We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cloudflare Q4 Earnings & Revenues Beat: Will the Stock Move Upward?
Read MoreHide Full Article
Cloudflare (NET - Free Report) 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-over-year improvement in revenues can be attributed to the sustained momentum in the onboarding of large new enterprises, remarkable progress in the public sector and continued high prioritization of security by its customers and a zero-trust approach.
NET’s stronger-than-expected fourth-quarter 2024 results, driven by a huge inflow of large enterprises outside the U.S. region, accompanied by a raised first-quarter outlook, are anticipated to positively impact the stock’s movement, which climbed 11.7% in the after-market trading following the results.
In the past year, shares of NET have surged 69.8% compared with the Zacks Internet - Software industry’s return of 32.1%.
Cloudflare, Inc. Price, Consensus and EPS Surprise
NET’s top-line performance was positively impacted by its mix of customer segments (Channel Partners and Direct Customers).
Revenues from Channel Partners (22% of total revenues) were $101.4 million, up 63.8% year over year.
Fourth-quarter revenues from Direct Customers (78% of total revenues) were $358.6 million, up 19.3% year over year.
NET had 237,714 paying customers in the fourth quarter, up 25.3% year over year. NET added 232 new customers who contributed more than $100,000 in annual revenues. The total count of such customers reached 3,497 at the end of the quarter.
NET’s fourth-quarter non-GAAP gross profit increased 24.7% year over year to $356.8 million. The non-GAAP gross margin contracted 130 basis points (bps) year over year to 77.6%.
Non-GAAP operating income for the quarter jumped to $67.2 million from $39.8 million in the year-ago quarter. The non-GAAP operating margin expanded 360 bps year over year to 14.6%.
NET’s Balance Sheet & Cash Flow
As of Dec. 31, 2024, Cloudflare had cash, cash equivalents and available-for-sale securities of $1.86 billion, up from $1.82 billion as of Sept. 30, 2024.
NET generated an operating cash flow of $127.3 million and a free cash flow of $47.8 million.
NET Initiates Q1 and FY25 Guidance
For the first quarter, Cloudflare expects revenues in the $468-$469 million range.
The Zacks Consensus Estimate for revenues is pegged at $471.8 million, suggesting a year-over-year rise of 24.6%.
Non-GAAP income from operations in the first quarter is expected to be between $54 million to $55 million. Non-GAAP earnings are anticipated to be 16 cents per share.
The Zacks Consensus Estimate for earnings is pegged at 19 cents per share, indicating a year-over-year rise of 18.8%.
For 2025, NET anticipates revenues between $2.09 billion and $2.094 billion. The consensus mark for revenues is pegged at $2.07 billion, suggesting a year-over-year rise of 24.8%.
Non-GAAP income from operations is projected to be in the range of $272-$276 million. Non-GAAP earnings per share are anticipated to be between 79 cents and 80 cents.
The Zacks Consensus Estimate for earnings is pegged at 84 cents per share, indicating a year-over-year increase of 13.8%.
The consensus mark for ANET’s 2025 earnings has been revised upward by a penny to $2.42 per share over the past 60 days, indicating a 17.5% year-over-year increase. ANET shares have surged 67.1% in the past year.
The consensus mark for CLS’ 2025 earnings has been revised upward by 33 cents to $4.75 per share over the past seven days, indicating a 22.4% year-over-year increase. CLS shares have skyrocketed 254.8% in the past year.
The consensus mark for PBI’s 2025 earnings has been revised upward by 4 cents to $1.12 per share over the past 30 days, indicating a 180% year-over-year increase. PBI shares have rallied 120.9% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Cloudflare Q4 Earnings & Revenues Beat: Will the Stock Move Upward?
Cloudflare (NET - Free Report) 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-over-year improvement in revenues can be attributed to the sustained momentum in the onboarding of large new enterprises, remarkable progress in the public sector and continued high prioritization of security by its customers and a zero-trust approach.
NET’s stronger-than-expected fourth-quarter 2024 results, driven by a huge inflow of large enterprises outside the U.S. region, accompanied by a raised first-quarter outlook, are anticipated to positively impact the stock’s movement, which climbed 11.7% in the after-market trading following the results.
In the past year, shares of NET have surged 69.8% compared with the Zacks Internet - Software industry’s return of 32.1%.
Cloudflare, Inc. Price, Consensus and EPS Surprise
Cloudflare, Inc. price-consensus-eps-surprise-chart | Cloudflare, Inc. Quote
Cloudflare’s Q4 Details
NET’s top-line performance was positively impacted by its mix of customer segments (Channel Partners and Direct Customers).
Revenues from Channel Partners (22% of total revenues) were $101.4 million, up 63.8% year over year.
Fourth-quarter revenues from Direct Customers (78% of total revenues) were $358.6 million, up 19.3% year over year.
NET had 237,714 paying customers in the fourth quarter, up 25.3% year over year. NET added 232 new customers who contributed more than $100,000 in annual revenues. The total count of such customers reached 3,497 at the end of the quarter.
NET’s fourth-quarter non-GAAP gross profit increased 24.7% year over year to $356.8 million. The non-GAAP gross margin contracted 130 basis points (bps) year over year to 77.6%.
Non-GAAP operating income for the quarter jumped to $67.2 million from $39.8 million in the year-ago quarter. The non-GAAP operating margin expanded 360 bps year over year to 14.6%.
NET’s Balance Sheet & Cash Flow
As of Dec. 31, 2024, Cloudflare had cash, cash equivalents and available-for-sale securities of $1.86 billion, up from $1.82 billion as of Sept. 30, 2024.
NET generated an operating cash flow of $127.3 million and a free cash flow of $47.8 million.
NET Initiates Q1 and FY25 Guidance
For the first quarter, Cloudflare expects revenues in the $468-$469 million range.
The Zacks Consensus Estimate for revenues is pegged at $471.8 million, suggesting a year-over-year rise of 24.6%.
Non-GAAP income from operations in the first quarter is expected to be between $54 million to $55 million. Non-GAAP earnings are anticipated to be 16 cents per share.
The Zacks Consensus Estimate for earnings is pegged at 19 cents per share, indicating a year-over-year rise of 18.8%.
For 2025, NET anticipates revenues between $2.09 billion and $2.094 billion. The consensus mark for revenues is pegged at $2.07 billion, suggesting a year-over-year rise of 24.8%.
Non-GAAP income from operations is projected to be in the range of $272-$276 million. Non-GAAP earnings per share are anticipated to be between 79 cents and 80 cents.
The Zacks Consensus Estimate for earnings is pegged at 84 cents per share, indicating a year-over-year increase of 13.8%.
Zacks Rank and Other Stocks to Consider
Currently, NET carries a Zacks Rank #2 (Buy).
Arista Networks (ANET - Free Report) , Celestica (CLS - Free Report) and Pitney Bowes (PBI - Free Report) are some other top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. Arista, Celestica and Pitney Bowes sport Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for ANET’s 2025 earnings has been revised upward by a penny to $2.42 per share over the past 60 days, indicating a 17.5% year-over-year increase. ANET shares have surged 67.1% in the past year.
The consensus mark for CLS’ 2025 earnings has been revised upward by 33 cents to $4.75 per share over the past seven days, indicating a 22.4% year-over-year increase. CLS shares have skyrocketed 254.8% in the past year.
The consensus mark for PBI’s 2025 earnings has been revised upward by 4 cents to $1.12 per share over the past 30 days, indicating a 180% year-over-year increase. PBI shares have rallied 120.9% in the past year.