雅虎香港財經 Confluent, Inc. (NASDAQ:CFLT) Q1 2024 Earnings Call Transcript
Confluent, Inc. (NASDAQ:CFLT) Q1 2024 Earnings Call Transcript May 7, 2024
Confluent, Inc. misses on earnings expectations. Reported EPS is $-0.29588 EPS, expectations were $0.02. Confluent, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Shane Xie: Hello, everyone. Welcome to the Confluent Q1 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 second 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 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, once we have concluded our earnings call, we will post the Confluent earnings report to our IR website. The report is a single PDF which contains our earnings infographic, one-pagers on our technology, our prepared remarks and slides from today’s earnings call. Going forward, we plan on publishing the report at the end of our quarterly earnings call. With that, I’ll turn the call over to Jay.
Jay Kreps: Thanks Shane. Good afternoon, everyone, and welcome to our first quarter earnings call. I’m happy to report we had a strong start to the year exceeding the high end of all guided metrics. Total revenue grew 25% to $217 million. Confluent Cloud revenue grew 45% to $107 million which now accounts for the majority of our subscription revenue and remains our fastest growing offering. Non-GAAP operating margin improved 22 percentage points, our fourth consecutive quarter of more than 20 points improvement. These results reflect our team’s strong execution amid a still uncertain but stabilizing macro environment. In Q1, we launched our consumption transformation. We oriented our sales compensation for cloud towards incremental consumption and new logo acquisition.
We rolled out new systems, metrics and measures and made pricing adjustments to reduce friction in landing new customers. It remains early days but we are encouraged by the strong promising signals of our consumption orientation, particularly around new customer acquisition and stabilization of consumption trends. With an increased focus on new logo growth, we added 160 customers to our total customer count, our largest sequential growth since Q1 2023. We not only increased the volume of customer additions, but were better able to target high potential customers, increasing the quality of our customer ads as well. We recently hosted Kafka Summit London and Bangalore. Kafka Summit Bangalore was the first ever Kafka Summit in APAC. These events are a great illustration of the tremendous growth and innovation happening within the data streaming category.
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