Confluent Inc (CFLT) Reports Q3 2023 Earnings: Revenue Up 32% YoY
Confluent Inc (NASDAQ:CFLT) reported a 32% YoY increase in Q3 2023 revenue, reaching $200 million.
Confluent Cloud revenue saw a significant growth of 61% YoY, amounting to $92 million.
The company reported its first positive non-GAAP EPS, marking a key milestone.
Operating margins improved by over twenty points YoY, reflecting efficient growth.
On November 1, 2023, Confluent Inc (NASDAQ:CFLT), a pioneer in data streaming, announced its financial results for the third quarter of 2023. The company reported a 32% YoY increase in revenue, reaching $200 million. Confluent Cloud revenue saw a significant growth of 61% YoY, amounting to $92 million. The company also achieved a key milestone by reporting its first positive non-GAAP EPS.
Financial Highlights
The company's total revenue for Q3 2023 was $200.2 million, a 32% increase from $151.7 million in Q3 2022. Subscription revenue also saw a significant increase of 36% YoY, reaching $189.3 million. The company's remaining performance obligations stood at $824.1 million, up 24% YoY.
Confluent Inc (NASDAQ:CFLT) reported a GAAP operating loss of $108.6 million, a decrease from the $118.9 million loss reported in Q3 2022. The non-GAAP operating loss was $10.9 million, a significant decrease from the $42.1 million loss in Q3 2022. The GAAP net loss per share was $0.30, an improvement from the $0.41 loss per share in Q3 2022. The company reported a positive non-GAAP net income per share of $0.02, a significant improvement from the $0.13 loss per share in Q3 2022.
CEO and CFO Commentary
CEO Jay Kreps commented on the results, stating,
Confluent delivered another strong quarter with 32% year-over-year revenue growth in a volatile macroeconomic environment. Our continued growth is driven by the critical role of data streaming and customer demand for our industry leading platform that connects, streams, governs, processes and shares streaming data everywhere."
CFO Rohan Sivaram also added,
We achieved a key milestone in the third quarter, improving GAAP EPS and delivering the companys first positive non-GAAP EPS, while growing subscription revenue 36% year over year. Additionally, we improved operating margins by more than twenty points year over year, a testament to our ability to drive efficient growth, and we are raising our non-GAAP operating margin guidance for the fourth quarter to 0-1%."
Financial Outlook
For the fourth quarter and fiscal year 2023, Confluent expects total revenue to be between $204-$205 million and $768-$769 million respectively. The company also expects a non-GAAP operating margin of 0%-1% and a non-GAAP net income per share of $0.05 for Q4 2023.
Explore the complete 8-K earnings release (here) from Confluent Inc for further details.
This article first appeared on GuruFocus.
