Shares of Cloudflare Inc. rose. rose 8% in the regular session on Thursday, and was on the verge of significant additional gains after the company beat expectations with its latest financial results.
The stock rose 18% in Thursday's extended session on Cloudflare NET,
The results were considered “exceptionally strong” for the December period.
The cybersecurity and software company reported a fourth-quarter net loss of $27.9 million, or 8 cents per share, while it lost $45.9 million, or 14 cents per share, in the same period a year earlier.
On an adjusted basis, Cloudflare earned 15 cents per share, up from 6 cents per share a year earlier, while analysts surveyed by FactSet were expecting 12 cents per share.
Revenue rose 32% to $363 million, while analysts had expected $353 million.
CEO Matthew Prince said in a statement that the company saw significant improvement in pipeline closure rates, sales force productivity and average deal size on a sequential basis. “To close out the year, the strength of our business was driven by strong momentum with a large number of customers, significant progress in the overall sector, and growth at Cloudflare One.”
is reading: Even Cloudflare's CEO says releasing a viral video is “painful.” Here's what went wrong.
He said the company's business was “operating efficiently across the board”, with customers continuing to spend despite macroeconomic uncertainty.
Cloudflare expects revenue of $372.5 million to $373.5 million for the current quarter, along with 13 cents in adjusted earnings per share. The FactSet consensus was $372 million and 12 cents, respectively.
Looking at the full year ahead, Cloudflare expects revenue of $1.648 billion to $1.652 billion and 58 cents to 59 cents in adjusted earnings per share. The FactSet consensus was for revenue of $1.65 billion and 54 cents in adjusted earnings per share.
