Confluent (Confluent) Gross Margin %

: 73.24% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Confluent's Gross Profit for the three months ended in Dec. 2023 was $156.1 Mil. Confluent's Revenue for the three months ended in Dec. 2023 was $213.2 Mil. Therefore, Confluent's Gross Margin % for the quarter that ended in Dec. 2023 was 73.24%.

The historical rank and industry rank for Confluent's Gross Margin % or its related term are showing as below:

CFLT' s Gross Margin % Range Over the Past 10 Years
Min: 64.6 Med: 67.04 Max: 70.44
Current: 70.44

During the past 5 years, the highest Gross Margin % of Confluent was 70.44%. The lowest was 64.60%. And the median was 67.04%.

CFLT's Gross Margin % is ranked better than
79.11% of 2628 companies
in the Software industry
Industry Median: 41.685 vs CFLT: 70.44

Confluent had a gross margin of 73.24% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Confluent was 0.00% per year.

Confluent Gross Margin % Historical Data

The historical data trend for Confluent's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Confluent Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

67.04

68.10

64.60

65.45

70.44

Confluent Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %													68.01	66.64	69.40	71.75	73.24

Competitive Comparison

For the Software - Infrastructure subindustry, Confluent's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Confluent Gross Margin % Distribution

For the Software industry and Technology sector, Confluent's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Confluent's Gross Margin % falls into.

Confluent Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Confluent's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	547.3	/	776.952
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(776.952 - 229.67)	/	776.952
	=	70.44 %

Confluent's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	156.1	/	213.184
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(213.184 - 57.057)	/	213.184
	=	73.24 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Confluent (NAS:CFLT) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Confluent had a gross margin of 73.24% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Confluent Gross Margin % Related Terms

Thank you for viewing the detailed overview of Confluent's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Confluent (Confluent) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Confluent Inc (NAS:CFLT) » Definitions » Gross Margin %

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Traded in Other Exchanges

CFLT:Mexico 8QR:Germany 8QR:Germany

Address

899 West Evelyn Avenue, Mountain View, CA, USA, 94041

Website

https://www.confluent.io

Confluent Inc is a new category of data infrastructure designed to connect all the applications, systems, and data layers of a company around a real-time central nervous system. Its products include Confluent Platform; Connectors; ksqlDB and others. The company generates revenue from the sale of subscriptions and services. Geographically, it derives a majority of its revenue from the United States. It provides solutions to Financial Services; Insurance; Retail and eCommerce; Automotive; Government and other sectors.

Executives

Rohan Sivaram	officer: Chief Financial Officer	C/O CONFLUENT, INC., 899 W. EVELYN AVENUE, MOUNTAIN VIEW CA 94041
Chad Verbowski	officer: SVP of Engineering	C/O CONFLUENT, INC., 899 W. EVELYN AVENUE, MOUNTAIN VIEW CA 94041
Ying Christina Liu	officer: Chief Accounting Officer	C/O ZENDESK, INC., 1019 MARKET STREET, SAN FRANCISCO CA 94103
Edward Jay Kreps	director, 10 percent owner, officer: Chief Executive Officer	C/O CONFLUENT, INC., 899 W. EVELYN AVENUE, MOUNTAIN VIEW CA 94041
Erica Schultz	officer: President, Field Operations	C/O NEW RELIC, INC., 188 SPEAR STREET, STE. 1200, SAN FRANCISCO CA 94105
Michelangelo Volpi	director	C/O HORTONWORKS, INC., 3640 W. BAYSHORE RD., PALO ALTO CA 94303
Stephanie Buscemi	officer: Chief Marketing Officer	C/O IHS INC., 15 INVERNESS EAST WAY, ENGLEWOOD CO 80107
Jonathan Chadwick	director	3401 HILLVIEW AVENUE, PALO ALTO CA 94304
Lara Caimi	director	C/O CONFLUENT, INC., 899 W EVELYN AVENUE, MOUNTAIN VIEW CA 94041
Steffan Tomlinson	officer: Chief Financial Officer	PALO ALTO NETWORKS, INC., 3300 OLCOTT STREET, SANTA CLARA CA 95054
Eric Vishria	director, 10 percent owner	2965 WOODSIDE ROAD, WOODSIDE CA 94062
Sequoia Capital Fund, L.p.	10 percent owner	2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Index Ventures Vii Parallel Entrepreneur Fund (jersey), L.p.	10 percent owner	C/O EFG WEALTH SOLUTIONS (JERSEY) LTD, NO. 1 SEATON PLACE, ST. HELIER Y9 JE4 8YJ
Sequoia Capital Fund Parallel, Llc	10 percent owner	2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Index Ventures Vii (jersey), L.p.	10 percent owner	C/O EFG WEALTH SOLUTIONS (JERSEY) LTD, NO. 1 SEATON PLACE, ST. HELIER Y9 JE4 8YJ