v3.25.2
Revenue
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue 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 June 30,Six Months Ended June 30,
2025202420252024
Geographic markets:
United States$164,348 58%$143,246 61%$320,760 58%$270,656 60%
International117,937 42%91,740 39%232,645 42%181,567 40%
Total revenue$282,285 100%$234,986 100%$553,405 100%$452,223 100%
Subscriptions and services:
Confluent Platform - License$30,630 11%$26,958 12%$61,688 11%$46,325 10%
Confluent Platform - PCS(1)
89,678 32%80,381 34%176,788 32%161,074 36%
Confluent Cloud(2)
150,524 53%117,363 50%293,266 53%224,205 49%
Subscription270,832 96%224,702 96%531,742 96%431,604 95%
Services11,453 4%10,284 4%21,663 4%20,619 5%
Total revenue$282,285 100%$234,986 100%$553,405 100%$452,223 100%
(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 and six months ended June 30, 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 June 30, 2025, the Company’s RPO was $1,162.3 million, approximately 59% 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 June 30, 2025 and December 31, 2024 was $455.6 million and $409.2 million, respectively. For the six months ended June 30, 2025 and 2024, revenue recognized from deferred revenue at the beginning of the year was $253.2 million and $239.9 million, respectively.
Accounts Receivable, Net
The unbilled receivables balance included in accounts receivable, net on the condensed consolidated balance sheets was $164.3 million and $130.7 million as of June 30, 2025 and December 31, 2024, respectively.
The Company’s allowance for expected credit losses was not material as of June 30, 2025 and December 31, 2024. Additions to and write-offs against the allowance for expected credit losses were not material for the three and six months ended June 30, 2025 and 2024.
Deferred Contract Acquisition Costs
The following table summarizes the activity of deferred contract acquisition costs (in thousands):
Six Months Ended June 30,
20252024
Beginning balance$118,739 $119,752 
Capitalization of contract acquisition costs25,646 25,028 
Amortization of deferred contract acquisition costs(28,254)(26,096)
Ending balance$116,131 $118,684