Confluent — Q2 2025 Earnings Presentation
27 slides from Confluent's earnings presentation, Jul 30, 2025
Slide 1: Investor Presentation
Investor Presentation July 30, 2025
Slide 2: Disclaimer
Disclaimer This presentation includes express and implied forward-looking statements. All statements contained in this presentation other than statements of historical facts, including expectations of Confluent, Inc. (“we,ˮ “us,ˮ “our,ˮ or “Confluentˮ) regarding our revenue, revenue mix, revenue gro
Slide 3: 10+ Years of Setting Data in Motion
10+ Years of Setting Data in Motion Q1’25 Q2’25 Highlights $1B+ Highlights Revenue Run Rate & Non-GAAP Profitable Subscription Act 3 Revenue Complete Data $271M, +21% y/y Streaming Platform $500M+ Cloud Revenue Run Rate Revenue $151M, +28% y/y IPO June Net Retention 2021 Rate 1,000+ 114% Total Custo
Slide 4: Companies are Becoming Software
Companies are Becoming Software Software used by people Software used by software INPUT LOGIC OUTPUT INPUT LOGIC OUTPUT Action happens periodically Action happens continuously Confluent Q2 FY’25 4
Slide 5: Data is the Fuel for a Modern Software Business
Data is the Fuel for a Modern Software Business Personalized Recommendations Loyalty Rewards Real-time Trades Payments Processing Fraud Detection Confluent Q2 FY’25 5
Slide 6: Legacy Architectures Have Led to a Giant Data Mess, Undermining the Potential of Real-time AI
Legacy Architectures Have Led to a Giant Data Mess, Undermining the Potential of Real-time AI ● Tightly coupled point-to-point integrations ● Complex data wrangling downstream ● Batch-based data integration ● Point-in-time queries on static data Confluent Q2 FY’25 6
Slide 7: We’re Simplifying the Data Landscape From the Ground Up
We’re Simplifying the Data Landscape From the Ground Up Real-time Real-time Real-time GenAI Agentic Many more... Inventory Fraud Detection Customer 360 Applications AI Confluent Data Streaming Platform CONNECT PROCESS GOVERN 120+ Pre-built Connectors Flink on-prem and in Cloud Stream Catalog | Strea
Slide 8: From Giant Mess to Central Nervous System
From Giant Mess to Central Nervous System DATA STREAMING PLATFORM Confluent Q2 FY’25 8
Slide 9: Our Platform Enables Virtually Endless Use Cases…
Our Platform Enables Virtually Endless Use Cases… Product Streaming Systems of Inventory Personalized Sentiment Retail Management Promotions Development Analysis Enterprise Scale for High & Introduction Messaging Traffic Periods Data Dynamic Staff Connected Integrated Proactive Real-Time Healthcare
Slide 10: …With Proven Success Across Industries
…With Proven Success Across Industries Financial Services Technology Communications & Media Manufacturing Consumer & Retail Automotive & Transportation Healthcare Insurance Confluent Q2 FY’25 10
Slide 11: Driving Business Success at Every Stage of the Customer Journey
Driving Business Success at Every Stage of the Customer Journey VALUE 5. Central Nervous System 4. Mission Critical, Connected LoBs 3. Mission Critical, in Production, but 2. Identify and Disparate LoBs Launch a Project 1. Experimentation Early Interest ● Developer downloads ● Lines of businesses (L
Slide 12: Customer Journey Case Studies
Customer Journey Case Studies ARR $ in millions Global Telco Payment Global Online Fortune 50 Leader Card Provider Job Site Bank $10.8 $7.3 $16.0 $17.4 29x 49x $6.5 327x 14x $13.5 $14.3 $5.9 $7.9 $5.3 $4.8 $2.4 $1.5 $1.0 $0.4 $0.6 $0.2 $0.6 $1.2 $0.05 Q4’19 Q1’21 Q1’22 Q4’23 Q1’25 Q2’17 Q4’19 Q1’21
Slide 13: Competitive Landscape
Competitive Landscape Legacy Data Infrastructure Cloud Providers Relational DBs Partners & Competitors ESB & Messaging ETL On-Premises Streaming Confluent Q2 FY’25 13
Slide 14: One Team, One Mission: Set Data in Motion
One Team, One Mission: Set Data in Motion Board of Directors Jay Kreps Co-Founder & CEO of Confluent Neha Narkhede Co-Founder of Confluent Jay Kreps Jun Rao Rohan Sivaram Matt Miller Stephanie Buscemi Founder & Partner, Evantic Co-Founder & CEO Co-Founder Chief Financial Officer Chief Marketing Offi
Slide 15: Execute Against a Large and Growing TAM
Execute Against a Large and Growing TAM 2025 $100B+ Tableflow ● Data Portal ● Data Contracts Govern ● CP Flink ● CC Flink ● AI Inference Process ● User Defined Functions 2021 ● Custom Connectors ● Ecosystem integrations Connect ● Catalog, Lineage, Quality, Schema registry $50B ● CDC, ERP and Fully-m
Slide 16: Act 3: Our Next Wave of Growth
Act 3: Our Next Wave of Growth Confluent Platform Revenue Confluent Cloud Revenue (Stream) Confluent Cloud Revenue (DSP) Multiple Drivers Streaming Opportunity Data Streaming Platform AI Adoption Partner Ecosystem FY’16 FY’17 FY’18 FY’19 FY’20 FY’21 FY’22 FY’23 FY’24 Note: This chart is not to scale
Slide 17: Subscription Revenue
Subscription Revenue Annual Subscription Revenue Quarterly Subscription Revenue $ in millions $ in millions $270.8 $922.1 $260.9 $250.6 $239.9 59%+ CAGR $729.1 $224.7 FY18-FY24 $206.9 $202.8 $535.0 $189.3 $347.1 $208.6 $130.2 $56.4 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 FY’18 FY’19 FY’20 FY
Slide 18: Confluent Cloud Revenue
Confluent Cloud Revenue Annual Cloud Revenue Quarterly Cloud Revenue $ in millions $ in millions $491.9 $150.5 $142.7 $137.9 $129.8 $117.4 $348.8 $106.8 140%+ $100.0 CAGR $91.6 FY18-FY24 $211.2 $94.2 Q/Q $ Q/Q $ $10.5 $12.4 $31.4 $8.0 $8.4 $6.8 $8.1 $7.8 Add $4.8 $14.4 Add $2.6 Q3’23 Q4’23 Q1’24 Q2’
Slide 19: Revenue Mix by Geography and Offering
Revenue Mix by Geography and Offering Revenue Mix by Geography Revenue Mix by Offering $ in millions $ in millions $777.0 $963.6 $235.0 $282.3 $777.0 $963.6 $235.0 $282.3 6% 4% 4% 4% 40% 40% 39% 42% 45% 46% 43% 49% 60% 60% 61% 58% 51% 53% 45% 50% FY’23 FY’24 Q2’24 Q2’25 FY’23 FY’24 Q2’24 Q2’25 US In
Slide 20: Customers
Customers Q2’25 Total customer growth in-line with previous four-quarter average Customers with Customers with Customers with ≥ $20K in ARR ≥ $100K in ARR ≥ $1M in ARR +8% YoY +10% YoY +24% YoY 2,497 1,439 2,487 1,412 2,446 219 1,381 210 1,346 2,371 2,320 1,306 194 184 177 Q2’24 Q3’24 Q4’24 Q1’25 Q2
Slide 21: Driving Efficient Growth
Driving Efficient Growth Non-GAAP Subscription Non-GAAP Adjusted Free Cash Gross Margin Operating Margin Flow Margin +2 pts +1 pt +10 pts +6 pts +17 pts +3 pts 81.5% 81.5% 80.8% 6% 4% 3% 79.6% 1% 1% 1% -7% -15% -16% FY’23 FY’24 Q2’24 Q2’25 FY’23 FY’24 Q2’24 Q2’25 FY’23 FY’24 Q2’24 Q2’25 Note: Refer
Slide 22: Focus on Managing Net Dilution
Focus on Managing Net Dilution Managing Net Dilution SBC % of Revenue Net Dilution • SBC is a lagging indicator 41% • Final tranches of pre-IPO options recognized in SBC through 1H FY25 • Quarterly GAAP profitability ~25% sometime in FY’28 • Focus managing net Mid-Teens ~3% dilution LT below 2% and
Slide 23: Key Takeaways
Key Takeaways Category Creating $100B+ Multiple Secular Company Founded by Total Addressable Tailwinds: the Creators of Kafka Market1 Cloud, Data, and AI Well-positioned for Act 3 Strong Growth Seasoned Management with Complete Data and Long-Term Team with Track Record Streaming Platform Margin Prof
Slide 24: Definitions
Definitions Annual Recurring Revenue (ARR): We define ARR as (1) with respect to Confluent Platform customers, the amount of revenue to which our customers are contractually committed over the following 12 months assuming no increases or reductions in their subscriptions, and (2) with respect to Con
Slide 25: GAAP to Non-GAAP Reconciliations (in thousands, except percentages)
GAAP to Non-GAAP Reconciliations (in thousands, except percentages) FY’23 FY’24 Q2’24 Q2’25 Subscription revenue $729,112 $922,091 $224,702 $270,832 Subscription gross profit on a GAAP basis $553,108 $713,491 $171,839 $209,780 Subscription gross margin on a GAAP basis 75.9% 77.4% 76.5% 77.5% Add: St
Slide 26: GAAP to Non-GAAP Reconciliations (in thousands, except percentages)
GAAP to Non-GAAP Reconciliations (in thousands, except percentages) FY’23 FY’24 Q2’24 Q2’25 Total revenue $776,952 $963,642 $234,986 $282,285 Net cash (used in) provided by operating activities ($103,657) $33,460 $8,590 $18,115 Add: Capitalized internal-use software costs (17,845) (21,404) (4,776) (
Slide 27: Thank you
Thank you