📷 Image Credits: Mint
The cloud stock Confluent, a data streaming platform provider, has recently showcased strong performance in its first quarter of 2024. Despite previous underperformance in the market, Confluent’s stock saw an 8% jump following the release of its Q1 results on May 7. The company reported a 25% year-over-year increase in revenue to $217 million and posted a non-GAAP profit of $0.05 per share, surpassing Wall Street expectations. With solid guidance for the current quarter, Confluent expects revenue of $229.5 million and earnings of $0.045 per share at the midpoint of its range, indicating a growth of over 21% from the previous year.
Confluent’s success can be attributed to its cloud and subscription businesses, with Confluent Cloud seeing a 45% revenue increase year over year to $107 million. Subscription revenue also grew by 29% to $207 million, with the majority of Confluent’s business now coming from subscription-related sales. The company’s customer count reached 5,120 last quarter, with a notable increase in customers contributing over $100,000 in annual recurring revenue (ARR) to 1,260, a 17% year-over-year growth, and customers with at least $1 million in ARR grew by 24% to 168.
Furthermore, Confluent’s dollar-based net retention rate, a key metric for customer spending, stood between 120% and 125% last quarter, indicating that the company is successfully increasing the share of customers’ wallets. This rise in customer spending, along with a growing number of high-value customers, has positively impacted Confluent’s margins. The company’s performance underscores its potential for future growth and continued success in the market.
