Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $459.9 million, representing a 27% year-over-year increase [6][31] - The number of large customers (those paying over $100,000 annually) increased by 27% year-over-year to 3,497 [6][32] - Gross margin was 77.6%, slightly down from the previous year [34] - Operating income was $67.2 million, a 69% increase year-over-year, with an operating margin of 14.6% [36] - Free cash flow for the quarter was $47.8 million, or 10% of revenue [37] Business Line Data and Key Metrics Changes - Revenue contribution from large customers grew to 69% of total revenue, up from 66% in the same quarter last year [6][33] - The company saw a notable uptick in close rates and improvements in sales cycles during Q4 [10][30] - The number of active developers on the platform surpassed 3 million, indicating strong engagement with Cloudflare Workers and Workers.ai [10] Market Data and Key Metrics Changes - The U.S. market represented 50% of total revenue, increasing by 23% year-over-year [31] - EMEA accounted for 28% of revenue, with a 27% year-over-year increase, while APAC represented 14% of revenue, growing by 39% year-over-year [31] Company Strategy and Development Direction - The company aims to enhance its go-to-market execution, focusing on sales productivity and hiring enterprise account executives [12][14] - Cloudflare is positioning itself to capitalize on trends in security, AI, and modernization, which align with its strengths [9][11] - The company is committed to maintaining a unified network architecture while expanding its federal business [63][66] Management's Comments on Operating Environment and Future Outlook - Management noted that customers are increasingly scrutinizing budgets and ensuring value for every dollar spent, but confidence is returning, particularly in the U.S. [8][9] - The company expects to see a reacceleration of growth in 2025, driven by improved sales capacity and productivity [14][39] - For Q1 2025, revenue is expected to be in the range of $468 million to $469 million, representing a 24% year-over-year increase [39] Other Important Information - The company ended Q4 with $1.86 billion in cash and equivalents, maintaining a strong balance sheet [37] - The shift from AI training to AI inference is expected to drive increased investment in GPU capacity [35] Q&A Session Summary Question: Inquiry about the impact of DeepSeq on inference workloads - Management acknowledged that DeepSeq has demonstrated significant optimizations in AI training costs, which could lead to more inference workloads moving to the edge [42][44] Question: Focus on product innovation and upcoming inflection points - Management expressed excitement about the company's ability to prove itself in go-to-market strategies and highlighted the importance of customer-focused product development [51][52] Question: Impact of pool of funds deals on revenue - Management indicated that pool of funds deals contributed approximately nine percentage points to revenue in Q4 and expressed confidence in their recognition as revenue throughout 2025 [57][58] Question: Update on FedRAMP High and government business - Management confirmed that the company is committed to maintaining a unified network while complying with FedRAMP High requirements, and noted growth in federal business both domestically and internationally [61][66] Question: Security performance and standout product categories - Management noted that large customers are increasingly adopting the full suite of Cloudflare products, indicating a shift towards a comprehensive platform approach [70][72]

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]

Core Viewpoint - Cloudflare Inc is set to report its fourth-quarter earnings, with Wall Street expecting an EPS of 18 cents and revenues of $452.10 million, while the stock has shown significant bullish momentum, increasing 73.71% over the past year and 25.94% year-to-date [1]. Group 1: Stock Performance and Technical Indicators - Cloudflare stock is exhibiting strong bullish momentum ahead of its earnings report, trading at $144.29, which is above key moving averages, indicating sustained buying pressure [1]. - The eight-day simple moving average at $137.48 reinforces the bullish trend, with the stock also positioned above its 20-day ($125.15), 50-day ($115.93), and 200-day ($90.08) simple moving averages, signaling strength across all time frames [2]. - The Moving Average Convergence Divergence (MACD) indicator at 8.02 supports strong momentum, while the Relative Strength Index (RSI) at 78.13 indicates that Cloudflare is in overbought territory, which may lead to short-term volatility and potential profit-taking [3]. Group 2: Earnings Expectations and Analyst Ratings - A strong earnings beat could drive the stock higher, while a miss may test support levels around $125–$115, with traders advised to watch for potential pullbacks, although the broader trend remains bullish [4]. - The consensus analyst rating for Cloudflare stock is currently a Buy, with a price target of $111.46, while recent ratings from Needham, Baird, and Truist Securities suggest a 3.67% upside with a price target of $146.67 [5].

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 ...

Shares of Cloudflare (NET) have been strong performers lately, with the stock up 9.3% over the past month. The stock hit a new 52-week high of $123.13 in the previous session. Cloudflare has gained 14.3% since the start of the year compared to the 37.2% move for the Zacks Computer and Technology sector and the 41.7% return for the Zacks Internet - Software industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus ...

Shares of cybersecurity firm Cloudflare (NET 3.76%) were up Friday, gaining 3.9% as of 12:30 p.m. ET. The stock was up as much as 5.4% earlier in the day. The leg up comes as the S&P 500 (^GSPC 1.28%) and the Nasdaq Composite (^IXIC 1.84%) were up 1% and 1.7%, respectively.An analyst at Citigroup upgraded Cloudflare's rating, helping to boost the stock.Higher highsIn a research report on Friday, Citi's Fatima Boolani upgraded Cloudflare from neutral to buy, adjusting her price target for Cloudflare stock fr ...

The latest trading session saw Cloudflare (NET) ending at $114.82, denoting a +0.3% adjustment from its last day's close. The stock outpaced the S&P 500's daily loss of 0.21%. On the other hand, the Dow registered a loss of 0.16%, and the technology-centric Nasdaq decreased by 0.89%.The the stock of web security and content delivery company has risen by 4.93% in the past month, leading the Computer and Technology sector's loss of 2.15% and the S&P 500's loss of 1.56%.The upcoming earnings release of Cloudfl ...

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outsta ...