Confluent Investor Presentation Deck
Definitions
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.
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