced Flink capabilities—such as user-defined functions, flexible schema management, and private networking on AWS and Azure—as well as the GA launch of table flow to bridge streaming data directly into analytical tools.
- Emphasis was placed on the importance of robust data governance and the unification of data flows to ensure reliable and enriched data for AI applications, as demonstrated through practical examples and collaborations with partners like Databricks, AWS, and Snowflake.