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Revenue
 6 Months Ended
Jun. 30, 2024
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 June 30,

 

 

Six Months Ended June 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Geographic markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

$

143,246

 

 

 

61

%

 

$

113,910

 

 

 

60

%

 

$

270,656

 

 

 

60

%

 

$

217,852

 

 

 

60

%

International

 

91,740

 

 

 

39

%

 

 

75,375

 

 

 

40

%

 

 

181,567

 

 

 

40

%

 

 

145,735

 

 

 

40

%

Total revenue

$

234,986

 

 

 

100

%

 

$

189,285

 

 

 

100

%

 

$

452,223

 

 

 

100

%

 

$

363,587

 

 

 

100

%

Subscriptions and services:

 

Confluent Platform - License

$

26,958

 

 

 

12

%

 

$

20,544

 

 

 

11

%

 

$

46,325

 

 

 

10

%

 

$

39,532

 

 

 

11

%

Confluent Platform - PCS(1)

 

80,381

 

 

 

34

%

 

 

72,366

 

 

 

38

%

 

 

161,074

 

 

 

36

%

 

 

140,307

 

 

 

39

%

Confluent Cloud

 

117,363

 

 

 

50

%

 

 

83,578

 

 

 

44

%

 

 

224,205

 

 

 

49

%

 

 

157,216

 

 

 

43

%

Subscription

 

224,702

 

 

 

96

%

 

 

176,488

 

 

 

93

%

 

 

431,604

 

 

 

95

%

 

 

337,055

 

 

 

93

%

Services

 

10,284

 

 

 

4

%

 

 

12,797

 

 

 

7

%

 

 

20,619

 

 

 

5

%

 

 

26,532

 

 

 

7

%

Total revenue

$

234,986

 

 

 

100

%

 

$

189,285

 

 

 

100

%

 

$

452,223

 

 

 

100

%

 

$

363,587

 

 

 

100

%

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

 

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, 2024, the Company’s RPO was $887.8 million, approximately 64% 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, 2024 and December 31, 2023 was $348.5 million and $353.0 million, respectively. For the six months ended June 30, 2024 and 2023, revenue recognized from deferred revenue at the beginning of the year was $239.9 million and $199.9 million, respectively.

 

Accounts Receivable, Net

 

The unbilled receivables balance included in accounts receivable, net on the condensed consolidated balance sheets was $88.9 million and $64.2 million as of June 30, 2024 and December 31, 2023, respectively.

 

The Company’s allowance for expected credit losses was not material as of June 30, 2024 and December 31, 2023. Additions to and write-offs against the allowance for expected credit losses were not material for the three and six months ended June 30, 2024 and 2023.

 

Deferred Contract Acquisition Costs

 

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

 

 

Six Months Ended June 30,

 

 

2024

 

 

2023

 

Beginning balance

$

119,752

 

 

$

104,284

 

Capitalization of contract acquisition costs

 

25,028

 

 

 

23,966

 

Amortization of deferred contract acquisition costs

 

(26,096

)

 

 

(21,537

)

Ending balance

$

118,684

 

 

$

106,713