IT leader Cloudflare Inc (NYSE:NET) is moving 3.2% higher to trade at $76.74 this morning, after the company posted better-than-expected second-quarter results and raised its full-year outlook. The equity now expects earnings between 70 and 71 cents per share, with a 2024 profit of 61 cents per share. On the charts, while the shares have struggled over the past few months, they remain 18% higher year over year, with support below at the 320-day moving average. Today, Cloudflare stock is on track for its bes ...

I 1 Sundry Photography Investment Thesis Cloudflare (NYSE:NET) delivered very strong Q2 2024 results that saw its stock increase by 8% after hours. More specifically, Cloudflare's prospects remain undeniably strong, which led to Cloudflare once again raising its growth prospects. According to my estimates, Cloudflare is priced at 83x next year's non-GAAP operating profits. I maintain, as I've done for a while, that this is simply the going price for this sort of company. Investors are unlikely to get Cloudf ...

Financial Data and Key Metrics Changes - Cloudflare achieved $401 million in revenue for Q2 2024, representing a 30% year-over-year increase, crossing $1.6 billion in annualized revenue [5][18] - The company reported a gross margin of 79%, above the long-term target range of 75% to 77% [6][19] - Operating profit was $57 million, with an operating margin of 14.2%, an increase of 760 basis points year-over-year [22] - Free cash flow for the quarter was $38.3 million, up from $20 million in the same period last year [22] - The dollar-based net retention rate (DNR) was 112%, down 3 percentage points quarter-over-quarter [6][19] Business Line Data and Key Metrics Changes - The company added 168 new large customers, bringing the total to 3,046, which is a 30% increase year-over-year [5][18] - Revenue contribution from large customers remained consistent at 67%, up from 64% in the same quarter last year [5] - Sales productivity improved significantly, with close rates and sales cycles also showing improvement [6][17] Market Data and Key Metrics Changes - Revenue from the U.S. represented 51% of total revenue, increasing by 28% year-over-year [18] - EMEA accounted for 28% of revenue, with a 32% year-over-year increase, while APAC represented 13% of revenue, increasing by 29% year-over-year [18] Company Strategy and Development Direction - Cloudflare is focusing on operational efficiency and productivity, with a commitment to becoming a must-have solution for customers [6][22] - The company is investing in go-to-market improvements and hiring experienced leaders to enhance sales performance [7][8] - The strategy includes expanding the customer base through pool of funds deals, which allow for more flexible revenue recognition and longer contract durations [19][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging IT-buying environment but expressed confidence in the company's ability to execute and deliver strong results [6][41] - The focus on security remains a priority for customers, with ongoing high-profile security incidents driving investment in Cloudflare's solutions [41] - The company expects revenue for Q3 2024 to be in the range of $423 million to $424 million, representing a 26% year-over-year increase [23] Other Important Information - The company reported a total of 210,200 paying customers, an increase of 21% year-over-year [18] - Remaining performance obligations (RPO) were $1,421 million, representing a 6% sequential increase and a 37% year-over-year increase [22] Q&A Session Summary Question: What changes are being implemented to drive sales productivity? - Management highlighted improvements in operational metrics, training, and performance management as key factors driving sales productivity [26][27] Question: Has the dollar-based net retention rate bottomed out? - Management indicated that the decrease in DNR was influenced by pool of funds deals and slower net expansion in larger customer cohorts, suggesting potential for future fluctuations [29][30] Question: How is Cloudflare positioned in light of recent security incidents in the industry? - Management noted that customers are increasingly seeking resilience and are looking to diversify their vendor relationships, which could benefit Cloudflare [34][35] Question: What products stood out this quarter? - The developer platform, particularly the Workers platform, saw significant growth, with a 20% increase in active developer accounts [38] Question: How is the public sector momentum ahead of the federal fiscal year close? - Management expressed optimism about continued strong momentum in the public sector, particularly as agencies prepare for upcoming budget cycles [64]

| --- | --- | |---------------------|-------| | | | | | | | | | | | | | | | | | | | Investor | | | | | | Presentation | | | | | | | | | | | | | | | As of June 30, 2024 | | | | | | | | 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, ...

Cloudflare (NET) came out with quarterly earnings of $0.20 per share, beating the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.10 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 42.86%. A quarter ago, it was expected that this web security and content delivery company would post earnings of $0.13 per share when it actually produced earnings of $0.16, delivering a surprise of 23.08%. Over the las ...

Cloud connectivity company Cloudflare Inc NET reported second-quarter revenue of $401.0 million, up 30% year-over-year. The revenue beat a Street consensus estimate of $394.69 million, according to data from Benzinga Pro. The company reported earnings per share of 20 cents, which beat a Street consensus estimate of 14 cents per share. "We had a strong second quarter, crossing $1.6 billion in annualized revenue and growing 30% year-over-year. The world is still complicated, but our team remained focused on e ...

The web infrastructure and website security solution provider's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 37.7%. Earnings Whispers Our proven model does not conclusively predict an earnings beat for Cloudflare this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today's Zacks #1 Rank stoc ...

Book value per share excluding AOCI 85.42 81.92 Three months ended June 30, 2024 compared to 2023 CNA: Net income attributable to Loews Corporation improved 14% to $291 million from $255 million. Core income increased 6% to $326 million from $308 million. Net investment income increased due to higher income from fixed income securities as a result of favorable reinvestment rates and a larger invested asset base and favorable returns from limited partnerships. Net written premiums grew by 6% driven by strong ...

Shares of the web security and content delivery company have depreciated by 4.58% over the course of the past month, outperforming the Computer and Technology sector's loss of 5.32% and lagging the S&P 500's loss of 1.16%. Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Cloudflare. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business per ...

Shares of the web security and content delivery company have appreciated by 0.92% over the course of the past month, outperforming the Computer and Technology sector's loss of 4.77% and the S&P 500's gain of 0.43%. Investors should also note any recent changes to analyst estimates for Cloudflare. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability. Looking at it ...