v3.25.1
Revenue
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue

10. Revenue

 

Disaggregation of Revenue

 

The following table sets forth revenue disaggregated by geographic markets based on the location of the customer and by subscription and service categories (dollars in thousands):

 

 

Three Months Ended March 31,

 

 

2025

 

 

2024

 

Geographic markets:

 

 

 

 

 

 

 

 

 

 

 

United States

$

156,412

 

 

 

58

%

 

$

127,410

 

 

 

59

%

International

 

114,708

 

 

 

42

%

 

 

89,827

 

 

 

41

%

Total revenue

$

271,120

 

 

 

100

%

 

$

217,237

 

 

 

100

%

Subscriptions and services:

 

Confluent Platform - License

$

31,058

 

 

 

11

%

 

$

19,367

 

 

 

9

%

Confluent Platform - PCS(1)

 

87,110

 

 

 

32

%

 

 

80,693

 

 

 

37

%

Confluent Cloud(2)

 

142,742

 

 

 

53

%

 

 

106,842

 

 

 

49

%

Subscription

 

260,910

 

 

 

96

%

 

 

206,902

 

 

 

95

%

Services

 

10,210

 

 

 

4

%

 

 

10,335

 

 

 

5

%

Total revenue

$

271,120

 

 

 

100

%

 

$

217,237

 

 

 

100

%

(1) PCS refers to post-contract customer support, maintenance, and upgrades.

(2) Includes revenue from WarpStream since the date of acquisition, which was not material for the three months ended March 31, 2025

Remaining Performance Obligations (“RPO”)

 

RPO represent the amount of contracted future revenue that has not yet been recognized as of the end of each period, including both deferred revenue that has been invoiced and non-cancelable committed amounts that will be invoiced and recognized as revenue in future periods. RPO exclude pay-as-you-go arrangements. As of March 31, 2025, the Company’s RPO was $1,016.1 million, approximately 61% of which is expected to be recognized as revenue over the next 12 months and the substantial majority of the remainder in the next 13 to 36 months. Actual amounts or timing of revenue recognized may differ due to subsequent contract modifications.

 

Deferred Revenue

 

Deferred revenue, including current and non-current balances as of March 31, 2025 and December 31, 2024 was $405.4 million and $409.2 million, respectively. For the three months ended March 31, 2025 and 2024, revenue recognized from deferred revenue at the beginning of the year was $148.6 million and $138.7 million, respectively.

 

Accounts Receivable, Net

 

The unbilled receivables balance included in accounts receivable, net on the condensed consolidated balance sheets was $147.5 million and $130.7 million as of March 31, 2025 and December 31, 2024, respectively.

 

The Company’s allowance for expected credit losses was not material as of March 31, 2025 and December 31, 2024. Additions to and write-offs against the allowance for expected credit losses were not material for the three months ended March 31, 2025 and 2024.

 

Deferred Contract Acquisition Costs

 

The following table summarizes the activity of deferred contract acquisition costs (in thousands):

 

 

Three Months Ended March 31,

 

 

2025

 

 

2024

 

Beginning balance

$

118,739

 

 

$

119,752

 

Capitalization of contract acquisition costs

 

10,410

 

 

 

9,732

 

Amortization of deferred contract acquisition costs

 

(13,931

)

 

 

(12,762

)

Ending balance

$

115,218

 

 

$

116,722