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- **Revenue Growth**: Q3 subscription up 19% YoY to $286M, cloud revenue +24% to $161M. Q4 cloud guide: $165M (20% YoY). FY25: $1.113B-$1.1145B (21% YoY).
- **Flink Momentum**: Flink ARR on cloud >70% sequential growth, 1,000+ customers, 12+ >$100k ARR, 4 >$1M ARR. One customer expanded spend 6x YoY.
- **AI & Context**: 21+ AI-native customers using Confluent for real-time data pipelines and AI model evaluation. 25%+ of new business sourced through partners.
- **Profitability**: Non-GAAP operating margin 9.7% (vs. 6.7% YoY). Adjusted free cash flow margin 8.2%.
- **Pipeline Strength**: RPO growth 43% YoY, late-stage pipeline +40% sequential. 12+ new $100k+ ARR customers, 4 >$1M ARR.

**【CEO Summary Section】**
- Q3 subscription revenue grew 19% YoY to $286 million, with Confluent Cloud revenue up 24% to $161 million. Non-GAAP operating margin expanded 300 basis points to 10%.
- Late-stage pipeline progression (tracking new use cases moving to production) grew over 40% sequentially, driven by field alignment and multi-product selling.
- Flink ARR for Confluent Cloud grew >70% sequentially, with over 1,000 customers using Flink, including 12+ with >$100k ARR and 4 with >$1M ARR.
- WarpStream consumption grew 8x YoY, closing 6+ figure deals with marquee customers across industries.
- AI strategy focuses on providing real-time context for enterprise AI, with 21+ AI-native customers spending >$100k ARR.

**【CFO Financial Commentary】**
- Q3 GAAP net income: $370.6 million; Non-GAAP EPS: $0.13 (vs. $0.10 guidance). Adjusted free cash flow margin: 8.2%.
- Subscription gross margin: 81.8% (above 80% long-term target). Operating margin: 9.7% (vs. 6.7% YoY).
- Q4 guidance: Subscription revenue $295.5-$296.5M (18% YoY), cloud revenue ~$165M (20% YoY). FY25: $1.113B-$1.1145B (21% YoY).
- RPO growth: 43% YoY, with RPO-to-revenue coverage improving sequentially.
- Flink ARR on cloud grew >70% sequentially, contributing to DSP momentum.

**【Q&A Highlights】**
- **Pipeline & Execution**: Late-stage pipeline grew >40% sequentially, with 12+ new $100k+ ARR customers. RPO growth 43% YoY, driven by multi-product adoption (e.g., Flink, WarpStream).
- **Flink Adoption**: Flink ARR on cloud >70% sequential growth, 1,000+ customers, 12+ >$100k ARR, 4 >$1M ARR. One customer expanded spend 6x YoY.
- **CSP Replacement**: >90% win rate vs. CSP streaming, 4x consumption growth YoY in multi-tenant clusters. Average deal size doubled QoQ.
- **AI & Context**: 21+ AI-native customers (e.g., Forbes 50 AI analytics provider) using Confluent for real-time data pipelines and AI model evaluation.
- **Competition**: Databricks structured streaming announced, but Confluent focuses on real-time operational systems vs. Databricks' analytics/data science focus. 25%+ of new business sourced through partners (e.g., AWS, MongoDB).

Confluent, Inc. (CFLT) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

CFLT

CFLT fundamentals

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