MOUNTAIN VIEW, Calif. - Confluent , Inc. (NASDAQ: NASDAQ:CFLT), a leader in data streaming technology, has reported its financial outcomes for the second quarter of 2024, which closed on June 30.
Despite posting a slight earnings beat with a second-quarter EPS of $0.06, surpassing analyst expectations by $0.01, the company's revenue fell short of forecasts. Confluent's revenue reached $235 million, versus the consensus estimate of $229.52 million. Following the announcement, Confluent's stock price fell by 11%, indicating investor concern over the company's softer-than-expected guidance for future quarters.
The company's subscription revenue showed a strong year-over-year (YoY) increase of 27%, totaling $225 million, while its Confluent Cloud revenue climbed an impressive 40% YoY to $117 million. Additionally, Confluent reported a 14% YoY growth in customers with an annual recurring revenue (ARR) of $100,000 or greater, now counting 1,306 such customers.
Despite these positive growth metrics, the market's reaction was largely driven by the company's forward-looking statements. For the third quarter of 2024, Confluent anticipates an EPS of approximately $0.05, aligning with analyst projections. However, the projected revenue of $233-234 million falls below the expected $246.5 million.
Furthermore, for the full year 2024, Confluent forecasts an EPS of around $0.20, which is in line with consensus, but anticipates revenues to be approximately $910 million, significantly lower than the analyst consensus of $959.3 million.
Confluent's CEO, Jay Kreps, emphasized the company's solid performance and sequential customer growth, the largest in two years, and expressed confidence in the company's long-term growth trajectory. CFO Rohan Sivaram highlighted the company's subscription revenue growth and improvements in operating margin and free cash flow, while also reiterating the goal of achieving breakeven for adjusted operating margin and free cash flow margin for 2024.
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