Cloudflare (NYSE:NET) Releases FY 2024 Earnings Guidance

Cloudflare (NYSE:NET) issued an update on its FY 2024 earnings guidance on Friday morning. The company provided earnings per share (EPS) guidance of 0.600-0.610 for the period, compared to the consensus estimate of 0.600. The company issued revenue guidance of $1.6 billion-$1.7 billion, compared to the consensus revenue estimate of $1.7 billion. Cloudflare also updated its Q2 2024 guidance to 0.140-0.140 EPS.

Cloudflare Trading Down 0.1 %

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

Cloudflare (NYSE:NET) last announced 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. Cloudflare had a negative return on equity of 12.78% and a negative net margin of 13.10%. The company had revenue of $362.47 million during the quarter, compared to the consensus estimate of $352.70 million. As a group, research analysts expect that Cloudflare will post -0.2 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the company. JMP Securities increased their price target on Cloudflare from $75.00 to $90.00 and gave the stock a market outperform rating in a report on Wednesday, January 31st. Royal Bank of Canada increased their price objective on Cloudflare from $95.00 to $108.00 and gave the stock an outperform rating in a report on Friday, February 9th. JPMorgan Chase & Co. decreased their price objective on Cloudflare from $90.00 to $80.00 and set a neutral rating for the company in a report on Friday. Morgan Stanley increased their price objective on Cloudflare from $66.00 to $92.00 and gave the stock an equal weight rating in a report on Monday, February 12th. Finally, Bank of America increased their price objective on Cloudflare from $52.00 to $60.00 and gave the stock an underperform rating in a report on Friday. Four research analysts have rated the stock with a sell rating, ten have issued a hold rating and nine have given a buy rating to the company’s stock. According to MarketBeat, the company has a consensus rating of Hold and a consensus price target of $90.13.

Insider Activity

In related news, COO Michelle Zatlyn sold 277,376 shares of Cloudflare stock in a transaction that occurred on Thursday, February 15th. The stock was sold at an average price of $101.17, for a total transaction of $28,062,129.92. Following the completion of the sale, the chief operating officer now directly owns 38,545 shares of the company’s stock, valued at approximately $3,899,597.65. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. In other Cloudflare news, CFO Thomas J. Seifert sold 50,000 shares of the firm’s stock in a transaction on Friday, February 9th. The stock was sold at an average price of $110.11, for a total transaction of $5,505,500.00. Following the transaction, the chief financial officer now owns 366,465 shares in the company, valued at approximately $40,351,461.15. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, COO Michelle Zatlyn sold 277,376 shares of the firm’s stock in a transaction on Thursday, February 15th. The stock was sold at an average price of $101.17, for a total value of $28,062,129.92. Following the transaction, the chief operating officer now owns 38,545 shares in the company, valued at approximately $3,899,597.65. 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 three months. Insiders own 12.83% of the company’s stock.

Cloudflare Company Profile

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.