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
