Confluent, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenue of $250.2 million for the three months ended September 30, 2024, marking a 25% increase from $200.2 million in the same period of 2023. Subscription revenue, which is a key component of Confluent's business model, rose to $239.9 million, up 27% from $189.3 million year-over-year. For the nine months ended September 30, 2024, total revenue reached $702.4 million, a 25% increase from $563.8 million in the prior year.
The company's gross profit for the third quarter was $186.5 million, reflecting a gross margin of 75%, an improvement from 72% in the same quarter of the previous year. Operating loss decreased to $(93.7) million from $(108.6) million year-over-year, while net loss for the quarter was $(74.1) million, down from $(92.7) million in the prior year. For the nine-month period, net loss was $(257.0) million, compared to $(348.7) million in the same period of 2023.
Confluent's total assets increased to $2.6 billion as of September 30, 2024, up from $2.5 billion at the end of 2023. The company reported total stockholders' equity of $934.3 million, an increase from $810.4 million at the end of the previous fiscal year. However, the accumulated deficit grew to $(1.9) billion, up from $(1.6) billion at the end of 2023.
Strategically, Confluent made notable acquisitions, including WarpStream Labs, Inc. in September 2024 for a total consideration of $135.1 million, which included $132.5 million in cash. This acquisition is expected to enhance Confluent's offerings in the data streaming space. The company also acquired immerok GmbH in January 2023 for $54.9 million, further expanding its capabilities.
Confluent's customer base grew to approximately 5,680 as of September 30, 2024, up from 4,910 a year earlier, indicating a 16% increase. The dollar-based net retention rate stood at 117%, reflecting the company's ability to expand revenue within existing customers. The company continues to focus on increasing customer adoption of its data streaming platform, particularly through its Confluent Cloud offering, which accounted for 52% of total revenue in the latest quarter.
Despite these positive developments, Confluent faces challenges, including fluctuations in customer consumption patterns influenced by macroeconomic conditions, such as high inflation and interest rates. The company has also streamlined its operating expenses in response to these economic challenges, including a workforce reduction in January 2023.
About Confluent, Inc.
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