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Cloudflare (NET) to Report Q3 Earnings: What's in the Offing?
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Cloudflare (NET - Free Report) is scheduled to report its third-quarter 2022 results on Nov 3.
The company projects third-quarter revenues in the band of $250-$251 million. The Zacks Consensus Estimate for the top line is currently pegged at $250.2 million, indicating an improvement of 45.2% year over year.
Cloudflare expects the bottom line between break-even and earnings of a penny per share. The consensus mark for the same stands at breakeven per share, implying no change year over year.
The web infrastructure and website security solution provider projects non-GAAP income from operations to be between zero and $1 million.
Cloudflare’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 100%.
Cloudflare’s third-quarter performance is likely to have benefited from solid demand for security solutions, which became imperative due to aggravated cyberattacks, work and learn-from-home policies and a zero-trust approach.
The to-be-reported quarter’s top line is likely to have witnessed the impact of the accelerated global footprint expansion outside of the United States. It is worth mentioning that the United States, the EMEA and the APAC represented 53%, 26% and 14% of total revenues, respectively, in the second quarter.
Besides this, a diversified customer base is likely to have contributed to NET’s third-quarter top line. It added around 3,619 new paying customers in the last reported quarter, bringing the total count to approximately 151,803 across more than 170 countries.
Cloudflare added 212 new large customers (annual billings of more than $100,000), taking the total count to 1,749 at the end of the second quarter, up from 1,537 recorded at the end of the first quarter of fiscal 2022. This uptrend, which has prevailed for the past few quarters, is likely to have continued in the to-be-reported quarter as well, backed by the elevated demand for its cloud-based solutions amid the ongoing remote-working trend.
The company's recurring subscription-based business model has been providing relative stability to its top line amid post-pandemic disruptions. It expects variability in cash flow margins due to working capital fluctuations, large enterprise business growth and seasonal factors.
However, Cloudflare’s significant exposure to small and medium businesses, the worst-hit cohorts by the pandemic and ongoing geopolitical uncertainties worldwide, is likely to have weighed on its performance in the quarter to be reported.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for NET this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Cloudflare currently has an Earnings ESP of -3,100.00% and carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Per our model, Pyxis Tankers (PXS - Free Report) , Helmerich & Payne (HP - Free Report) and Copa Holdings (CPA - Free Report) are some stocks that investors can consider, as these have the right combination of elements to post an earnings beat in their upcoming releases.
Pyxis has an Earnings ESP of +12.82% and sports a Zacks Rank #1. The company is anticipated to report its third-quarter 2022 results on Nov 21. Pyxis’ earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the negative average surprise being 30.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for PXS’s third-quarter earnings is pegged at 39 cents per share, indicating a 197.5% surge from the year-ago quarter’s loss of 40 cents per share. The consensus mark for revenues stands at $16.4 million, suggesting a year-over-year increase of 134%.
Helmerich & Payne has an Earnings ESP of +14.32% and currently sports a Zacks Rank #1. The company is slated to report its fourth-quarter fiscal 2022 results on Nov 16. Helmerich & Payne’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters and missed once, the average surprise being 118.2%.
The Zacks Consensus Estimate for HP’s fiscal fourth-quarter earnings stands at 43 cents per share, implying a year-over-year increase of 169.4%. Helmerich is estimated to report revenues of $591.4 million, which suggests a surge of 72% from the year-ago quarter.
Copa Holdings has an Earnings ESP of +0.26% and carries a Zacks Rank #2 at present. The company is slated to report its third-quarter 2022 results on Nov 16. CPA’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 174.2%.
The Zacks Consensus Estimate for quarterly earnings is pegged at $2.63 per share, suggesting a year-over-year increase of 275.7%. Copa’s quarterly revenues are estimated to increase 83.4% year over year to $816.2 billion.
Image: Bigstock
Cloudflare (NET) to Report Q3 Earnings: What's in the Offing?
Cloudflare (NET - Free Report) is scheduled to report its third-quarter 2022 results on Nov 3.
The company projects third-quarter revenues in the band of $250-$251 million. The Zacks Consensus Estimate for the top line is currently pegged at $250.2 million, indicating an improvement of 45.2% year over year.
Cloudflare expects the bottom line between break-even and earnings of a penny per share. The consensus mark for the same stands at breakeven per share, implying no change year over year.
The web infrastructure and website security solution provider projects non-GAAP income from operations to be between zero and $1 million.
Cloudflare’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 100%.
Cloudflare, Inc. Price and EPS Surprise
Cloudflare, Inc. price-eps-surprise | Cloudflare, Inc. Quote
Factors to Consider
Cloudflare’s third-quarter performance is likely to have benefited from solid demand for security solutions, which became imperative due to aggravated cyberattacks, work and learn-from-home policies and a zero-trust approach.
The to-be-reported quarter’s top line is likely to have witnessed the impact of the accelerated global footprint expansion outside of the United States. It is worth mentioning that the United States, the EMEA and the APAC represented 53%, 26% and 14% of total revenues, respectively, in the second quarter.
Besides this, a diversified customer base is likely to have contributed to NET’s third-quarter top line. It added around 3,619 new paying customers in the last reported quarter, bringing the total count to approximately 151,803 across more than 170 countries.
Cloudflare added 212 new large customers (annual billings of more than $100,000), taking the total count to 1,749 at the end of the second quarter, up from 1,537 recorded at the end of the first quarter of fiscal 2022. This uptrend, which has prevailed for the past few quarters, is likely to have continued in the to-be-reported quarter as well, backed by the elevated demand for its cloud-based solutions amid the ongoing remote-working trend.
The company's recurring subscription-based business model has been providing relative stability to its top line amid post-pandemic disruptions. It expects variability in cash flow margins due to working capital fluctuations, large enterprise business growth and seasonal factors.
However, Cloudflare’s significant exposure to small and medium businesses, the worst-hit cohorts by the pandemic and ongoing geopolitical uncertainties worldwide, is likely to have weighed on its performance in the quarter to be reported.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for NET this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Cloudflare currently has an Earnings ESP of -3,100.00% and carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Per our model, Pyxis Tankers (PXS - Free Report) , Helmerich & Payne (HP - Free Report) and Copa Holdings (CPA - Free Report) are some stocks that investors can consider, as these have the right combination of elements to post an earnings beat in their upcoming releases.
Pyxis has an Earnings ESP of +12.82% and sports a Zacks Rank #1. The company is anticipated to report its third-quarter 2022 results on Nov 21. Pyxis’ earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the negative average surprise being 30.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for PXS’s third-quarter earnings is pegged at 39 cents per share, indicating a 197.5% surge from the year-ago quarter’s loss of 40 cents per share. The consensus mark for revenues stands at $16.4 million, suggesting a year-over-year increase of 134%.
Helmerich & Payne has an Earnings ESP of +14.32% and currently sports a Zacks Rank #1. The company is slated to report its fourth-quarter fiscal 2022 results on Nov 16. Helmerich & Payne’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters and missed once, the average surprise being 118.2%.
The Zacks Consensus Estimate for HP’s fiscal fourth-quarter earnings stands at 43 cents per share, implying a year-over-year increase of 169.4%. Helmerich is estimated to report revenues of $591.4 million, which suggests a surge of 72% from the year-ago quarter.
Copa Holdings has an Earnings ESP of +0.26% and carries a Zacks Rank #2 at present. The company is slated to report its third-quarter 2022 results on Nov 16. CPA’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 174.2%.
The Zacks Consensus Estimate for quarterly earnings is pegged at $2.63 per share, suggesting a year-over-year increase of 275.7%. Copa’s quarterly revenues are estimated to increase 83.4% year over year to $816.2 billion.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.