Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Cloudflare (NET) Q1 Earnings Report Preview: What To Look For

Published 2024-05-01, 03:06 a/m
Cloudflare (NET) Q1 Earnings Report Preview: What To Look For
NET
-

Stock Story -

Internet security and content delivery network Cloudflare (NYSE:NET) will be reporting results tomorrow afternoon. Here's what to look for.

Cloudflare beat analysts' revenue expectations by 2.7% last quarter, reporting revenues of $362.5 million, up 32% year on year. It was a good quarter for the company, with a decent beat of analysts' billings estimates.

Is Cloudflare a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.

This quarter, analysts are expecting Cloudflare's revenue to grow 28.6% year on year to $373.3 million, slowing from the 36.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Cloudflare has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.6% on average.

Looking at Cloudflare's peers in the software development segment, only F5 has reported results so far. It met analysts' revenue estimates, posting year-on-year sales declines of 3.1%. The stock was down 9.3% on the results.

Read the full analysis of F5's results on StockStory. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 thanks to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the software development stocks have fared somewhat better, they have not been spared, with share prices down 4% on average over the last month. Cloudflare is down 8% during the same time and is heading into earnings with an average analyst price target of $101.3 (compared to the current share price of $87.4).

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.