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August 6, 2021

Confluent Announces Second Quarter 2021 Financial Results

MOUNTAIN VIEW, Calif., Aug. 6, 2021– Confluent, Inc. (NASDAQ: CFLT), a platform for data in motion, today announced financial results for its second quarter 2021, ended June 30, 2021.

  • Total revenue of $88 million, up 64% year over year
  • Confluent Cloud revenue of $20 million, up 200% year over year
  • Remaining performance obligations of $327 million, up 72% year over year
  • 617 customers with $100,000 or greater in ARR, up 51% year over year

“Data within modern businesses is in constant motion, flowing across systems, environments, and applications each time a customer clicks, types or swipes,” said Jay Kreps, co-founder and CEO, Confluent. “Our strong second quarter shows our vision of helping every organization set their data in motion is resonating, reflected by the 104% year-over-year growth in total customers. Confluent is the central nervous system that connects all the applications, systems, and data layers for companies succeeding in today’s digital-first world.”

“The execution of our land and expand strategy drove accelerated top-line growth, including 72% year-over-year growth in remaining performance obligations and 64% year-over-year growth in total revenue,” said Steffan Tomlinson, CFO, Confluent. “Organizations are increasingly turning to Confluent Cloud to harness the power of data in motion. During the quarter, Confluent Cloud revenue growth accelerated to 200% year over year and revenue mix increased to 22% of total revenue.”

Second Quarter 2021 Financial Highlights
(In millions, except per share data)

Q2 2021

Q2 2020

Y/Y Change

Total Revenue

$88.3

$53.9

64%

Remaining Performance Obligations

$327.2

$190.6

72%

GAAP Operating Loss

$(86.0)

$(27.5)

$(58.5)

Non-GAAP Operating Loss

$(36.8)

$(20.4)

$(16.4)

GAAP Net Loss Per Share

$(0.74)

$(0.25)

$(0.49)

Non-GAAP Net Loss Per Share

$(0.31)

$(0.19)

$(0.12)

Net Cash Used in Operating Activities

$(43.2)

$(21.5)

$(21.7)

Free Cash Flow

$(45.4)

$(22.7)

$(22.7)

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 third quarter and fiscal year 2021, Confluent expects:

Q3 2021 Outlook

Fiscal 2021 Outlook

Total Revenue

$89-$91 million

$347-$351 million

Non-GAAP Operating Loss

$(62)-$(60) million

$(199)-$(195) million

Non-GAAP Net Loss Per Share

$(0.24)-$(0.23)

$(1.07)-$(1.05)

A reconciliation of forward-looking non-GAAP operating loss 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.

Confluent, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

June 30, 2021

December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents

$

860,347

$

36,789

Marketable securities

183,526

251,756

Accounts receivable, net of allowance

117,176

105,971

Deferred contract acquisition costs

20,516

14,403

Prepaid expenses and other current assets

32,040

18,775

Total current assets

1,213,605

427,694

Property and equipment, net

9,060

6,718

Operating lease right-of-use assets

43,482

48,273

Deferred contract acquisition costs, non-current

41,848

33,196

Other assets, non-current

9,983

10,238

Total assets

$

1,317,978

$

526,119

LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable

$

1,834

$

1,646

Accrued expenses and other liabilities

49,970

33,711

Operating lease liabilities

10,288

10,492

Deferred revenue

172,671

142,901

Liability for early exercise of unvested stock options

14,217

5,049

Total current liabilities

248,980

193,799

Operating lease liabilities, non-current

35,912

40,440

Deferred revenue, non-current

17,873

16,292

Other liabilities, non-current

11,668

7,203

Total liabilities

314,433

257,734

Redeemable convertible preferred stock

–

574,634

Stockholders’ equity (deficit):
Preferred stock

–

–

Common stock

–

1

Convertible founder stock

–

–

Class A common stock

–

–

Class B common stock

2

–

Additional paid-in capital

1,542,338

99,575

Accumulated other comprehensive (loss) income

(46

)

228

Accumulated deficit

(538,749

)

(406,053

)
Total stockholders’ equity (deficit)

1,003,545

(306,249

)
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit)

$

1,317,978

$

526,119

Confluent, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share data)

(unaudited)
Three Months Ended June 30, Six Months Ended June 30,

2021

2020

2021

2020
Revenue:
Subscription

$

78,516

$

46,973

$

146,508

$

90,916

Services

9,822

6,879

18,858

13,840

Total revenue

88,338

53,852

165,366

104,756

Cost of revenue:
Subscription(1)(2)

20,292

11,734

36,049

22,748

Services(1)(2)

9,717

5,956

17,798

12,755

Total cost of revenue

30,009

17,690

53,847

35,503

Gross profit

58,329

36,162

111,519

69,253

Operating expenses:
Research and development(1)(2)

33,225

18,875

57,538

38,617

Sales and marketing(1)(2)

73,206

36,447

131,715

74,764

General and administrative(1)(2)

37,943

8,334

53,455

16,749

Total operating expenses

144,374

63,656

242,708

130,130

Operating loss

(86,045

)

(27,494

)

(131,189

)

(60,877

)
Interest income

688

1,303

1,532

1,746

Other expense, net

(643

)

(211

)

(979

)

(518

)
Loss before income taxes

(86,000

)

(26,402

)

(130,636

)

(59,649

)
Provision for (benefit from) income taxes

2,170

(106

)

2,060

282

Net loss

$

(88,170

)

$

(26,296

)

$

(132,696

)

$

(59,931

)
Net loss per share attributable to common stockholders, basic and diluted

$

(0.74

)

$

(0.25

)

$

(1.17

)

$

(0.56

)
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted

118,648,655

105,532,865

113,717,546

106,964,953

 

Click here for the full report.

About Confluent

Confluent is a leader in a fundamentally new category of data infrastructure focused on 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.

Source: Confluent

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