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Cloudflare Stock Claws Back On Earnings Beat As Software Plays Struggle

Cloudflare earnings and revenue for the March quarter topped analyst estimates while revenue guidance came in above Wall Street targets. Cloudflare stock rose in extended trading, clawing back from a big loss in Thursday’s regular session as software growth stocks retreated.




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San Francisco-based Cloudflare (NET) reported a first-quarter loss of 3 cents per adjusted share vs. a 4-cent loss in the year-earlier period. Revenue jumped 51% to $138.1 million, said the provider of cloud-based networking and cybersecurity services.

Analysts expected Cloudflare to report a loss of 3 cents per share. Estimates called for revenue of $131 million for the period ended March 31.

Cloudflare stock rose 6.2% to 73.37 in extended trading on the stock market today. In Thursday’s regular session, Cloudflare stock plunged 12.6%.

Cloudflare Stock: Revenue Outlook Above Views

For the current quarter ending in June, Cloudflare expects a loss in a range of 3 cents to 4 cents. It sees revenue of $146 million at the midpoint of its guidance range.

Meanwhile, analysts had projected a loss of 3 cents on revenue of $139.1 million.

Heading into the Cloudflare earnings report, the software stock owned a Relative Strength Rating of 87 out of a best-possible 99, according to IBD Stock Checkup.

Started in 2009, Cloudflare speeds up and provides security for web applications routed through its intelligent global network. The company competes in both corporate and consumer markets.

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

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