Cloudflare reported first quarter earnings and revenue that topped Wall Street targets while guidance only met expectations. Cloudflare stock fell Friday on the revenue outlook.
Reported after the market close on Thursday, Cloudflare earnings for the quarter ending March 31 came in at 16 cents, up 100% from a year earlier.
Revenue climbed 30% to $378.6 million, the San Francisco-based company said.
Analysts predicted adjusted profit of 13 cents a share and revenue of $373.2 million.
Cloudflare Stock: Guidance Meets Views
For the current quarter ending in June, Cloudflare forecast revenue of $394 million, in-line with consensus estimates.
"Q1 revenue growth of 30% year-over-year beat consensus of 29%, while 2024 guidance of 27% growth was unchanged and missed expectations," said Jefferies analyst Brent Thill in a report. "Cloudflare remains wary of potential macro pitfalls related to geopolitics. Positively, go-to-market changes appear to be taking root."
Fastly, a rival of Cloudflare, on Wednesday reported earnings and commented on pricing pressure with top customers.
On the stock market today, Cloudflare stock tumbled 16.4% to close at 74.40. NET stock had climbed 4% in 2024 heading into the Cloudflare earnings report.
In addition, Cloudflare stock owns a Relative Strength Rating of 94 out of a best-possible 99, according to IBD Stock Checkup.
Started in 2009, Cloudflare works to speed up and provide security for web applications routed through its intelligent global network. The company has added web infrastructure to handle fast emerging generative artificial intelligence apps.
If you're new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines.
IBD offers a broad range of growth stock lists, such as Leaderboard. Investors also can create watchlists for issues such as Citrix stock, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
