Are you interested in the latest financial news and updates? Look no further than Extreme Investor Network for all things finance-related. Today, we’re diving into Cloudflare, Inc.’s recent first-quarter financial results and what they mean for investors.
Cloudflare, Inc. (NYSE:NET) reported impressive first-quarter earnings, beating analyst estimates across the board. The company reported quarterly earnings of 16 cents per share, exceeding the consensus estimate of 13 cents by 23.08%. Sales for the quarter reached $378.6 million, surpassing the analyst consensus estimate of $373.09 million and representing a 30.47% growth from the prior year’s period.
One standout metric from Cloudflare’s report was its free cash flow, which totaled $35.6 million, or 9% of revenue. This marked a significant improvement from the first quarter of 2023, where free cash flow stood at $13.9 million, or 5% of revenue. Additionally, the company had cash and equivalents totaling $1.716 billion as of March 31, 2024.
In a statement following the earnings release, Cloudflare CEO Matthew Prince highlighted the company’s strong performance and growth in revenue. Prince mentioned that a record number of net-new customers year-over-year spent more than $100,000, $500,000, and $1 million with Cloudflare on an annualized basis. He also emphasized the company’s ability to launch new products, expand its customer base, and maintain disciplined financial management.
Looking ahead, Cloudflare provided guidance for its second-quarter and full-year 2024 revenue and earnings. The company expects second-quarter revenue between $393.5 million and $394.5 million, with adjusted earnings of approximately 14 cents per share. For the full year, Cloudflare forecasts revenue between $1.648 billion and $1.652 billion, with adjusted earnings between 60 cents and 61 cents per share.
Despite the positive earnings report, Cloudflare’s stock experienced a 14.20% decline in after-hours trading, currently priced at $76.30. Investors are advised to stay informed and carefully consider their investment decisions in light of this development.
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