San Francisco, CA – Confluent, a data analysis and big data company using AI technology, has shown strong performance in the first quarter of the year. The company’s revenue grew by 25% to $217 million, exceeding expectations and demonstrating positive fundamental trends compared to its peers. This success can be attributed to the growth in Confluent Platform and Confluent Cloud, which both exceeded revenue expectations.

One key highlight of Confluent’s performance was the significant growth in Confluent Cloud, which saw a 45% increase to $107 million, representing 49% of the company’s total revenue. The company also experienced a stabilization in cloud consumption trends, indicating a positive outlook for future growth. Additionally, Confluent’s gross margins improved, with subscription gross margins reaching 80.7%, exceeding the company’s long-term target of 75%.

Furthermore, Confluent reported an operating margin improvement of 22 percentage points from the previous year, reaching a negative 1.5% margin. This improvement was due to enhancements in gross margins and operational efficiency, particularly in sales and marketing. The company also saw a 33-percentage point increase in free cash flow margins to negative 14.6% and reported earnings per share of $0.05, surpassing consensus estimates.

Looking ahead, Confluent provided guidance for 2024, raising revenue expectations by $7 million to achieve a 23% growth rate. The company remains focused on achieving breakeven operating and free cash flow margins. With strong performance in Confluent Cloud and multi-product adoption taking shape, the company is poised for sustained growth and market expansion.

In conclusion, Confluent’s success in the first quarter reflects its resilience and strategic initiatives, including the cloud go-to-market transformation and multi-product platform expansion. These efforts have led to increased customer acquisition and improved revenue streams. With a positive outlook for future growth and profitability, Confluent continues to position itself as a leader in data analysis and AI technology.