Cloudflare Lifts Outlook on 2Q Revenue Growth, Despite Wider Loss

Dow Jones
Aug 07
 

Cloudflare lifted its full-year outlook after reporting double-digit revenue growth in the second-quarter, despite a wider loss.

The connectivity cloud company on Thursday said it now expects full-year adjusted earnings of $1.25 to $1.26 a share on revenue between $2.86 billion and $2.87 billion.

The company had previously guided for adjusted earnings in a range of $1.19 and $1.20 a share on revenue of about $2.81 billion. Analysts polled by FactSet are expecting $1.20 a share in adjusted earnings on $2.81 billion in revenue.

The company reported a second-quarter loss of $170 million, or 48 cents a share, compared with a loss of $50.4 million, or 15 cents a share, a year earlier.

Stripping out certain one-time items, adjusted earnings were 29 cents a share. Analysts polled by FactSet were expecting 27 cents a share.

Revenue rose 36% to $696.1 million, beating the $664.7 million analysts were expecting.

Shares surged 16% to $329.69 in after-hours trading on Thursday, after closing down 2.8% at $284.43. At close, the stock was up 44% this year.

For the third quarter, Cloudflare guided for adjusted earnings of 34 cents a share on revenue between $736 million and $737 million.

Analysts are expecting adjusted earnings of 32 cents a share on $721.3 million in revenue.

Cloudflare in May said it would cut around 1,100 jobs as part of an artificial-intelligence-driven restructuring plan, projecting between $140 million and $150 million in charges for the layoffs.

 
 

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