#1CONFLUENT Introducing Confluent November 1, 2023#2Disclaimer This presentation includes express and implied forward-looking statements. All statements contained in this presentation other than statements of historical facts, including expectations of Confluent, Inc. ("we," "us," "our," or "Confluent") regarding our revenue, revenue mix, expenses and other results of operations; operating margins and margin improvements, targeted or anticipated margin levels, including non-GAAP operating margin guidance exiting the fourth quarter of fiscal 2023; future financial performance, business strategy and plans; potential market and growth opportunities; competitive position; technological or market trends; addressable market opportunity; and our objectives for future operations, are forward-looking statements. The words "anticipate," believe," "continue," "estimate," "expect," "intend," "may," "will" and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of known and unknown risks, uncertainties and other factors, including but not limited to: (i) our limited operating history, including in uncertain macroeconomic environments, (ii) our ability to sustain and manage our rapid growth, including following our restructuring, (iii) our ability to attract new customers and retain and sell additional features and services to our existing customers, (iv) uncertain macroeconomic conditions, including higher inflation, higher interest rates, bank failures, supply chain challenges, geopolitical events, recessionary risks, and exchange rate fluctuations, which have resulted and may continue to result in customer pullback in information technology spending, lengthening of sales cycles, reduced contract sizes, reduced consumption of Confluent Cloud or customer preference for open source alternatives, as well as the potential need for cost efficiency measures, (v) our ability to increase consumption of our offering, including by existing customers and through the acquisition of new customers, including by addressing customer consumption preferences, and successfully add new features and functionality to our offering, (vi) our ability to achieve profitability and improve margins annually, by our expected timelines or at all, (vii) the estimated addressable market opportunity for our offering, including our Flink offering and stream processing, and our ability to capture our share of that market opportunity, (viii) our ability to compete effectively in an increasingly competitive market, (ix) our ability to successfully execute our go-to-market strategy and initiatives, including as we reorient our go-to-market strategy and model around customer consumption, (x) our ability to attract and retain highly qualified personnel, including as we reorient our go-to-market strategy and model around customer consumption, (xi) our ability to successfully transition executive leadership, (xii) breaches in our security measures, intentional or accidental cybersecurity incidents or unauthorized access to our platform, our data, or our customers' or other users' personal data, (xiii) our reliance on third-party cloud-based infrastructure to host Confluent Cloud, (xiv) public sector budgetary cycles and funding reductions or delays, such as an extended federal government shutdown, (xv) our ability to accurately forecast our future performance, business and growth, and (xvi) general market, political, economic, and business conditions, including continuing impacts from the COVID-19 pandemic. These risks are not exhaustive. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. You should not rely upon the forward-looking statements as predictions of future events. The future events and trends discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. Except to the extent required by law, we do not undertake to update any of these forward-looking statements after the date of this presentation to conform these statements to actual results or revised expectations. In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this presentation. While we believe such information provides a reasonable basis for these statements, such information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. This presentation also contains statistical data, estimates and forecasts made by independent parties and by us relating to market size and growth, as well as other data about our industry and business. These data involve a number of assumptions and limitations, and we have not independently verified the accuracy or completeness of these data. Neither we nor any other person makes any representation as to the accuracy or completeness of such data or undertakes any obligation to update such data after the date of this presentation. In addition, projections, assumptions and estimates of our future performance and the future performance of the markets in which we operate are necessarily subject to a high degree of uncertainty and risk. The Gartner content described herein (the "Gartner Content") represents research opinions or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and are not representations of fact. The Gartner Content speaks as of its original publication date (and not as of the date of this presentation), and the opinions expressed in the Gartner Content are subject to change without notice. This presentation includes certain non-GAAP financial measures as defined by Securities and Exchange Commission ("SEC") rules. Because not all companies calculate non-GAAP financial information identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. Further, such non-GAAP financial information of Confluent should be considered in addition to, and not as superior to or as a substitute for, the historical consolidated financial statements of Confluent prepared in accordance with GAAP. Refer to the slides in the section titled "GAAP to Non-GAAP Reconciliations" at the end of this presentation for a reconciliation of our non-GAAP financial metrics to the most directly comparable GAAP financial metrics.#3Confluent Momentum-at-a-Glance Founded in 2014 by the Original Creators of Apache Kafka Ⓒ Tuoll Total Revenue Confluent Cloud Revenue Non-GAAP Operating Margin (OM) Dollar-Based Net Retention Rate Customers with ≥ $100K in ARR ~$60B Total Addressable Market¹ Q3'23 $200M/+32% YoY $92M / +61% YoY (5.5%) / +22pts YoY Just Under 130% 1,185 / +25% YoY Q4'23 OM Guidance: 0-1% TAM calculations performed by Confluent; source: Gartner, Forecast: Enterprise Infrastructure Software, Worldwide, 2020-2026, 2022 Update, June 2022; source: Gartner, Forecast: Enterprise Application Software, Worldwide, August 2022. 2 Q4'23 non-GAAP operating margin guidance of 0-1% is as of Confluent's Q3'23 earnings call dated November 1, 2023. Note: Financials and metrics other than TAM data are as of or for stated period ended September 30, 2023. Refer to the slides in the section titled "GAAP to Non-GAAP Reconciliations" at the end of this presentation for a reconciliation of our non-GAAP financial metrics to the most directly comparable GAAP financial metrics. See Appendix for definitions for "Dollar-Based Net Retention Rate" and "Customers with $100,000 or greater in ARR." 3#4Confluent is on a mission to set data in motion#5Dark SANTOS Today, Software Is the Business OLD WAY Slow Batch processing YO Siloed Online Banking NEW WAY Fast Personal Account Account Details Mobile Payment Deposites Real-time stream processing Connected $55,678.99 Current Balance pages $5.678.99 Current Balance 2022-02-20 Carren. $5,678.99 Current Balance $2,678.99 Log Out#6LVIN E'RE IN A UPER OWL TE OF MIND an Warn SODA Real-time Use Cases Found Everywhere in Our Lives Trend Personalized recommendations FOR NOW Real-time promotion MCAST NECUNNES Ooooooway LCRISIS SUNDAYS 10 Sentiment Analysis Fleet management 8 DECL я н HA LAMPS TRENUCIAT Dynamic pricing Real-time trades Payment verification Transportation optimization Cybersecurity Loyalty rewards VICTORY RICOH Route optimization SE Supply-chain S STRESS TEST RESULTS optimization Omnichannel DO S ALL MEN Customer 360 6#7New use cases need new capabilities. This requires total connectivity and instant reaction, all the time, in real-time 7#8The Problems with Data at Rest and Legacy Movement Tools Data at Rest Databases Slow, daily batch processing Simple, static real-time queries Legacy Data Movement Tools ETL/Data Integration Batch Expensive Time Consuming ☐☐ Messaging Difficult to Scale No Persistence - Data Loss No Replay 000 000 000 000/000/000 000/000/000 000 000 000 8#9Databases Bring Point-in-Time Queries to Stored Data; This Leads to a Giant Mess in Data Architecture 0 App DB SaaS App LINE OF BUSINESS 01 DB App DE DB A₁ Data Warehouse App DB SaaS App O DB SaaS App ابات DB App F DB App App H 田 DB App DB LINE OF BUSINESS 02 App SaaS App App App A DB DB DB SaaS App DB SaaS Data Warehouse DB App DB SaaS App Ab Data Warehouse PUBLIC CLOUD DB App DB SaaS SaaS App CO. DB App DB App SaaS App DB App 9#10salesforce TIBCO ORACLE elastic Amazon Cloudwatch A New Paradigm for Data in Motion: Data Streaming All your data continuously streamed, processed, governed and shared as a product, making it instantly valuable, usable, and trustworthy everywhere. FOT SQL Server IBM Z ACTIVEMQ SAP MQTT PostgreSQL MySQL. syslog RabbitMQ. splunk> ERP CONNECT From Data Chaos PROCESS STREAM GOVERN AI/ML Modeling Inventory Fraud Payments Personalization Supply Chain Recommendations To Data Products --> Custom App & Microservices SHARE Data Systems To Instant Value Everywhere 10#11合 From Giant Mess to Central Nervous System g Ĥ Ů AN CONFLUENT DATA STREAMING PLATFORM A ê H 11#12CISCO ORACLE A Amplitude snowflake samsara IBM Confluent is Becoming the Central Nervous System of the Modern Technology Stack Pivotal Microsoft SAP CLOUDFLARE teradata. databricks vmware® salesforce GitLab servicenow MongoDB. ORACLE Google DATADOG Ⓡ Google BigQuery Microsoft A ATLASSIAN workday. ca technologies redislabs HOME OF REDIS aws 12#13cíti ING KeyBank Financial Services Goldman Sachs AFFIN HWANG CAPITAL Asset Management Morgan Stanley KEB RBC Boden Shipt ifood SGX= Nationwide Building Society EURONEXT (TOOLSTATION bank btpn PNC guaranteed Rate Consumer & Retail Walmart nuuly ao.com MIGROS Sainsbury's apna s.Oliver BESTSECRET meesho DICK'S NIC DIC Domino's SPORTING GOODS. Proven Success Across Industries Technology Square ebay 10x Q2 PayPal new relic sas ARMIS. Care.com SAP PLAID WIX instacart Viewpoint. homepoint snagajob Security Scorecard Robinhood BIGCOMMERCE Automotive & Transportation Advance Auto Parts Lufthansa POLARIS BMW arcese GROUP DriveTime DB DriveCentric DKV Fraport GTÜ Communications & Media Telefónica sky ticketmaster® NETFLIX 8x8 brightspeed TiVo Ziff. Davis ETC MPL GLOBE GROUP desh wireless. Healthcare alight BHG RECURSION ROOSEVELT REHABILITATION & HEALTHCARE CENTER MOBILE PREMIER LEAGUE surescripts Manufacturing BOSCH ENGEL Amway SUNPOWER Whirlpool RODAN+FIELDS Insurance ge GENERALI Ladder beazley Humana. Vitality CENTENEⓇ Corporation 13#14Online Travel Provider 29x $0.1 $0.6 $1.5 Customer Expansion Journey Case Studies ARR $ in millions $2.4 Q3'16 Q2'19 Q3'21 Q4'22 Rapid global adoption driving elevated customer experiences and seamless internal engineering initiatives Health Benefits Provider 10x $0.3 $0.5 $1.3 $2.8 Q4'18 Q4'19 Q4'20 Q4'22 Accelerated claims approval and processing, member digital experience, and internal systems aggregation Payment Card Provider 34x $0.2 $1.0 Note: The expansion multiple is calculated based on the land ARR and the Q4'22 ending ARR, using actual unrounded numbers. The customer examples shown on this slide are illustrative only and may not be representative of growth of other customers within the same vertical(s). $1.5 $5.1 Q2'17 Q4'19 Q4'20 Q4'22 Secured the ability to continue doing business throughout the globe unlocked by Confluent with use cases including GDPR and mandate processing 9x $1.2 Fortune 50 Bank $4.8 $7.9 $11.6 Q2'18 Q2'19 Q2'21 Q4'22 Improved banking relationship management, accelerated client onboarding, and enabled customized marketing programs for customers 14#15Retail Healthcare Finance & Banking Transportation Teleco Common in all Industries Note: See appendix for additional use case examples. Use Cases Across All Industries Product Development & Introduction Inventory Management Connected Health Records Early-On Fraud Detection Advanced Navigation 5G Networks Data Pipelines Personalized Promotions Data Confidentiality & Accessibility Capital Management Environmental Factor Processing Data Security Hybrid Cloud Integration Dynamic Staff Allocation Optimization Market Risk Recognition & Investigation Fleet Management Product Development & Introduction Microservices Sentiment Analysis Integrated Treatment Preventive Regulatory Scanning Predictive Maintenance Sentiment Analysis Security and Fraud Streaming Enterprise Messaging Proactive Patient Care Real-Time What-If Analysis Threat Detection & Real-Time Response IOT Integration Customer 360 Systems of Scale for High Traffic Periods Real-Time Monitoring Trade Flow Monitoring Traffic Distribution Optimization Systems of Scale for High Traffic Periods Streaming ETL 15#16Why Confluent Wins Product Differentiation Cloud-native: Re-imagined Kafka experience for the Cloud Complete: Enable developers to reliably & securely build next-gen apps faster Everywhere: Be everywhere our customers want to be Customer Growth Go-To-Market Model Product Led: Getting customers' hands on product early to qualify and deliver faster time-to value Consumption Oriented: Customer health and actual usage are primary indicators for customer success Purpose Built for Data in Motion Journey: Targeted features and expertise from early stage to Central Nervous System 16#17Product Differentiation 2 Data Pipelines Geofencing The Confluent Data Streaming Platform JIL CONNECT STREAM Real-time Analytics Data Analytics LoDynamic Pricing Streaming ETL Cyber-Security Shipment Tracking / Alerting DATA STREAMING APPLICATIONS GOVERN PROCESS loT & Telematics Customer 360 KORA: THE APACHE KAFKA ENGINE, BUILT FOR THE CLOUD ML & AI and more... SHARE 17#18Product Differentiation CUSTOMERS NETWORK COMPUTE OBJECT STORAGE Confluent's Cloud Advantage: Kora Architecture Other Confluent Cloud Services Cells Cells Cells AZ 0 + 30X ELASTICITY Scale to handle GBps+ workloads and peak customer demands 30x faster without operational burden ‡ Multi-Cloud Networking & Routing Tier ↑ AZ A AZ 0 GLOBAL CONTROL PLANE 10X RESILIENCY Ensure high availability and offload Kafka ops with 99.99% uptime SLA, multi-AZ clusters, and no-touch Kafka patches t Real-time feedback data CO Metadata Durability Audits Data Balancing Health Checks METRICS & OBSERVABILITY GOVERNANCE CONNECT PROCESSING COX STORAGE Never worry about Kafka storage again with Intelligent Tiered Storage and Infinite Retention SECURITY 18#19Product Differentiation Stronger Capabilities, With Up to 60% Lower TCO HEADCOUNT SAVINGS WITH CONFLUENT Development & Operations Personnel INFRASTRUCTURE SAVINGS WITH CONFLUENT 4 71 + 00 Multi-tenancy Elastic Data Balancing Networking & Replication DEVELOPMENT & OPERATIONS SAVINGS WITH CONFLUENT Higher Utilization of Infrastructure Software-driven Operations Real-time Monitoring & Validation 19#20Customer Growth GTM Awareness of Solution Evaluation </> Development Product Led Complements Enterprise Sales GTM Motion PRODUCT LED Self-Serve Signup, Pay-As-You-Go Developers, Architects, Operators ENTERPRISE SALES Master Contract, Success Plan / Value Realization and TCO, Governance Do Tech Exec, CIO/CTO, Infosec/CISO Mission Critical Production Central Nervous System 20#21Customer Growth GTM A Serve mission-critical workloads in data infrastructure Our Powerful and Differentiated Cloud Consumption Model Or Power revenue (frontend) and operational (backend) use cases Expand seamlessly in the cloud with strong network effects Moving up the stack with Flink and capitalizing on Cloud and Gen Al opportunities 21#22Customer Growth GTM VALUE Experimentation / Early Interest 1 Low friction Developer love Data in Motion Journey Early Production Usage 2 Mission Critical, But Disconnected Use Cases 3 Architecture Review ● Operational SLAS ● Total Cost of Ownership Infosec Review Mission Critical Cross-Company Platform 4 ● Central Nervous System ● Company-wide governance 5 Senior executive buy-in (CTO, CIO, CISO) Center of Excellence INVESTMENT & TIME 22#23I . Web Custom Apps Microservices Monitoring Network Effects Drive Further Expansion Analytics ...and more Applications Bring Data In Motion Data In Motion Brings New Applications any source NoSQL Oracle any destination Mainframes Salesforce Marketo Twitter AWS, Azure, GCP Data Warehouse I 23#24Legacy Data Infrastructure MuleSoft Competitive Landscape Relational DBs ORACLE ESB & Messaging TIBC ETL Informatica talend ORACLE Red Hat On-Premises Streaming CLOUDERA Cloud Providers Partners & Competitors Microsoft aws Google 24#25Confluent Microsoft Google Amazon Cloud Competitive Landscape Event Hubs Dataflow Pub/Sub Kinesis MSK Cloud-Native Complete Everywhere O 25#26Multiple Levers of Growth in a Large and Growing TAM 8 Easy and Frictionless Land with Cloud Pay-As-You-Go Grow and Harness our Partner Ecosystem Expand in Underpenetrated Segments (e.g. Commercial, Tech) Continued International Expansion Enterprise-Wide Expansion via Solutions Selling Productize Use Cases Up-The-Stack 26#27One Team, One Mission: Set Data in Motion Jay Kreps Co-Founder & CEO Linked in Rohan Sivaram Chief Financial Officer paloalto Morgan Stanley Gunjan Aggarwal Chief People Officer Ring Central ERICSSON Jun Rao Co-Founder Linked in Melanie Vinson Chief Legal Officer workday. hp Erica Schultz President, Field Operations New Relic. ORACLE Chad Verbowski Chief Technology Officer Google Microsoft Christina Liu Chief Accounting Officer Zendesk KPMG KPMG 2,778 employees as of Q3 2023 Stephanie Buscemi Chief Marketing Officer salesforce SAP Rey Perez Chief Customer Officer New Relic. ORACLE Shaun Clowes Chief Product Officer M MuleSoft A ATLASSIAN Board of Directors Jay Kreps Co-Founder & CEO of Confluent Neha Narkhede Co-Founder of Confluent Matt Miller Sequoia Capital Mike Volpi Index Ventures Eric Vishria Benchmark Capital Jonathan Chadwick Former EVP, CFO/COO at VMware Greg Schott Former CEO and Chairman at Mulesoft Lara Caimi President, Worldwide Field Operations at Samsara Alyssa Henry Former CEO at Square#28Financial Highlights 28#29(1) A New Data Category, A Large Market Opportunity 2022-2025 TAM Growth 19% CAGR 2022 Total Addressable Market (TAM) ~$60B (2) Addressed by Kafka and Cluster Linking $37B Application Infrastructure & Middleware $9B Database Addressed by ksqlDB pull queries and Kafka Storage $10B Analytics Platforms $5B Data Mgmt Represents 73% of the $50B application infrastructure & middleware market Represents 10% of the $92B database management market Represents 30% of the $32B analytics platform market Represents 50% of the $10B data management market Addressed by ksqlDB push queries, Connect SMTS, and Stream Designer Addressed by Connectors and Stream Governance (1) Market size based on Gartner estimates from Forecast: Enterprise Infrastructure Software, Worldwide, 2020-2026, 2022 Update. Published 30 June 2022. Arunasree Cheparthi et al. Forecast Analysis: Enterprise Application Software, Worldwide. Published 3 August 2022. Amarendra et al. ~$60B 2022 (2) Confluent product share based on internal analysis of use cases in each Gartner market category addressable with generally available Confluent products (3) Confluent TAM based on estimated share of each Gartner market from 2022 to 2025, which is tied to our current product offering and planned product roadmap $100B 2025 (3) 29#30Bottoms-up View of Our 2022 Addressable Market Number of Companies(¹) Estimated Average ARR per Company(2) Fortune 500 500 $10M+ (1) Source: Capital IQ. (2) Estimates based on evaluation of spending patterns across Confluent's customer base. Enterprise (LTM Revenue >$1B) ~29,000 $1M+ $60B+ Commercial - Mid Market (LTM Revenue: <$1B) ~300,000 $100K+ 30#3146% Microsoft Azur 5% Confluent Cloud Fully managed, cloud-native Rev Rec: Consumption aws The Power of Our Hybrid Model Services Attached to product sales Rev Rec: As delivered Note: 46% Confluent Cloud revenue mix, 49% Confluent Platform revenue mix, and 5% Services revenue mix are as of the quarterly period ended September 30, 2023. Confluent Platform Self-managed software Rev Rec: Upfront & ratable !!! VM 49% 31#32$65.2 $56.4 FY18 72%+ CAGR FY18-FY22 Annual Revenue $ in millions $149.8 $130.2 FY19 $236.6 $208.6 Significant Revenue Growth at Scale FY20 $387.9 $347.1 FY21 $585.9 $535.0 FY22 Subscription Revenue $119.9 $108.2 $113.9 Q4'21 $126.1 Total Rev Y/Y Q1'22 64% $139.4 $127.0 Q2'22 58% Quarterly Revenue $ in millions $151.7 $138.7 Q3'22 48% $168.7 $155.3 Q4'22 41% $174.3 $160.6 Q1'23 38% $189.3 $176.5 Q2'23 36% $200.2 $189.3 Q3'23 32% Subscription Revenue 32#33Annual Confluent Cloud Revenue $ in millions 200%+ CAGR FY18-FY22 $2.6 Fast-Growing Confluent Cloud Revenue $14.4 $31.4 $94.2 $211.2 FY18 FY19 FY20 FY21 FY22 Q/Q $ Add $33.8 $7.0 Q4'21 Y/Y Growth $38.9 $5.1 Q1'22 180% $47.0 $8.1 Q2'22 139% Quarterly Revenue $ in millions $56.9 $9.9 Q3'22 112% $68.4 $11.5 Q4'22 102% $73.6 $5.3 Q1'23 89% $83.6 $9.9 Q2'23 78% $91.6 $8.0 Q3'23 61% 33#34$387.9 36% 64% FY'21 Revenue Mix by Geography $ in millions Early International Expansion and Accelerating Adoption of Confluent Cloud $585.9 38% 62% FY'22 US $151.7 37% 63% Q3'22 International Note: Q3'22 revenue mix by product does not sum to 100% due to rounding. $200.2 40% 60% Q3'23 $387.9 11% 24% 65% FY'21 Revenue Mix by Product $ in millions $585.9 9% 36% 55% FY'22 Confluent Platform $151.7 9% 38% 54% Q3'22 Confluent Cloud $200.2 5% 46% 49% Q3'23 Service 34#35% of RPO $663.5 $408.2 ~62% Q3'22 $740.7 $456.2 ~62% Q4'22 RPO and current RPO (CRPO) Total RPO $ in millions $742.6 $477.0 ~64% Q1'23 $791.4 $514.8 ~65% Q2'23 $824.1 $535.1 ~65% Q3'23 CRPO Note: CRPO, or current remaining performance obligations, represent the amount of contracted future revenue expected to be recognized in the next 12 months. RPO represents contractually committed revenue to be recognized in the future, regardless of: O Billings terms Variability in cloud consumption patterns O RPO and CRPO was impacted by O A decline in both average deal sizes and average contract duration Current macro conditions negatively impacting customers' appetite to commit to large upfront contracts 35#36Rapid Customer Growth & Large Customer Momentum Customers with ≥ $1M in ARR 4,240 Q3'22 Total Customers 4,530 Q4'22 Confluent Cloud 4,690 Q1'23 16% y/y growth 4,830 4,910 Q2'23 Q3'23 Confluent Platform 945 Q3'22 Customers with ≥ $100K in ARR 1,015 Q4'22 1,075 1,144 25% y/y growth 1,185 Q1'23 Q2'23 Q3'23 112 Q3'22 $5M+ ARR Customer Cohort Continuing to Grow 127 Q4'22 135 Q1'23 147 Q2'23 38% y/y growth 155 Q3'23 36#3769.5% FY'21 Gross Margin Healthy as Revenue Mix Shifts Total Gross Margin (Non-GAAP) 71.2% FY'22 71.0% Q3'22 76.4% Q3'23 +540 bps yly Healthy margins for Confluent Platform Revenue 76.5% FY'21 Margin Drivers: Growing Confluent Cloud revenue mix Subscription Gross Margin (Non-GAAP) 77.1% FY'22 76.9% Q3'22 Improving Cloud hosting costs due to scale and optimization 80.1% Q3'23 +320 bps yly Note: We define non-GAAP gross margin and non-GAAP subscription gross margin as GAAP gross margin and GAAP subscription gross margin, respectively, excluding stock-based compensation expense, employer taxes on employee stock transactions, and amortization of acquired intangibles. Refer to the slides in the section titled "GAAP to Non-GAAP Reconciliations" at the end of this presentation for a reconciliation of our non-GAAP financial metrics to the most directly comparable GAAP financial metrics. 37#38Non-GAAP Operating Expenses as % of Revenue 15% 29% 67% FY'21 S&M 14% 27% 61% FY'22 R&D 14% 28% 57% Driving Efficient Growth Q3'22 10% 24% 47% Q3'23 G&A FY'21 -41% Non-GAAP Operating Margin % FY'22 -30% Q3'22 -28% Note: Refer to the slides in the section titled "GAAP to Non-GAAP Reconciliations" at the end of this presentation for a reconciliation of our non-GAAP financial metrics to the most directly comparable GAAP financial metrics. ¹Q4'23 non-GAAP operating margin guidance of 0-1% is as of Confluent's Q3'23 earnings call dated November 1, 2023. Q3'23 -5% Q4'23 OM Guidance: 0-1% 38#3947% FY22 SBC % of Revenue ~25% Focus on Managing Net Dilution Mid-Teens Mid-Term Long-Term 5% FY22 Net Dilution ~3% Mid-Term <2% Long-Term Net dilution Calc (shares granted - shares forfeited) / WASO Drivers • SBC is a lagging indicator ● ● Final tranches of pre-IPO options recognized in SBC through 1H FY25 FY23 net dilution target of 3-4% Focus managing net dilution LT below 2% and SBC % of revenue mid-teens 39#40F Category Creating Company Founded by the Creators of Kafka Expansion Driven by Network Effects Key Takeaways ~$60 Billion Total Addressable Market¹ Positioned to Capitalize on the Large and Growing Shift to Cloud W Strong Growth and Long-Term Margin Profile Seasoned Management Team with Track Record of Execution ¹TAM calculations performed by Confluent; source: Gartner, Forecast: Enterprise Infrastructure Software, Worldwide, 2020-2026, 2022 Update, June 2022; source: Gartner, Forecast: Enterprise Application Software, Worldwide, August 2022. 40#41Appendix 47#42ao Customer Success with Confluent Leveraging data in motion to reimagine the customer experience LEARN MORE →Expedia Transforming customer interactions with data in motion LEARN MORE BMW GROUP BM Optimizing production logistics through data in motion LEARN MORE W Humana Delivering real-time data at the point of care LEARN MORE BOSCH Streaming loT data to launch new products LEARN MORE KeyBank Democratizing data to launch new digital first banking apps LEARN MORE Meet More Confluent Customers: confluent.io/customers 42#43Teleco Use Cases Teleco Drive analytics and streamline operations 5G Network Migration to the Cloud Dynamic Sales Prediction Model Legacy IT Modernization Edge Computing J Automating Operations Data Security Fraud Detection & Analysis (**) Regulatory Reporting & Compliance Customer Dispute Resolution (**) Real-time Network Monitoring Response Monitoring Product Development & Introduction Predictive/Preventative Maintenance Product Quality Monitoring Efficiency/Waste Reduction Logistics Telemetry Real-Time Collaboration Across Teams Sentiment Analysis Customer Data Aggregation * Intelligence Visualization & Transformation Machine Learning Training Real-Time Associate feedback Responsive Model Correction 43#44Financial Services Use Cases Financial Services Reshape customer experience and streamline operations Corporate and Investment Banking, Capital Markets J Real-time Payments Risk Analytics Market, Reference, & Security Master Data Distribution Trade System Integration & Automation Trade Processing Finance, Risk, Compliance, IT & Cyber Operational Log Hub IT Observability Cyber Security / SIEM Modernization Credit & Market Risk Fraud Detection Retail Banking, Wealth & Asset Management Customer 360 W Omni-channel Banking Fraud Detection Client Advisor Workstations Data & Analytics Service Technology Modernization Mainframe Modernization Bridge to Cloud Streaming Analytics Event-driven Microservices CDC Patterns from System of Records 44#45Retail Use Cases zó Retail Drive consumer analytics & streamline operations Inventory Management Omni-Channel Experiences Dynamic Sales Prediction Model Integrated Order Implementation Real-Time Alternate Scenario Analysis Transportation Optimization Personalized Promotions Correlation Detection & Analysis Customer Profile Development Event-Driven Processing of Customer Navigation Real-time Personalized Messaging Promotion Release & Response Monitoring Product Development & Introduction Predictive/Preventative Maintenance (**) Product Quality Monitoring Manufacturing Efficiency/Waste Reduction Shipping/Logistics/ Telemetry Real-Time Collaboration Across Teams Sentiment Analysis Customer Data Aggregation Intelligence Visualization & Transformation Machine Learning Training Real-Time Associate feedback Responsive Model Correction 45#46>150,000 organizations using Kafka APACHE kafka Ⓡ Originally created by the founders of Confluent while at LinkedIn >75% of the F500 estimated to be using Apache Kafka >65,000 Kafka meetup members >200 global meetup groups 46#47Definitions Annual Recurring Revenue (ARR): We define ARR as (1) with respect to Confluent Platform customers, the amount of revenue to which our customers are contractually committed over the following 12 months assuming no increases or reductions in their subscriptions, and (2) with respect to Confluent Cloud customers, the amount of revenue that we expect to recognize from such customers over the following 12 months, calculated by annualizing actual consumption of Confluent Cloud in the last three months of the applicable period, assuming no increases or reductions in usage rate. Services arrangements are excluded from the calculation of ARR. Prior to the first quarter of 2023, ARR with respect to Confluent Cloud customers excluded pay-as-you-go arrangements and was based on contractual commitments over the following 12 months, regardless of actual consumption. We adjusted our methodology for calculating ARR commencing with the first quarter of 2023 to incorporate actual consumption of Confluent Cloud and applied this change retroactively. Dollar-Based Net Retention Rate: We calculate our dollar-based net retention rate (NRR) as of a period end by starting with the ARR from the cohort of all customers as of 12 months prior to such period end ("Prior Period Value"). We then calculate the ARR from these same customers as of the current period end ("Current Period Value"), and divide the Current Period Value by the Prior Period Value to arrive at our dollar-based NRR. The dollar-based NRR includes the effect, on dollar-weighted value basis, of our Confluent Platform subscriptions that expand, renew, contract, or attrit. The dollar-based NRR also includes the effect of annualizing actual consumption of Confluent Cloud in the last three months of the applicable period, but excludes ARR from new customers in the current period. Our dollar-based NRR is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity. Total Customers: Represent the total number of customers at the end of each period. For purposes of determining our customer count, we treat all affiliated entities with the same parent organization as a single customer and include pay-as-you-go customers. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity. Customers with $100,000 or greater in ARR: Represent the number of customers that contributed $100,000 or more in ARR as of period end. Customers with $1,000,000 or greater in ARR: Represent the number of customers that contributed $1,000,000 or more in ARR as of period end. 47#48GAAP to Non-GAAP Reconciliations 48#49GAAP to Non-GAAP Reconciliations (in thousands, except percentages) Total revenue Total gross profit on a GAAP basis Add: Stock-based compensation expense Add: Employer taxes on employee stock transactions Add: Amortization of acquired intangibles Non-GAAP total gross profit Non-GAAP total gross margin Subscription revenue Subscription gross profit on a GAAP basis Add: Stock-based compensation expense Add: Employer taxes on employee stock transactions Add: Amortization of acquired intangibles Non-GAAP subscription gross profit Non-GAAP subscription gross margin Total revenue Research and development (R&D) expense on a GAAP basis Less: Stock-based compensation expense Less: Employer taxes on employee stock transactions Less: Acquisition-related expenses Non-GAAP R&D expense Non-GAAP R&D expense as a % of total revenue FY'21 $387,864 $250,572 17,989 1,013 $269,574 69.5% FY'21 $347,099 $252,239 12,571 636 $265,446 76.5% FY'21 $387,864 $161,925 49,051 2,278 $110,596 28.5% FY'22 $585,944 $383,529 32,389 1,173 $417,091 71.2% FY'22 $535,009 $388,685 23,136 569 $412,390 77.1% FY'22 $585,944 $264,041 101,499 2,632 $159,910 27.3% Q3'22 $151,732 $98,552 8,997 144 $107,693 71.0% Q3'22 $ 138,730 $100,313 6,313 82 $106,708 76.9% Q3'22 $151,732 $70,099 27,692 496 $41,911 27.6% Q3'23 $200,181 $143,632 8,790 305 129 $152,856 76.4% Q3'23 $189,270 $145,166 6,171 179 129 $151,645 80.1% Q3'23 $200,181 $91,237 37,778 686 3,841 $48,932 24.4% 49#50GAAP to Non-GAAP Reconciliations (in thousands, except percentages) Total revenue Sales and marketing (S&M) expense on a GAAP basis Less: Stock-based compensation expense Less: Employer taxes on employee stock transactions Less: Acquisition-related expenses Non-GAAP S&M expense Non-GAAP S&M expense as a % of total revenue Total revenue General and administrative (G&A) expense on a GAAP basis Less: Stock-based compensation expense Less: Employer taxes on employee stock transactions Less: Common stock charitable donation expense Less: Acquisition-related expenses Non-GAAP G&A expense Non-GAAP G&A expense as a % of total revenue Total revenue Operating loss on a GAAP basis. Add: Stock-based compensation expense Add: taxes employee stock transactions Add: Common stock charitable donation expense Add: Amortization of acquired intangibles Add: Acquisition-related expenses Add: Restructuring and other related charges Non-GAAP operating loss Non-GAAP operating margin FY'21 $387,864 $319,331 55,506 4,266 $259,559 66.9% FY'21 $387,864 $108,936 33,078 2,532 13,290 $60,036 15.5% FY'21 $387,864 $(339,620) 155,624 10,089 13,290 $(160,617) (41.4%) FY'22 $585,944 $456,452 99,366 2,485 $354,601 60.5% FY'22 $585,944 $125,710 44,402 720 1,104 $79,484 13.6% FY'22 $585,944 $(462,674) 277,656 7,010 1,104 $(176,904) (30.2%) Q3'22 $151,732 $114,312 26,712 580 $87,020 57.4% Q3'22 $151,732 33,041 11,992 149 $20,900 13.8% Q3'22 $151,732 $(118,900) 75,393 1,369 (42,138) (27.8%) Q3'23 $200,181 $128,624 32,297 798 1,076 $94,453 47.2% Q3'23 $200,181 31,874 10,649 684 148 $20,393 10.2% Q3'23 $200,181 $(108,632) 89,514 2,47 129 5,065 529 (10,922) (5.5%) 50#51CONFLUENT 51