Cloudflare Shares Up 20% on Earnings Gain, Higher Revenue Outlook

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The shares of Cloudflare Inc. rose during the extended session Thursday after the cybersecurity firm reported results that beat Wall Street expectations and boosted its revenue outlook for the year.

cloudflare NET,
+0.12%
shares were up about 21% after hours, following a 0.1% gain in the regular session to close at $58.43.

The company reported a loss of $63.5 million, or 20 cents per share, in the second quarter, compared to a loss of $35.5 million, or 12 cents per share, in the same period a year ago. Adjusted bottom-line results, excluding share-based compensation and other items, came in at breakeven per share, compared to a loss of 2 cents per share in the same period last year.

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Revenue rose to $234.5 million from $152.4 million in the same quarter a year ago.

Analysts polled by FactSet had forecast a loss of one cent per share on revenue of $227.3 million.

“We delivered another strong quarter, with revenue growth of 54% year over year, driven by the strength of our major customers and a record number of major customer additions,” said Matthew Prince, CEO and co-founder of Cloudflare, in a statement. . “Large customers now represent 60% of our revenue and they look forward to hearing how Cloudflare can save them money and reduce IT complexity, while increasing their security, performance and reliability.”

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“Companies aren’t leaving the internet, going back to outdated on-pre-boxes with a backlog in the supply chain, or dropping cybersecurity when the attacks are bigger than ever,” Prince said. “I am confident that Cloudflare will continue to grow stronger, even in the difficult economic times ahead.”

Cloudflare expects to break even from earnings of one cent per share on revenue between $250 million and $251 million for the third quarter, while analysts had forecast earnings of one cent per share on revenue of $246.9 million. .

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For the year, the company increased its estimated sales but stuck to its adjusted earnings forecast of 3 cents to 4 cents per share. Cloudflare now sees revenue of $968 million to $972 million, up from a previous estimate of $955 million to $959 million.

Analysts estimate earnings of 3 cents per share on revenue of $958.4 million.

Year-to-date, Cloudflare shares are down 56%, while the S&P 500 index SPX,
-0.08%
is down 13% and the tech-heavy Nasdaq Composite Index COMP,
+0.41%
has fallen by 19%.