Cloudflare, the Cybersecurity and Software Company Based in San Francisco, California, Announced Impressive Figures on Thursday.
On NASDAQ, the stock subsequently reacted with a strong price increase, which continued in pre-market trading. The CEO, Matthew Prince, praised the "exceptionally strong" fourth-quarter results, which far exceeded analysts' expectations.
Compared to the same period last year, Cloudflare was able to reduce its net loss from 45.9 million US dollars to 27.9 million US dollars. Even on an adjusted basis, the company achieved a significant increase, from 6 cents per share in the previous year to now 15 cents per share.
The revenue increased by 32 percent to 363 million US dollars, whereas analysts had merely expected 353 million US dollars.
The CEO Matthew Prince Emphasized the Strong Momentum with Large Customers, Significant Progress in the Public Sector, and Growth in Cloudflare One as Drivers for the Good Results. Analyst James Fish of Piper Sandler Also Praised the Report, Speaking of "A Lot of Positives."
For the current quarter, Cloudflare forecasts revenue of 372.5 to 373.5 million US dollars and an adjusted earnings per share of 13 cents. Analysts' expectations are at 372 million US dollars and 12 cents per share.
For the full fiscal year 2021, Cloudflare expects revenue of $1.648 to $1.652 billion and an adjusted earnings per share between 58 and 59 cents. Here, the FactSet analysts had forecasted revenue of $1.65 billion and an adjusted earnings per share of 54 cents.
Analyst Fish spoke positively about the developments and commented that the outlook for 2024 is likely to be conservative and that the 30 percent growth is sustainable. This reinforces the belief that the company is close to its low point.
The stock of Cloudflare rose by 9.3 percent at NASDAQ during Thursday's trading and closed at 90.31 US dollars. On Friday, the upward price movement continued and reached the highest level in almost two years at 117.92 US dollars during the course of trading. Thus, investor enthusiasm remained high.
