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Cloudflare’s stock is down more than 9% after the company’s outlook predicts a loss

In the extended session, Cloudflare Inc.’s stock fell. Thursday, after the cybersecurity firm’s quarterly results somewhat above Wall Street estimates, but its current quarter bottom-line prediction hinted at a likely miss in its next report.
Following a 14 percent decrease in the regular session, Cloudflare NET, -13.93 percent shares slid more than 9% after hours to close at $77.81. The stock’s price closed 1.5 percent lower than it was this time last year, wiping off the rest of Cloudflare’s gains during the previous 12 months. In comparison, the S&

Cloudflare predicts an adjusted loss of a penny a share on revenue of $226.5 million to $227.5 million in the second quarter, compared to break-even a share on revenue of $217.9 million predicted by FactSet analysts.

The business maintained its previous estimate of adjusted earnings of 3 cents to 4 cents per share for the year, while increasing its revenue prediction to $955 million to $959 million, up from a previous range of $927 million to $931 million. Analysts expect earnings of 3 cents per share on $931.1 million in revenue.

Cloudflare, meanwhile, posted a first-quarter loss of $41.4 million, or 13 cents per share, compared to a loss of $40 million, or 13 cents per share, a year ago. The adjusted loss was a penny per share, compared to a loss of 3 cents per share a year ago.

From $138.1 million in the previous quarter, revenue increased to $212.2 million.

Based on the company’s prediction of break-even to earnings of a penny a share on revenue of $205 million to $206 million, analysts predicted break-even on a per-share basis on revenue of $205.7 million.

“Cloudflare had a fantastic first quarter of 2022, smashing expectations with revenue growth of 54 percent year over year and acquiring over 14,000 new paying customers – a quarterly record,” Cloudflare CEO Matthew Prince said in a statement.

“Our biggest customers are getting bigger,” Prince added, “with those spending over $1 million a year up 72 percent year over year.” “Innovation at an unrelenting speed is the key to our success and client expansion, as is continuous interest in consolidating behind a single vendor that can power numerous network services at scale.”

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Kathy Lewis

Kathy Lewis is an all-around geek who loves learning new stuff every day. With a background in computer science and a passion for writing, she loves writing for almost all the sections of Editorials99.

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