#1CONFLUENT Introducing Confluent May 3, 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, achievement of non-GAAP operating margin breakeven 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 recent restructuring, (iii) our ability to attract new customers and retain and sell additional features and services to our existing customers, (iv) inflationary conditions, economic uncertainty, 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, 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) our ability to operate our business and execute on our strategic initiatives following our recent restructuring, (viii) the estimated addressable market opportunity for our offering, including our Flink offering and stream processing, (ix) our ability to compete effectively in an increasingly competitive market, including achieving market acceptance over competitors and open source alternatives, (x) our ability to successfully execute our go-to-market strategy and initiatives and increase market awareness and acceptance of the benefits of our offering, including the total cost of ownership benefits of Confluent Cloud, (xi) our ability to attract and retain highly qualified personnel, which could be negatively impacted by our recent restructuring, (xii) breaches in our security measures 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, and (xiv) 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. AN 2#3Confluent Momentum-at-a-Glance Founded in 2014 by the Original Creators of Apache Kafka |||||| Total Revenue Confluent Cloud Revenue Dollar-Based Net Retention Rate Total Customers Customers with ≥ $100K in ARR -$60B Total Addressable Market¹ Q1'23 TTM $634M / 45% YoY $246M/106% YoY >130% -4,690² 1,075 Note: Financials and metrics other than TAM data are as of or for stated period ended March 31, 2023; revenue based on trailing twelve months as of March 31, 2023. ¹ TAM calculations performed by Confluent; source: Gartner, Forecast: Enterprise Infrastructure Software, Worldwide, 2020-2026, 2Q22 Update, June 2022; source: Gartner, Forecast: Enterprise Application Software, Worldwide, August 2022. 2 Includes the impact of paywall removal. Commencing with the first quarter of 2023, we updated our methodology for calculating ARR using a consumption-based method for Confluent Cloud, which has been applied retroactively to prior year periods. See Appendix for the updated definitions for "Dollar-Based Net Retention Rate" and "Customers with $100,000 or greater in ARR." AN 3#4Confluent is on a mission to set data in motion AN#5ONANI Today, Software Is the Business OLD WAY Slow Batch processing Siloed NEW WAY Online Banking Fast Personal Account Account Details Mobile Payment Real-time stream processing Deposites Connected $ 55,578.99 Current Balance 2022-02-20 ages $5.678.99 Current Balance Curren $5,678.99 Current Balance $2,678.99 Log Out AN 5#6Browse Top Picks for Joshua Breaking Bad Trending Now FOR WO SING Because you watched Narcos SURVIVING ESCOBAR ALIAS JJ New Releases Schitts shameless Rich front-end customer experiences BEYOND STRANGER THINGS FREE FORM GONORRAN FOSTERS MEANA ORANGE BLACK PABLO ESCOBAR EL PATRON DEL MAL THE MIST New OŻAR A31N SUE BLOOD BA 18.0 Real-time back-end operations AST#7OWL TE OF MIND Van Wan Real-time Use Cases Found Everywhere in Our Lives SODA Trendin Personalized recommendations Ooooooway Real-time promotion FOR NOW MCASTE NECUNVEN Sentiment Analysis AR protect the LCRISIS SUNDAYS 10PM Fleet LAMPS HEPATICIPAL management DEC A Dynamic pricing Real-time trades Payment verification Transportation optimization Cybersecurity STORY Loyalty rewards VICTORY A DETO RICOH Route optimization SENOMOO Supply-chain optimization Omnichannel ECZEL V DO TEST RESULTS ALL MEN Customer 360#8New use cases need new capabilities This requires total connectivity and instant reaction, all the time, in real-time AN 8#9The 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 9#10Databases Bring Point-in-Time Queries to Stored Data; This Leads to a Giant Mess in Data Architecture App DB SaaS App LINE OF BUSINESS 01 DB App DB Data Warehouse App DB SaaS App DB SaaS App DB || 2 App DB App App DB App DB App LINE OF BUSINESS 02 SaaS App App App A DB DB DB SaaS App DB SaaS Data Warehouse DB App 0₁ DB SaaS App Ab Data Warehouse PUBLIC CLOUD DB Ho App DB SaaS SaaS App DB App DB App SaaS App DB App 10#11A New Paradigm is Required for Data in Motion: Continuously Processing Evolving Streams of Data in Real-time Real-time Data A Sale 01 1.00 10100 010100110 10100 011 10 A Trade A Shipment A Customer Interaction Real-Time Stream Processing QUERY Rich Front-End Customer Experiences 1 10 00 1 0010 1 0110010 10 0010 1 110 01 1 Real-Time Backend Operations AN 11#12+100,000s organizations using Kafka APACHE 8 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 AN 12#13From Giant Mess to Central Nervous System Apps DB DB Apps SaaS App App App 8 DB Data Warehouse Apps DB SaaS App SaaS App DB DB SaaS App SaaS App 0 DB Data Warehouse Apps App App Apps 0 SaaS 0 DB DB Apps AN 13#14The New Data Infrastructure Category Z zoominfo JFrog ORACLE >bmc HashiCorp hp ORACLE IBM CISCO Data Analytics & Warehousing / OLAP Google snowflake Big Query teradata. amazon REDSHIFT SAP Pivotal databricks Microsoft Applications CLOUDFLARE vmware® Developer Tools Data Infrastructure Data in Motion ..monday.com CONFLUENT Infrastructure salesforce GitLab A Amplitude Google servicenow workday. A ATLASSIAN D new relic DATADOG ORACLE Databases/DBaaS / OLTP amazon MongoDB. DynamoDB redis technologies Microsoft AN samsara Azure Cosmos DB aws 14#15Confluent is Becoming the Central Nervous System of the Modern Technology Stack ||||||| CISCO ORACLE A Amplitude snowflake samsara IBM 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 AN 15#16Use Cases Across All Industries Retail Healthcare Finance & Banking Transportation Teleco Common in all Industries Note: See appendix for additional use case examples. 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 Product Development & Introduction 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 AN Systems of Scale for High Traffic Periods Streaming ETL#17Customer Success with Confluent ao Leveraging data in motion to reimagine the customer experience LEARN MORE →Expedia Transforming customer interactions with data in motion LEARN MORE BMW GROUP MA Optimizing production logistics through data in motion LEARN MORE 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 AN 17#18Customer Expansion Journey Case Studies ARR $ in millions Online Travel Provider 29x $0.1 $0.6 $1.5 $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 34x $0.2 Payment Card Provider $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 AN $11.6 Q2'18 Q2'19 Q2'21 Q4'22 Improved banking relationship management, accelerated client onboarding, and enabled customized marketing programs for customers 18#19Proven Success Across Industries Financial Services citi ING KeyBank Goldman Sachs AFFIN HWANG CAPITAL Asset Management Morgan Stanley RBC SGX= Nationwide Building Society bank btpn PNC guaranteed Rate Consumer & Retail Boden MIGROS Shipt Sainsbury's BESTSELLER EURONEXT Walmart nuuly DICK'S PIC Nic SPORTING GOODS. ao.com s.Oliver meesho Domino's Technology Square ebay 10x Q2 PayPal new relic. ARMIS. Care.com SAP PLAID WIX instacart Viewpoint. homepoint snagajob Security Scorecard Robinhood Automotive & Transportation Advance Auto Parts Lufthansa DriveTime POLARIS DB DriveCentric BMW GROUP DKV Fraport GTÜ Communications & Media Telefónica ticketmaster® 8x8 brightspeed Ziff. Davis sky NETFLIX Healthcare Tivo desh wireless alight BHG RECURSION surescripts Manufacturing BOSCH ENGEL Amway Whirlpool RODAN+FIELDS GENERALI Insurance ge Ladder beazley Humana. Vitality CENTENEⓇ Corporation AN 19#20Using Confluent Everywhere Fully-Managed Confluent Cloud Apache Kafka Re-engineered for the Cloud Available on the leading public clouds Microsoft aws Azure Self-Managed Confluent Platform The Enterprise Distribution of Apache Kafka 用 Deploy on any platform, on-prem or cloud VM mi Both: Subscription option available where price scales with usage AN 20#21Why 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: Product-led growth at early stages of the journey AN Consumption Oriented: Use case driven expansion and consumption Purpose Built for Data in Motion Journey: Expertise & product capabilities for every stage of adoption 21#22The Confluent Data Streaming Platform Up-the-Stack Capabilities Infrastructure Capabilities Data Pipelines Stream Designer Connectors Confluent Data Sharing Community Cloud-Native Data Analytics Cyber- security Real-time Processing Stream Processing Real-Time Applications Point-in-Time Materialized Queries Views Apache Kafka Protocol IoT & Telematics Confluent Server Complete ML & AI Enterprise Security & Governance Schema Registry Customer 360 Stream Catalog Everywhere Stream Lineage AN 22#23Data in Motion Journey VALUE Experimentation / Early Interest 1 Low friction • Developer love ● 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 ● Senior executive buy-in (CTO, CIO, CISO) Center of Excellence • Company-wide governance 5 INVESTMENT & TIME AN 23#24Product-Led and Enterprise Sales Motions are Complementary and Serve our Stakeholder Personas ? Awareness of Solution Evaluation Development Product Led Pay as you go Confluent Cloud Enterprise Sales Master contract, Success Plan, Governance عبر Mission Critical AN A Production * Central Nervous System 24#25Network Effects Drive Further Expansion Web Custom Apps Microservices Monitoring 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 ■ AN 25#26Competitive Landscape Legacy Data Infrastructure MuleSoft Relational DBs ORACLE ESB & Messaging TIBCO ETL Informatica talend ORACLE On-Premises Streaming Red Hat CLOUDERA Cloud Providers Partners & Competitors Microsoft aws Google AN 26#27Cloud Competitive Landscape Confluent Microsoft Google Amazon Event Hubs Dataflow Pub/Sub Kinesis MSK Cloud-Native Complete O Everywhere O O O AN 27#28Multiple Levers of Growth in a Large and Growing TAM 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 AN 28#29One Team, One Mission: Set Data in Motion Jay Kreps Co-Founder & CEO Linked in Steffan Tomlinson Chief Financial Officer → Google Cloud #paloalto Gunjan Aggarwal Chief People Officer RingCentral 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 Kendesk KPMG 2,716 employees as of Q1 2023 Stephanie Buscemi Chief Marketing Officer salesforce SAP Rey Perez Chief Customer Officer New Relic. ORACLE Shaun Clowes Chief Product Officer 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 Chief Customer and Partner Officer at ServiceNow Alyssa Henry CEO at Square#30Financial Highlights AN 30#31A 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 $10 AndBytics Platforms $5B Data Mgmt Represent 73% of the $50B application infrastructure & middleware market Represent 10% of the $92B database management market Represent 30% of the $32B analytics platform market Represent 50% of the $10B data management market Addressed by ksqlDB push queries, Connect SMTs, and Stream Designer Addressed by Connectors and Stream Governance -$60B 2022 (1) Market size based on Gartner estimates from Forecast: Enterprise Infrastructure Software, Worldwide, 2020-2026, 2Q22 Update. Published 30 June 2022. Arunasree Cheparthi et al. Forecast Analysis: Enterprise Application Software, Worldwide. Published 3 August 2022. Amarendra et al. (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) AN 31#32Bottoms-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: $50M- $1B) -300,000 $100K+ AN 32#33The Power of Our Model Fully-Managed Confluent Cloud 42% of Q1'23 revenue | 89% y/y growth Committed subscription or pay-as-you-go Priced based on type of cluster, compute power, data transfer, and storage used Revenue recognized based on customer usage¹ Professional services and education services ¹ For contracts that are not usage-based, revenue from Confluent Cloud is recognized ratably over the non-cancelable contractual term of the arrangement. Self-Managed Confluent Platform 50% of Q1'23 revenue | 16% y/y growth Committed subscription Services | 8% of Q1'23 revenue | 12% y/y growth Priced on time-and-materials basis; attached to subscriptions sales Priced per node running on physical or virtual computing machines Portion of upfront license revenue, substantial majority ratable over contract term Revenue recognized based on completion and utilization AN 33#34Significant Revenue Growth at Scale Annual Revenue $ in millions 72%+ CAGR FY18-FY22 $65.2 $236.6 $149.8 $585.9 $387.9 FY18 FY19 FY20 FY21 FY22 $88.3 $102.6 Y/Y Growth Q2'21 Q3'21 Q4'21 $119.9 67% 71% Quarterly Revenue $ in millions $126.1 $139.4 64% Q1'22 Q2'22 Q3'22 $151.7 58% 48% $168.7 Q4'22 41% $174.3 Q1'23 38% AN 34#35Fast-Growing Confluent Cloud Revenue Annual Confluent Cloud Revenue $ in millions 200%+ CAGR FY18-FY22 $14.4 $31.4 $94.2 $211.2 $2.6 FY18 FY19 FY20 FY21 FY22 Q/Q $ Add $19.7 $5.8 Q2'21 Y/Y Growth $26.8 $7.1 Q3'21 245% $33.8 $7.0 Q4'21 211% Quarterly Revenue $ in millions $38.9 $5.1 Q1'22 180% $47.0 $56.9 $8.1 $9.9 Q2'22 Q3'22 139% 112% $68.4 $11.5 Q4'22 102% $73.6 $5.3 Q1'23 89% AN 35#36Early International Expansion and Accelerating Adoption of Confluent Cloud $387.9 36% 64% FY'21 Revenue Mix by Geography $ in millions $585.9 38% 62% FY'22 US $126.1 37% 63% Q1'22 International $174.3 40% 60% Q1'23 $387.9 11% 24% 65% FY'21 Revenue Mix by Product $ in millions $585.9 9% 36% 55% FY'22 Confluent Platform. $126.1 10% 31% 59% Q1'22 Confluent Cloud. $174.3 8% 42% 50% Q1'23 Service AN 36#37Strong Customer Commitments CRPO as % of RPO Remaining Performance Obligations (RPO) $ in millions $551.1 -60% Q1'22 $591.3 -62% Q2'22 $663.5 -62% Q3'22 $740.7 -62% Q4'22 35% y/y growth $742.6 -64% Q1'23 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 O Variability in cloud consumption patterns • RPO and current RPO, rather than Billings: O Are important metrics to measure the health of the business, considering the various revenue components and billings terms in our model O AN Provide insight into the organic momentum of our business 37#38Rapid Customer Growth & Large Customer Momentum Total Customers¹ 4,120 4,120 4,240 14% y/y growth 4,530 4,690 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Confluent Cloud Confluent Platform Customers with ≥ $100K in ARR 803 862 945 34% y/y growth 1,015 1,075 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Customers with ≥ $1M in ARR 88 99 112 53% y/y growth 127 135 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Including a growing number of $5M+ and $10M+ ARR Customers YoY Note: Commencing with the first quarter of 2023, we updated our methodology for calculating ARR using a consumption-based method for Confluent Cloud, which has been applied retroactively to prior year periods. See Appendix for the updated definitions for "Customers with $100,000 or greater in ARR" and "Customers with $1,000,000 or greater in ARR." ¹ Customer counts as of Q1'23, Q4'22, Q3'22, and Q2'22 include the impact of paywall removal. 38#39Gross Margin Healthy as Revenue Mix Shifts Total Gross Margin (Non-GAAP) 69.5% FY'21 71.2% FY'22 69.7% Q1'22 72.2% Q1'23 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 75.5% Q1'22 Improving Cloud hosting costs due to scale and optimization 77.5% Q1'23 AN 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. 39#40Investing Prudently for Growth Total Opex as % of Revenue (Non-GAAP) 110.9% 101.4% 110.7% 95.3% FY'21 FY'22 Q1' Q1'23 -41.4% -30.2% -41.0% -23.1% Non-GAAP Operating Margin 28.5% R&D as % of Revenue (Non-GAAP) 27.3% 29.0% 26.2% FY'21 FY'22 Q1'22 Q1'23 66.9% S&M as % of Revenue (Non-GAAP) 60.5% 67.4% 56.2% FY'21 FY'21 Q1'22 Q1'23 15.5% FY'2 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. R&D, S&M, and G&A as a % of Revenue may not sum to the Total Opex as % of Revenue due to rounding. G&A as % of Revenue (Non-GAAP) 13.6% FY'22 AN 14.4% 13.0% Q1'23 40#41Managing Growth and Profitability Non-GAAP Gross Margin Operating Margin Free Cash Flow Margin Mid-Term Target Annual Revenue Growth: >30% ~70% ~5% ~10% Long-Term Target 72%-75% 20%-25% >25% Targeting to exit Q4'23 with breakeven non-GAAP operating margin AN 41#42Key Takeaways Fr Category Creating Company Founded by the Creators of Kafka Expansion Driven by Network Effects -$60 Billion 2022 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 1 TAM calculations performed by Confluent; source: Gartner, Forecast: Enterprise Infrastructure Software, Worldwide, 2020-2026, 2Q22 Update, June 2022; source: Gartner, Forecast: Enterprise Application Software, Worldwide, August 2022. AN 42#43Appendix AN 43#44Definitions 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 et etention 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 a 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. AN 44#45Dollar-based Net Retention Rate (NRR) Commencing with the first quarter of 2023, we updated our methodology for calculating ARR using a consumption-based method for Confluent Cloud, which has been applied retroactively to the calculation of NRR for the prior year periods. The following table summarizes total NRR before and after the methodology change. Going forward, Confluent will disclose NRR under the new methodology only. Total NRR (New Methodology) Total NRR (Old Methodology) Q1'22 >130% >130% Q2'22 >130% >130% Q3'22 >130% >130% Q4'22 >130% Just Under 130% Q1'23 >130% Just Under 125% Note: Definition for the new NRR methodology: See Appendix for the updated definitions for "Annual Recurring Revenue (ARR)" and "Dollar-Based Net Retention Rate." Definition for the old NRR methodology: "We calculate our NRR as of a period end by starting with the ARR from the cohort of all customers as of the 12 months prior to such period end, or Prior Period Value. We then calculate the ARR from these same customers as of the current period end, or Current Period Value, which includes any growth in the value of subscriptions and is net of contraction or attrition over the prior 12 months. Services and pay-as-you-go arrangements are excluded from the calculation of ARR. We then divide the Current Period Value by the Prior Period Value to arrive at our dollar-based net retention rate. The dollar-based net retention rate includes the effect, on a dollar- weighted value basis, of our subscriptions that expand, renew, contract, or attrit, but excludes ARR from new customers in the current period." AN 45#46Teleco Use Cases Teleco Drive analytics and streamline operations 5G Network Migration to the Cloud Dynamic Sales Prediction Model Legacy IT Modernization Edge Computing W 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 W Real-Time Collaboration Across Teams Sentiment Analysis Customer Data Aggregation Intelligence Visualization & Transformation Machine Learning Training Real-Time Associate feedback Responsive Model Correction 46#47Financial Services Use Cases Corporate and Investment Banking, Capital Markets Financial Services Reshape customer experience and streamline operations M A 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 : AN 47#48Retail Services Use Cases z 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 48#49GAAP to Non-GAAP Reconciliations AN 49#50GAAP 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 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'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% Q1'22 $126,139 $80,362 7,175 410 $87,947 69.7% Q1'22 $113,920 $80,317 5,313 333 $85,963 75.5% Q1'23 $174,302 $116,158 9,105 411 113 $125,787 72.2% Q1'23 $160,567 $117,662 6,328 321 113 $124,424 77.5% AN 50#51GAAP to Non-GAAP Reconciliations (in thousands, except percentages) Total revenue Operating expenses on a GAAP basis Less: Stock-based compensation expense Less: Employer taxes on employee stock transactions Less: Common stock charitable donation expense Le Acquisition-related expenses Less: Restructuring and other related charges Non-GAAP Operating expenses Non-GAAP Operating expenses as a % of total revenue 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 $590,192 137,635 9,076 13,290 $430,191 110.9% FY'21 $387,864 $161,925 49,051 2,278 $110,596 28.5% FY'22 $585,944 $846,203 245,267 5,837 1,104 $593,995 101.4% FY'22 $585,944 $264,041 101,499 2,632 $159,910 27.3% Q1'22 $126,139 $191,844 50,194 2,029 $139,621 110.7% Q1'22 $126,139 $57,661 20,085 1,039 $36,537 29.0% Q1'23 $174,302 $282,251 70,184 3,252 9,317 33,382 $166,116 95.3% Q1'23 $174,302 $84,890 30,015 1,669 7,680 $45,526 26.1% AN 51#52GAAP 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 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'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% Q1'22 $126,139 $106,702 21,062 680 $84,960 67.4% Q1'22 $126,139 27,481 9,047 310 $18,124 14.4% Q1'23 $174,302 $128,624 28,487 1,083 1,076 $97,978 56.2% Q1'23 $174,302 35,355 11,682 500 561 $22,612 13.0% AN 52#53GAAP to Non-GAAP Reconciliations (in thousands, except percentages) Total revenue Operating loss on a GAAP basis Add: Stock-based compensation expense Add: Employer taxes on 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 $(339,620) 155,624 10,089 13,290 $(160,617) (41.4%) FY'22 $585,944 $(462,674) 277,656 7,010 1,104 $(176,904) (30.2%) Q1'22 $126,139 $(111,482) 57,369 2,439 $(51,674) (41.0%) Q1'23 $174,302 $(166,093) 79,289 3,663 113 9,317 33,382 $(40,329) (23.1%) AN 3 53#54CONFLUENT 54