Confluent, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Confluent, Inc. has filed its 2023 10-K report detailing financial activities and business operations.</b>

AI Summary

Confluent, Inc. (CFLT) filed a Annual Report (10-K) with the SEC on February 21, 2024. Confluent, Inc. filed its 2023 Form 10-K on February 21, 2024. The filing covers the fiscal year ending December 31, 2023. Key financial instruments mentioned include Convertible Senior Notes Due 2027 and Foreign Currency Forward Contracts. The company's business address is 899 W. Evelyn Avenue, Mountain View, CA 94041. Confluent, Inc. is classified under SIC code 7372 (Prepackaged Software).

Why It Matters

For investors and stakeholders tracking Confluent, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Confluent's financial health, operational performance, and strategic positioning for the fiscal year 2023, which is crucial for investors to assess the company's trajectory. The detailed financial disclosures, including information on debt, equity, and various financial instruments, are essential for understanding the company's risk profile and future financial obligations.

Risk Assessment

Risk Level: medium — Confluent, Inc. shows moderate risk based on this filing. The company's financial disclosures indicate significant convertible debt and potential concentration risks with major customers, which could impact financial stability and revenue streams.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Confluent's financial health and potential growth challenges.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-21 — Filing Date (Date of submission)
• 7372 — SIC Code (Standard Industrial Classification)
• 001-40526 — SEC File Number (SEC registration number)

Key Players & Entities

• Confluent, Inc. (company) — Filer name
• 0000950170-24-018036 (filing_id) — Accession number
• 2024-02-21 (date) — Filing date
• 2023-12-31 (date) — Fiscal year end
• 899 W. EVELYN AVENUE (address) — Business address
• MOUNTAIN VIEW (location) — Business address city
• CA (location) — Business address state
• 94041 (zip_code) — Business address zip

FAQ

Risk Factors

• Subscription and Service Concentration Risk [high — financial]: A significant portion of sales revenue is derived from a limited number of major customers, posing a concentration risk.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-21: Filing Date — Date Confluent, Inc. submitted its 10-K report.

Glossary

Convertible Senior Notes Due Two Thousand Twenty Seven

Debt instruments that can be converted into shares of the issuer's common stock. (Represents a significant form of debt financing for Confluent, Inc.)

Foreign Currency Forward Contracts

Contracts to buy or sell a currency at a specified exchange rate on a future date. (Used by Confluent, Inc. to manage foreign exchange risk.)

Subscription and Service Concentration Risk

Risk arising from a significant portion of revenue coming from a small number of customers. (Highlights potential vulnerability in Confluent's revenue stream if key customers are lost.)

Key Financial Figures

• $0.00001 — tered Class A Common Stock, par value $0.00001 per share CFLT The Nasdaq Stock Mar

Filing Documents

• cflt-20231231.htm (10-K) — 3804KB
• cflt-ex10_16.htm (EX-10.16) — 30KB
• cflt-ex21_1.htm (EX-21.1) — 13KB
• cflt-ex23_1.htm (EX-23.1) — 3KB
• cflt-ex31_1.htm (EX-31.1) — 15KB
• cflt-ex31_2.htm (EX-31.2) — 15KB
• cflt-ex32_1.htm (EX-32.1) — 9KB
• cflt-ex32_2.htm (EX-32.2) — 9KB
• cflt-ex97.htm (EX-97) — 51KB
• img211516448_0.jpg (GRAPHIC) — 67KB
• 0000950170-24-018036.txt (&nbsp;) — 14978KB
• cflt-20231231.xsd (EX-101.SCH) — 1913KB
• cflt-20231231_htm.xml (XML) — 2887KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 18 Item 1B. Unresolved Staff Comments 70 Item 1C. Cybersecurity 70 Item 2.

Properties

Properties 71 Item 3.

Legal Proceedings

Legal Proceedings 71 Item 4. Mine Safety Disclosures 71 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 72 Item 6. Reserved 73 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 74 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 88 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 89 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 131 Item 9A.

Controls and Procedures

Controls and Procedures 131 Item 9B. Other Information 133 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 133 PART III Item 10. Directors, Executive Officers, and Corporate Governance 134 Item 11.

Executive Compensation

Executive Compensation 134 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 134 Item 13. Certain Relationships and Related Transactions, and Director Independence 134 Item 14. Principal Accountant Fees and Services 134 PART IV Item 15. Exhibits and Financial Statement Schedules 135 Item 16. Form 10-K Summary 137

Signatures

Signatures 138 i Table of Contents SPECIAL NOTE ABOUT FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this Annual Report on Form 10-K, including statements regarding our future results of operations and financial condition, business strategy and plans, and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "toward," "will," "would," or the negative of these words or other similar terms or expressions. These forward-looking statements include, but are not limited to, statements concerning the following: our expectations regarding our revenue, revenue mix, expenses, and other results of operations; our ability to acquire new customers and successfully retain existing customers; our ability to increase consumption of our offering and expand features and functionalities; our ability to achieve or sustain our margins and profitability; the impact of, and our ability to operate our business and effectively manage our growth under, evolving and uncertain macroeconomic conditions, including as a result of inflationary pressures, geopolitical events, and recessionary environments; future investments in our business, our anticipated capital expenditures, and our estimates regarding our capital requirements; the costs and success of our sales and marketing efforts, including in connection with our shift to a consumption-oriented sales model for Confluent Cloud, and our ability to promote our brand; our growth strategies for, and market acceptance of, our platform, as well as our abi

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View this 10-K filing on SEC EDGAR