Here are a couple of brief analogies to describe Confluent:

• Databricks for real-time data streaming. (Confluent commercializes and enhances Apache Kafka, similar to how Databricks commercializes and enhances Apache Spark for data lakes and analytics.)

• Red Hat for data streams. (Confluent provides enterprise-grade products and services built around the open-source Apache Kafka, much like Red Hat does for Linux and other open-source enterprise software.)

• Confluent Cloud: A fully managed, cloud-native service for Apache Kafka, enabling organizations to build and scale real-time data streaming applications without operational overhead.
• Confluent Platform: An enterprise-grade, self-managed software distribution of Apache Kafka for hybrid and on-premises environments, providing advanced features for data governance, security, and management.
• ksqlDB: A purpose-built streaming database for Apache Kafka that allows developers to build real-time applications and perform stream processing using SQL.

Major Customers of Confluent (CFLT)

Confluent primarily operates as a business-to-business (B2B) company, providing its real-time data streaming platform based on Apache Kafka to other companies. Its customers span a wide range of industries, including financial services, retail, healthcare, technology, and manufacturing, all seeking to leverage real-time data for operational efficiency, enhanced customer experiences, and new product development.

While Confluent serves thousands of organizations globally and does not publicly disclose a definitive list of *all* its major customers due to the nature of its enterprise software business and client confidentiality, several prominent public companies have been highlighted in Confluent's case studies, earnings calls, or industry reports as significant users of its platform. Some examples include:

• Capital One (Symbol: COF) - Financial Services
• Nordstrom (Symbol: JWN) - Retail
• Expedia Group (Symbol: EXPE) - Travel & Hospitality
• Humana (Symbol: HUM) - Healthcare
• Intuit (Symbol: INTU) - Financial Software

These companies utilize Confluent's platform to power various mission-critical applications, from fraud detection and personalized recommendations to supply chain optimization and real-time analytics.

Confluent (CFLT) Major Suppliers:

• Amazon.com, Inc. (AMZN)
• Microsoft Corporation (MSFT)
• Alphabet Inc. (GOOGL)

Jay Kreps, Co-founder & CEO

Jay Kreps co-founded Confluent in 2014. He is also one of the original co-creators of Apache Kafka, an open-source streaming platform, which he developed while serving as a Principal Staff Engineer and technical lead for data systems at LinkedIn from 2007 to 2014. Prior to LinkedIn, he held software engineering roles at NexTag and Movaris. Confluent went public in June 2021.

Rohan Sivaram, Chief Financial Officer

Rohan Sivaram was appointed Chief Financial Officer of Confluent, effective August 16, 2023. He joined Confluent in October 2020 and previously led the company's FP&A, investor relations, treasury, and business operations teams. Before joining Confluent, Sivaram served as Senior Vice President of Finance at Palo Alto Networks for six years, where he contributed to scaling the company's revenue run rate significantly. His career also includes finance leadership roles at Symantec Corporation and Morgan Stanley Investment Management.

Ryan Mac Ban, Chief Revenue Officer

Ryan Mac Ban serves as the Chief Revenue Officer at Confluent.

Stephanie Buscemi, Chief Marketing Officer

Stephanie Buscemi joined Confluent in 2021 as Chief Marketing Officer, responsible for marketing strategies and brand growth. She has a rich background with senior marketing leadership roles at Salesforce and SAP, and is also noted for co-authoring "Driven to Perform".

Steve Deasy, Chief Technology Officer

Steve Deasy is the Chief Technology Officer at Confluent.

1. Path to Sustainable Profitability: Confluent continues to report significant GAAP operating and net losses, with a Net Loss of $(345.1) million in fiscal year 2024 and ongoing GAAP losses projected through at least the next three years. Despite high gross margins, the company remains in a high-growth, high-spend phase, investing heavily, leading to concerns about when sustainable profitability will be achieved and how quickly operating leverage will materialize. High stock-based compensation further contributes to these losses.
2. Competition and Customer Migration to Open-Source/Self-Managed Solutions: Confluent operates in a highly competitive and rapidly evolving market. Its primary competition stems from open-source alternatives like Apache Kafka, the foundational technology Confluent is built upon, and offerings from major cloud service providers, such as Amazon MSK. There is a risk that customers may opt for self-managed solutions or open-source alternatives, directly impacting Confluent's cloud revenue and margins. For instance, in Q3 2025, a significant AI-native customer transitioned from Confluent Cloud to a self-managed solution, which is expected to reduce Q4 cloud revenue.
3. Customer Cloud Optimization and Revenue Growth Concerns: Customer efforts to optimize cloud spending represent an ongoing operational risk for Confluent, potentially leading to revenue fluctuations and slower growth, particularly for Confluent Cloud. While the company's core investment thesis involves converting customers from its on-premise software to its cloud services, any slowdown or disappointment in cloud revenue growth, or customers choosing self-managed options, could challenge this growth strategy.

Confluent (CFLT) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Expansion of Confluent Cloud and Data Streaming Platform (DSP) Adoption: Confluent Cloud remains a primary growth engine, consistently showing significant year-over-year revenue increases. The company is actively shifting its focus to its cloud-based Data Streaming Platform (DSP), which it considers a crucial driver for future growth. New product offerings within the DSP, such as Tableflow and enhanced support for Apache Flink, are expected to contribute to this expansion.
2. Growth in Customer Base and Increased Adoption by Existing Customers: Confluent continues to demonstrate strong customer acquisition, adding a notable number of new clients, including those with Annual Recurring Revenue (ARR) exceeding $1 million. The company's net dollar retention rate of 117% signifies robust expansion within its existing customer base, indicating that current customers are increasing their usage and spending on Confluent's platform.
3. Strategic Partnerships and Ecosystem Expansion: Confluent is actively pursuing strategic partnerships to broaden its market reach and integrate its data streaming capabilities across various ecosystems. Collaborations with major players like Databricks and Jio Platforms are anticipated to enhance real-time data integration for AI-driven applications and expand its presence in key international markets, such as India. The company has also committed significant investment to supercharge its global partner ecosystem.
4. Leveraging AI Workloads and Product Innovation: Confluent is focused on enabling customers to build next-generation applications and capitalize on the opportunities presented by artificial intelligence. Recent product innovations and enhancements, including Confluent Intelligence, Real-Time Context Engine, and Streaming Agents, are designed to support and accelerate AI workloads, improve data context training, and facilitate real-time analytics, thereby driving new use cases and demand.
5. Geographical Expansion: A stated component of Confluent's growth strategy involves expanding its geographical footprint. An example of this is the strategic partnership with Jio Platforms Limited, aimed at making Confluent Cloud available on Jio cloud services and the Confluent Platform as a managed service in India.

Capital Allocation Decisions (2020-2025)

Share Repurchases

• Confluent has demonstrated a negative 3-Year Share Buyback Ratio of -7.00% as of June 2025, indicating share issuance rather than repurchases.
• The 3-Month Share Buyback Ratio was also negative, at -1.21% as of June 2025.

Share Issuance

• Confluent's shares outstanding significantly increased from 0.28 billion in 2022 to 0.301 billion in 2023 (a 7.37% increase) and 0.322 billion in 2024 (a 7.03% increase).
• For the quarter ending September 30, 2025, shares outstanding were 0.346 billion, marking a 6.75% year-over-year increase.
• In December 2021, Confluent announced the pricing of $1.0 billion in 0% Convertible Senior Notes due 2027, with an initial conversion rate of 9.9936 shares of Class A common stock per $1,000 principal amount of notes, potentially leading to future share issuance.

Outbound Investments

• In September 2025, Confluent, Inc. acquired Warpstream Labs, Inc.
• Net acquisitions/divestitures for the twelve months ending June 30, 2025, were reported at -$0.231 billion, reflecting a significant increase in acquisition activity.

Capital Expenditures

• Capital expenditures for Confluent were $14.46 million in 2022, increasing to $20.68 million in 2023.
• Estimated capital expenditures are projected to be $4.428 million for 2025 and $5.672 million for 2026.
• Over the last five years, Confluent has invested more than 3 million engineering hours into Confluent Cloud, focusing on developing a "10x better Kafka service".