Cloudflare Q2 adjusted profit beats estimates
Overview
Cloudflare Q2 revenue grows 28% yr/yr, beating analyst expectations, per LSEG data
Adjusted EPS for Q2 beats consensus, per LSEG data
Q2 Non-GAAP income from operations of $72.3 million, or 14% of revenue
Outlook
Cloudflare expects Q3 revenue of $543.5 mln to $544.5 mln
Company anticipates full-year revenue of $2,113.5 mln to $2,115.5 mln
Cloudflare sees Q3 non-GAAP income from operations at $75 mln to $76 mln
Company projects full-year non-GAAP EPS of $0.85 to $0.86
Result Drivers
STRONG CUSTOMER DEMAND - Cloudflare reports strong demand from largest customers, driving revenue growth
AI INNOVATION - Strategic wins centered around AI-driven internet business models, boosting growth
LONGER DEALS - Signing bigger and longer deals contributed to revenue increase
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $512.32 mln | $501.30 mln (26 Analysts) |
Q2 Adjusted EPS | Beat | $0.21 | $0.18 (27 Analysts) |
Q2 EPS | -$0.15 | ||
Q2 Adjusted Net Income | Beat | $75.10 mln | $67.50 mln (25 Analysts) |
Q2 Net Income | -$50.45 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 13 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Cloudflare Inc is $186.00, about 8% below its July 30 closing price of $200.85
The stock recently traded at 214 times the next 12-month earnings vs. a P/E of 130 three months ago
Press Release:
