Cloudflare stock jumps as large customer growth fuels pace of net stock

Shares of Cloudflare soared Friday on June quarter earnings and revenue that beat estimates amid strong customer growth.




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Based in San Francisco Cloudy (NET) reported its second-quarter results after the market closed Thursday. Cloudflare stock rose 27.1% to close at 74.24 trading today.

Heading into Cloudflare’s earnings report, the stock was down 55% in 2022.

“NET delivered a strong second quarter, highlighted by 54% revenue growth, higher revenue guidance for 2022 and continued expectations of positive free cash flow in the second half of 2022,” the analyst said. of Cowen, Shaul Eyal, in a note to clients.

NET stock: seven quarters of sales growth of more than 50%

The company said it made no profit on an adjusted basis versus a loss of 2 cents in the year-ago period. The cloud-based networking and cybersecurity services provider’s revenue jumped 54% to $234.5 million.

Analysts expected Cloudflare to post a loss of 1 cent on revenue of $227.3 million.

Cloudflare reported revenue growth of more than 50% for the seventh consecutive quarter, Cloudflare stock analyst Tim Horan of Oppenheimer noted in his report to customers.

“Second quarter operating free cash flow was negative $22 million, but management focused on positive (free cash flow) in the second half of 2022 and beyond, a shift major in tone,” Horan said.

Added large Cloudflare customers

Cloudflare added 212 new customers who will spend more than $100,000 per year, up 48% year over year, bringing its total to 1,749.

Management raised the 2022 revenue forecast to a range of $968-972 million, up about 48% year-over-year from a previous range of $955-959 million.

Launched in 2009, Cloudflare accelerates and secures web applications routed through its intelligent global network. In addition, the company competes in the business and consumer markets.

Cloudflare stock had a relative strength rating of 8 out of a possible 99, according to IBD Stock Checkup.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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