0000950170-22-007876 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2022	Apr. 28, 2022
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Trading Symbol	CFLT
Entity Registrant Name	CONFLUENT, INC.
Entity Central Index Key	0001699838
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Title of 12(b) Security	Class A Common Stock, par value $0.00001 per share
Entity File Number	001-40526
Security Exchange Name	NASDAQ
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-1824387
Entity Address, Address Line One	899 W. Evelyn Avenue
Entity Address, City or Town	Mountain View
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94041
City Area Code	800
Local Phone Number	439-3207
Document Transition Report	false
Document Quarterly Report	true
Class A Common Stock [Member]
Entity Common Stock, Shares Outstanding		125,926,055
Class B Common Stock [Member]
Entity Common Stock, Shares Outstanding		152,416,050

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 1,047,589	$ 1,375,932
Marketable securities	943,048	640,085
Accounts receivable, net	124,504	137,491
Deferred contract acquisition costs	28,433	27,646
Prepaid expenses and other current assets	51,675	44,919
Total current assets	2,195,249	2,226,073
Property and equipment, net	18,486	14,428
Operating lease right-of-use assets	34,814	37,281
Deferred contract acquisition costs, non-current	54,001	51,178
Other assets, non-current	14,951	13,769
Total assets	2,317,501	2,342,729
Current liabilities:
Accounts payable	8,151	7,591
Accrued expenses and other liabilities	71,924	98,974
Operating lease liabilities	8,540	9,236
Deferred revenue	235,119	220,920
Liability for early exercise of unvested stock options	6,995	11,467
Total current liabilities	330,729	348,188
Operating lease liabilities, non-current	29,674	31,645
Deferred revenue, non-current	30,565	25,557
Convertible senior notes, net	1,081,637	1,080,701
Other liabilities, non-current	8,827	6,357
Total liabilities	1,481,432	1,492,448
Commitments and contingencies (Note 7)
Stockholders' equity:
Preferred stock, par value of $0.00001 per share; 10,000,000 shares authorized as of March 31, 2022 and December 31, 2021; 0 shares issued and outstanding as of March 31, 2022 and December 31, 2021	0	0
Additional paid-in capital	1,703,449	1,599,962
Accumulated other comprehensive income (loss)	(5,542)	(830)
Accumulated deficit	(861,841)	(748,854)
Total stockholders’ equity (deficit)	836,069	850,281
Total liabilities and stockholders' equity (deficit)	2,317,501	2,342,729
Class A Common Stock [Member]
Stockholders' equity:
Common Stock, Value	1	1
Class B Common Stock [Member]
Stockholders' equity:
Common Stock, Value	$ 2	$ 2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Preferred Stock, Par Value	$ 0.00001	$ 0.00001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Class A Common Stock [Member]
Common Stock, Par Value	$ 0.00001	$ 0.00001
Common Stock, Shares Authorized	1,000,000,000	1,000,000,000
Common Stock, Shares, Issued	125,370,709	116,728,968
Common Stock, Shares, Outstanding	125,370,709	116,728,968
Class B Common Stock [Member]
Common Stock, Par Value	$ 0.00001	$ 0.00001
Common Stock, Shares Authorized	500,000,000	500,000,000
Common Stock, Shares, Issued	152,666,053	155,072,914
Common Stock, Shares, Outstanding	152,666,053	155,072,914

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenue:
Total revenue	$ 126,139	$ 77,028
Cost of revenue:
Total cost of revenue	45,777	23,838
Gross profit	80,362	53,190
Operating expenses:
Research and development	57,661	24,313
Sales and marketing	106,702	58,509
General and administrative	27,481	15,512
Total operating expenses	191,844	98,334
Operating loss	(111,482)	(45,144)
Interest income	566	844
Other expense, net	(1,382)	(336)
Loss before income taxes	(112,298)	(44,636)
Provision for (benefit from) income taxes	689	(110)
Net loss	$ (112,987)	$ (44,526)
Net loss per share, basic and diluted	$ (0.41)	$ (0.41)
Weighted-average shares used to compute net loss per share, basic and diluted	272,890,829	108,731,605
Subscription [Member]
Revenue:
Total revenue	$ 113,920	$ 67,992
Cost of revenue:
Total cost of revenue	33,603	15,757
Services [Member]
Revenue:
Total revenue	12,219	9,036
Cost of revenue:
Total cost of revenue	$ 12,174	$ 8,081

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net loss	$ (112,987)	$ (44,526)
Other comprehensive loss:
Unrealized loss on marketable securities	(4,712)	(185)
Other comprehensive loss	(4,712)	(185)
Total comprehensive loss	$ (117,699)	$ (44,711)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

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+ Details

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Total	Redeemable Convertible Preferred Stock [Member]	Convertible Founder Stock [Member]	Class A and Class B [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Accumulated Deficit [Member]
Balance at Dec. 31, 2020	$ (306,249)				$ 1	$ 99,575	$ 228	$ (406,053)
Balance (shares) at Dec. 31, 2020		115,277,850
Balance at Dec. 31, 2020		$ 574,634
Balance (shares) at Dec. 31, 2020			635,818		109,447,843
Issuance of common stock upon early exercise of unvested options, net of repurchases					1,128,365
Vesting of early exercised options	1,208					1,208
Issuance of common stock upon exercise of vested options	6,215					6,215
Issuance of common stock upon exercise of vested options (shares)					2,875,314
Stock-based compensation	13,451					13,451
Other comprehensive income (loss)	(185)						(185)
Net loss	(44,526)		$ (260)					(44,526)
Balance at Mar. 31, 2021	(330,086)				$ 1	120,449	43	(450,579)
Balance (shares) at Mar. 31, 2021		115,277,850
Balance at Mar. 31, 2021		$ 574,634
Balance (shares) at Mar. 31, 2021			635,818		113,451,522
Balance at Dec. 31, 2021	850,281			$ 3		1,599,962	(830)	(748,854)
Balance (shares) at Dec. 31, 2021				271,801,882
Issuance of common stock upon early exercise of unvested options, net of repurchases				35,623
Vesting of early exercised options	5,701					5,701
Issuance of common stock upon exercise of vested options	$ 16,405					16,405
Issuance of common stock upon exercise of vested options (shares)	5,071,166			5,026,565
Vesting of restricted stock (shares)				437,875
Issuance of common stock under employee stock purchase plan	$ 22,485					22,485
Issuance of common stock under employee stock purchase plan (shares)				734,817
Stock-based compensation	58,896					58,896
Other comprehensive income (loss)	(4,712)						(4,712)
Net loss	(112,987)							(112,987)
Balance at Mar. 31, 2022	$ 836,069			$ 3		$ 1,703,449	$ (5,542)	$ (861,841)
Balance (shares) at Mar. 31, 2022				278,036,762

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (112,987)	$ (44,526)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	1,250	787
Net amortization (accretion) of premiums (discounts) on marketable securities	705	505
Amortization of debt issuance costs	936	0
Amortization of deferred contract acquisition costs	8,470	5,535
Non-cash operating lease costs	2,275	2,856
Stock-based compensation, net of amounts capitalized	57,369	13,353
Deferred income taxes	4	(567)
Other	204	439
Changes in operating assets and liabilities:
Accounts receivable	12,782	5,734
Deferred contract acquisition costs	(12,080)	(10,866)
Prepaid expenses and other assets	(7,985)	(2,355)
Accounts payable	177	839
Accrued expenses and other liabilities	(22,853)	1,433
Operating lease liabilities	(2,497)	(2,721)
Deferred revenue	19,207	9,565
Net cash (used in) provided by operating activities	(55,031)	(19,989)
CASH FLOWS FROM INVESTING ACTIVITIES
Capitalization of internal-use software costs	(2,509)	(596)
Purchases of marketable securities	(403,883)	(41,688)
Maturities of marketable securities	95,545	56,763
Purchases of property and equipment	(887)	(643)
Other	0	(9)
Net cash (used in) provided by investing activities	(311,734)	13,845
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock upon exercise of vested options	16,436	6,215
Proceeds from issuance of common stock upon early exercise of unvested options, net of repurchases	333	7,398
Payments of deferred offering costs	0	(153)
Payments of debt issuance costs for convertible senior notes	(786)	0
Proceeds from issuance of common stock under the ESPP	22,485	0
Net cash (used in) provided by financing activities	38,468	13,460
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(46)	(8)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(328,343)	7,308
Cash, cash equivalents, and restricted cash at beginning of period	1,376,682	37,806
Cash, cash equivalents, and restricted cash at end of period	1,048,339	45,114
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets to the amounts shown above:
Cash and cash equivalents	1,047,589	44,097
Restricted cash included in other assets, current and non-current	750	1,017
Total cash, cash equivalents, and restricted cash	1,048,339	45,114
Cash paid for:
Income taxes	712	524
Non-cash investing and financing activities:
Stock-based compensation capitalized as internal-use software costs	1,527	98
Vesting of early exercised stock options	5,701	1,208
Unpaid deferred offering costs	$ 0	$ 1,340

Organization and Description of Business

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Description of Business

1. Organization and Description of Business

Description of Business

Confluent, Inc. (“Confluent” or the “Company”) created a data infrastructure platform focused on data in motion. Confluent’s platform allows customers to connect their applications, systems, and data layers and can be deployed either as a self-managed software offering, Confluent Platform, or as a fully-managed cloud-native software-as-a-service (“SaaS”) offering, Confluent Cloud. Confluent also offers professional services and education services. The Company was incorporated in the state of Delaware in September 2014 and is headquartered in California with various other global office locations.

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the SEC on February 24, 2022 (the “Annual Report”). In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of March 31, 2022 and the results of operations and cash flows for the three months ended March 31, 2022 and 2021. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Such estimates include, but are not limited to, the standalone selling price for each distinct performance obligation included in customer contracts, deferred contract acquisition costs and their period of benefit, valuation of stock-based awards, the fair value of the Company’s common stock prior to its initial public offering (“IPO”) in June 2021, capitalization and estimated useful life of internal-use software, the incremental borrowing rate used to measure operating lease liabilities, and accounting for income taxes. The Company bases its estimates on historical and anticipated results, trends, and various other assumptions that it believes are reasonable under the circumstances. Estimates and assumptions about future events and their effects, including the impact of the COVID-19 pandemic, cannot be determined with certainty and therefore require the exercise of judgment. Actual results could differ from those estimates and any such differences may be material to the Company’s condensed consolidated financial statements. Significant Accounting Policies Other than the policies described below, there were no significant changes to the Company’s significant accounting policies disclosed in “Note 2 – Basis of Presentation and Summary of Significant Accounting Policies” of the Company’s Annual Report. Marketable Securities The Company’s marketable securities consist of corporate notes and bonds, commercial paper, U.S. agency obligations, U.S. treasury securities, and municipal bonds. The Company determines the appropriate classification of its marketable securities at the time of purchase and reevaluates such determination at each balance sheet date. The Company has classified and accounted for its marketable securities as available-for-sale securities. The Company may sell these securities at any time for use in its current operations or for other purposes, even prior to maturity. As a result, the Company classifies its marketable securities within current assets. Available-for-sale securities are recorded at fair value each reporting period, and are adjusted for amortization of premiums and accretion of discounts to maturity and such amortization and accretion are included in other income (expense), net in the consolidated statements of operations. Realized gains and losses are determined based on the specific identification method and are reported in other income (expense), net in the condensed consolidated statements of operations. Unrealized gains are reported as a separate component of accumulated other comprehensive income (loss) on the condensed consolidated balance sheets until realized. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell the security or it is more likely than not that the Company will be required to sell the security before the recovery of its entire amortized cost basis. If either of these criteria is met, the security’s amortized cost basis is written down to fair value through other income (expense), net in the condensed consolidated statements of operations. If neither of these criteria is met, the Company evaluates whether the decline in fair value below amortized cost is due to credit or non-credit related factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and any adverse conditions specifically related to the security, among other factors. Credit related unrealized losses are recognized as an allowance for expected credit losses of available-for-sale debt securities on the condensed consolidated balance sheets with a corresponding charge in other income (expense), net in the condensed consolidated statements of operations. Non-credit related unrealized losses are included in accumulated other comprehensive income (loss). Accounts Receivable and Allowance for Credit Losses Accounts receivable on the condensed consolidated balance sheets consists of trade accounts receivable and unbilled receivables, net of an allowance for expected credit losses. Trade accounts receivable are stated at the invoiced amount and consist of amounts currently due from customers. Unbilled receivables represent revenue recognized in excess of invoiced amounts for the Company’s unconditional right to consideration in exchange for goods or services that the Company has transferred to the customer, such that only the passage of time is required before payment of consideration is due. The unbilled receivables balance was $38.1 million and $32.3 million as of March 31, 2022 and December 31, 2021, respectively. Accounts receivable are reduced by an allowance for expected credit losses. The allowance for expected credits losses represents the best estimate of lifetime expected credit losses against the existing accounts receivable, inclusive of unbilled receivables, based on certain factors including the age of the receivable balance, past collection experience with the customer, historical write-off experience, credit quality of the customer, current economic conditions, and reasonable and supportable forecasts of future economic conditions. Accounts receivable deemed uncollectible are written off against the allowance for expected credit losses when identified and the Company no longer actively pursues collection of the receivable. The Company’s allowance for expected credit losses was not material as of March 31, 2022 and December 31, 2021. Additions to and write-offs against the allowance for expected credit losses were not material for the three months ended March 31, 2022 and 2021. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements Credit Losses: In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, including the Company’s accounts receivable and certain other financial instruments, with multiple codification improvement amendments issued more recently. Credit losses related to available-for-sale debt securities are required to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. This guidance is effective for the Company for the year beginning January 1, 2023, though early adoption is permitted. The Company early adopted this guidance effective January 1, 2022 on a modified retrospective basis, and the adoption did not result in any cumulative effect adjustment to its opening accumulated deficit balance.

Marketable Securities

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

3. Marketable Securities

The following tables summarize the fair values of the Company’s marketable securities (in thousands):


	March 31, 2022
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. treasury securities	$	699,057	$	-	$	(2,548	)	$	696,509
Corporate notes and bonds		140,568		-		(1,538	)		139,030
U.S. agency obligations		78,531		-		(1,286	)		77,245
Commercial paper		30,363		-		(99	)		30,264
Total marketable securities	$	948,519	$	-	$	(5,471	)	$	943,048


	December 31, 2021
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. treasury securities	$	446,878	$	-	$	(443	)	$	446,435
Corporate notes and bonds		125,845		5		(246	)		125,604
U.S. agency obligations		54,122		-		(115	)		54,007
Commercial paper		10,995		-		-			10,995
Municipal bonds		3,045		-		(1	)		3,044
Total marketable securities	$	640,885	$	5	$	(805	)	$	640,085

Realized gains and losses were not material for the three months ended March 31, 2022 and 2021. No marketable securities were in a continuous unrealized loss position for more than twelve months as of March 31, 2022 and December 31, 2021. Marketable securities in an unrealized loss position had a fair value of $938.0 million and $618.3 million as of March 31, 2022 and December 31, 2021, respectively. The Company does not intend to sell these securities and it is more likely than not that the Company will hold these securities until maturity or a recovery of the cost basis. The Company determined that the decline in fair value of these securities was not due to credit-related factors, and no allowance for expected credit losses was recorded as of March 31, 2022.

The following table summarizes the contractual maturities of the Company’s marketable securities (in thousands):


	March 31, 2022
	Amortized Cost		Fair Value
Due within one year	$	777,327	$	774,766
Due after one year through five years		171,192		168,282
Total	$	948,519	$	943,048

Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

4. Fair Value of Financial Instruments

The following tables summarize the Company’s financial assets that are measured at fair value on a recurring basis (in thousands):


	March 31, 2022
	Level 1		Level 2		Total
Cash equivalents:
U.S. treasury securities	$	-	$	121,477	$	121,477
Money market funds		67,904		-		67,904
Commercial paper		-		2,000		2,000
Marketable securities:
U.S. treasury securities		-		696,509		696,509
Corporate notes and bonds		-		139,030		139,030
U.S. agency obligations		-		77,245		77,245
Commercial paper		-		30,264		30,264
Total	$	67,904	$	1,066,525	$	1,134,429


	December 31, 2021
	Level 1		Level 2		Total
Cash equivalents:
U.S. treasury securities	$	-	$	69,999	$	69,999
Money market funds		23,857		-		23,857
Commercial paper		-		4,999		4,999
Marketable securities:
U.S. treasury securities		-		446,435		446,435
Corporate notes and bonds		-		125,604		125,604
U.S. agency obligations		-		54,007		54,007
Commercial paper		-		10,995		10,995
Municipal bonds		-		3,044		3,044
Total	$	23,857	$	715,083	$	738,940

The Company classifies its highly liquid money market funds within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classifies its U.S. treasury securities, corporate notes and bonds, U.S. agency obligations, commercial paper, and municipal bonds within Level 2 of the fair value hierarchy because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security that may not be actively traded. There were no transfers of financial assets between valuation levels during the three months ended March 31, 2022 and 2021.

As of March 31, 2022 and December 31, 2021, the total estimated fair value of the Company’s 0% convertible senior notes due 2027 was $916.4 million and $1,206.7 million, respectively. The fair value was determined based on the quoted price of the convertible senior notes in an inactive market on the last trading day of the reporting period and is classified within Level 2 of the fair value hierarchy. See Note 6 for further information on the Company’s convertible senior notes.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Balance Sheet Components

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

5. Balance Sheet Components

Property and Equipment, Net

The cost and accumulated depreciation and amortization of property and equipment were as follows (in thousands):


	March 31, 2022			December 31, 2021
Computers and equipment	$	5,794		$	4,541
Furniture and fixtures		1,336			1,322
Purchased software		26			26
Leasehold improvements		413			459
Internal-use software		10,595			8,024
Construction in progress		6,605			5,140
Property and equipment, at cost	$	24,769		$	19,512
Less: Accumulated depreciation and amortization		(6,283	)		(5,084	)
Property and equipment, net	$	18,486		$	14,428

Depreciation and amortization expense was $1.3 million and $0.8 million for the three months ended March 31, 2022 and 2021, respectively.

Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consisted of the following (in thousands):


	March 31, 2022		December 31, 2021
Accrued expenses	$	16,696	$	17,452
Accrued compensation and benefits		15,685		27,703
Accrued commissions		11,955		13,734
Accrued payroll taxes		9,228		8,681
Employee contributions under employee stock purchase plan		9,146		19,247
Other liabilities		9,214		12,157
Total accrued expenses and other liabilities	$	71,924	$	98,974

Convertible Senior Notes

3 Months Ended

Mar. 31, 2022

Convertible Debt [Abstract]

Convertible Senior Notes

6. Convertible Senior Notes

In December 2021, the Company issued $1.1 billion aggregate principal amount of 0% convertible senior notes due 2027 (the “2027 Notes”), including the exercise in full of the initial purchasers’ option to purchase up to an additional $100.0 million principal amount of the 2027 Notes, in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The 2027 Notes are general unsecured obligations of the Company and will mature on January 15, 2027, unless earlier converted, redeemed, or repurchased. The 2027 Notes do not bear regular interest, and the principal amount of the 2027 Notes will not accrete. Special interest, if any, will be payable semiannually in arrears on January 15 and July 15 of each year, beginning on July 15, 2022 (if and to the extent that special interest is then payable on the 2027 Notes). The total net proceeds from the offering, after deducting initial purchasers’ discounts and debt issuance costs, were $1,080.5 million.

The initial conversion rate is 9.9936 shares of the Company’s Class A common stock per $1,000 principal amount of 2027 Notes (equivalent to an initial conversion price of approximately $100.06 per share of the Company’s Class A common stock), subject to adjustment as set forth in the indenture governing the 2027 Notes (the “Indenture”). The 2027 Notes are convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding October 15, 2026, only under the following conditions:

(1)

during any calendar quarter commencing after the calendar quarter ending on March 31, 2022 (and only during such calendar quarter), if the last reported sale price of the Company’s Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price for the 2027 Notes on each applicable trading day;

(2)

during the five business day period after any ten consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of the 2027 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s Class A common stock and the conversion rate for the 2027 Notes on each such trading day;

(3)

if the Company calls such 2027 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with respect to the 2027 Notes called (or deemed called) for redemption; or

(4)

upon the occurrence of specified corporate events as set forth in the Indenture.

On or after October 15, 2026, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the 2027 Notes may convert all or any portion of their 2027 Notes at any time, at the option of the holder regardless of the foregoing conditions. Upon conversion, the Company may satisfy its conversion obligation by paying or delivering, as the case may be, cash, shares of Class A common stock or a combination of cash and shares of Class A common stock, at the Company’s election, in the manner and subject to the terms and conditions provided in the Indenture. In addition, following certain corporate events that occur prior to the maturity date of the 2027 Notes or if the Company delivers a notice of redemption in respect of the 2027 Notes, the Company will, under certain circumstances, increase the conversion rate of the 2027 Notes for a holder who elects to convert its 2027 Notes in connection with such a corporate event or convert its 2027 Notes called (or deemed called) for redemption in connection with such notice of redemption, as the case may be.

During the three months ended March 31, 2022, the conditions allowing holders of the 2027 Notes to convert have not been met. The 2027 Notes were therefore not convertible during the three months ended March 31, 2022 and were classified as long-term debt on the Company’s condensed consolidated balance sheets.

The Company may not redeem the 2027 Notes prior to January 20, 2025. The Company may redeem for cash all or any portion of the 2027 Notes (subject to the certain limitations described in the Indenture), at its option, on or after January 20, 2025, if the last reported sale price of the Company’s Class A common stock has been at least 130% of the conversion price for the 2027 Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the 2027 Notes to be redeemed, plus accrued and unpaid special interest, if any, to, but excluding, the redemption date. If the Company redeems less than all of the outstanding 2027 Notes, at least $100.0 million aggregate principal amount of 2027 Notes must be outstanding and not subject to redemption as of, and after giving effect to, delivery of the relevant notice of redemption. No sinking fund is provided for the 2027 Notes.

The Company incurred $19.5 million of debt issuance costs related to the 2027 Notes. These costs are amortized to interest expense included within other expense, net on the condensed consolidated statement of operations over the contractual term of the 2027 Notes at an effective interest rate of 0.35%. Amortization of debt issuance costs for the three months ended March 31, 2022 was $0.9 million.

The net carrying amount of the 2027 Notes was as follows (in thousands):


	March 31, 2022			December 31, 2021
Principal	$	1,100,000		$	1,100,000
Unamortized debt issuance costs		(18,363	)		(19,299	)
Net carrying amount	$	1,081,637		$	1,080,701

Capped Calls

In connection with the pricing of the 2027 Notes and the exercise in full by the initial purchasers of their option to purchase additional 2027 Notes, the Company entered into capped call transactions with certain of the initial purchasers of the 2027 Notes or their respective affiliates and other financial institutions (the “Capped Calls”). The Capped Calls each have an initial strike price of approximately $100.06 per share, subject to certain adjustments, which corresponds to the initial conversion price of the 2027 Notes. The Capped Calls have initial cap prices of $138.02 per share, subject to certain adjustments. The Capped Calls associated with the 2027 Notes cover, subject to anti-dilution adjustments, approximately 11.0 million shares of the Company’s Class A common stock. The Capped Calls are expected generally to reduce the potential dilution to the Company’s Class A common stock upon any conversion of the 2027 Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted 2027 Notes, as the case may be, with such reduction and/or offset subject to a cap based on the cap price. For accounting purposes, the Capped Calls are separate transactions and not part of the terms of the 2027 Notes. As these transactions meet certain accounting criteria, the Capped Calls are recorded in stockholders’ equity and are not accounted for as derivatives. The cost of $91.0 million incurred to purchase the Capped Calls was recorded as a reduction to additional paid-in capital and will not be remeasured.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

7. Commitments and Contingencies

Leases

The Company has entered into non-cancelable operating leases, primarily for the rent of office space expiring at various dates through 2029. Certain lease agreements contain an option for the Company to renew the lease for a term of up to three years or an option to terminate the lease early within three years of lease termination. The Company considers these options in determining the lease term on a lease-by-lease basis. None of the Company’s lease agreements contain any material non-lease components, material residual value guarantees, or material restrictive covenants.

In 2019, the Company was issued a letter of credit of $8.2 million for its office space in Mountain View, California. No draws have been made under the letter of credit as of March 31, 2022 and December 31, 2021.

In addition, the Company subleases certain floors of its unoccupied office space expiring at various dates in 2022. Sublease income is recorded as a reduction of lease expense and was not material for the three months ended March 31, 2022 and 2021.

Purchase Obligations

During the three months ended March 31, 2022, there were no material changes to the Company’s purchase obligations from those disclosed in the Company’s Annual Report.

Legal Matters

From time to time, the Company has become involved in claims and other legal matters arising in the ordinary course of business. The Company investigates these claims as they arise. As of March 31, 2022 and December 31, 2021, the Company is not aware of any matters that would individually or taken together have a material adverse effect on its results of operations, financial position, or cash flows.

Indemnification

The Company enters into indemnification provisions under its agreements with other companies in the ordinary course of business, including customers, business partners, landlords, and certain third-party vendors. Under these arrangements, the Company agrees to indemnify, hold harmless, and reimburse the indemnified party for certain losses suffered or incurred by the indemnified party resulting from certain Company activities. The terms of these indemnification agreements are generally perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable. As of March 31, 2022 and December 31, 2021, the Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. The Company maintained commercial general liability insurance and product liability insurance during the three months ended March 31, 2022 and 2021 to offset certain of the Company’s potential liabilities under these indemnification provisions.

The Company also indemnifies certain of its officers, directors, and certain key employees while they are serving in good faith in their respective capacities. As of March 31, 2022 and December 31, 2021, the Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements.

Revenue

3 Months Ended

Mar. 31, 2022

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 March 31,
	2022				2021
Geographic markets:
United States	$	78,992	63	%	$	49,279	64	%
International		47,147	37	%		27,749	36	%
Total revenue	$	126,139	100	%	$	77,028	100	%
Subscriptions and services:
Confluent Platform - License	$	18,947	15	%	$	13,961	18	%
Confluent Platform - PCS(1)		56,060	44	%		40,112	52	%
Confluent Cloud		38,913	31	%		13,919	18	%
Subscription		113,920	90	%		67,992	88	%
Services		12,219	10	%		9,036	12	%
Total revenue	$	126,139	100	%	$	77,028	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 March 31, 2022, the Company’s RPO was $551.1 million, approximately 60% 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.

Deferred Revenue

Deferred revenue, including current and non-current balances as of March 31, 2022 and December 31, 2021 was $265.7 million and $246.5 million, respectively. For the three months ended March 31, 2022 and 2021, revenue recognized from deferred revenue at the beginning of the year was $85.9 million and $49.6 million, respectively.

Deferred Contract Acquisition Costs

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


	Three Months Ended March 31,
	2022			2021
Beginning balance	$	78,824		$	47,599
Capitalization of contract acquisition costs		12,080			10,866
Amortization of deferred contract acquisition costs		(8,470	)		(5,535	)
Ending balance	$	82,434		$	52,930

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 606
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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+ Details

Stockholders' Equity

3 Months Ended

Mar. 31, 2022

Stockholders' Equity Note [Abstract]

Stockholders' Equity

9. Stockholders’ Equity

Preferred Stock

In connection with the IPO, the Company’s amended and restated certificate of incorporation became effective, which authorized the issuance of 10,000,000 shares of undesignated preferred stock with a par value of $0.00001 per share with rights and preferences, including voting rights, designated from time to time by the board of directors.

Common Stock

The Company has two classes of common stock: Class A common stock and Class B common stock. In connection with the IPO, the Company’s amended and restated certificate of incorporation authorized the issuance of 1,000,000,000 shares of Class A common stock and 500,000,000 shares of Class B common stock. The shares of Class A common stock and Class B common stock are identical, except with respect to voting, converting, and transfer rights. Each share of Class A common stock is entitled to one vote. Each share of Class B common stock is entitled to ten votes. Class A and Class B common stock have a par value of $0.00001 per share and are referred to as common stock throughout the notes to the condensed consolidated financial statements, unless otherwise noted. Holders of common stock are entitled to receive any dividends as may be declared from time to time by the board of directors.

Each share of Class B common stock is convertible at any time at the option of the holder into one share of Class A common stock. Any holder’s shares of Class B common stock will convert automatically to Class A common stock, on a one-to-one basis, upon the following: (i) sale or transfer of such share of Class B common stock, except for permitted transfers as described in the amended and restated certificate of incorporation; (ii) the death or incapacity of the Class B common stockholder (or nine months after the date of the death or incapacity if the stockholder is one of the Company’s founders); and (iii) on the final conversion date, defined as the earliest of (a) the date fixed by our board of directors that is no less than 61 days and no more than 180 days following the date on which the outstanding shares of Class B common stock represent less than 10% of the then outstanding shares of Class A and Class B common stock; (b) the last trading day of the fiscal year following the tenth anniversary of the Company’s IPO; or (c) the date specified by a vote of the holders of a majority of the outstanding shares of Class B common stock, voting as a single class.

Common Stock Reserved for Future Issuance

The Company has reserved the following shares of common stock for future issuance:


	March 31, 2022		December 31, 2021
2014 Stock Plan:
Options outstanding		55,662,168		61,903,883
Restricted stock units outstanding		3,204,463		3,495,540
2021 Equity Incentive Plan:
Options outstanding		22,500		22,500
Restricted stock units outstanding		9,338,614		2,938,968
Remaining shares available for future issuance		41,020,422		32,797,245
2021 Employee Stock Purchase Plan		7,145,776		5,162,575
Total		116,393,943		106,320,711

Equity Incentive Plans

In September 2014, the Company’s board of directors adopted and the Company’s stockholders approved the 2014 Stock Plan (the “2014 Plan”). The 2014 Plan was also amended and restated in March 2021 and June 2021. Under the 2014 Plan, the board of directors may grant stock options and other equity-based awards to eligible employees, directors, and consultants. The 2014 Plan was terminated in June 2021 in connection with the IPO, but continues to govern the terms of outstanding awards that were granted prior to the termination of the 2014 Plan. No further equity awards will be granted under the 2014 Plan. With the establishment of the 2021 Equity Incentive Plan (the “2021 Plan”), upon the expiration, forfeiture, cancellation, or reacquisition of any shares of Class B common stock underlying outstanding stock-based awards granted under the 2014 Plan, an equal number of shares of Class A common stock will become available for grant under the 2021 Plan. Equity-based awards granted under the 2014 Plan and the 2021 Plan generally vest over four years. All stock option grants expire ten years from the date of grant.

In April 2021, the Company’s board of directors adopted, and in June 2021, the Company’s stockholders approved, the 2021 Plan, which became effective at the time of the execution of the underwriting agreement related to the Company’s IPO. The 2021 Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units (“RSUs”) awards, performance awards, and other forms of awards to employees, directors, and consultants, including employees and consultants of the Company’s affiliates. A total of 25,812,876 shares of the Company’s Class A common stock have been reserved for future issuance under the 2021 Plan in addition to (i) the shares that remained available for grant of future awards under the 2014 Plan at the time the 2021 Plan became effective, (ii) shares underlying outstanding stock awards granted under the 2014 Plan that expire, or are forfeited, cancelled, or reacquired, as described above, and (iii) any automatic increases in the number of shares of Class A common stock reserved for future issuance under this plan.

In April 2021, the Company’s board of directors adopted, and in June 2021, the Company’s stockholders approved, the 2021 Employee Stock Purchase Plan (the “2021 ESPP”), which became effective at the time of the execution of the underwriting agreement related to the Company’s IPO. The 2021 ESPP authorizes the issuance of shares of Class A common stock pursuant to purchase rights granted to employees. A total of 5,162,575 shares of the Company’s Class A common stock have been reserved for future issuance under the 2021 ESPP, in addition to any automatic increases in the number of shares of Class A common stock reserved for future issuance under this plan.

Except for the initial offering period, the 2021 ESPP provides for 12-month offering periods beginning February 16 and August 16 of each year, and each offering period will consist of two six-month purchase periods. The initial offering period began on June 24, 2021 and will end on August 15, 2022. The initial offering consists of two purchase periods, with the first purchase period ending on February 15, 2022 and the second purchase period ending on August 15, 2022. The price at which Class A common stock is purchased under the 2021 ESPP is equal to 85% of the lesser of (1) the fair market value of the Company’s stock on the offering date or (2) the fair market value of the Company’s stock on the purchase date.

Equity Awards Outstanding

The following table summarizes stock equity award activity and activity regarding shares available for grant under the 2014 Plan and the 2021 Plan:


				Equity Awards Outstanding
	Shares Available for Grant			Outstanding Stock Options			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Balance as of January 1, 2022		32,797,245			61,926,383		$	6.97		7.88	$	4,289,643
Increase in authorized shares		13,590,094			-		$	-
Stock options exercised		-			(5,071,166	)	$	3.30
Stock options forfeited or expired		1,170,549			(1,170,549	)	$	8.03
Repurchases of unvested common stock		8,978			-		$	-
RSUs granted		(6,709,732	)		-		$	-
RSUs forfeited or cancelled		163,288			-		$	-
Balance as of March 31, 2022		41,020,422			55,684,668		$	7.28		7.69	$	1,877,942
Vested as of March 31, 2022					22,871,977		$	4.47		6.95	$	835,419
Vested and expected to vest as of March 31, 2022					55,684,668		$	7.28		7.69	$	1,877,942

Aggregate intrinsic value represents the difference between the exercise price of the options to purchase common stock and the estimated fair value of the Company’s common stock. The intrinsic value of options exercised was $224.4 million and $47.6 million for the three months ended March 31, 2022 and 2021, respectively. No options were granted during the three months ended March 31, 2022 and the weighted-average grant-date fair value per share of options granted during the three months ended March 31, 2021 was $11.81.

Early Exercised Options

All stock option holders have the right to exercise unvested options, which are subject to a repurchase right held by the Company at the original exercise price in the event of voluntary or involuntary termination of employment of the stockholder. As of March 31, 2022 and December 31, 2021, there were 1,585,509 and 2,164,577 shares that had been early exercised and were subject to repurchase, respectively. The proceeds related to early exercised options are recorded as liabilities until the options vest, at which point they are reclassified to equity. As of March 31, 2022 and December 31, 2021, the liabilities for early exercised options subject to repurchase were $10.5 million and $15.8 million, respectively, which were recorded as liability for early exercise of unvested stock options and other liabilities, non-current on the condensed consolidated balance sheets.

Shares issued for early exercised options are included in issued and outstanding shares as they are legally issued and outstanding, but are not deemed outstanding for accounting purposes until the shares vest.

RSUs

The following table summarizes RSU activity under the 2014 Plan and the 2021 Plan:


	RSUs Outstanding
	Number of Shares			Weighted-Average Grant Date Fair Value
Unvested balance as of January 1, 2022		6,434,508		$	46.01
RSUs granted		6,709,732		$	42.79
RSUs vested		(437,875	)	$	44.96
RSUs forfeited or cancelled		(163,288	)	$	47.37
Unvested balance as of March 31, 2022		12,543,077		$	44.28

Stock-Based Compensation Expense

Total stock-based compensation expense was as follows (in thousands):


	Three Months Ended March 31,
	2022		2021
Cost of revenue - subscription	$	5,313	$	975
Cost of revenue - services		1,862		544
Research and development		20,085		3,511
Sales and marketing		21,062		4,976
General and administrative		9,047		3,347
Stock-based compensation, net of amounts capitalized	$	57,369	$	13,353
Capitalized stock-based compensation		1,527		98
Total stock-based compensation	$	58,896	$	13,451

As of March 31, 2022, there was $735.6 million of unrecognized stock-based compensation expense, which is expected to be recognized over a weighted-average period of 3.3 years.

Income Taxes

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

10. Income Taxes

The Company computes its provision for (benefit from) income taxes for interim periods by applying its estimated annual effective tax rate to year-to-date loss or income for includable jurisdictions before income taxes from recurring operations and adjusting for discrete tax items arising in that interim period.

The Company’s provision for (benefit from) income taxes was $0.7 and $(0.1) million for the three months ended March 31, 2022 and 2021, respectively. The Company’s provision for income taxes for the three months ended March 31, 2022 was primarily due to a valuation allowance on U.S. and U.K. deferred tax assets, and foreign and state income taxes. The Company’s benefit from income taxes for the three months ended March 31, 2021 was primarily due to a benefit for stock-based compensation windfalls, partially offset by a valuation allowance on U.S. deferred tax assets and foreign and state income taxes.

As of March 31, 2022, gross unrecognized tax benefits were $13.8 million, which would not affect the Company’s effective tax rate if recognized. The Company does not expect its gross unrecognized tax benefits to change significantly within the next 12 months, although it is reasonably possible that certain unrecognized tax benefits may increase or decrease within the next 12 months due to tax examination changes, settlement activities, or the impact on recognition and measurement considerations related to the results of published tax cases or other similar activities. There were no interest and penalties associated with unrecognized income tax benefits for any period presented.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Net Loss Per Share

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Net Loss Per Share

11. Net Loss Per Share

For periods in which there were shares of Class A and Class B common stock outstanding, the rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock were identical, except with respect to voting, converting, and transfer rights. As the liquidation and dividend rights were identical for Class A and Class B common stock, the undistributed earnings were allocated on a proportionate basis and the resulting net loss per share would, therefore, be the same for both Class A and Class B common stock on an individual or combined basis.

The following table presents the calculation of basic and diluted net loss per share (in thousands, except share and per share data):


	Three Months Ended March 31,
	2022			2021
	Class A and Class B Common			Common			Convertible Founder
Numerator:
Net loss	$	(112,987	)	$	(44,266	)	$	(260	)
Denominator:
Weighted-average shares used to compute net loss per share, basic and diluted		272,890,829			108,095,787			635,818
Net loss per share, basic and diluted	$	(0.41	)	$	(0.41	)	$	(0.41	)

The following outstanding potentially dilutive shares were excluded from the computation of diluted net loss per share for the periods presented because the impact of including them would have been anti-dilutive:


	March 31, 2022		March 31, 2021
Redeemable convertible preferred stock		-		115,277,850
Stock options		55,684,668		79,624,342
Unvested early exercised stock options		1,585,509		2,975,417
RSUs		12,543,077		14,000
ESPP		758,477		-
Shares issuable upon conversion of the 2027 Notes		10,992,960		-
Total		81,564,691		197,891,609

The Company calculates the potential dilutive effect of its 2027 Notes under the if-converted method. Under this method, diluted net loss per share is determined by assuming that all of the 2027 Notes were converted into shares of the Company’s Class A common stock at the beginning of the reporting period.

In connection with the issuance of the 2027 Notes, the Company entered into Capped Calls, which are not included for purposes of calculating the number of diluted weighted-average shares outstanding, as their effect would have been anti-dilutive. The Capped Calls are expected to partially offset the potential dilution to the Company’s Class A common stock upon any conversion of the 2027 Notes.

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the SEC on February 24, 2022 (the “Annual Report”). In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of March 31, 2022 and the results of operations and cash flows for the three months ended March 31, 2022 and 2021. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Such estimates include, but are not limited to, the standalone selling price for each distinct performance obligation included in customer contracts, deferred contract acquisition costs and their period of benefit, valuation of stock-based awards, the fair value of the Company’s common stock prior to its initial public offering (“IPO”) in June 2021, capitalization and estimated useful life of internal-use software, the incremental borrowing rate used to measure operating lease liabilities, and accounting for income taxes. The Company bases its estimates on historical and anticipated results, trends, and various other assumptions that it believes are reasonable under the circumstances. Estimates and assumptions about future events and their effects, including the impact of the COVID-19 pandemic, cannot be determined with certainty and therefore require the exercise of judgment. Actual results could differ from those estimates and any such differences may be material to the Company’s condensed consolidated financial statements.
Significant Accounting Policies	Significant Accounting Policies Other than the policies described below, there were no significant changes to the Company’s significant accounting policies disclosed in “Note 2 – Basis of Presentation and Summary of Significant Accounting Policies” of the Company’s Annual Report.
Marketable Securities	Marketable Securities The Company’s marketable securities consist of corporate notes and bonds, commercial paper, U.S. agency obligations, U.S. treasury securities, and municipal bonds. The Company determines the appropriate classification of its marketable securities at the time of purchase and reevaluates such determination at each balance sheet date. The Company has classified and accounted for its marketable securities as available-for-sale securities. The Company may sell these securities at any time for use in its current operations or for other purposes, even prior to maturity. As a result, the Company classifies its marketable securities within current assets. Available-for-sale securities are recorded at fair value each reporting period, and are adjusted for amortization of premiums and accretion of discounts to maturity and such amortization and accretion are included in other income (expense), net in the consolidated statements of operations. Realized gains and losses are determined based on the specific identification method and are reported in other income (expense), net in the condensed consolidated statements of operations. Unrealized gains are reported as a separate component of accumulated other comprehensive income (loss) on the condensed consolidated balance sheets until realized. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell the security or it is more likely than not that the Company will be required to sell the security before the recovery of its entire amortized cost basis. If either of these criteria is met, the security’s amortized cost basis is written down to fair value through other income (expense), net in the condensed consolidated statements of operations. If neither of these criteria is met, the Company evaluates whether the decline in fair value below amortized cost is due to credit or non-credit related factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and any adverse conditions specifically related to the security, among other factors. Credit related unrealized losses are recognized as an allowance for expected credit losses of available-for-sale debt securities on the condensed consolidated balance sheets with a corresponding charge in other income (expense), net in the condensed consolidated statements of operations. Non-credit related unrealized losses are included in accumulated other comprehensive income (loss).
Accounts Receivable and Allowance for Credit Losses	Accounts Receivable and Allowance for Credit Losses Accounts receivable on the condensed consolidated balance sheets consists of trade accounts receivable and unbilled receivables, net of an allowance for expected credit losses. Trade accounts receivable are stated at the invoiced amount and consist of amounts currently due from customers. Unbilled receivables represent revenue recognized in excess of invoiced amounts for the Company’s unconditional right to consideration in exchange for goods or services that the Company has transferred to the customer, such that only the passage of time is required before payment of consideration is due. The unbilled receivables balance was $38.1 million and $32.3 million as of March 31, 2022 and December 31, 2021, respectively. Accounts receivable are reduced by an allowance for expected credit losses. The allowance for expected credits losses represents the best estimate of lifetime expected credit losses against the existing accounts receivable, inclusive of unbilled receivables, based on certain factors including the age of the receivable balance, past collection experience with the customer, historical write-off experience, credit quality of the customer, current economic conditions, and reasonable and supportable forecasts of future economic conditions. Accounts receivable deemed uncollectible are written off against the allowance for expected credit losses when identified and the Company no longer actively pursues collection of the receivable. The Company’s allowance for expected credit losses was not material as of March 31, 2022 and December 31, 2021. Additions to and write-offs against the allowance for expected credit losses were not material for the three months ended March 31, 2022 and 2021.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements Credit Losses: In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, including the Company’s accounts receivable and certain other financial instruments, with multiple codification improvement amendments issued more recently. Credit losses related to available-for-sale debt securities are required to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. This guidance is effective for the Company for the year beginning January 1, 2023, though early adoption is permitted. The Company early adopted this guidance effective January 1, 2022 on a modified retrospective basis, and the adoption did not result in any cumulative effect adjustment to its opening accumulated deficit balance.

Marketable Securities (Tables)

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of Fair Value and Amortized Cost of Marketable Securities

The following tables summarize the fair values of the Company’s marketable securities (in thousands):


	March 31, 2022
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. treasury securities	$	699,057	$	-	$	(2,548	)	$	696,509
Corporate notes and bonds		140,568		-		(1,538	)		139,030
U.S. agency obligations		78,531		-		(1,286	)		77,245
Commercial paper		30,363		-		(99	)		30,264
Total marketable securities	$	948,519	$	-	$	(5,471	)	$	943,048


	December 31, 2021
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. treasury securities	$	446,878	$	-	$	(443	)	$	446,435
Corporate notes and bonds		125,845		5		(246	)		125,604
U.S. agency obligations		54,122		-		(115	)		54,007
Commercial paper		10,995		-		-			10,995
Municipal bonds		3,045		-		(1	)		3,044
Total marketable securities	$	640,885	$	5	$	(805	)	$	640,085

Schedule of Fair Value and Amortized Cost of Contractual Maturities

The following table summarizes the contractual maturities of the Company’s marketable securities (in thousands):


	March 31, 2022
	Amortized Cost		Fair Value
Due within one year	$	777,327	$	774,766
Due after one year through five years		171,192		168,282
Total	$	948,519	$	943,048

Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets Measured on Recurring Basis

The following tables summarize the Company’s financial assets that are measured at fair value on a recurring basis (in thousands):


	March 31, 2022
	Level 1		Level 2		Total
Cash equivalents:
U.S. treasury securities	$	-	$	121,477	$	121,477
Money market funds		67,904		-		67,904
Commercial paper		-		2,000		2,000
Marketable securities:
U.S. treasury securities		-		696,509		696,509
Corporate notes and bonds		-		139,030		139,030
U.S. agency obligations		-		77,245		77,245
Commercial paper		-		30,264		30,264
Total	$	67,904	$	1,066,525	$	1,134,429


	December 31, 2021
	Level 1		Level 2		Total
Cash equivalents:
U.S. treasury securities	$	-	$	69,999	$	69,999
Money market funds		23,857		-		23,857
Commercial paper		-		4,999		4,999
Marketable securities:
U.S. treasury securities		-		446,435		446,435
Corporate notes and bonds		-		125,604		125,604
U.S. agency obligations		-		54,007		54,007
Commercial paper		-		10,995		10,995
Municipal bonds		-		3,044		3,044
Total	$	23,857	$	715,083	$	738,940

Balance Sheet Components (Tables)

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Property and Equipment, Net

The cost and accumulated depreciation and amortization of property and equipment were as follows (in thousands):


	March 31, 2022			December 31, 2021
Computers and equipment	$	5,794		$	4,541
Furniture and fixtures		1,336			1,322
Purchased software		26			26
Leasehold improvements		413			459
Internal-use software		10,595			8,024
Construction in progress		6,605			5,140
Property and equipment, at cost	$	24,769		$	19,512
Less: Accumulated depreciation and amortization		(6,283	)		(5,084	)
Property and equipment, net	$	18,486		$	14,428

Summary of Accrued Expense and Other Liabilities

Accrued expenses and other liabilities consisted of the following (in thousands):


	March 31, 2022		December 31, 2021
Accrued expenses	$	16,696	$	17,452
Accrued compensation and benefits		15,685		27,703
Accrued commissions		11,955		13,734
Accrued payroll taxes		9,228		8,681
Employee contributions under employee stock purchase plan		9,146		19,247
Other liabilities		9,214		12,157
Total accrued expenses and other liabilities	$	71,924	$	98,974

Convertible Senior Notes (Tables)

3 Months Ended

Mar. 31, 2022

Convertible Debt [Abstract]

Schedule of Net Carrying Amount of Notes

The net carrying amount of the 2027 Notes was as follows (in thousands):


	March 31, 2022			December 31, 2021
Principal	$	1,100,000		$	1,100,000
Unamortized debt issuance costs		(18,363	)		(19,299	)
Net carrying amount	$	1,081,637		$	1,080,701

Stockholders' Equity (Deficit) (Tables)

3 Months Ended

Mar. 31, 2022

Stockholders' Equity Note [Abstract]

Common Stock Reserved for Future Issuance

The Company has reserved the following shares of common stock for future issuance:


	March 31, 2022		December 31, 2021
2014 Stock Plan:
Options outstanding		55,662,168		61,903,883
Restricted stock units outstanding		3,204,463		3,495,540
2021 Equity Incentive Plan:
Options outstanding		22,500		22,500
Restricted stock units outstanding		9,338,614		2,938,968
Remaining shares available for future issuance		41,020,422		32,797,245
2021 Employee Stock Purchase Plan		7,145,776		5,162,575
Total		116,393,943		106,320,711

Summary of Stock Equity Award Activity

The following table summarizes stock equity award activity and activity regarding shares available for grant under the 2014 Plan and the 2021 Plan:


				Equity Awards Outstanding
	Shares Available for Grant			Outstanding Stock Options			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Balance as of January 1, 2022		32,797,245			61,926,383		$	6.97		7.88	$	4,289,643
Increase in authorized shares		13,590,094			-		$	-
Stock options exercised		-			(5,071,166	)	$	3.30
Stock options forfeited or expired		1,170,549			(1,170,549	)	$	8.03
Repurchases of unvested common stock		8,978			-		$	-
RSUs granted		(6,709,732	)		-		$	-
RSUs forfeited or cancelled		163,288			-		$	-
Balance as of March 31, 2022		41,020,422			55,684,668		$	7.28		7.69	$	1,877,942
Vested as of March 31, 2022					22,871,977		$	4.47		6.95	$	835,419
Vested and expected to vest as of March 31, 2022					55,684,668		$	7.28		7.69	$	1,877,942

Schedule of Restricted Stock Unit Activity

The following table summarizes RSU activity under the 2014 Plan and the 2021 Plan:


	RSUs Outstanding
	Number of Shares			Weighted-Average Grant Date Fair Value
Unvested balance as of January 1, 2022		6,434,508		$	46.01
RSUs granted		6,709,732		$	42.79
RSUs vested		(437,875	)	$	44.96
RSUs forfeited or cancelled		(163,288	)	$	47.37
Unvested balance as of March 31, 2022		12,543,077		$	44.28

Summary of Stock-Based Compensation Expense

Total stock-based compensation expense was as follows (in thousands):


	Three Months Ended March 31,
	2022		2021
Cost of revenue - subscription	$	5,313	$	975
Cost of revenue - services		1,862		544
Research and development		20,085		3,511
Sales and marketing		21,062		4,976
General and administrative		9,047		3,347
Stock-based compensation, net of amounts capitalized	$	57,369	$	13,353
Capitalized stock-based compensation		1,527		98
Total stock-based compensation	$	58,896	$	13,451

Revenue (Tables)

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Summary of Revenue Disaggregated by Geographic Markets

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,
	2022				2021
Geographic markets:
United States	$	78,992	63	%	$	49,279	64	%
International		47,147	37	%		27,749	36	%
Total revenue	$	126,139	100	%	$	77,028	100	%
Subscriptions and services:
Confluent Platform - License	$	18,947	15	%	$	13,961	18	%
Confluent Platform - PCS(1)		56,060	44	%		40,112	52	%
Confluent Cloud		38,913	31	%		13,919	18	%
Subscription		113,920	90	%		67,992	88	%
Services		12,219	10	%		9,036	12	%
Total revenue	$	126,139	100	%	$	77,028	100	%

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

Schedule of Activity of Deferred Contract Acquisition Costs

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


	Three Months Ended March 31,
	2022			2021
Beginning balance	$	78,824		$	47,599
Capitalization of contract acquisition costs		12,080			10,866
Amortization of deferred contract acquisition costs		(8,470	)		(5,535	)
Ending balance	$	82,434		$	52,930

Net Loss Per Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Schedule of Calculation of Basic and Diluted Net Loss Per Share Attributable to Stockholders

The following table presents the calculation of basic and diluted net loss per share (in thousands, except share and per share data):


	Three Months Ended March 31,
	2022			2021
	Class A and Class B Common			Common			Convertible Founder
Numerator:
Net loss	$	(112,987	)	$	(44,266	)	$	(260	)
Denominator:
Weighted-average shares used to compute net loss per share, basic and diluted		272,890,829			108,095,787			635,818
Net loss per share, basic and diluted	$	(0.41	)	$	(0.41	)	$	(0.41	)

Schedule of Antidilutive Securities Excluded from Diluted Income (Loss) per Share


	March 31, 2022		March 31, 2021
Redeemable convertible preferred stock		-		115,277,850
Stock options		55,684,668		79,624,342
Unvested early exercised stock options		1,585,509		2,975,417
RSUs		12,543,077		14,000
ESPP		758,477		-
Shares issuable upon conversion of the 2027 Notes		10,992,960		-
Total		81,564,691		197,891,609

Basis of Presentation and Summary of Significant Accounting Policies (Additional Information) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Accounting Policies [Abstract]
Unbilled receivables balance	$ 38,100		$ 32,300
Allowance for credit losses	0
Write-offs against the allowance for credit losses	$ 0	$ 0

Marketable Securities - Schedule of Fair Value and Amortized Cost of Marketable Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Marketable Securities [Line Items]
Amortized Cost	$ 948,519	$ 640,885
Unrealized Gains	0	5
Unrealized Losses	(5,471)	(805)
Fair Value	943,048	640,085
Corporate notes and bonds [Member]
Marketable Securities [Line Items]
Amortized Cost	140,568	125,845
Unrealized Gains	0	5
Unrealized Losses	(1,538)	(246)
Fair Value	139,030	125,604
Commercial paper [Member]
Marketable Securities [Line Items]
Amortized Cost	30,363	10,995
Unrealized Gains	0	0
Unrealized Losses	(99)	0
Fair Value	30,264	10,995
U.S. treasury securities [Member]
Marketable Securities [Line Items]
Amortized Cost	699,057	446,878
Unrealized Gains	0	0
Unrealized Losses	(2,548)	(443)
Fair Value	696,509	446,435
U.S. agency obligations [Member]
Marketable Securities [Line Items]
Amortized Cost	78,531	54,122
Unrealized Gains	0	0
Unrealized Losses	(1,286)	(115)
Fair Value	$ 77,245	54,007
Municipal bonds [Member]
Marketable Securities [Line Items]
Amortized Cost		3,045
Unrealized Gains
Unrealized Losses		(1)
Fair Value		$ 3,044

Marketable Securities - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value	$ 0	$ 0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	938,000	$ 618,300
Allowance for credit losses	$ 0

Marketable Securities - Schedule of Fair Value of Contractual Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Due within one year, amortized cost	$ 777,327
Due after one year through five years, amortized cost	171,192
Amortized Cost	948,519	$ 640,885
Due within one year, fair value	774,766
Due after one year through five years, fair value	168,282
Fair Value	$ 943,048	$ 640,085

Fair Value of Financial Instruments - Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Marketable securities:
Fair value, Marketable securities	$ 943,048	$ 640,085
Municipal bonds [Member]
Marketable securities:
Fair value, Marketable securities		3,044
Fair Value, Measurements, Recurring [Member]
Cash equivalents and Marketable securities:
Assets, Fair Value	1,134,429	738,940
Fair Value, Measurements, Recurring [Member] \| Municipal bonds [Member]
Marketable securities:
Fair value, Marketable securities		3,044
Fair Value, Measurements, Recurring [Member] \| Corporate Notes and Bonds [Member]
Marketable securities:
Fair value, Marketable securities	139,030	125,604
Fair Value, Measurements, Recurring [Member] \| Commercial Paper [Member]
Cash equivalents:
Fair value, Cash equivalents	2,000	4,999
Marketable securities:
Fair value, Marketable securities	30,264	10,995
Fair Value, Measurements, Recurring [Member] \| U.S. Agency Obligations [Member]
Marketable securities:
Fair value, Marketable securities	77,245	54,007
Fair Value, Measurements, Recurring [Member] \| U.S. Treasury Securities [Member]
Cash equivalents:
Fair value, Cash equivalents	121,477	69,999
Marketable securities:
Fair value, Marketable securities	696,509	446,435
Fair Value, Measurements, Recurring [Member] \| Money Market Funds [Member]
Cash equivalents:
Fair value, Cash equivalents	67,904	23,857
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member]
Cash equivalents and Marketable securities:
Assets, Fair Value	67,904	23,857
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| Municipal bonds [Member]
Marketable securities:
Fair value, Marketable securities		0
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| Corporate Notes and Bonds [Member]
Marketable securities:
Fair value, Marketable securities	0	0
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| Commercial Paper [Member]
Cash equivalents:
Fair value, Cash equivalents	0	0
Marketable securities:
Fair value, Marketable securities	0	0
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| U.S. Agency Obligations [Member]
Marketable securities:
Fair value, Marketable securities	0	0
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| U.S. Treasury Securities [Member]
Cash equivalents:
Fair value, Cash equivalents	0	0
Marketable securities:
Fair value, Marketable securities	0	0
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| Money Market Funds [Member]
Cash equivalents:
Fair value, Cash equivalents	67,904	23,857
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member]
Cash equivalents and Marketable securities:
Assets, Fair Value	1,066,525	715,083
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| Municipal bonds [Member]
Marketable securities:
Fair value, Marketable securities		3,044
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| Corporate Notes and Bonds [Member]
Marketable securities:
Fair value, Marketable securities	139,030	125,604
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| Commercial Paper [Member]
Cash equivalents:
Fair value, Cash equivalents	2,000	4,999
Marketable securities:
Fair value, Marketable securities	30,264	10,995
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| U.S. Agency Obligations [Member]
Marketable securities:
Fair value, Marketable securities	77,245	54,007
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| U.S. Treasury Securities [Member]
Cash equivalents:
Fair value, Cash equivalents	121,477	69,999
Marketable securities:
Fair value, Marketable securities	696,509	446,435
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| Money Market Funds [Member]
Cash equivalents:
Fair value, Cash equivalents	$ 0	$ 0

Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Zero Percentage Convertible senior notes due 2027
Debt Instrument [Line Items]
Total estimated fair value of the 2027 Notes	$ 916.4	$ 1,206.7

Balance Sheet Components - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 24,769	$ 19,512
Less: Accumulated depreciation and amortization	(6,283)	(5,084)
Property and equipment, net	18,486	14,428
Computers and Equipment [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	5,794	4,541
Furniture and Fixtures [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	1,336	1,322
Software [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	26	26
Leasehold Improvements [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	413	459
Internal-use Software [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	10,595	8,024
Construction in Progress [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 6,605	$ 5,140

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 1,250	$ 787

Balance Sheet Components - Summary of Accrued Expense and Other Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued compensation and benefits	$ 15,685	$ 27,703
Employee contributions under ESPP	9,146	19,247
Accrued expenses	16,696	17,452
Accrued commissions	11,955	13,734
Accrued payroll taxes	9,228	8,681
Other liabilities	9,214	12,157
Total accrued expenses and other liabilities	$ 71,924	$ 98,974

Convertible Senior Notes - Additional Information (Details) - Zero Percentage Convertible senior notes due 2027 $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) Days $ / shares shares
Debt Instrument [Line Items]
Debt instrument face amount	$ 1,100,000
Debt instrument, interest rate, stated percentage	0.00%
Debt instrument net proceed after discounts and cost	$ 1,080,500
Number of trading days \| Days	30
Debt instrument percentage price	130.00%
Debt instrument convertible conversion ratio denominator	$ 1,000
Percentage of principal amount of debt redeemed	100.00%
Debt issuance costs, Gross	$ 19,500
Effective interest rate of debt	0.35%
Capped Calls [Member]
Debt Instrument [Line Items]
Initial strike price \| $ / shares	$ 100.06
Payments for purchase of capped calls	$ 91,000
Common Class A [Member]
Debt Instrument [Line Items]
Convertible debt, conversion ratio	9.9936
Debt instrument percentage price	130.00%
Common Class A [Member] \| Capped Calls [Member]
Debt Instrument [Line Items]
Adjustment to anti-dilution common stock \| shares	11,000,000.0
Common Stock Subject To Mandatory Redemption [Member]
Debt Instrument [Line Items]
Debt instrument face amount	$ 100,000
Maximum [Member]
Debt Instrument [Line Items]
Debt instrument face amount	$ 100,000
Debt instrument percentage price	98.00%
Minimum [Member]
Debt Instrument [Line Items]
Number of trading days \| Days	20

Convertible Senior Notes - Schedule of Net Carrying Amount of Notes (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Convertible Debt [Abstract]
Principal	$ 1,100,000	$ 1,100,000
Unamortized debt issuance costs	(18,363)	(19,299)
Long-term debt, Total	$ 1,081,637	$ 1,080,701

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2019
Lessee Lease Description [Line Items]
Lessee, operating lease, existence of option to terminate	true
Operating lease, option to terminate, description	an option to terminate the lease early within three years of lease termination
Sublease Income	$ 0	$ 0
CALIFORNIA [Member]
Lessee Lease Description [Line Items]
Letters of Credit Outstanding, Amount			$ 8,200
Maximum [Member]
Lessee Lease Description [Line Items]
Operating lease, renewal term	3 years

Revenue - Summary of Revenue Disaggregated by Geographic Markets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation Of Revenue [Line Items]
Total revenue	$ 126,139	$ 77,028
Revenue Benchmark [Member] \| Geographic Concentration Risk [Member] \| Major Customers [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	100.00%	100.00%
Revenue Benchmark [Member] \| Subscription and Service Concentration Risk [Member] \| Major Customers [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	100.00%	100.00%
United States [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 78,992	$ 49,279
United States [Member] \| Revenue Benchmark [Member] \| Geographic Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	63.00%	64.00%
International [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 47,147	$ 27,749
International [Member] \| Revenue Benchmark [Member] \| Geographic Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	37.00%	36.00%
License [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 18,947	$ 13,961
License [Member] \| Revenue Benchmark [Member] \| Subscription and Service Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	15.00%	18.00%
Post Contract Customer Support [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 56,060	$ 40,112
Post Contract Customer Support [Member] \| Revenue Benchmark [Member] \| Subscription and Service Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	44.00%	52.00%
Confluent Cloud [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 38,913	$ 13,919
Confluent Cloud [Member] \| Revenue Benchmark [Member] \| Subscription and Service Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	31.00%	18.00%
Subscription [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 113,920	$ 67,992
Subscription [Member] \| Revenue Benchmark [Member] \| Subscription and Service Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	90.00%	88.00%
Services [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 12,219	$ 9,036
Services [Member] \| Revenue Benchmark [Member] \| Subscription and Service Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	10.00%	12.00%

Revenue - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Disaggregation Of Revenue [Line Items]
Revenue, remaining performance obligation, amount	$ 551.1
Revenue, remaining performance obligation, percentage	60.00%
Deferred revenue	$ 265.7	$ 246.5
Revenue recognized from deferred revenue	$ 85.9	$ 49.6

Revenue - Schedule of Activity of Deferred Contract Acquisition Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenue from Contract with Customer [Abstract]
Beginning balance	$ 78,824	$ 47,599
Capitalization of contract acquisition costs	12,080	10,866
Amortization of deferred contract acquisition costs	(8,470)	(5,535)
Ending balance	$ 82,434	$ 52,930

Stockholders' Equity - Additional Information (Details)	3 Months Ended		12 Months Ended
Stockholders' Equity - Additional Information (Details)	Mar. 31, 2022 USD ($) Vote $ / shares shares	Mar. 31, 2021 USD ($) $ / shares	Dec. 31, 2021 USD ($) $ / shares shares
Class Of Stock [Line Items]
Preferred Stock, Shares Authorized	10,000,000		10,000,000
Preferred Stock, Par or Stated Value Per Share \| $ / shares	$ 0.00001		$ 0.00001
Conversion, percent threshold	10.00%
Common stock reserved for issuance (in shares)	116,393,943		106,320,711
Intrinsic value of options exercised \| $	$ 224,400	$ 47,600,000
Weighted average grant date fair value per share of options granted \| $ / shares	$ 0	$ 11.81
Shares early exercised and repurchase	1,585,509		2,164,577
Liabilities for early exercise of unvested stock options and other liabilities \| $	$ 10,500,000		$ 15,800,000
Unrecognized stock-based compensation expense \| $	$ 735,600,000
Unrecognized stock-based compensation expense, weighted-average period	3 years 3 months 18 days
Common Class A [Member]
Class Of Stock [Line Items]
Common Stock, Shares Authorized	1,000,000,000		1,000,000,000
Common stock, voting rights, votes per share \| Vote	1
Common Stock, Par Value \| $ / shares	$ 0.00001		$ 0.00001
Common Class B [Member]
Class Of Stock [Line Items]
Common Stock, Shares Authorized	500,000,000		500,000,000
Common stock, voting rights, votes per share \| Vote	10
Common Stock, Par Value \| $ / shares	$ 0.00001		$ 0.00001
2021 Plan [Member] \| Common Class A [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	25,812,876
2021 Employee Stock Purchase Plan [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	7,145,776		5,162,575
2021 Employee Stock Purchase Plan [Member] \| Common Class A [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)			5,162,575
Purchase price of common stock expressed as a percentage of its fair value	85.00%

Stockholders' Equity - Common Stock Reserved for Future Issuance (Details) - shares	Mar. 31, 2022	Dec. 31, 2021
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	116,393,943	106,320,711
2014 Stock Plan [Member] \| Stock Options [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	55,662,168	61,903,883
2014 Stock Plan [Member] \| RSUs [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	3,204,463	3,495,540
2021 Equity Incentive Plan [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	41,020,422	32,797,245
2021 Equity Incentive Plan [Member] \| Stock Options [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	22,500	22,500
2021 Equity Incentive Plan [Member] \| RSUs [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	9,338,614	2,938,968
2021 Employee Stock Purchase Plan [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	7,145,776	5,162,575

Stockholders' Equity - Summary of Stock Equity Award Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Share-based Payment Arrangement [Abstract]
Shares Available for Grant, Beginning Balance	32,797,245
Shares Available for Grant, Increase in authorized shares	13,590,094
Shares Available for Grant, Stock options forfeited or expired	1,170,549
Shares Available for Grant, Repurchases of unvested common stock	8,978
Shares Available for Grant, RSUs granted	(6,709,732)
Shares Available for Grant, RSUs Forfeited or Cancelled	163,288
Shares Available for Grant, Ending Balance	41,020,422	32,797,245
Outstanding Stock Options, Beginning Balance	61,926,383
Outstanding Stock Options, Stock options exercised	(5,071,166)
Outstanding Stock Options, Ending Balance	55,684,668	61,926,383
Outstanding Stock Options, Vested	22,871,977
Outstanding Stock Options, Vested and expected to vest	55,684,668
Weighted-Average Exercise Price, Beginning Balance	$ 6.97
Weighted-Average Exercise Price, Stock options exercised	3.30
Weighted-Average Exercise Price, Stock options forfeited	8.03
Weighted-Average Exercise Price, Ending Balance	7.28	$ 6.97
Weighted-Average Exercise Price, Vested	4.47
Weighted-Average Exercise Price, Vested and Expected to Vest	$ 7.28
Weighted-Average Remaining Contractual Term (in years)	7 years 8 months 8 days	7 years 10 months 17 days
Weighted-Average Remaining Contractual Term Vested (in years)	6 years 11 months 12 days
Weighted-Average Remaining Contractual Term Vested and expected to vest (in years)	7 years 8 months 8 days
Aggregate Intrinsic Value, Beginning Balance	$ 4,289,643
Aggregate Intrinsic Value, Ending Balance	1,877,942	$ 4,289,643
Aggregate Intrinsic Value, Vested as of March 31, 2022	835,419
Aggregate Intrinsic Value, Vested and expected to vest as of March 31, 2022	$ 1,877,942

Stockholders' Equity - Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member]	3 Months Ended
	Mar. 31, 2022 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number of Shares, Beginning Balance \| shares	6,434,508
Number of Shares, RSUs granted \| shares	6,709,732
Number of Shares, RSUs vested \| shares	(437,875)
Number of Shares, RSUs forfeited or cancelled \| shares \| shares	(163,288)
Number of Shares, Ending Balance \| shares	12,543,077
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted-average grant date fair value, Beginning Balance (in dollars per share) \| $ / shares	$ 46.01
Weighted-average grant date fair value, RSUs granted (in dollars per share) \| $ / shares	42.79
Weighted-average grant date fair value, RSUs vested (in dollars per share) \| $ / shares	44.96
Weighted-average grant date fair value, RSUs forfeited or cancelled (in dollars per share) \| $ / shares	47.37
Weighted-average grant date fair value, Ending Balance (in dollars per share) \| $ / shares	$ 44.28

Stockholders' Equity - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	$ 57,369	$ 13,353
Capitalized stock-based compensation	1,527	98
Total stock-based compensation	58,896	13,451
Cost of Revenue [Member] \| Subscription [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	5,313	975
Cost of Revenue [Member] \| Services [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	1,862	544
Research and Development [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	20,085	3,511
Sales and Marketing [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	21,062	4,976
General and Administrative [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	$ 9,047	$ 3,347

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Provision for (benefit from) income taxes	$ 689	$ (110)
Unrecognized tax benefits	13,800
Income tax interest and penalties	$ 0

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Net Loss Per Share - Schedule of Calculation of Basic and Diluted Net Loss Per Share Attributable to Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Numerator:
Net loss	$ (112,987)	$ (44,526)
Denominator:
Weighted-average shares used to compute net loss per share, basic and diluted	272,890,829	108,731,605
Net loss per share, basic and diluted	$ (0.41)	$ (0.41)
Class A and Class B [Member]
Numerator:
Net loss	$ (112,987)
Denominator:
Weighted-average shares used to compute net loss per share, basic and diluted	272,890,829
Net loss per share, basic and diluted	$ 0.41
Common Stock [Member]
Numerator:
Net loss		$ (44,266)
Denominator:
Weighted-average shares used to compute net loss per share, basic and diluted		108,095,787
Net loss per share, basic and diluted		$ (0.41)
Convertible Founder Stock [Member]
Numerator:
Net loss		$ (260)
Denominator:
Weighted-average shares used to compute net loss per share, basic and diluted		635,818
Net loss per share, basic and diluted		$ (0.41)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Net Loss Per Share - Schedule of Antidilutive Securities Excluded From Computation of Diluted Net Loss Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	81,564,691	197,891,609
Redeemable Convertible Preferred Stock [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	0	115,277,850
Stock Option [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	55,684,668	79,624,342
Unvested Early Exercised Stock Options [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	1,585,509	2,975,417
RSUs [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	12,543,077	14,000
ESPP [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	758,477	0
Shares issuable upon conversion of the 2027 Notes [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	10,992,960	0