Release Date: February 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you discuss how customers are using Confluent for streaming and processing outside of analytic engines, especially in light of your expanded partnership with Databricks? A: Jay Kreps, CEO, explained that the rise of AI applications is driving the need for real-time data in analytics, moving beyond traditional data warehousing. The partnership with Databricks integrates Confluent's streaming data with Databricks' analytics, enabling real-time data processing and AI-driven decision-making. This collaboration aims to unify operational and analytical data ecosystems, enhancing the utility of streaming data across various applications.
Q: What gives you confidence that 2025 will be the year of DSP, and what trends are you observing? A: Jay Kreps noted that both qualitative and quantitative factors support this confidence. The qualitative aspect includes strong customer interest and open-source adoption of DSP components. Quantitatively, there is a significant ramp in consumption and a robust pipeline for DSP products, indicating a growing demand for comprehensive real-time data capabilities.
Q: How are Gen AI use cases evolving in the context of streaming and DSP technology? A: Jay Kreps highlighted two main patterns: initially, AI applications focused on real-time ETL to prepare data for AI models. Now, there's a shift towards applying language models directly to streaming data, enabling real-time decision-making and automation in business processes, such as insurance claims processing, which enhances efficiency and reduces costs.
Q: Can you elaborate on the changes in your go-to-market strategy and any adjustments for 2025? A: Jay Kreps stated that the major transformation last year involved aligning incentives with consumption-based models. For 2025, the focus is on fine-tuning these changes, emphasizing specific DSP workloads and use cases. The sales team is now better equipped to track and drive adoption of DSP components, which is expected to enhance customer engagement and growth.
Q: How is Confluent positioning itself against traditional data integration vendors, and is this changing your go-to-market approach? A: Jay Kreps acknowledged that while Confluent has always replaced legacy integration technologies, there's now a stronger focus on directly competing with commercial batch processing vendors. As awareness of data streaming grows and Confluent's product offerings become more comprehensive, the company is increasingly targeting these larger batch workloads, positioning streaming as a superior, scalable, and real-time alternative.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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