Cloudflare (NYSE:NET) Releases Q2 2024 Earnings Guidance

Cloudflare (NYSE:NET) updated its second quarter 2024 earnings guidance on Friday. The company provided EPS guidance of 0.140-0.140 for the period, compared to the consensus EPS estimate of 0.130. The company issued revenue guidance of $393.5 million-$394.5 million, compared to the consensus revenue estimate of $393.5 million. Cloudflare also updated its FY 2024 guidance to 0.600-0.610 EPS.

Cloudflare Stock Performance

NET stock traded down $0.11 on Monday, reaching $74.29. The company’s stock had a trading volume of 6,576,970 shares, compared to its average volume of 3,961,452. Cloudflare has a 52 week low of $44.60 and a 52 week high of $116.00. The company has a debt-to-equity ratio of 1.61, a current ratio of 3.51 and a quick ratio of 3.51. The company has a market capitalization of $25.08 billion, a P/E ratio of -141.34 and a beta of 1.15. The firm has a fifty day moving average of $93.67 and a two-hundred day moving average of $83.75.

Cloudflare (NYSE:NET) last released its quarterly earnings results on Thursday, February 8th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.07) by $0.01. The company had revenue of $362.47 million during the quarter, compared to analysts’ expectations of $352.70 million. Cloudflare had a negative return on equity of 12.78% and a negative net margin of 13.10%. As a group, analysts predict that Cloudflare will post -0.2 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Bank of America raised their target price on shares of Cloudflare from $52.00 to $60.00 and gave the company an underperform rating in a research note on Friday. Piper Sandler reiterated a neutral rating and set a $81.00 price objective (down previously from $110.00) on shares of Cloudflare in a research note on Friday. Cantor Fitzgerald cut their target price on Cloudflare from $100.00 to $80.00 and set a neutral rating for the company in a research report on Friday. Robert W. Baird decreased their price target on Cloudflare from $100.00 to $94.00 and set an outperform rating for the company in a research note on Friday. Finally, TD Cowen dropped their price objective on Cloudflare from $117.00 to $110.00 and set a buy rating on the stock in a research note on Friday. Four analysts have rated the stock with a sell rating, ten have given a hold rating and nine have issued a buy rating to the stock. According to MarketBeat, the stock has a consensus rating of Hold and a consensus target price of $90.13.

Insider Transactions at Cloudflare

In other news, Director Carl Ledbetter sold 7,962 shares of the company’s stock in a transaction dated Wednesday, February 7th. The stock was sold at an average price of $81.42, for a total value of $648,266.04. Following the transaction, the director now owns 1,446,957 shares in the company, valued at approximately $117,811,238.94. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. In other Cloudflare news, CFO Thomas J. Seifert sold 50,000 shares of the business’s stock in a transaction dated Friday, February 9th. The stock was sold at an average price of $110.11, for a total value of $5,505,500.00. Following the transaction, the chief financial officer now owns 366,465 shares in the company, valued at $40,351,461.15. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Carl Ledbetter sold 7,962 shares of the firm’s stock in a transaction dated Wednesday, February 7th. The stock was sold at an average price of $81.42, for a total value of $648,266.04. Following the sale, the director now directly owns 1,446,957 shares of the company’s stock, valued at $117,811,238.94. The disclosure for this sale can be found here. Insiders sold a total of 1,044,347 shares of company stock valued at $101,703,776 over the last quarter. Company insiders own 12.83% of the company’s stock.

About Cloudflare

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.