PALO ALTO - Confluent, Inc. (NASDAQ: CFLT) delivered a robust financial performance for the first quarter, surpassing Wall Street expectations on both earnings and revenue fronts.
The company reported adjusted earnings per share (EPS) of $0.05, which was $0.03 higher than the analyst estimate of $0.02. Total revenue for the quarter reached $217.2 million, exceeding the consensus estimate of $211.6 million and marking a significant 25% increase from the same quarter last year.
Confluent's subscription revenue, a key indicator of the company's business health, showed a notable 29% year-over-year (YoY) growth, amounting to $207 million. The Confluent Cloud, the company's fastest-growing offering, generated $107 million in revenue, up an impressive 45% YoY. The company's customer base also expanded, with 1,260 customers now contributing more than $100,000 in annual recurring revenue (ARR), a 17% rise YoY.
The positive earnings report and the company's optimistic outlook for the future sent Confluent's stock up by 6%, indicating strong investor confidence. This uptick is attributed to the earnings and guidance beat, with the company's forward-looking statements being particularly well-received by the market.
For the second quarter of 2024, Confluent forecasts total revenue in the range of $229 million to $230 million and subscription revenue between $217 million and $218 million. The midpoint of the guidance for adjusted EPS is $0.045, slightly above the analyst consensus of $0.04.
The company's guidance for fiscal year 2024 anticipates total revenue at approximately $957 million and subscription revenue at about $910 million, with an adjusted EPS range of $0.19 to $0.20, which is also above the analyst consensus of $0.18.
Jay Kreps, co-founder and CEO of Confluent, emphasized the critical role of data streaming in technology today and expressed confidence in the company's product innovations and competitive advantage.
CFO Rohan Sivaram highlighted the success of the company's consumption transformation, pointing to robust subscription revenue growth and the largest sequential increase in total customers since the first quarter of 2023.
In line with its strategic focus, Confluent announced a transition in its revenue outlook from total revenue to subscription revenue, with the second quarter of 2024 being the last for which total revenue outlook will be provided. Starting with the third quarter of 2024, the company will only provide total subscription revenue outlook.
Investors appear to be responding positively to Confluent's strong start to the fiscal year 2024, as reflected in the company's stock performance following the earnings release.
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