CFLT - Confluent Inc. (CFLT) Q1 2024 Earnings Call Transcript
2024-05-07 19:17:08 ET
Confluent, Inc. (CFLT)
Q1 2024 Earnings Conference Call
May 7, 2024, 4:30 PM ET
Company Participants
Shane Xie - Investor Relations
Jay Kreps - Co-Founder and CEO
Rohan Sivaram - Chief Financial Officer
Conference Call Participants
Sanjit Singh - Morgan Stanley
Matt Hedberg - RBC
Raimo Lenschow - Barclays
Jason Ader - William Blair
Michael Turrin - Wells Fargo
Gregg Moskowitz - Mizuho
Mike Cikos - Needham
Derrick Wood - TD Cowen
Peter Weed - Bernstein
Howard Ma - Guggenheim
Pinjalim Bora - JPMorgan
Miller Jump - Truist Securities
Presentation
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....
Confluent, Inc. (CFLT) Q1 2024 Earnings Call Transcript