Press Release

Confluent Announces Fourth Quarter and Fiscal Year 2022 Financial Results

  • Fourth quarter revenue of $169 million, up 41% year over year; fiscal year 2022 revenue of $586 million, up 51% year over year

  • Fourth quarter Confluent Cloud revenue of $68 million, up 102% year over year; fiscal year 2022 Confluent Cloud revenue of $211 million, up 124% year over year

  • Remaining performance obligations of $741 million, up 48% year over year

  • 991 customers with $100,000 or greater in ARR, up 35% year over year

Confluent, Inc. (NASDAQ: CFLT), the data streaming pioneer, today announced financial results for its fourth quarter and fiscal year 2022, ended December 31, 2022.

“Confluent helps power rich customer experiences, more intelligent and efficient backend operations, and unlock new data-driven business opportunities,” said Jay Kreps, co-founder and CEO, Confluent. “Our position as the category leader is illustrated by the 124% year-over-year growth in FY’22 Confluent Cloud revenue, 35% year-over-year increase in customers with $100k+ ARR, and a healthy dollar-based net retention rate of just under 130%.”

“Our Q4 results demonstrate our continued commitment to delivering high revenue growth with substantial margin improvements,” said Steffan Tomlinson, CFO, Confluent. “Looking ahead, we are focused on accelerating our timeline to achieve breakeven non-GAAP operating margin by one year exiting Q4 of 2023, while delivering approximately 30% annual revenue growth in 2023.”

Fourth Quarter 2022 Financial Highlights

(In millions, except per share data and percentages)

Q4 2022

Q4 2021

Y/Y Change

Total Revenue

$168.7

$119.9

41%

Remaining Performance Obligations

$740.7

$500.6

48%

GAAP Operating Loss

$(115.0)

$(113.7)

$(1.3)

Non-GAAP Operating Loss

$(36.3)

$(49.7)

$13.4

GAAP Operating Margin

(68.2%)

(94.8%)

26.6 pts

Non-GAAP Operating Margin

(21.5%)

(41.4%)

19.9 pts

GAAP Net Loss Per Share

$(0.37)

$(0.43)

$0.06

Non-GAAP Net Loss Per Share

$(0.09)

$(0.19)

$0.10

Net Cash Used in Operating Activities

$(27.1)

$(23.9)

$(3.2)

Free Cash Flow

$(30.9)

$(26.7)

$(4.2)

Fiscal Year 2022 Financial Highlights

(In millions, except per share data and percentages)

FY 2022

FY 2021

Y/Y Change

Total Revenue

$585.9

$387.9

51%

GAAP Operating Loss

$(462.7)

$(339.6)

$(123.1)

Non-GAAP Operating Loss

$(176.9)

$(160.6)

$(16.3)

GAAP Operating Margin

(79.0%)

(87.6%)

8.6 pts

Non-GAAP Operating Margin

(30.2%)

(41.4%)

11.2 pts

GAAP Net Loss Per Share

$(1.62)

$(1.82)

$0.20

Non-GAAP Net Loss Per Share

$(0.58)

$(0.86)

$0.28

Net Cash Used in Operating Activities

$(157.3)

$(105.1)

$(52.2)

Free Cash Flow

$(171.8)

$(114.0)

$(57.8)

A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is provided in the financial statement tables included in this press release. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section titled “Non-GAAP Financial Measures.”

Financial Outlook

For the first quarter and fiscal year 2023, Confluent expects:

Q1 2023 Outlook

FY 2023 Outlook

Total Revenue

$166-$168 million

$760-$765 million

Non-GAAP Operating Margin

~ (27%)

(15%) – (14%)

Non-GAAP Net Loss Per Share

$(0.15)-$(0.13)

$(0.28)-$(0.22)

The Company expects to exit the fourth quarter of 2023 with breakeven non-GAAP operating margin.

A reconciliation of forward-looking non-GAAP operating margin and non-GAAP net loss per share to the most directly comparable GAAP measures is not available without unreasonable effort, as certain items cannot be reasonably predicted because of their high variability, complexity and low visibility. In particular, the measures and effects of our stock-based compensation expense specific to our equity compensation awards and employer payroll tax-related items on employee stock transactions are directly impacted by the timing of employee stock transactions and unpredictable fluctuations in our stock price, which we expect to have a significant impact on our future GAAP financial results.

About Confluent

Confluent is the data streaming platform that is pioneering a fundamentally new category of data infrastructure that sets data in motion. Confluent’s cloud-native offering is the foundational platform for data in motion – designed to be the intelligent connective tissue enabling real-time data, from multiple sources, to constantly stream across the organization. With Confluent, organizations can meet the new business imperative of delivering rich, digital front-end customer experiences and transitioning to sophisticated, real-time, software-driven backend operations.

Leave a Response