Cloudflare Inc (NET) surpassed earnings projections on 11/2/2023 for Q3 2023.
Analyst expectations for Cloudflare Inc Cl A earnings per share (EPS) were at $0.10, with the company surpassing those estimates with a reported EPS of $0.16, leading to a positive surprise of $0.06 per share (60%). Cloudflare Inc Cl A’s earnings rose 167% year-over-year as the firm reported an EPS of $0.06 in its year-ago quarter. The positive annual growth shows the Technology company is performing well amid recent economic conditions.
Consensus estimates for Cloudflare Inc Cl A revenue averaged out to $330.5 million, with the business managing to beat those expectations with reported third-quarter revenue of $335.6 million. The $5.1 million (2%) positive revenue surprise led to 32% growth year-over-year as the firm reported revenue of $253.9 million in its year-ago quarter. The higher earnings growth compared to revenue points to Cloudflare Inc Cl A improving its profit margin.
The stock is up 7.74% to $60.97 after the report.
Cloudflare Inc Cl A’s earnings expanded faster than revenues, signaling widening profit margins.
Wall Street Analysts had an average rating of Hold on the stock prior to the report.
InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.
Cloudflare Inc Cl A has performed a little above average during the past few months. Before the report, Cloudflare Inc Cl A received a Long-Term Technical Rank by InvestorsObserver of 59, putting it in the top half of stocks. The firm set a 52-week high on July 19, 2023 at $76.07 and set a 52-week low on November 9, 2022 at $37.37.
Cloudflare is a software company based in San Francisco, California, that offers security and web performance offerings by utilizing a distributed, serverless content delivery network, or CDN. The firm’s edge computing platform, Workers, leverages this network by providing clients the ability to deploy, and execute code without maintaining servers.