Matthew Prince, co-founder and CEO of Cloudflare Inc., at the Fortune Brainstorm AI conference on Monday, December 11, 2023 in San Francisco, California, USA. This conference brings together leaders in machine learning and artificial intelligence to evaluate. Collaborate with industry to explore new business cases for AI.Photographer: David Paul Morris/Bloomberg via Getty Images
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cloudflare Shares rose 20% in after-hours trading Thursday after the web security and content delivery network provider reported financial results and quarterly guidance that turned out to be stronger than analysts expected.
Here’s how the company performed compared to the expectations of analysts surveyed by LSEG (formerly Refinitiv).
- Earnings per share: Adjusted 15 cents, forecast 12 cents.
- Revenue: $362.5 million, expected $353.1 million
According to one study, Cloudflare’s revenue increased by about 32%, consistent with its third quarter growth. statement. The company’s net loss was $27.9 million, or 8 cents per share, down from $45.9 million in the year-ago period.
Cloudflare co-founder and CEO Matthew Prince said in a statement that Cloudflare signed its largest-ever new customer deal and largest-ever contract during the quarter, resulting in the company’s best-ever annual He said the contract amount had been achieved. Prince mentioned the business from the U.S. Department of Commerce during a conference call with analysts.
Cloudflare is committed to providing software developers with graphics processing units that can be used for artificial intelligence. Prince said the company will have GPUs installed in 120 cities by the end of 2023, exceeding its internal goal of 100 cities.
“By the end of 2024, we expect to enable inference to GPUs deployed in nearly every city in Cloudflare’s global network within milliseconds from nearly every internet-connected device around the world. ” Prince said. The network is present in more than 310 cities as of December 31st.
Also on Thursday, Cloudflare Said Mark Anderson is a member of the board of directors and former CEO Alterix, has joined Cloudflare as president, succeeding Mark Boroditsky. Private equity firms Clearlake Capital Group and Insight Partners announced In December, it announced that it would acquire Alteryx for $4.4 billion. Prince and co-founder and managing director Michel Zatlin said they aren’t going anywhere.
Regarding guidance, Cloudflare expected first-quarter revenue to be between $372.5 million and $373.5 million, with adjusted net income per share of 13 cents. Analysts surveyed by LSEG had expected adjusted earnings of 12 cents per share on revenue of $372.3 million.
For all of 2024, Cloudflare’s revenue outlook was above consensus, but just outside the middle of its revenue range. The company expects adjusted earnings per share of 58 cents to 59 cents and revenue of $1.648 billion to $1.652 billion. Analysts polled by LSEG had expected adjusted earnings of 56 cents per share and revenue of $1.652 billion.
Excluding after-hours movements, Cloudflare stock is up about 8% since the beginning of the year, while the S&P 500 index is up about 5% over the same period.
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