Cloudflare (NYSE:NET) Issues Q2 2024 Earnings Guidance

Cloudflare (NYSE:NET) updated its second quarter 2024 earnings guidance on Friday. The company provided earnings per share guidance of 0.140-0.140 for the period, compared to the consensus earnings per share 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 Price Performance

Shares of NET traded down $0.11 during mid-day trading on Monday, reaching $74.29. 6,576,970 shares of the stock traded hands, compared to its average volume of 3,961,452. The company has a current ratio of 3.51, a quick ratio of 3.51 and a debt-to-equity ratio of 1.61. Cloudflare has a 1 year low of $44.60 and a 1 year high of $116.00. The company has a market cap of $25.08 billion, a price-to-earnings ratio of -141.34 and a beta of 1.15. The firm has a fifty day moving average price of $93.67 and a 200 day moving average price of $83.75.

Cloudflare (NYSE:NET) last posted its earnings results on Thursday, February 8th. The company reported ($0.06) 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 business had revenue of $362.47 million during the quarter, compared to analysts’ expectations of $352.70 million. As a group, equities research analysts predict that Cloudflare will post -0.2 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of research firms have weighed in on NET. Cantor Fitzgerald lowered their price target on Cloudflare from $100.00 to $80.00 and set a neutral rating on the stock in a research report on Friday. JMP Securities increased their price target on shares of Cloudflare from $75.00 to $90.00 and gave the stock a market outperform rating in a research note on Wednesday, January 31st. Robert W. Baird decreased their target price on shares of Cloudflare from $100.00 to $94.00 and set an outperform rating for the company in a research note on Friday. Needham & Company LLC reaffirmed a buy rating and set a $135.00 price target on shares of Cloudflare in a report on Friday. Finally, Mizuho decreased their price objective on shares of Cloudflare from $95.00 to $88.00 and set a neutral rating for the company in a report on Friday. Four analysts have rated the stock with a sell rating, ten have given a hold rating and nine have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of Hold and a consensus price target of $90.13.

Insiders Place Their Bets

In related news, Director Carl Ledbetter sold 7,962 shares of the company’s stock in a transaction dated Wednesday, February 7th. The shares were sold at an average price of $81.42, for a total transaction of $648,266.04. Following the completion of the transaction, the director now owns 1,446,957 shares in the company, valued at approximately $117,811,238.94. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. In related news, Director Carl Ledbetter sold 7,962 shares of the firm’s stock in a transaction dated Wednesday, February 7th. The shares were sold at an average price of $81.42, for a total transaction of $648,266.04. Following the completion of the sale, the director now directly owns 1,446,957 shares in the company, valued at $117,811,238.94. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Matthew Prince sold 52,384 shares of the company’s stock in a transaction that occurred on Wednesday, February 21st. The shares were sold at an average price of $94.59, for a total value of $4,955,002.56. Following the completion of the transaction, the chief executive officer now owns 12,183 shares in the company, valued at $1,152,389.97. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,044,347 shares of company stock valued at $101,703,776. 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.