Cloudflare (NET) reported fourth-quarter 2024 non-GAAP earnings of 19 cents per share, which beat the Zacks Consensus Estimate by 5.6%. The bottom line increased 26.7% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.NET’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 20.65%.NET’s fourth-quarter revenues increased 27% year over year to $459.9 million, which surpassed the consensus mark by 1.8%.The year-o ...

Core Insights - Cloudflare's fourth-quarter financial report indicates a strong upward trajectory in revenue and adjusted net income, despite a slight decline in gross margin [3][4]. Financial Performance - Total revenue for Q4 2023 was $362.5 million, increasing to $459.9 million in Q4 2024, representing a growth of 27% and beating expectations [2]. - Adjusted earnings per share rose from $0.15 in Q4 2023 to $0.19 in Q4 2024, also a 27% increase and exceeding expectations [2]. - Free cash flow decreased from $50.7 million in Q4 2023 to $47.8 million in Q4 2024, a decline of 6% [2]. - Adjusted gross margin slightly decreased from 78.9% to 77.6%, a drop of 1.3 percentage points [2]. Customer Growth - The company added 55 new clients contributing $1 million or more in revenue during 2024, with over half of these additions occurring in the last quarter [4]. Market Reaction - Following the financial report, Cloudflare's shares rose by 6% in the first hour of post-market trading, reflecting investor satisfaction with the exceeded sales and earnings figures [5]. Future Guidance - For 2025, Cloudflare projects revenue between $2.09 billion and $2.094 billion, indicating a growth rate of approximately 25% [6]. - Adjusted earnings per share are expected to be between $0.79 and $0.80, translating to modest growth of 5% to 7% [6]. Investment in Innovation - The company anticipates significant expenditures to maintain technological innovation, as indicated by the decline in free cash flow during Q4 2024 [7].

Financial Data and Key Metrics Changes - The company achieved revenue of $459.9 million in Q4 2024, up 27% year over year [9][44]. - Gross margin was 77.6%, remaining above the long-term target range of 75% to 77% [11][48]. - Operating income was $67.2 million, representing a 69% increase year over year, with an operating margin of 14.6% [52]. - Free cash flow for the quarter was $47.8 million, or 10% of revenue, compared to $50.7 million or 14% of revenue in the same period last year [54]. Business Line Data and Key Metrics Changes - The company added a record number of large customers, totaling 3,497, which is a 27% increase year over year [10][45]. - Revenue contribution from large customers grew to 69% of total revenue, up from 66% in the same quarter last year [10][46]. - The dollar-based net retention rate increased to 111%, up one percentage point quarter over quarter [10][47]. Market Data and Key Metrics Changes - U.S. revenue represented 58% of total revenue, increasing 27% year over year [44]. - EMEA accounted for 28% of revenue, also up 27% year over year, while APAC represented 14% of revenue, increasing 39% year over year [44]. Company Strategy and Development Direction - The company is focused on improving go-to-market execution and has seen a fifth consecutive quarter of double-digit year-over-year increases in sales productivity [16][43]. - The strategy includes aggressive hiring in the sales organization, with nearly 80% of new hires in the enterprise segment [18]. - The company aims to leverage its strengths in security, AI, modernization, and efficiency to capture demand in 2025 [12][15]. Management's Comments on Operating Environment and Future Outlook - Management noted that customers have been disciplined with budgets but are beginning to show signs of returning confidence, particularly in the U.S. [12]. - The company expects to see a meaningful acceleration in sales capacity and productivity in 2025, with 80% of the full-year plan assigned to account executives already in place [20][58]. - For Q1 2025, the company expects revenue in the range of $468 million to $469 million, representing a 24% year-over-year increase [58]. Other Important Information - The company ended Q4 2024 with $1.86 billion in cash, cash equivalents, and available-for-sale securities [54]. - Remaining performance obligations (RPO) increased to $1.687 billion, representing a 36% year-over-year increase [55]. Q&A Session Summary Question: Inquiry about the efficiency of inference workloads moving to the edge - Management discussed the optimizations from DeepSeq and the potential for AI models to commodify, which aligns with the company's strengths in efficiency [66][70]. Question: Focus on product innovation and upcoming inflection points - Management expressed excitement about proving world-class go-to-market capabilities and highlighted various innovative applications being built on the Cloudflare platform [80][82]. Question: Impact of pool of funds deals in Q4 and 2025 - Management indicated that pool of funds activity in Q4 was comparable to the prior quarter, and they are optimistic about its impact on revenue recognition in 2025 [87][90]. Question: Update on FedRAMP high and government business - Management emphasized the importance of federal business and the strategy to comply with FedRAMP high requirements without fragmenting the network [96][100]. Question: Security performance and standout product categories - Management noted that large customers are increasingly adopting the entire Cloudflare platform rather than individual products, which is driving growth [105][107]. Question: Changes in compensation and incentives for sales teams - Management discussed the adjustments in compensation structures to align with pool of funds deals and ensure deep customer relationships [117][120].

Investor Presentation As of December 31, 2024 © 2024 Cloudflare, Inc. Safe Harbor This presentation has been prepared by Cloudflare, Inc. ("Cloudflareˮ) for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise, or representation by the presenter or Cloudflare or any officer, director, employee, agent, or advisor of Cloudflare. This presentation does not purport to be all-inclusive or to contain all of the i ...

Cloudflare (NET) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.18 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.56%. A quarter ago, it was expected that this web security and content delivery company would post earnings of $0.18 per share when it actually produced earnings of $0.20, delivering a surprise of 11.11%.Over the last ...

Cloudflare reported earnings that not only beat analyst estimates but also exceeded its own forecasts, highlighting robust revenue growth and strategic customer acquisition.Cloudflare (NET -1.92%), a leader in network and cybersecurity services, delivered impressive results for Q4 2024, in its earnings release on Feb. 6, 2025. Revenue hit $459.9 million, surpassing both analyst expectations of $452 million and its own guidance of $451 to $452 million. Non-GAAP earnings per share (EPS) stood at $0.19, outpac ...

Financial Performance - Fourth quarter revenue totaled $459.9 million, representing a 27% year-over-year increase; fiscal year 2024 revenue totaled $1,669.6 million, representing a 29% year-over-year increase[5] - Revenue for the three months ended December 31, 2024, was $459.946 million, a 27% increase from $362.473 million in the same period of 2023[22] - Gross profit for the year ended December 31, 2024, was $1.291 billion, up from $989.740 million in 2023, reflecting a 30% year-over-year growth[22] - Total operating expenses for the year ended December 31, 2024, increased to $1.446 billion, compared to $1.175 billion in 2023, representing a 23% increase[22] - Net loss for the year ended December 31, 2024, was $78.800 million, an improvement from a net loss of $183.949 million in 2023[27] - Non-GAAP net income for the year ended December 31, 2024, was $269,013 thousand, compared to $169,674 thousand in 2023, indicating a 58.5% increase[33] Cash Flow and Liquidity - Cash flow from operating activities for the fourth quarter was $127.3 million, compared to $85.4 million for the fourth quarter of 2023[6] - The company reported a net cash provided by operating activities of $380.429 million for the year ended December 31, 2024, compared to $254.406 million in 2023[27] - Free cash flow for Q4 2024 was $47,754 thousand, slightly down from $50,716 thousand in Q4 2023[36] - The percentage of net cash provided by operating activities relative to revenue for Q4 2024 was 28%, up from 24% in Q4 2023[36] - Cash, cash equivalents, and available-for-sale securities were $1,855.9 million as of December 31, 2024[6] - Cash and cash equivalents as of December 31, 2024, were $147.691 million, up from $86.864 million in 2023[25] Customer Metrics - Customers spending more than $1 million grew to 173, representing a 47% increase year-over-year[5] Operating Metrics - GAAP loss from operations for the fourth quarter was $34.7 million, or 7.5% of total revenue, compared to a loss of $42.8 million, or 11.8% of total revenue, in the fourth quarter of 2023[6] - Non-GAAP income from operations for the fourth quarter was $67.2 million, or 14.6% of total revenue, compared to $39.8 million, or 11.0% of total revenue, in the fourth quarter of 2023[6] - GAAP net loss for the fourth quarter was $12.8 million, compared to $27.9 million in the fourth quarter of 2023[6] - Non-GAAP net income for the fourth quarter was $68.8 million, compared to $53.5 million in the fourth quarter of 2023[6] - GAAP operating margin for Q4 2024 was (7.5)%, an improvement from (11.8)% in Q4 2023[29] - Non-GAAP operating margin for the year ended December 31, 2024, was 13.8%, compared to 9.4% in 2023[29] Investment and Assets - The company invested $185.037 million in property and equipment during the year ended December 31, 2024, compared to $114.396 million in 2023[27] - Total assets increased to $3.301 billion as of December 31, 2024, compared to $2.760 billion in 2023, marking a 20% growth[25] - Total stockholders' equity rose to $1.046 billion in 2024, up from $763.047 million in 2023, indicating a 37% increase[25] - The company reported a net cash used in investing activities of $330,224 thousand for the year ended December 31, 2024, compared to $186,201 thousand in 2023[36] Deferred Revenue - The company’s deferred revenue increased to $477.765 million as of December 31, 2024, up from $347.608 million in 2023, reflecting a 37% growth[25] Non-GAAP Metrics - Non-GAAP gross profit for the year ended December 31, 2024, reached $1,313,605 thousand, compared to $1,015,802 thousand in 2023, reflecting a 29.3% growth[29] - Non-GAAP net income per share for the full year 2025 is expected to be between $0.79 and $0.80[13] - Non-GAAP income from operations and operating margin exclude stock-based compensation expense, related employer payroll taxes, amortization of acquired intangible assets, and acquisition-related expenses[41] - Non-GAAP net income adjusts for stock-based compensation, related employer payroll taxes, amortization of acquired intangibles, acquisition-related expenses, and amortization of issuance costs[42] - Non-GAAP gross profit and gross margin exclude stock-based compensation and related employer payroll taxes, as well as amortization of acquired intangible assets[40] Future Guidance - Full year 2025 revenue is expected to be between $2,090.0 million and $2,094.0 million[13]

Cloudflare Inc NET will be reporting its fourth-quarter earnings on Thursday. Wall Street expects 18 cents in EPS and $452.10 million in revenues as the company reports after market hours.The stock is up 73.71% over the past year, 25.94% YTD.Let’s look at what the charts indicate for Cloudflare stock and how the stock currently maps against Wall Street estimates.Read Also: Cloudflare Introduces One-Click Tool To Combat Image Deepfakes And MisinformationCloudflare Stock Strongly Bullish Ahead of Q4 EarningsC ...

Cloudflare Inc. (NET) is scheduled to report fourth-quarter 2024 results on Feb. 6.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Cloudflare expects fourth-quarter revenues to be in the band of $451-$452 million. The Zacks Consensus Estimate for the top line is pegged at $451.8 million, which indicates a year-over-year improvement of 24.7%.Cloudflare expects non-GAAP earnings of 18 cents per share for the to-be-reported quarter. The consensus mark for earnings is pegged at 18 cents ...

Cloudflare (NET) shares rallied 10.7% in the last trading session to close at $139.98. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 16% gain over the past four weeks.The stock got a boost from several bullish reports from research firms, including JMP Securities, Truist and Wells Fargo. All the firms raised their target price on the stock while maintaining a buy recommendation.This web security and content ...