Confluent's Q2 revenue up 20%, beats estimates
Overview
Confluent Q2 2025 revenue rises 20% yr/yr, beating analyst expectations, per LSEG data
Adjusted EPS for Q2 beats consensus, reflecting improved operational efficiency
Confluent Cloud revenue grows 28% yr/yr, highlighting strong platform adoption
Outlook
Confluent expects Q3 subscription revenue of $281-$282 mln
Confluent forecasts FY 2025 subscription revenue of $1.105-$1.11 bln
Company anticipates Q3 non-GAAP operating margin of ~7%
Company projects FY 2025 non-GAAP net income per share of ~$0.36
Result Drivers
CLOUD REVENUE GROWTH - Confluent Cloud revenue increased by 28% yr/yr, driven by strong platform adoption
FLINK ARR - Flink ARR grew approximately 3x over the past two quarters, reinforcing data streaming platform strategy
CUSTOMER EXPANSION - Number of customers with $100,000 or greater in ARR rose 10% yr/yr, indicating growing demand
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $282.30 mln | $278.40 mln (30 Analysts) |
Q2 Adjusted EPS | Beat | $0.09 | $0.08 (31 Analysts) |
Q2 EPS | -$0.24 | ||
Q2 Adjusted Operating income | Beat | $17.80 mln | $14.40 mln (30 Analysts) |
Q2 Adjusted Operating Margin | 6.3% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 26 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Confluent Inc is $30.00, about 10.1% above its July 29 closing price of $26.97
The stock recently traded at 64 times the next 12-month earnings vs. a P/E of 60 three months ago
Press Release:
