Mission Statement, Vision, & Core Values (2024) of Confluent, Inc. (CFLT).

An Overview of Confluent, Inc. (CFLT)

General Summary of Confluent, Inc.

Confluent, Inc. was founded in 2014 by the creators of Apache Kafka, aiming to build a comprehensive data streaming platform that allows organizations to harness the power of real-time data. The company offers two primary products: Confluent Platform, a self-managed software solution, and Confluent Cloud, a fully-managed cloud-native service. As of 2024, Confluent remains a pivotal player in the data infrastructure sector, focusing on applications that require real-time data processing and integration.

As of 2024, Confluent has approximately 5,680 customers, an increase from 4,910 customers in 2023, reflecting a year-over-year growth of 16%. The company generated total revenue of $250.2 million for the three months ended September 30, 2024, up from $200.2 million in the same period of 2023, representing a 25% increase.

Company's Financial Performance

In its latest financial report for the third quarter of 2024, Confluent reported total revenue of $250.2 million, a significant increase compared to $200.2 million for the same period in 2023. The revenue breakdown includes:

Subscription revenue, which primarily comes from the Confluent Cloud and Confluent Platform, accounted for 96% of total revenue, with Confluent Cloud contributing 52% and Confluent Platform contributing 46% in Q3 2024. The company’s gross profit for the same period was $186.5 million, yielding a gross margin of 75%.

Confluent's net loss for the three months ended September 30, 2024, was $74.1 million, compared to $92.7 million in Q3 2023. The company’s dollar-based net retention rate stood at 117%, indicating strong growth among existing customers.

Introduction to Company as a Leader in the Industry

Confluent is recognized as a leader in the data streaming industry, leveraging its deep roots in Apache Kafka to provide innovative solutions that address the growing demand for real-time data processing. The company’s focus on expanding its cloud offerings and enhancing customer satisfaction has established it as a trusted partner for organizations looking to integrate and manage their data effectively.

As of 2024, Confluent continues to invest in its product development and marketing strategies to maintain its competitive edge and expand its customer base. The company’s growth trajectory, marked by a significant increase in both revenue and customer adoption, positions it well for future success in the evolving landscape of data infrastructure.

Mission Statement of Confluent, Inc. (CFLT)

Mission Statement Overview

Confluent, Inc. (CFLT) articulates its mission statement to define its purpose and guide its strategic direction. The mission emphasizes empowering organizations to harness the full potential of real-time data streams through its innovative data streaming solutions.

Core Component 1: Empowering Organizations

The first core component of Confluent's mission statement revolves around empowering organizations. This reflects the company's commitment to providing tools that enable businesses to leverage real-time data for enhanced decision-making and operational efficiency. As of September 30, 2024, Confluent reported a dollar-based net retention rate of 117%, indicating strong customer engagement and the ability to expand within existing accounts.

Core Component 2: Innovative Data Streaming Solutions

The second component focuses on the provision of innovative data streaming solutions. Confluent’s offerings, including Confluent Cloud and Confluent Platform, are designed to address the growing demand for real-time data processing. For the three months ended September 30, 2024, subscription revenue reached $239.9 million, a 27% increase from $189.3 million in the same period of the previous year. This growth underscores the effectiveness of their innovative solutions in the marketplace.

Core Component 3: Real-Time Data Utilization

The final component emphasizes the importance of real-time data utilization. Confluent’s mission is to enable organizations to capitalize on data as it flows, facilitating timely insights and actions. The company reported a significant increase in the proportion of its revenue from Confluent Cloud, which contributed 52% of total revenue for the three months ended September 30, 2024, compared to 46% in the same quarter of the previous year. This shift indicates a growing reliance on real-time data solutions among its customer base.

Confluent's mission statement, underpinned by these core components, is pivotal in driving the company’s long-term strategies and fostering a culture of innovation and responsiveness to market demands.

Vision Statement of Confluent, Inc. (CFLT)

Vision Statement Overview

Confluent, Inc. aims to be the leading platform for data in motion, enabling organizations to access, process, and analyze data in real-time. The company's vision emphasizes the importance of creating a seamless and integrated data ecosystem that empowers businesses to unlock the full potential of their data.

Empowering Organizations

The vision of Confluent revolves around empowering organizations to leverage real-time data to drive innovation and efficiency. By providing a platform that supports diverse use cases, Confluent aims to foster agility and responsiveness in business operations.

• As of September 30, 2024, Confluent reported a total revenue of $250.2 million for the quarter, reflecting a year-over-year growth of 25% compared to $200.2 million in Q3 2023.
• The company had approximately 5,680 customers as of September 30, 2024, marking a 16% increase from 4,910 customers a year earlier.

Data-Driven Decision Making

Confluent's vision promotes data-driven decision-making, emphasizing the necessity for businesses to utilize real-time data insights to enhance operational effectiveness. The company’s offerings are designed to facilitate the integration of data across various platforms and systems.

Innovation and Continuous Improvement

Confluent envisions a future where continuous innovation drives the evolution of data capabilities. The company invests significantly in research and development to enhance its offerings and adapt to changing market demands.

• Research and development expenses for the nine months ended September 30, 2024, totaled $306.4 million, representing 44% of total revenue, compared to $261.8 million, or 46% in the same period of 2023.
• The company’s gross margin for subscriptions increased to 78% in Q3 2024, up from 77% in Q3 2023, indicating improved operational efficiencies.

Customer-Centric Approach

At the core of Confluent's vision is a customer-centric approach, where the focus is on delivering value and fostering strong partnerships with clients. The company aims to support customers throughout their data journey, from initial adoption to extensive use across the organization.

As of September 30, 2024, Confluent reported a dollar-based net retention rate of 117%, reflecting strong customer loyalty and the effectiveness of its expansion strategies among existing clients.

Global Reach and Accessibility

Confluent aims to expand its global footprint, making its data streaming platform accessible to businesses of all sizes across various industries. This vision supports the idea of democratizing access to data and insights, enabling all organizations to harness the power of real-time data.

• International revenue accounted for 39% of total revenue in Q3 2024, showing a steady demand for Confluent's solutions outside the U.S..

Core Values of Confluent, Inc. (CFLT)

Customer Obsession

Confluent, Inc. values a strong commitment to its customers, focusing on understanding and addressing their needs. This core value is pivotal in fostering long-term relationships and driving customer satisfaction.

As of September 30, 2024, Confluent reported approximately 5,680 customers, a 16% increase year-over-year from 4,910 customers in 2023. The company achieved a dollar-based net retention rate (NRR) of 117%, indicating strong customer loyalty and expansion within existing accounts.

Confluent has implemented various initiatives to enhance customer experience, including offering free cloud trials and a pay-as-you-go model for its Confluent Cloud service, which accounted for 52% of subscription revenue in Q3 2024. These strategies facilitate easy adoption and encourage customers to explore additional use cases.

Innovation

Innovation is a core value at Confluent, driving the company to continually enhance its data streaming platform. This commitment is reflected in its significant investment in research and development.

In the nine months ended September 30, 2024, Confluent's research and development expenses totaled $306.4 million, representing 44% of total revenue. This investment has led to the introduction of new features and enhancements that keep the platform competitive.

Furthermore, Confluent's Confluent Cloud service has seen substantial growth, contributing $129.8 million in subscription revenue for Q3 2024, up from $91.6 million in Q3 2023. This growth underscores the effectiveness of its innovation strategy in capturing market demand.

Integrity

Integrity is fundamental to Confluent's operations, guiding its interactions with customers, partners, and employees. The company emphasizes transparency and ethical practices in all business dealings.

As part of its commitment to integrity, Confluent has established comprehensive compliance programs, particularly in light of its growth and the complexities of operating as a public company. This includes maintaining an accumulated deficit of $1.9 billion as of September 30, 2024, which reflects the company's ongoing investment in its growth strategy.

Collaboration

Collaboration is essential for driving success at Confluent, fostering teamwork across various departments to enhance productivity and innovation.

The company has focused on building a robust organizational culture, evident from its increased workforce, which has contributed to the rise in personnel-related costs by $30.3 million in R&D. This growth in headcount supports collaborative efforts to develop new solutions and improve customer service.

Excellence

Excellence is a core value that Confluent strives for in delivering high-quality products and services. The company sets high standards for performance and customer satisfaction.

Confluent's gross margin for subscription revenue reached 78% in Q3 2024, up from 77% in Q3 2023. This improvement indicates effective cost management and operational efficiency, aligning with its commitment to excellence.

Additionally, the company’s total revenue for the nine months ended September 30, 2024, was $702.4 million, showcasing a 25% increase year-over-year.

Article updated on 8 Nov 2024

Resources:

• Confluent, Inc. (CFLT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Confluent, Inc. (CFLT)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View Confluent, Inc. (CFLT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.