The company is pricey on its valuations, so some expect it to outperform.Cloudflare (NET -16.38%) stock has been having a rough time of it very recently, following an earnings report that left many investors dissatisfied.Many are getting more bearish on the content delivery network (CDN) specialist, including several analysts tracking the stock. One just pulled the lever on a big price target cut, but here's the catch -- he kept his buy recommendation intact, and had some positive things to say about that r ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2024 increased by 30% year-over-year to $378.6 million [139] - Gross margin was 79.5%, up from 78.9% in the previous quarter and 77.8% year-over-year [140] - Operating profit was $42.4 million, representing an operating margin of 11.2% [6] - Net income for the quarter was $58.2 million, or $0.16 per share [16] - Free cash flow was $35.6 million, or 9% of revenue, compared to $13.9 million, or 5% of revenue, in the same period last year [16] Business Line Data and Key Metrics Changes - The dollar-based net retention rate remained steady at 115% [14] - The number of paying customers increased by 17% year-over-year to approximately 197,000 [44] - Large customers increased by 33% year-over-year, totaling about 2,900 [44] - Operating expenses as a percentage of revenue decreased by 3% year-over-year to 68% [45] Market Data and Key Metrics Changes - U.S. revenue represented 52% of total revenue, increasing by 28% year-over-year [139] - EMEA accounted for 28% of revenue, with a 35% year-over-year increase [139] - APAC represented 12% of revenue, increasing by 22% year-over-year [139] Company Strategy and Development Direction - The company aims to enhance its go-to-market efforts and expand sales capacity, with plans to accelerate headcount additions in the coming quarters [15] - Cloudflare is focusing on operational excellence and long-term growth while delivering significant shareholder value [17] - The company is committed to building a world-class enterprise sales organization and becoming a strategic vendor for Fortune 500 companies [38] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the macroeconomic environment, noting increased uncertainty and geopolitical tensions [122][78] - Despite short-term uncertainties, management remains optimistic about long-term growth opportunities [9][122] - The company is observing a mix of positive and negative signals in the market, leading to a prudent outlook for 2024 [142][78] Other Important Information - The company generated strong free cash flow driven by an uptick in collections on accounts receivable [13] - The remaining performance obligations (RPO) increased by 40% year-over-year to $1.343 billion [16] - The company is rolling out GPUs across its network, with over 150 cities globally equipped, enhancing its AI capabilities [125] Q&A Session Summary Question: Can you discuss the progress in the SASE market? - Management highlighted that their SASE platform is significantly better and faster than competitors, leading to increased market share [49] Question: How should we think about billings in the context of the expanded usage-based pricing model? - Management acknowledged that while billings are not a primary metric, they are optimistic about the adoption of their usage-based pricing model [20] Question: Can you provide examples of applications built on Workers AI? - Examples include a food ordering company generating food images, photo editing platforms enhancing images, and startups creating songs in various languages [23][24] Question: What are the implications of the macroeconomic environment on your guidance? - Management noted that while there are concerns about the macro environment, they do not see clear signals of a slowdown like in previous years [96][78] Question: Are there any competitors emerging in the serverless low latency space? - Management believes they have a unique position and do not see significant competition in their serverless architecture offerings [113]

DEI Report/ESG Index | --- | --- | --- | |-------------------------|------------------------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Cloudflare's mission is to | | | | | | | | Help build a better Internet | | | | | | | | | | | | | | | | | | | | | | | © 2024 Cloudflare, Inc. | | 5 | ATION OBTAINABLE, NO CLAIM CAN BE NADE FOR ITS ACCURACY) From Endless Hardware to a Global Cloud Platform • Specialized hardware vv • Unified control plane • Broad, integrated pr ...

Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________ FORM 10-Q __________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-39039 _ ...

San Francisco, CA, May 2, 2024 — Cloudflare, Inc. (NYSE: NET), the leading connectivity cloud company, today announced financial results for its first quarter ended March 31, 2024. "The first quarter marked a strong start to the year, as we grew revenue 30% year-over-year to $378.6 million—fueled by a record number of net-new customers year-over-year spending more than $100,000, $500,000, and $1 million with Cloudflare on an annualized basis. I'm incredibly proud of the fact that our team has been able to c ...

Cloudflare (NET) is scheduled to report first-quarter 2024 results on May 2, after market close.The company projects first-quarter revenues of $372.5-$373.5 million. The Zacks Consensus Estimate for the top line is pegged at $372.9 million, indicating a year-over-year improvement of 28.5%.Cloudflare expects non-GAAP earnings per share of 13 cents for the to-be-reported quarter. The consensus mark for earnings is also pegged at 13 cents per share, implying an improvement of 62.5% from the year-ago quarter’s ...

Cloudflare (NET) closed the latest trading day at $88.01, indicating a +1.44% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 1.02%. Elsewhere, the Dow saw an upswing of 0.4%, while the tech-heavy Nasdaq appreciated by 2.03%.Heading into today, shares of the web security and content delivery company had lost 10.4% over the past month, lagging the Computer and Technology sector's loss of 5.32% and the S&P 500's loss of 3.15% in that time.Investors ...

The most recent trading session ended with Cloudflare (NET) standing at $87.68, reflecting a -0.23% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.02%. Meanwhile, the Dow experienced a drop of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.1%.Prior to today's trading, shares of the web security and content delivery company had lost 11.3% over the past month. This has lagged the Computer and Technology sector's loss of 5.13% a ...

In the latest market close, Cloudflare (NET) reached $86.71, with a -1.47% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.22%. Meanwhile, the Dow gained 0.06%, and the Nasdaq, a tech-heavy index, lost 0.52%.Shares of the web security and content delivery company have depreciated by 10.19% over the course of the past month, underperforming the Computer and Technology sector's loss of 1.64% and the S&P 500's loss of 1.66%.The investment community will ...

Cloudflare (NET) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Over the past month, shares of this web security and content delivery company have returned -10.2%, compared to the Zacks S&P 500 composite's -1.7% change. During this period, the Zacks Internet - Software industry, which Cloudflare falls in, has lost 1.5%. The key question now is: What could be the s ...