Michelle Zatlyn, President and COO of Cloudflare, Inc. (NYSE:NET), has sold shares totaling approximately $8.95 million. The transactions, executed on November 25, 26, and 27, involved multiple sales of Class A Common Stock. The shares were sold at prices ranging from $100.35 to $106.30 per share.
Zatlyn's sales were part of a trading plan adopted under Rule 10b5-1, allowing insiders to set up a predetermined plan to sell company stock. Following these transactions, Zatlyn's holdings have been adjusted accordingly, reflecting her ongoing involvement with the company.
The sales were executed in several tranches, with the largest block of 19,724 shares sold at an average price of $105.70 on November 25. Another significant sale occurred on November 26, with 15,259 shares sold at an average price of $104.30. On November 27, 18,074 shares were sold at an average price of $100.35.
These transactions are part of Zatlyn's broader strategy to manage her equity position in Cloudflare, as indicated in the filing. The shares are held in various trusts, with Zatlyn serving as co-trustee or appointer, reflecting her structured approach to managing her holdings in the company.
In other recent news, Cloudflare, Inc. revealed robust growth in its third-quarter earnings call, with a 28% year-on-year rise in revenue totaling $430.1 million. The company's customer base, including large clients, has also seen a noteworthy increase of 28% from the previous year, now standing at 3,265. Cloudflare's growth is bolstered by its focus on enterprise sales and strategic involvement in cybersecurity efforts, with future revenue projections for Q4 2023 indicating a 25% year-over-year increase.
The company's gross margin remained strong at 78.8%, and it reported a net income of $72.6 million. Cloudflare secured significant contracts, including a $7 million deal with an AI company and a $4.2 million contract with a Fortune 100 tech firm. Free cash flow was reported at $45.3 million, with $1.8 billion in reserves.
These recent developments show the company's commitment to expanding its sales capacity and productivity, particularly in 2025. Despite some capacity issues in North America, Cloudflare is optimistic about increasing sales productivity in Europe and Asia. The firm's focus on enterprise sales and cybersecurity has led to significant contracts and customer wins, positioning it well for future growth and innovation.
InvestingPro Insights
As Cloudflare's President and COO Michelle Zatlyn executes significant stock sales, it's worth examining the company's current financial position and market performance. According to InvestingPro data, Cloudflare boasts a market capitalization of $34.12 billion, reflecting its substantial presence in the cloud services sector.
Despite the recent insider selling, Cloudflare's stock has shown strong momentum. InvestingPro Tips highlight a robust 13% return over the past month and an impressive 24.45% gain over the last three months. This positive trend extends further, with a 34.52% price increase over the past six months, suggesting investor confidence in the company's prospects.
Cloudflare's financial metrics paint a picture of a growth-oriented company. The firm has achieved a notable revenue growth of 30.04% over the last twelve months, with Q3 2024 showing a 28.15% increase. Moreover, Cloudflare maintains an impressive gross profit margin of 77.53%, indicating strong pricing power and efficient operations.
However, it's important to note that Cloudflare is currently not profitable, with a negative operating income of $147.87 million over the last twelve months. This aligns with the InvestingPro Tip indicating that the company has not been profitable in this period. Nevertheless, analysts are optimistic, with InvestingPro Tips suggesting that net income is expected to grow this year and that the company is predicted to turn profitable.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, with 14 more tips available for Cloudflare. These tips could provide valuable context for understanding the recent insider selling and the company's future trajectory.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.