Confluent (CFLT) 10-Q 5 Aug 21 2021 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2021	Jul. 29, 2021
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
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	No
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity File Number	001-40526
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]
Trading Symbol	CFLT
Title of 12(b) Security	Class A Common Stock, par value $0.00001 per share
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		27,577,309
Class B Common Stock [Member]
Entity Common Stock, Shares Outstanding		232,832,727

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 860,347	$ 36,789
Marketable securities	183,526	251,756
Accounts receivable, net of allowance	117,176	105,971
Deferred contract acquisition costs	20,516	14,403
Prepaid expenses and other current assets	32,040	18,775
Total current assets	1,213,605	427,694
Property and equipment, net	9,060	6,718
Operating lease right-of-use assets	43,482	48,273
Deferred contract acquisition costs, non-current	41,848	33,196
Other assets, non-current	9,983	10,238
Total assets	1,317,978	526,119
Current liabilities:
Accounts payable	1,834	1,646
Accrued expenses and other liabilities	49,970	33,711
Operating lease liabilities	10,288	10,492
Deferred revenue	172,671	142,901
Liability for early exercise of unvested stock options	14,217	5,049
Total current liabilities	248,980	193,799
Operating lease liabilities, non-current	35,912	40,440
Deferred revenue, non-current	17,873	16,292
Other liabilities, non-current	11,668	7,203
Total liabilities	314,433	257,734
Redeemable convertible preferred stock, par value $0.00001 per share; 0 and 115,277,850 shares authorized as of June 30, 2021 and December 31, 2020, respectively; 0, and 115,277,850 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively; aggregate liquidation preference of $0 and $575,085 June 30, 2021 and December 31, 2020, respectively	0	574,634
Stockholders’ deficit:
Preferred stock, par value of $0.00001 per share; 0 and 0 shares authorized June 30, 2021 and December 31, 2020, respectively; 0 shares issued and outstanding June 30, 2021 and December 31, 2020	0	0
Common Stock, Value	0	1
Additional paid-in capital	1,542,338	99,575
Accumulated other comprehensive income (loss)	(46)	228
Accumulated deficit	(538,749)	(406,053)
Total stockholders’ equity (deficit)	1,003,545	(306,249)
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit)	1,317,978	526,119
Convertible Founder Stock [Member]
Stockholders’ deficit:
Convertible Founder Stock, Value	0	0
Class A Common Stock [Member]
Stockholders’ deficit:
Common Stock, Value	0	0
Class B Common Stock [Member]
Stockholders’ deficit:
Common Stock, Value	2	0
Total stockholders’ equity (deficit)	$ 2	$ 1

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Redeemable Convertible Preferred Stock, Par Value	$ 0.00001	$ 0.00001
Redeemable Convertible Preferred Stock, Shares Authorized	0	115,277,850
Redeemable Convertible Preferred Stock, Shares Issued	0	115,277,850
Redeemable Convertible Preferred Stock, Shares Outstanding	0	115,277,850
Redeemable Convertible Preferred Stock, Liquidation Preference	$ 0	$ 575,085
Preferred Stock, Par Value	$ 0.00001	$ 0.00001
Preferred Stock, Shares Authorized	10,000,000	0
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par Value	$ 0.00001	$ 0.00001
Common Stock, Shares Authorized	0	323,000,000
Common Stock, Shares, Issued	0	109,447,843
Common Stock, Shares, Outstanding	0	109,447,843
Convertible Founder Stock [Member]
Convertible Founder Stock, Par Value	$ 0.00001	$ 0.00001
Convertible Founder Stock, Shares Authorized	0	635,818
Convertible Founder Stock, Shares Issued	0	635,818
Convertible Founder Stock, Shares Outstanding	0	635,818
Class A Common Stock [Member]
Common Stock, Par Value	$ 0.00001	$ 0.00001
Common Stock, Shares Authorized	1,000,000,000	0
Common Stock, Shares, Issued	27,534,808	0
Common Stock, Shares, Outstanding	27,534,808	0
Class B Common Stock [Member]
Common Stock, Par Value	$ 0.00001	$ 0.00001
Common Stock, Shares Authorized	500,000,000	0
Common Stock, Shares, Issued	232,301,398	0
Common Stock, Shares, Outstanding	232,301,398	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue:
Total revenue	$ 88,338	$ 53,852	$ 165,366	$ 104,756
Cost of revenue:
Total cost of revenue	30,009	17,690	53,847	35,503
Gross profit	58,329	36,162	111,519	69,253
Operating expenses:
Research and development	33,225	18,875	57,538	38,617
Sales and marketing	73,206	36,447	131,715	74,764
General and administrative	37,943	8,334	53,455	16,749
Total operating expenses	144,374	63,656	242,708	130,130
Operating loss	(86,045)	(27,494)	(131,189)	(60,877)
Interest income	688	1,303	1,532	1,746
Other expense, net	(643)	(211)	(979)	(518)
Loss before income taxes	(86,000)	(26,402)	(130,636)	(59,649)
Provision for (benefit from) income taxes	2,170	(106)	2,060	282
Net loss	$ (88,170)	$ (26,296)	$ (132,696)	$ (59,931)
Net loss per share attributable to common stockholders, basic and diluted	$ (0.74)	$ (0.25)	$ (1.17)	$ (0.56)
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted	118,648,655	105,532,865	113,717,546	106,964,953
Subscription [Member]
Revenue:
Total revenue	$ 78,516	$ 46,973	$ 146,508	$ 90,916
Cost of revenue:
Total cost of revenue	20,292	11,734	36,049	22,748
Services [Member]
Revenue:
Total revenue	9,822	6,879	18,858	13,840
Cost of revenue:
Total cost of revenue	$ 9,717	$ 5,956	$ 17,798	$ 12,755

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (88,170)	$ (26,296)	$ (132,696)	$ (59,931)
Other comprehensive income, net of tax:
Unrealized (loss) gain on marketable securities	89	1,201	274	1,002
Other comprehensive (loss) income	(89)	1,201	(274)	1,002
Total comprehensive loss	$ (88,259)	$ (25,095)	$ (132,970)	$ (58,929)

Condensed Consolidated Statem_3

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]	Common Class A [Member]	Common Class B [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Accumulated Deficit [Member]
Balance at Dec. 31, 2019	$ (130,765)					$ 1	$ 45,262	$ 197	$ (176,225)
Balance (shares) at Dec. 31, 2019		90,624,091
Balance at Dec. 31, 2019		$ 205,784
Balance (shares) at Dec. 31, 2019			7,920,000			98,636,479
Issuance of Series E redeemable convertible preferred stock, net of issuance costs		$ 249,865
Issuance of Series E redeemable convertible preferred stock, net of issuance costs (shares)		16,701,517
Issuance of common stock upon early exercise of unvested options, net of repurchases						416,092
Vesting of early exercised options	2,752						2,752
Issuance of common stock upon exercise of vested options	2,587						2,587
Issuance of common stock upon exercise of vested options (shares)						2,626,653
Stock-based compensation	13,822						13,822
Other comprehensive income (loss)	1,002							1,002
Net loss	(59,931)			$ 0	$ (59,931)				(59,931)
Balance at Jun. 30, 2020	(170,533)					$ 1	64,423	1,199	(236,156)
Balance (shares) at Jun. 30, 2020		107,325,608
Balance at Jun. 30, 2020		$ 455,649
Balance (shares) at Jun. 30, 2020			7,920,000			101,679,224
Balance at Mar. 31, 2020	(155,266)					$ 1	54,595	(2)	(209,860)
Balance (shares) at Mar. 31, 2020		105,655,453
Balance at Mar. 31, 2020		$ 430,579
Balance (shares) at Mar. 31, 2020			7,920,000			100,548,882
Issuance of Series E redeemable convertible preferred stock, net of issuance costs		$ 25,070
Issuance of Series E redeemable convertible preferred stock, net of issuance costs (shares)		1,670,155
Issuance of common stock upon early exercise of unvested options, net of repurchases						128,794
Vesting of early exercised options	1,644						1,644
Issuance of common stock upon exercise of vested options	931						931
Issuance of common stock upon exercise of vested options (shares)						1,001,548
Stock-based compensation	7,253						7,253
Other comprehensive income (loss)	1,201							1,201
Net loss	(26,296)			$ 0	(26,296)				(26,296)
Balance at Jun. 30, 2020	(170,533)					$ 1	64,423	1,199	(236,156)
Balance (shares) at Jun. 30, 2020		107,325,608
Balance at Jun. 30, 2020		$ 455,649
Balance (shares) at Jun. 30, 2020			7,920,000			101,679,224
Balance at Dec. 31, 2020	$ (306,249)				$ 1		99,575	228	(406,053)
Balance (shares) at Dec. 31, 2020	115,277,850	115,277,850
Balance at Dec. 31, 2020	$ 574,634	$ 574,634
Balance (shares) at Dec. 31, 2020			635,818		109,447,843
Issuance of common stock upon exercise of vested options (shares)	4,042,079
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, 2020	$ (306,249)				$ 1		99,575	228	(406,053)
Balance (shares) at Dec. 31, 2020	115,277,850	115,277,850
Balance at Dec. 31, 2020	$ 574,634	$ 574,634
Balance (shares) at Dec. 31, 2020			635,818		109,447,843
Conversion of redeemable convertible preferred and founder stock to common stock upon initial public offering		$ 574,634
Conversion of convertible stock to common stock (shares) common stock upon initial public offering (shares)		115,277,850
Conversion of redeemable convertible preferred and founder stock to common stock upon initial public offering	574,634				$ 1		574,633
Conversion of convertible stock to common stock (shares) common stock upon initial public offering (shares)			(635,818)		115,913,668
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions and other issuance cost	783,158						783,158
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions and other issuance cost (shares)				23,000,000
Issuance of common stock pursuant to charitable donation	13,290						13,290
Issuance of common stock pursuant to charitable donation (shares)				250,000
Issuance of common stock upon early exercise of unvested options, net of repurchases					2,451,700
Vesting of early exercised options	4,182						4,182
Issuance of common stock upon exercise of vested options	19,137						19,137
Issuance of common stock upon exercise of vested options (shares)				1,505,837	7,251,908
Vesting of restricted stock (shares)					15,250
Conversion of class B common stock to class A common stock (shares)				2,778,971	2,778,971
Stock-based compensation	48,363						48,363
Other comprehensive income (loss)	(274)							(274)
Net loss	(132,696)			$ (614)	$ (132,082)				(132,696)
Balance at Jun. 30, 2021	$ 1,003,545				$ 2		1,542,338	(46)	(538,749)
Balance (shares) at Jun. 30, 2021	0
Balance at Jun. 30, 2021	$ 0
Balance (shares) at Jun. 30, 2021				27,534,808	232,301,398
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
Conversion of redeemable convertible preferred and founder stock to common stock upon initial public offering		$ 574,634
Conversion of convertible stock to common stock (shares) common stock upon initial public offering (shares)		115,277,850
Conversion of redeemable convertible preferred and founder stock to common stock upon initial public offering	574,634				$ 1		574,633
Conversion of convertible stock to common stock (shares) common stock upon initial public offering (shares)			(635,818)		115,913,668
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions and other issuance cost	783,158						783,158
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions and other issuance cost (shares)				23,000,000
Issuance of common stock pursuant to charitable donation	13,290						13,290
Issuance of common stock pursuant to charitable donation (shares)				250,000
Issuance of common stock upon early exercise of unvested options, net of repurchases					1,323,335
Vesting of early exercised options	2,974						2,974
Issuance of common stock upon exercise of vested options	$ 12,922						12,922
Issuance of common stock upon exercise of vested options (shares)	7,284,453			1,505,837	4,376,594
Vesting of restricted stock (shares)					15,250
Conversion of class B common stock to class A common stock (shares)				2,778,971	2,778,971
Stock-based compensation	$ 34,912						34,912
Other comprehensive income (loss)	(89)							(89)
Net loss	(88,170)			$ (778)	$ (87,392)				(88,170)
Balance at Jun. 30, 2021	$ 1,003,545				$ 2		$ 1,542,338	$ (46)	$ (538,749)
Balance (shares) at Jun. 30, 2021	0
Balance at Jun. 30, 2021	$ 0
Balance (shares) at Jun. 30, 2021				27,534,808	232,301,398

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (132,696)	$ (59,931)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	1,543	699
Net amortization of premiums or discounts on marketable securities	964	(342)
Amortization of deferred contract acquisition costs	11,583	6,128
Non-cash operating lease costs	5,604	6,102
Common stock charitable donation expense	13,290	0
Stock-based compensation, net of amounts capitalized	47,869	13,523
Deferred income taxes	1,730	(132)
Other	648	269
Changes in operating assets and liabilities:
Accounts receivable	(11,853)	(25,337)
Deferred contract acquisition costs	26,348	13,927
Prepaid expenses and other assets	(14,723)	(148)
Accounts payable	371	(1,635)
Accrued expenses and other liabilities	12,893	2,284
Operating lease liabilities	(5,382)	(5,767)
Deferred revenue	31,352	25,043
Net cash used in operating activities	(63,155)	(52,487)
CASH FLOWS FROM INVESTING ACTIVITIES
Capitalization of internal-use software costs	1,811	2,097
Purchases of marketable securities	(55,971)	(230,690)
Sales of marketable securities	0	4,988
Maturities of marketable securities	122,974	36,760
Purchases of property and equipment	(1,673)	(484)
Other	9	0
Net cash provided by (used in) investing activities	63,528	(191,523)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from initial public offering, net of underwriting discounts and commissions	786,600	0
Proceeds from issuance of common stock upon exercise of vested options	18,705	2,587
Proceeds from issuance of common stock upon early exercise of unvested options, net of repurchases	18,543	838
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs	0	249,865
Payments of deferred offering costs	(920)	0
Net cash provided by financing activities	822,928	253,290
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(10)	(33)
Net increase in cash, cash equivalents, and restricted cash	823,291	9,247
Cash, cash equivalents, and restricted cash at beginning of period	37,806	19,971
Cash, cash equivalents, and restricted cash at end of period	861,097	29,218
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets to the amounts shown above:
Cash and cash equivalents	860,347	28,201
Restricted cash included in other assets, current and non-current	750	1,017
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Total	861,097	29,218
Cash paid for:
Income taxes	954	492
Non-cash investing and financing activities:
Stock-based compensation capitalized in internal-use software costs	494	299
Issuance of common stock upon exercise of vested options included in prepaid expenses and other current assets	432	0
Vesting of early exercised stock options	4,182	2,752
Unpaid deferred offering costs	$ 2,411	$ 0

Organization and Description of

Organization and Description of Business	6 Months Ended
	Jun. 30, 2021
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. Initial Public Offering In June 2021, the Company completed its initial public offering (“IPO”), in which the Company issued and sold 23,000,000 of its Class A common stock at a public offering price of $ 36.00 per share, resulting in net proceeds of $ 786.6 million after deducting underwriting discounts and commissions. Immediately prior to the closing of the IPO, all shares of common stock then outstanding were reclassified as Class B common stock, all 115,277,850 shares of the Company’s outstanding redeemable convertible preferred stock automatically converted into an equal number of shares of Class B common stock, and all 635,818 shares of the Company’s outstanding convertible founder stock automatically converted into an equal number of shares of Class B common stock. Prior to the IPO, deferred offering costs, which consist of direct incremental legal, accounting, consulting, and other fees relating to the IPO, were capitalized in other assets, non-current on the condensed consolidated balance sheets. Upon the consummation of the IPO, $ 3.4 million of deferred offering costs, net of reimbursement received from the underwriters, were reclassified into stockholders’ equity as an offset against the IPO proceeds. The Company capitalized $ 0.1 million of deferred offering costs as of December 31, 2020.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2021
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 final prospectus dated June 23, 2021 and filed with the SEC pursuant to Rule 424(b)(4) on June 25, 2021 ( “Final Prospectus”). 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 June 30, 2021 and the results of operations and cash flows for the three and six months ended June 30, 2021 and 2020. The results of operations for the three and six months ended June 30, 2021 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 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 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 There have been 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 Final Prospectus. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements Convertible Instruments: In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock, and enhances information transparency by making targeted improvements to the disclosures for convertible instruments and earnings per share guidance. The Company adopted this guidance as of January 1, 2021, and the adoption did not have a material impact on its condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted Credit Losses : In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, which includes the Company’s accounts receivable, certain financial instruments, and contract assets. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology. Subsequently, the FASB issued multiple codification improvement amendments to ASU 2016-13. ASU 2016-13 and the applicable subsequent amendments are effective for the Company for the year beginning January 1, 2023, though early adoption is permitted. The Company is currently evaluating the potential impact of this guidance on its consolidated financial statements.

Marketable Securities

Marketable Securities	6 Months Ended
	Jun. 30, 2021
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): June 30, 2021 Amortized Unrealized Unrealized Fair Corporate notes and bonds $ 114,597 $ 97 $ ( 18 ) $ 114,676 Commercial paper 50,816 8 - 50,824 U.S. agency obligations 15,000 - ( 16 ) 14,984 Municipal bonds 3,045 - ( 3 ) 3,042 Total marketable securities $ 183,458 $ 105 $ ( 37 ) $ 183,526 December 31, 2020 Amortized Unrealized Unrealized Fair Corporate notes and bonds $ 155,401 $ 360 $ ( 21 ) $ 155,740 Commercial paper 63,503 27 ( 24 ) 63,506 U.S. agency obligations 32,520 - ( 10 ) 32,510 Total marketable securities $ 251,424 $ 387 $ ( 55 ) $ 251,756 Realized gains and losses were not material for the three and six months ended June 30, 2021 and 2020 . Marketable securities in an unrealized loss position had a fair value of $ 70.2 million and an immaterial amount of unrealized losses as of June 30, 2021 , and a fair value of $ 91.5 million and an immaterial amount of unrealized losses as of December 31, 2020 . No marketable securities were in a continuous unrealized loss position for more than twelve months as of June 30, 2021 and December 31, 2020. The following table summarizes the contractual maturities of the Company’s marketable securities (in thousands): June 30, 2021 December 31, 2020 Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 146,412 $ 146,506 $ 180,320 $ 180,520 Due after one year through five years 37,046 37,020 71,104 71,236 Total $ 183,458 $ 183,526 $ 251,424 $ 251,756

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2021
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): June 30, 2021 Level 1 Level 2 Total Cash equivalents: Money market funds $ 56,396 $ - $ 56,396 Marketable securities: Corporate notes and bonds - 114,676 114,676 Commercial paper - 50,824 50,824 U.S. agency obligations - 14,984 14,984 Municipal bonds - 3,042 3,042 Total $ 56,396 $ 183,526 $ 239,922 December 31, 2020 Level 1 Level 2 Total Cash equivalents: Money market funds $ 12,409 $ - $ 12,409 Marketable securities: Corporate notes and bonds - 155,740 155,740 Commercial paper - 63,506 63,506 U.S. agency obligations - 32,510 32,510 Total $ 12,409 $ 251,756 $ 264,165 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 corporate notes and bonds, commercial paper, U.S. agency obligations, 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 and six months ended June 30, 2021 and 2020 .

Balance Sheet Components

Balance Sheet Components	6 Months Ended
	Jun. 30, 2021
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): June 30, 2021 December 31, 2020 Computers and equipment $ 4,109 $ 2,640 Furniture and fixtures 1,312 1,360 Purchased software 26 26 Leasehold improvements 155 136 Internal-use software 6,160 4,016 Construction in progress 1,450 1,183 Property and equipment, at cost $ 13,212 $ 9,361 Less: Accumulated depreciation and amortization ( 4,152 ) ( 2,643 ) Property and equipment, net $ 9,060 $ 6,718 Depreciation and amortization expense was $ 0.7 million and $ 0.4 million for the three months ended June 30, 2021 and 2020, respectively, and $ 1.5 million and $ 0.7 million for the six months ended June 30, 2021 and 2020, respectively. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands): June 30, 2021 December 31, 2020 Accrued expenses $ 13,199 $ 7,225 Accrued commissions 12,373 10,189 Accrued payroll taxes 7,531 6,756 Accrued compensation and benefits 6,806 4,240 Other liabilities 10,061 5,301 Total accrued expenses and other liabilities $ 49,970 $ 33,711

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	6. 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 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 June 30, 2021 and December 31, 2020. In addition, the Company subleases certain floors of its unoccupied office space expiring at various dates through 2022. Sublease income is recorded as a reduction of lease expense. Sublease income was no t material for the three months ended June 30, 2021 and 2020 and $ 1.4 million for each of the six months ended June 30, 2021 and 2020. Purchase Obligations As of Jun e 30, 2021, there were no material changes to the Company’s purchase obligations since December 31, 2020. 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. For the three and six months ended June 30, 2021 and 2020, 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. The Company has not, as of June 30, 2021 and December 31, 2020, 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 and six months ended June 30, 2021 and 2020 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 June 30, 2021 and December 31, 2020 , the Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements.

Revenue

Revenue	6 Months Ended
	Jun. 30, 2021
Revenue From Contract With Customer [Abstract]
Revenue	7. Revenue Disaggregation of Revenue The following table sets forth revenue disaggregated by geographic markets based on the location of the customer and by subscription and service categories (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Geographic markets: United States $ 56,811 64 % $ 36,032 67 % $ 106,090 64 % $ 70,410 67 % International 31,527 36 % 17,820 33 % 59,276 36 % 34,346 33 % Total revenue $ 88,338 100 % $ 53,852 100 % $ 165,366 100 % $ 104,756 100 % Subscriptions and services: Confluent Platform - License $ 15,551 18 % $ 10,188 19 % $ 29,512 18 % $ 20,180 19 % Confluent Platform - PCS (1) 43,296 49 % 30,229 56 % 83,408 51 % 57,964 56 % Confluent Cloud 19,669 22 % 6,556 12 % 33,588 20 % 12,772 12 % Subscription 78,516 89 % 46,973 87 % 146,508 89 % 90,916 87 % Services 9,822 11 % 6,879 13 % 18,858 11 % 13,840 13 % Total revenue $ 88,338 100 % $ 53,852 100 % $ 165,366 100 % $ 104,756 100 % (1) PCS refers to post-contract customer support, maintenance, and upgrades. Remaining Performance Obligations (“RPO”) RPO represent the amount of contracted future revenue that has not yet been recognized as of the end of each period, including both deferred revenue that has been invoiced and non-cancelable committed amounts that will be invoiced and recognized as revenue in future periods. RPO exclude pay-as-you-go arrangements. As of June 30, 2021 , the Company’s RPO is $ 327.2 million, approximately 69 % 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 June 30, 2021 and December 31, 2020 was $ 190.5 million and $ 159.2 million , respectively. For the six months ended June 30, 2021 and 2020 , revenue recognized from deferred revenue at the beginning of the year was $ 91.0 million and $ 56.6 million, respectively. Accounts Receivable Accounts receivable on the condensed consolidated balance sheets consists of trade accounts receivable and unbilled receivables, net of an allowance for doubtful accounts due to collection risk related to these receivables. The Company’s allowance for doubtful accounts was no t material as of June 30, 2021 and December 31, 2020. 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 $ 25.0 million and $ 17.6 million as of June 30, 2021 and December 31, 2020, respectively. Deferred Contract Acquisition Costs The following table summarizes the activity of deferred contract acquisition costs (in thousands): Six Months Ended June 30, 2021 2020 Beginning balance $ 47,599 $ 25,499 Capitalization of contract acquisition costs 26,348 13,927 Amortization of deferred contract acquisition costs ( 11,583 ) ( 6,128 ) Ending balance $ 62,364 $ 33,298

Redeemable Convertible Preferre

Redeemable Convertible Preferred Stock	6 Months Ended
	Jun. 30, 2021
Temporary Equity Disclosure [Abstract]
Redeemable Convertible Preferred Stock	8. Redeemable Convertible Preferred Stock Immediately prior to the closing of the IPO, all shares of the Company’s redeemable convertible preferred stock outstanding, totaling 115,277,850 , were automatically converted into an equal number of shares of Class B common stock and their carrying value of $ 574.6 million was reclassified into stockholders’ equity. As of June 30, 2021 , there were no shares of redeemable convertible preferred stock issued and outstanding.

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit)	6 Months Ended
	Jun. 30, 2021
Stockholders' Equity Note [Abstract]
Stockholders' Equity (Deficit)	9. Stockholders’ Equity (Deficit) 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. Immediately prior to the closing of the IPO, all shares of the Company’s convertible founder stock outstanding, totaling 635,818 , were automatically converted into an equal number of shares of Class B common stock. As of June 30, 2021 , there were no shares of convertible founder stock issued and outstanding. In June 2021, the Company donated 250,000 shares of its Class A common stock to its charitable foundation, Confluent.org. The Company recognized charitable donation expense of $ 13.3 million to general and administrative expense based on the closing price of its Class A common stock on the date of donation. Common Stock Reserved for Future Issuance The Company has reserved the following shares of common stock for future issuance: June 30, 2021 December 31, 2020 Redeemable convertible preferred stock - 115,277,850 Convertible founder stock - 635,818 2014 Stock Plan: Options issued and outstanding 75,323,365 71,213,150 Restricted stock units issued and outstanding 4,050,033 - Remaining shares available for future issuance under the 2014 Plan - 4,722,481 2021 Equity Incentive Plan: Options issued and outstanding - - Restricted stock units issued and outstanding - - Remaining shares available for future issuance under the 2021 Plan 33,750,414 - 2021 Employee Stock Purchase Plan: 5,162,575 - Total 118,286,387 191,849,299 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. In April 2021, the Company’s board of directors adopted, and in June 2021, its 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, its 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 planned initial public offering. 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 shall consist of two purchase periods with the first purchase period ending on February 15, 2022, and the second purchase period ending on August 15, 2022. For accounting purposes, the grant date of the first offering was subsequent to June 30, 2021. 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 Weighted-Average Aggregate Shares Outstanding Weighted-Average Remaining Intrinsic Available Stock Exercise Contractual Term Value for Grant Options Price (in years) (in thousands) Balance as of January 1, 2021 4,722,481 71,213,150 $ 3.39 8.26 $ 677,503 Increase in authorized shares 16,000,000 - $ - Stock options granted ( 13,603,242 ) 13,603,242 $ 15.18 Stock options exercised - ( 4,042,079 ) $ 3.38 Stock options forfeited 1,149,971 ( 1,149,971 ) $ 3.34 Repurchases of unvested common stock 38,400 - $ - RSUs granted ( 14,000 ) - $ - Balance as of March 31, 2021 8,293,610 79,624,342 $ 5.40 8.35 $ 1,158,361 Increase in authorized shares 32,412,876 - $ - Stock options granted ( 3,586,053 ) 3,586,053 $ 20.69 Stock options exercised - ( 7,284,453 ) $ 3.33 Stock options forfeited 602,577 ( 602,577 ) $ 4.97 Repurchases of unvested common stock 78,687 - $ - RSUs granted ( 4,070,219 ) - $ - RSUs forfeited 18,936 - $ - Balance as of June 30, 2021 33,750,414 75,323,365 $ 6.33 8.18 $ 3,101,256 Vested as of June 30, 2021 24,593,277 $ 2.42 6.84 $ 1,108,633 Vested and expected to vest as of June 30, 2021 75,323,365 $ 6.33 8.18 $ 3,101,256 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 $ 216.1 million and $ 14.5 million for the six months ended June 30, 2021 and 2020, respectively. The weighted-average grant-date fair value per share of options granted during the six months ended June 30, 2021 and 2020 was $ 12.41 and $ 2.91 , respectively. 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 June 30, 2021 and December 31, 2020, there were 3,486,976 and 2,338,945 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 June 30, 2021 and December 31, 2020 , the liabilities for early exercised options subject to repurchase were $ 21.3 million and $ 6.9 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. Performance-Based Options As of June 30, 2021 and December 31, 2020 , the Company had granted 2,875,255 options with both a service-based vesting condition and a performance-based vesting condition. The performance-based vesting condition was not deemed probable until consummated, and therefore, stock-based compensation related to these options remained unrecognized prior to the effectiveness of the IPO. Upon the effectiveness of the IPO, the performance-based vesting condition was satisfied, and therefore, the Company recognized cumulative stock-based compensation expense of $ 3.8 million to general and administrative expense using the accelerated attribution method for the portion of the awards for which the service-based vesting condition has been fully or partially satisfied. RSUs During the six months ended June 30, 2021 , the Company began granting RSUs to its employees. RSUs granted prior to the IPO had both service-based and performance-based vesting conditions. The service-based vesting condition for these awards is generally satisfied by rendering continuous service for four years , during which time the grants will vest either quarterly or with a cliff vesting period of one year and continued vesting quarterly thereafter. The performance-based vesting condition is satisfied upon the sale of the Company’s common stock in a firm commitment underwritten public offering. The performance-based vesting condition was not deemed probable until consummated, and therefore, stock-based compensation related to these RSUs remained unrecognized prior to the effectiveness of the IPO. Upon the effectiveness of the IPO, the performance-based vesting condition was satisfied, and therefore, the Company recognized cumulative stock-based compensation expense of $ 6.8 million using the accelerated attribution method for the portion of the awards for which the service-based vesting condition has been fully or partially satisfied. RSUs Outstanding Weighted- Average Number Grant Date of Shares Fair Value Unvested balances as of January 1, 2021 - $ - RSUs granted 14,000 $ 19.36 RSUs vested - $ - RSUs forfeited - $ - Unvested balances as of March 31, 2021 14,000 $ 19.36 RSUs granted 4,070,219 $ 28.90 RSUs vested ( 15,250 ) $ 19.94 RSUs forfeited ( 18,936 ) $ 21.76 Unvested balances as of June 30, 2021 4,050,033 $ 28.93 Determination of Fair Value The Company estimates the fair value of stock options using the Black-Scholes option-pricing model, which is dependent upon several variables, such as the fair value of the Company’s common stock, the expected option term, expected volatility of the Company’s stock price over the expected term, expected risk-free interest rate over the expected option term, and expected dividend yield. Fair Value of Common Stock: Prior to the completion of the IPO, the board of directors had determined the fair value of common stock by considering a number of objective and subjective factors, including but not limited to contemporaneous independent third-party valuations of the Company’s common stock, market performance of comparable publicly traded companies, sales of the Company’s redeemable convertible preferred stock and common stock to unrelated third parties, operating and financial performance, the lack of marketability of the Company’s common stock, general and industry-specific economic outlook, and the likelihood of achieving a liquidity event, such as an initial public offering, a merger, or acquisition of the Company given prevailing market conditions. After the completion of the IPO, the fair value of the Company’s common stock is determined by the closing price, on the date of grant, of its common stock, which is traded on the Nasdaq stock exchange. Expected Term: For option grants subject to service-based vesting conditions only, the expected term represents the period that the Company’s stock options are expected to be outstanding and is calculated using the simplified method for options that have only service-based vesting conditions. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the options. For other option grants, the Company estimates the expected term using historical data on employee exercises and post-vesting employment termination behavior, considering the contractual life of the award. Expected Volatility: Since the Company does not have a sufficient trading history of its common stock, the expected volatility was derived from the average historical stock volatilities of public companies within the Company’s industry that it considers to be comparable to its business, over a period equivalent to the expected term of the stock options. Risk-Free Interest Rate: The Company bases the risk-free interest rate on the implied yield available on U.S. Treasury zero-coupon notes with maturities equivalent to the option’s expected term. Expected Dividend Yield: The Company has not issued any dividends in its history and does not expect to issue dividends over the life of the options and therefore has estimated the dividend yield to be zero . The fair value of stock options granted was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Expected term (in years) 6.36 6.27 6.17 6.24 Expected volatility 63.7 % 70.0 % 66.3 % 68.6 % Risk-free interest rate 1.1 % 0.4 % 1.1 % 0.6 % Expected dividend yield 0 % 0 % 0 % 0 % Stock-Based Compensation Expense Total stock-based compensation expense was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Cost of revenue - subscription $ 2,172 $ 524 $ 3,147 $ 986 Cost of revenue - services 1,055 312 1,599 662 Research and development 8,932 2,250 12,443 4,296 Sales and marketing 11,155 2,735 16,131 5,108 General and administrative 11,202 1,251 14,549 2,471 Stock-based compensation, net of amounts capitalized $ 34,516 $ 7,072 $ 47,869 $ 13,523 Capitalized stock-based compensation 396 181 494 299 Total stock-based compensation $ 34,912 $ 7,253 $ 48,363 $ 13,822 As of June 30, 2021 , there was $ 413.1 million of unrecognized stock-based compensation expense, which is expected to be recognized over a weighted-average period of 3.4 years.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2021
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 $ 2.2 million and $( 0.1 ) million for the three months ended June 30, 2021 and 2020, respectively, and $ 2.1 million and $ 0.3 million for the six months ended June 30, 2021 and 2020, respectively. The Company’s provision for (benefit from) income taxes for the three and six months ended June 30, 2021 was primarily driven by a valuation allowance on U.S. deferred tax assets, foreign and state taxes, and a valuation allowance recorded during the quarter on U.K. net deferred tax assets. The Company’s provision for (benefit from) income taxes for the three and six months ended June 30, 2020 was primarily driven by a valuation allowance on U.S. deferred tax assets, a stock compensation windfall, and foreign and state taxes. During the three months ended June 30, 2021, based on the weight of positive and negative evidence, the Company recorded a valuation allowance on its U.K. net deferred tax assets. The Company maintains a full valuation allowance against its U.S. deferred tax assets. As of June 30, 2021, gross unrecognized tax benefits were $ 4.2 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.

Net Loss Per Share Attributable

Net Loss Per Share Attributable to Class A and Class B Stockholders	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Net Loss Per Share	11. Net Loss Per Share The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Three Months Ended June 30, 2021 2020 Class A Class B Class A Class B Numerator: Net loss attributable to common stockholders $ ( 778 ) $ ( 87,392 ) $ - $ ( 26,296 ) Denominator: Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted 1,047,090 117,601,565 - 105,532,865 Net loss per share attributable to common stockholders, basic and diluted $ ( 0.74 ) $ ( 0.74 ) $ - $ ( 0.25 ) Six Months Ended June 30, 2021 2020 Class A Class B Class A Class B Numerator: Net loss attributable to common stockholders $ ( 614 ) $ ( 132,082 ) $ - $ ( 59,931 ) Denominator: Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted 526,437 113,191,109 - 106,964,953 Net loss per share attributable to common stockholders, basic and diluted $ ( 1.17 ) $ ( 1.17 ) $ - $ ( 0.56 ) The following outstanding potentially dilutive shares were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because the impact of including them would have been anti-dilutive: June 30, 2021 June 30, 2020 Redeemable convertible preferred stock - 107,325,608 Stock options 75,323,365 68,290,426 Unvested early exercised stock options 3,486,976 3,018,705 RSUs 4,050,033 - Total 82,860,374 178,634,739

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
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 final prospectus dated June 23, 2021 and filed with the SEC pursuant to Rule 424(b)(4) on June 25, 2021 ( “Final Prospectus”). 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 June 30, 2021 and the results of operations and cash flows for the three and six months ended June 30, 2021 and 2020. The results of operations for the three and six months ended June 30, 2021 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 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 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 There have been 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 Final Prospectus.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements Convertible Instruments: In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock, and enhances information transparency by making targeted improvements to the disclosures for convertible instruments and earnings per share guidance. The Company adopted this guidance as of January 1, 2021, and the adoption did not have a material impact on its condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted Credit Losses : In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, which includes the Company’s accounts receivable, certain financial instruments, and contract assets. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology. Subsequently, the FASB issued multiple codification improvement amendments to ASU 2016-13. ASU 2016-13 and the applicable subsequent amendments are effective for the Company for the year beginning January 1, 2023, though early adoption is permitted. The Company is currently evaluating the potential impact of this guidance on its consolidated financial statements.

Marketable Securities (Tables)

Marketable Securities (Tables)	6 Months Ended
	Jun. 30, 2021
Investments Debt And Equity Securities [Abstract]
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): June 30, 2021 December 31, 2020 Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 146,412 $ 146,506 $ 180,320 $ 180,520 Due after one year through five years 37,046 37,020 71,104 71,236 Total $ 183,458 $ 183,526 $ 251,424 $ 251,756
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): June 30, 2021 Amortized Unrealized Unrealized Fair Corporate notes and bonds $ 114,597 $ 97 $ ( 18 ) $ 114,676 Commercial paper 50,816 8 - 50,824 U.S. agency obligations 15,000 - ( 16 ) 14,984 Municipal bonds 3,045 - ( 3 ) 3,042 Total marketable securities $ 183,458 $ 105 $ ( 37 ) $ 183,526 December 31, 2020 Amortized Unrealized Unrealized Fair Corporate notes and bonds $ 155,401 $ 360 $ ( 21 ) $ 155,740 Commercial paper 63,503 27 ( 24 ) 63,506 U.S. agency obligations 32,520 - ( 10 ) 32,510 Total marketable securities $ 251,424 $ 387 $ ( 55 ) $ 251,756

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2021
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): June 30, 2021 Level 1 Level 2 Total Cash equivalents: Money market funds $ 56,396 $ - $ 56,396 Marketable securities: Corporate notes and bonds - 114,676 114,676 Commercial paper - 50,824 50,824 U.S. agency obligations - 14,984 14,984 Municipal bonds - 3,042 3,042 Total $ 56,396 $ 183,526 $ 239,922 December 31, 2020 Level 1 Level 2 Total Cash equivalents: Money market funds $ 12,409 $ - $ 12,409 Marketable securities: Corporate notes and bonds - 155,740 155,740 Commercial paper - 63,506 63,506 U.S. agency obligations - 32,510 32,510 Total $ 12,409 $ 251,756 $ 264,165

Balance Sheet Components (Table

Balance Sheet Components (Tables)	6 Months Ended
	Jun. 30, 2021
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): June 30, 2021 December 31, 2020 Computers and equipment $ 4,109 $ 2,640 Furniture and fixtures 1,312 1,360 Purchased software 26 26 Leasehold improvements 155 136 Internal-use software 6,160 4,016 Construction in progress 1,450 1,183 Property and equipment, at cost $ 13,212 $ 9,361 Less: Accumulated depreciation and amortization ( 4,152 ) ( 2,643 ) Property and equipment, net $ 9,060 $ 6,718
Summary of Accrued Expense and Other Liabilities	Accrued expenses and other liabilities consisted of the following (in thousands): June 30, 2021 December 31, 2020 Accrued expenses $ 13,199 $ 7,225 Accrued commissions 12,373 10,189 Accrued payroll taxes 7,531 6,756 Accrued compensation and benefits 6,806 4,240 Other liabilities 10,061 5,301 Total accrued expenses and other liabilities $ 49,970 $ 33,711

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit) (Tables)	6 Months Ended
	Jun. 30, 2021
Stockholders' Equity Note [Abstract]
Common Stock Reserved for Future Issuance	The Company has reserved the following shares of common stock for future issuance: June 30, 2021 December 31, 2020 Redeemable convertible preferred stock - 115,277,850 Convertible founder stock - 635,818 2014 Stock Plan: Options issued and outstanding 75,323,365 71,213,150 Restricted stock units issued and outstanding 4,050,033 - Remaining shares available for future issuance under the 2014 Plan - 4,722,481 2021 Equity Incentive Plan: Options issued and outstanding - - Restricted stock units issued and outstanding - - Remaining shares available for future issuance under the 2021 Plan 33,750,414 - 2021 Employee Stock Purchase Plan: 5,162,575 - Total 118,286,387 191,849,299
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 Weighted-Average Aggregate Shares Outstanding Weighted-Average Remaining Intrinsic Available Stock Exercise Contractual Term Value for Grant Options Price (in years) (in thousands) Balance as of January 1, 2021 4,722,481 71,213,150 $ 3.39 8.26 $ 677,503 Increase in authorized shares 16,000,000 - $ - Stock options granted ( 13,603,242 ) 13,603,242 $ 15.18 Stock options exercised - ( 4,042,079 ) $ 3.38 Stock options forfeited 1,149,971 ( 1,149,971 ) $ 3.34 Repurchases of unvested common stock 38,400 - $ - RSUs granted ( 14,000 ) - $ - Balance as of March 31, 2021 8,293,610 79,624,342 $ 5.40 8.35 $ 1,158,361 Increase in authorized shares 32,412,876 - $ - Stock options granted ( 3,586,053 ) 3,586,053 $ 20.69 Stock options exercised - ( 7,284,453 ) $ 3.33 Stock options forfeited 602,577 ( 602,577 ) $ 4.97 Repurchases of unvested common stock 78,687 - $ - RSUs granted ( 4,070,219 ) - $ - RSUs forfeited 18,936 - $ - Balance as of June 30, 2021 33,750,414 75,323,365 $ 6.33 8.18 $ 3,101,256 Vested as of June 30, 2021 24,593,277 $ 2.42 6.84 $ 1,108,633 Vested and expected to vest as of June 30, 2021 75,323,365 $ 6.33 8.18 $ 3,101,256
Schedule of Restricted Stock Unit Activity	RSUs Outstanding Weighted- Average Number Grant Date of Shares Fair Value Unvested balances as of January 1, 2021 - $ - RSUs granted 14,000 $ 19.36 RSUs vested - $ - RSUs forfeited - $ - Unvested balances as of March 31, 2021 14,000 $ 19.36 RSUs granted 4,070,219 $ 28.90 RSUs vested ( 15,250 ) $ 19.94 RSUs forfeited ( 18,936 ) $ 21.76 Unvested balances as of June 30, 2021 4,050,033 $ 28.93
Schedule of Weighted-Average Assumptions to Estimate Fair Value of Stock Options	The fair value of stock options granted was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Expected term (in years) 6.36 6.27 6.17 6.24 Expected volatility 63.7 % 70.0 % 66.3 % 68.6 % Risk-free interest rate 1.1 % 0.4 % 1.1 % 0.6 % Expected dividend yield 0 % 0 % 0 % 0 %
Summary of Stock-Based Compensation Expense	Total stock-based compensation expense was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Cost of revenue - subscription $ 2,172 $ 524 $ 3,147 $ 986 Cost of revenue - services 1,055 312 1,599 662 Research and development 8,932 2,250 12,443 4,296 Sales and marketing 11,155 2,735 16,131 5,108 General and administrative 11,202 1,251 14,549 2,471 Stock-based compensation, net of amounts capitalized $ 34,516 $ 7,072 $ 47,869 $ 13,523 Capitalized stock-based compensation 396 181 494 299 Total stock-based compensation $ 34,912 $ 7,253 $ 48,363 $ 13,822

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2021
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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Geographic markets: United States $ 56,811 64 % $ 36,032 67 % $ 106,090 64 % $ 70,410 67 % International 31,527 36 % 17,820 33 % 59,276 36 % 34,346 33 % Total revenue $ 88,338 100 % $ 53,852 100 % $ 165,366 100 % $ 104,756 100 % Subscriptions and services: Confluent Platform - License $ 15,551 18 % $ 10,188 19 % $ 29,512 18 % $ 20,180 19 % Confluent Platform - PCS (1) 43,296 49 % 30,229 56 % 83,408 51 % 57,964 56 % Confluent Cloud 19,669 22 % 6,556 12 % 33,588 20 % 12,772 12 % Subscription 78,516 89 % 46,973 87 % 146,508 89 % 90,916 87 % Services 9,822 11 % 6,879 13 % 18,858 11 % 13,840 13 % Total revenue $ 88,338 100 % $ 53,852 100 % $ 165,366 100 % $ 104,756 100 % (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): Six Months Ended June 30, 2021 2020 Beginning balance $ 47,599 $ 25,499 Capitalization of contract acquisition costs 26,348 13,927 Amortization of deferred contract acquisition costs ( 11,583 ) ( 6,128 ) Ending balance $ 62,364 $ 33,298

Net Loss Per Share Attributab_2

Net Loss Per Share Attributable to Class A and Class B Stockholders (Tables)	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Schedule of Calculation of Basic and Diluted Net Loss Per Share Attributable to Class A and Class B Stockholders	The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Three Months Ended June 30, 2021 2020 Class A Class B Class A Class B Numerator: Net loss attributable to common stockholders $ ( 778 ) $ ( 87,392 ) $ - $ ( 26,296 ) Denominator: Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted 1,047,090 117,601,565 - 105,532,865 Net loss per share attributable to common stockholders, basic and diluted $ ( 0.74 ) $ ( 0.74 ) $ - $ ( 0.25 ) Six Months Ended June 30, 2021 2020 Class A Class B Class A Class B Numerator: Net loss attributable to common stockholders $ ( 614 ) $ ( 132,082 ) $ - $ ( 59,931 ) Denominator: Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted 526,437 113,191,109 - 106,964,953 Net loss per share attributable to common stockholders, basic and diluted $ ( 1.17 ) $ ( 1.17 ) $ - $ ( 0.56 )
Schedule of Antidilutive Securities Excluded from Diluted Income (Loss) per Share	The following outstanding potentially dilutive shares were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because the impact of including them would have been anti-dilutive: June 30, 2021 June 30, 2020 Redeemable convertible preferred stock - 107,325,608 Stock options 75,323,365 68,290,426 Unvested early exercised stock options 3,486,976 3,018,705 RSUs 4,050,033 - Total 82,860,374 178,634,739

Organization and Description _2

Organization and Description of Business - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Class Of Stock [Line Items]
Proceeds from initial public offering, net of underwriting discounts and commissions		$ 786,600	$ 0
Deferred Offering Costs				$ 100
IPO
Class Of Stock [Line Items]
Deferred offering costs, net of reimbursement received from the underwriters		$ 3,400
Class A Common Stock [Member] | IPO
Class Of Stock [Line Items]
Number of new stock issued during the period		23,000,000
Shares issued, price per share	$ 36	$ 36
Class B Common Stock [Member]
Class Of Stock [Line Items]
Conversion of convertible stock to common stock (shares) common stock upon initial public offering (shares)	115,913,668	115,913,668
Redeemable Convertible Preferred Stock [Member] | IPO
Class Of Stock [Line Items]
Conversion Basis		equal
Conversion of convertible stock to common stock (shares) common stock upon initial public offering (shares)		115,277,850
Convertible Founder Stock [Member]
Class Of Stock [Line Items]
Conversion of convertible stock to common stock (shares) common stock upon initial public offering (shares)	(635,818)	(635,818)
Convertible Founder Stock [Member] | IPO
Class Of Stock [Line Items]
Conversion Basis		equal
Conversion of convertible stock to common stock (shares) common stock upon initial public offering (shares)		635,818

Marketable Securities - Schedul

Marketable Securities - Schedule of Fair Value and Amortized Cost of Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Marketable Securities [Line Items]
Amortized Cost	$ 183,458	$ 251,424
Unrealized Gains	105	387
Unrealized Losses	(37)	(55)
Fair Value	183,526	251,756
U.S. agency obligations [Member]
Marketable Securities [Line Items]
Amortized Cost	15,000	32,520
Unrealized Gains	0	0
Unrealized Losses	(16)	(10)
Fair Value	14,984	32,510
Municipal bonds [Member]
Marketable Securities [Line Items]
Amortized Cost	3,045
Unrealized Gains	0
Unrealized Losses	(3)
Fair Value	3,042
Corporate notes and bonds [Member]
Marketable Securities [Line Items]
Amortized Cost	114,597	155,401
Unrealized Gains	97	360
Unrealized Losses	(18)	(21)
Fair Value	114,676	155,740
Commercial paper [Member]
Marketable Securities [Line Items]
Amortized Cost	50,816	63,503
Unrealized Gains	8	27
Unrealized Losses	0	(24)
Fair Value	$ 50,824	$ 63,506

Marketable Securities - Additio

Marketable Securities - Additional Information (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Investments Debt And Equity Securities [Abstract]
Available-for-sale securities, continuous unrealized loss position, fair value	$ 70,200	$ 91,500,000
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value	$ 0	$ 0

Marketable Securities - Sched_2

Marketable Securities - Schedule of Fair Value of Contractual Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Investments Debt And Equity Securities [Abstract]
Due within one year	$ 146,412	$ 180,320
Due after one year through five years	37,046	71,104
Amortized Cost	183,458	251,424
Due within one year, fair value	146,506	180,520
Due after one year through five years, fair value	37,020	71,236
Fair Value	$ 183,526	$ 251,756

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Marketable securities:
Fair value, Marketable securities	$ 183,526	$ 251,756
Municipal Bonds [Member]
Marketable securities:
Fair value, Marketable securities	3,042
Level 2 [Member] | Municipal Bonds [Member]
Marketable securities:
Fair value, Marketable securities	3,042
Level 2 [Member] | Corporate Notes and Bonds [Member]
Marketable securities:
Fair value, Marketable securities	114,676
Level 2 [Member] | Commercial Paper [Member]
Marketable securities:
Fair value, Marketable securities	50,824
Level 2 [Member] | U.S. Agency Obligations [Member]
Marketable securities:
Fair value, Marketable securities	14,984
Fair Value, Measurements, Recurring [Member]
Cash equivalents and Marketable securities:
Assets, Fair Value	239,922	264,165
Fair Value, Measurements, Recurring [Member] | Municipal Bonds [Member]
Marketable securities:
Fair value, Marketable securities	3,042
Fair Value, Measurements, Recurring [Member] | Corporate Notes and Bonds [Member]
Marketable securities:
Fair value, Marketable securities	114,676	155,740
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member]
Marketable securities:
Fair value, Marketable securities	50,824	63,506
Fair Value, Measurements, Recurring [Member] | U.S. Agency Obligations [Member]
Marketable securities:
Fair value, Marketable securities	14,984	32,510
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member]
Cash equivalents:
Fair value, Cash equivalents	56,396	12,409
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Cash equivalents and Marketable securities:
Assets, Fair Value	56,396	12,409
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]
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] | Money Market Funds [Member]
Cash equivalents:
Fair value, Cash equivalents	56,396	12,409
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Cash equivalents and Marketable securities:
Assets, Fair Value	183,526	251,756
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Corporate Notes and Bonds [Member]
Marketable securities:
Fair value, Marketable securities		155,740
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Commercial Paper [Member]
Marketable securities:
Fair value, Marketable securities		63,506
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | U.S. Agency Obligations [Member]
Marketable securities:
Fair value, Marketable securities		32,510
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Money Market Funds [Member]
Cash equivalents:
Fair value, Cash equivalents	$ 0	$ 0

Balance Sheet Components - Summ

Balance Sheet Components - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 13,212	$ 9,361
Less: Accumulated depreciation and amortization	(4,152)	(2,643)
Property and equipment, net	9,060	6,718
Computers and Equipment [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	4,109	2,640
Furniture and Fixtures [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	1,312	1,360
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	155	136
Internal-use Software [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	6,160	4,016
Construction in Progress [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 1,450	$ 1,183

Balance Sheet Components - Addi

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Property Plant And Equipment [Abstract]
Depreciation and amortization	$ 700	$ 400	$ 1,543	$ 699

Balance Sheet Components - Su_2

Balance Sheet Components - Summary of Accrued Expense and Other Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Payables And Accruals [Abstract]
Accrued expenses	$ 13,199	$ 7,225
Accrued commissions	12,373	10,189
Accrued payroll taxes	7,531	6,756
Accrued compensation and benefits	6,806	4,240
Other liabilities	10,061	5,301
Total accrued expenses and other liabilities	$ 49,970	$ 33,711

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 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	$ 1,400
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		3 years

Revenue - Summary of Revenue Di

Revenue - Summary of Revenue Disaggregated by Geographic Markets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation Of Revenue [Line Items]
Total revenue	$ 88,338	$ 53,852	$ 165,366	$ 104,756
Percentage of Revenue	100.00%	100.00%	100.00%	100.00%
United States [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 56,811	$ 36,032	$ 106,090	$ 70,410
Percentage of Revenue	64.00%	67.00%	64.00%	67.00%
International [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 31,527	$ 17,820	$ 59,276	$ 34,346
Percentage of Revenue	36.00%	33.00%	36.00%	33.00%
License [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 15,551	$ 10,188	$ 29,512	$ 20,180
Percentage of Revenue	18.00%	19.00%	18.00%	19.00%
Post Contract Customer Support [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 43,296	$ 30,229	$ 83,408	$ 57,964
Percentage of Revenue	49.00%	56.00%	51.00%	56.00%
Confluent Cloud [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 19,669	$ 6,556	$ 33,588	$ 12,772
Percentage of Revenue	22.00%	12.00%	20.00%	12.00%
Subscription [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 78,516	$ 46,973	$ 146,508	$ 90,916
Percentage of Revenue	89.00%	87.00%	89.00%	87.00%
Services [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 9,822	$ 6,879	$ 18,858	$ 13,840
Percentage of Revenue	11.00%	13.00%	11.00%	13.00%

Revenue - Additional Informatio

Revenue - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Disaggregation Of Revenue [Line Items]
Revenue, remaining performance obligation, amount	$ 327.2
Revenue, remaining performance obligation, percentage	69.00%
Deferred revenue	$ 190.5		$ 159.2
Revenue recognized from deferred revenue	91	$ 56.6
Allowance for doubtful accounts	0		0
Unbilled receivables balance	$ 25		$ 17.6

Revenue - Schedule of Activity

Revenue - Schedule of Activity of Deferred Contract Acquisition Costs (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Revenue From Contract With Customer [Abstract]
Beginning balance	$ 47,599	$ 25,499
Capitalization of contract acquisition costs	26,348	13,927
Amortization of deferred contract acquisition costs	(11,583)	(6,128)
Ending balance	$ 62,364	$ 33,298

Redeemable Convertible Prefer_2

Redeemable Convertible Preferred Stock - Additional Information (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Temporary Equity [Line Items]
Redeemable Convertible Preferred Stock, Shares Issued	0	115,277,850
Redeemable Convertible Preferred Stock, Shares Outstanding	0	115,277,850
Class B Common Stock [Member]
Temporary Equity [Line Items]
Convertible preferred stock, shares issued upon conversion	115,277,850
Convertible preferred stock, shares issued upon conversion, carrying value	$ 574.6

Stockholders' Equity (Deficit_2

Stockholders' Equity (Deficit) - Additional Information (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021USD ($)$ / sharesshares	Jun. 30, 2021USD ($)$ / sharesshares	Jun. 30, 2020	Jun. 30, 2021USD ($)Vote$ / sharesshares	Jun. 30, 2020USD ($)$ / shares	Dec. 31, 2020USD ($)$ / sharesshares
Class Of Stock [Line Items]
Preferred Stock Shares Authorized	10,000,000	10,000,000		10,000,000		0
Preferred Stock Par Or Stated Value Per Share | $ / shares	$ 0.00001	$ 0.00001		$ 0.00001		$ 0.00001
Common Stock Shares Authorized	0	0		0		323,000,000
Conversion, percent threshold				10.00%
Common stock charitable donation expense | $				$ 13,290	$ 0
Common Stock, Par Value | $ / shares	$ 0.00001	$ 0.00001		$ 0.00001		$ 0.00001
Common stock reserved for issuance (in shares)	118,286,387	118,286,387		118,286,387		191,849,299
Intrinsic value of options exercised | $				$ 216,100	$ 14,500
Weighted average grant date fair value per share of options granted | $ / shares				$ 12.41	$ 2.91
Shares early exercised and repurchase				3,486,976		2,338,945
Liabilities for early exercise of unvested stock options and other liabilities | $	$ 21,300	$ 21,300		$ 21,300		$ 6,900
Cumulative stock-based compensation expense | $				$ 3,800
Expected dividend yield		0.00%	0.00%	0.00%	0.00%
Unrecognized stock-based compensation expense | $	$ 413,100	$ 413,100		$ 413,100
Unrecognized stock-based compensation expense, weighted-average period				3 years 4 months 24 days
Convertible Founder Stock [Member]
Class Of Stock [Line Items]
Convertible founder stock, shares issued upon conversion	635,818	635,818		635,818
Convertible Founder Stock, Shares Issued	0	0		0		635,818
Convertible Founder Stock, Shares Outstanding	0	0		0		635,818
Common Class A [Member]
Class Of Stock [Line Items]
Common Stock Shares Authorized	1,000,000,000	1,000,000,000		1,000,000,000		0
Common stock, voting rights, votes per share | Vote				1
Number of new stock issued during the period	250,000	23,000,000		23,000,000
Common stock charitable donation expense | $				$ 13,300
Common Stock, Par Value | $ / shares	$ 0.00001	$ 0.00001		$ 0.00001		$ 0.00001
Common Class B [Member]
Class Of Stock [Line Items]
Common Stock Shares Authorized	500,000,000	500,000,000		500,000,000		0
Common stock, voting rights, votes per share | Vote				10
Common Stock, Par Value | $ / shares	$ 0.00001	$ 0.00001		$ 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	25,812,876		25,812,876
2021 Employee Stock Purchase Plan [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	5,162,575	5,162,575		5,162,575		0
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	5,162,575		5,162,575
Purchase price of common stock expressed as a percentage of its fair value				85.00%
Performance Based Vesting Condition [Member]
Class Of Stock [Line Items]
Performance options, shares				2,875,255		2,875,255
Service Based Vesting Condition [Member]
Class Of Stock [Line Items]
Performance options, shares				2,875,255		2,875,255
Restricted Stock Units (RSUs) [Member]
Class Of Stock [Line Items]
Service based vesting period				4 years
Stock based compensation expense | $				$ 6,800

Stockholders' Equity (Deficit_3

Stockholders' Equity (Deficit) - Common Stock Reserved for Future Issuance (Details) - shares	Jun. 30, 2021	Dec. 31, 2020
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	118,286,387	191,849,299
2014 Stock Plan [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	0	4,722,481
2014 Stock Plan [Member] | Stock Options [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	75,323,365	71,213,150
2014 Stock Plan [Member] | RSUs [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	4,050,033	0
2021 Equity Incentive Plan [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	33,750,414	0
2021 Equity Incentive Plan [Member] | Stock Options [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	0	0
2021 Equity Incentive Plan [Member] | RSUs [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	0	0
2021 Employee Stock Purchase Plan [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	5,162,575	0
Redeemable Convertible Preferred Stock [Member]
Class Of Stock [Line Items]
Convertible preferred stock reserved for issuance (in shares)	0	115,277,850
Convertible Founder Stock [Member]
Class Of Stock [Line Items]
Convertible founder stock (in shares)	0	635,818

Stockholders' Equity (Deficit_4

Stockholders' Equity (Deficit) - Summary of Stock Equity Award Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended	12 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Shares Available for Grant, Beginning Balance	8,293,610	4,722,481	4,722,481
Shares Available for Grant, Increase in authorized shares	32,412,876	16,000,000
Shares Available for Grant, Stock options granted	(3,586,053)	(13,603,242)
Shares Available for Grant, Stock options forfeited	602,577	1,149,971
Shares Available for Grant, Repurchases of unvested common stock	78,687	38,400
Shares Available for Grant, RSUs granted	(4,070,219)	(14,000)
Shares Available for Grant, RSUs Forfeited	18,936
Shares Available for Grant, Ending Balance	33,750,414	8,293,610	33,750,414	4,722,481
Outstanding Stock Options, Beginning Balance	79,624,342	71,213,150	71,213,150
Outstanding Stock Options, Stock options granted	3,586,053	13,603,242
Outstanding Stock Options, Stock options exercised	(7,284,453)	(4,042,079)
Outstanding Stock Options, Stock options forfeited	(602,577)	(1,149,971)
Outstanding Stock Options, Ending Balance	75,323,365	79,624,342	75,323,365	71,213,150
Outstanding Stock Options, Vested			24,593,277
Outstanding Stock Options, Vested and expected to vest	75,323,365		75,323,365
Weighted-Average Exercise Price, Beginning Balance	$ 5.40	$ 3.39	$ 3.39
Weighted-Average Exercise Price, Stock options granted	20.69	15.18
Weighted-Average Exercise Price, Stock options exercised	3.33	3.38
Weighted-Average Exercise Price, Stock options forfeited	4.97	3.34
Weighted-Average Exercise Price, Ending Balance	6.33	$ 5.40	6.33	$ 3.39
Weighted-Average Exercise Price, Vested	2.42		2.42
Weighted-Average Exercise Price, Vested and Expected to Vest	$ 6.33		$ 6.33
Weighted-Average Remaining Contractual Term (in years)	8 years 2 months 4 days	8 years 4 months 6 days		8 years 3 months 3 days
Weighted-Average Remaining Contractual Term Vested (in years)			6 years 10 months 2 days
Weighted-Average Remaining Contractual Term Vested and expected to vest (in years)			8 years 2 months 4 days
Aggregate Intrinsic Value, Beginning Balance	$ 1,158,361	$ 677,503	$ 677,503
Aggregate Intrinsic Value, Ending Balance	3,101,256	$ 1,158,361	3,101,256	$ 677,503
Aggregate Intrinsic Value, Vested as of June 30, 2021	1,108,633		1,108,633
Aggregate Intrinsic Value, Vested and expected to vest as of June 30, 2021	$ 3,101,256		$ 3,101,256

Stockholders' Equity (Deficit_5

Stockholders' Equity (Deficit) - Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares	3 Months Ended
	Jun. 30, 2021	Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number of Shares, Beginning Balance	14,000	0
Number of Shares, RSUs granted	4,070,219	14,000
Number of Shares, RSUs vested	(15,250)	0
Number of Shares, RSUs forfeited	(18,936)	0
Number of Shares, Ending Balance	4,050,033	14,000
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)	$ 19.36	$ 0
Weighted-average grant date fair value, RSUs granted (in dollars per share)	28.90	19.36
Weighted-average grant date fair value, RSUs vested (in dollars per share)	19.94	0
Weighted-average grant date fair value, RSUs forfeited (in dollars per share)	21.76	0
Weighted-average grant date fair value, Ending Balance (in dollars per share)	$ 28.93	$ 19.36

Stockholders' Equity (Deficit_6

Stockholders' Equity (Deficit) - Schedule of Weighted-Average Assumptions to Estimate Fair Value of Stock Options (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Expected term (in years)	6 years 4 months 9 days	6 years 3 months 7 days	6 years 2 months 1 day	6 years 2 months 26 days
Expected volatility	63.70%	70.00%	66.30%	68.60%
Risk-free interest rate	1.10%	0.40%	1.10%	0.60%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%

Stockholders' Equity (Deficit_7

Stockholders' Equity (Deficit) - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	$ 34,516	$ 7,072	$ 47,869	$ 13,523
Capitalized stock-based compensation	396	181	494	299
Total stock-based compensation	34,912	7,253	48,363	13,822
Cost of Revenue [Member] | Subscription [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	2,172	524	3,147	986
Cost of Revenue [Member] | Services [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	1,055	312	1,599	662
Research and Development [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	8,932	2,250	12,443	4,296
Sales and Marketing [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	11,155	2,735	16,131	5,108
General and Administrative [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	$ 11,202	$ 1,251	$ 14,549	$ 2,471

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Provision for (benefit from) income taxes	$ 2,170	$ (106)	$ 2,060	$ 282
Unrecognized tax benefits	$ 4,200		4,200
Interest and penalties			$ 0

Net Loss Per Share Attributab_3

Net Loss Per Share Attributable to Class A and Class B Stockholders - Schedule of Calculation of Basic and Diluted Net Loss Per Share Attributable to Class A and Class B Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Numerator:
Net loss attributable to common stockholders	$ (88,170)	$ (26,296)	$ (132,696)	$ (59,931)
Denominator:
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted	118,648,655	105,532,865	113,717,546	106,964,953
Earnings Per Share Basic And Diluted	$ (0.74)	$ (0.25)	$ (1.17)	$ (0.56)
Common Class A [Member]
Numerator:
Net loss attributable to common stockholders	$ (778)	$ 0	$ (614)	$ 0
Denominator:
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted	1,047,090	0	526,437	0
Earnings Per Share Basic And Diluted	$ (0.74)	$ 0	$ (1.17)	$ 0
Common Class B [Member]
Numerator:
Net loss attributable to common stockholders	$ (87,392)	$ (26,296)	$ (132,082)	$ (59,931)
Denominator:
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted	117,601,565	105,532,865	113,191,109	106,964,953
Earnings Per Share Basic And Diluted	$ (0.74)	$ (0.25)	$ (1.17)	$ (0.56)

Net Loss Per Share Attributab_4

Net Loss Per Share Attributable to Class A and Class B Stockholders - Schedule of Antidilutive Securities Excluded From Computation of Dilutied Net Loss Per Share (Details) - shares	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	82,860,374	178,634,739
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	107,325,608
Stock Option [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	75,323,365	68,290,426
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	3,486,976	3,018,705
RSUs [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	4,050,033	0