Cloudflare Stock Falls As Investors Mull Size Of Earnings, Revenue Beat

Cloudflare stock fell Friday after it reported second-quarter profit and revenue that topped analyst estimates, but the size of the beat disappointed. Cloudflare earnings guidance for the September quarter came in above expectations.




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San Francisco-based Cloudflare (NET) said late Thursday it had a loss of 2 cents per adjusted share vs. a 3-cent loss in the year-earlier period. Revenue for the provider of cloud-based networking and cybersecurity services jumped 53% to $152.4 million.

Analysts expected Cloudflare to report a loss of 3 cents per share on revenue of $146.1 million for the period ended June 30.

Cloudflare’s revenue of $152.4 million beat estimates by 4.3% compared with a 5.4% beat in the previous quarter, noted a RBC Capital report to clients.

Cloudflare stock fell 2.2% to close at 118.82 on the stock market today.

At Mizuho Securities, analyst Gregg Moskowitz said in his note to clients: “NET reported a good Q2, led by 53% year-over-year revenue growth that was six points above consensus. The company also saw good large-deal activity, including a record 143 net new customers spending more than $100,000 in annual recurring revenue. That said, we believe the magnitude of this quarter’s beat was less than many were likely hoping for.”

Cloudflare Stock: Revenue Outlook Above Views

Heading into the earnings report, Cloudflare stock was extended, trading well above its 95.87 entry point.

For the current quarter ending in September, Cloudflare expects a loss in a range of 3 cents to 4 cents. It forecast revenue of $165.5 million at the midpoint of its guidance range.

Meanwhile, analysts had projected a loss of 2 cents on revenue of $157.4 million.

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Also, Cloudflare owned a Relative Strength Rating of 86 out of a best-possible 99, according to IBD Stock Checkup.

Started in 2009, Cloudflare speeds up and provides security for web applications routed through its intelligent global network. In addition, the company competes in both corporate and consumer markets.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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