NYSE$NET

Cloudflare · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Cloudflare experienced record revenue growth and customer acquisition.

Cloudflare announced strong Q1 2021 financial results, with revenue up 51% year-over-year and record dollar-based net retention of 123%. The company also saw strong growth in large customers, which now represent more than half of total revenue.

  • Revenue totaled $138.1 million, a 51% year-over-year increase.
  • Dollar-based net retention reached a record 123%, up 600 basis points year-over-year.
  • GAAP gross profit was $106.0 million, with a gross margin of 76.8%.
  • Free cash flow was negative $2.2 million, representing 2% of total revenue.

Headline financials

Total Revenue

$138M

Previous: $91.3M+51.3%
EPS (adj)

-$0.03

Previous: -$0.04+25.0%
Gross Margin

76.8%

Previous: 77.2%-0.5%
Free Cash Flow Margin

-2.0%

Previous: -34.0%+94.1%
Capital Expenditures

-$22.3M

Previous: -$11.4M-95.2%
Free Cash Flow

-$62.2M

Previous: -$44.2M-41.0%
Net Income

-$40M

Previous: -$32.7M-22.0%
Operating Income

-$31.3M

Previous: -$36.1M+13.4%
Gross Profit

$106M

Previous: $70.4M+50.5%
Cash & Equivalents

$187M

Previous: $109M+71.9%
Total Assets

$1.41B

Previous: $859M+63.7%
Stock-Based Comp

$18M

No prior period

Revenue & EPS history

Cloudflare · Revenue · Quarterly

$138M

Q1 2021+51.3%vs Q1 2020
Beat estimate in 9 of 10 quarters(90%)
ActualEstimate

Forward guidance

For Q2 2021, Cloudflare expects revenue between $145.5 to $146.5 million and a non-GAAP loss per share of $0.04 to $0.03. For the full year 2021, the company anticipates revenue of $612 to $616 million and a non-GAAP loss per share of $0.11 to $0.10.

Tailwinds

  • Total revenue of $145.5 to $146.5 million for Q2 2021.
  • Full year 2021 total revenue of $612 to $616 million.
  • Q2 2021 Non-GAAP loss from operations of $10 to $9 million.
  • Full year 2021 Non-GAAP loss from operations of $28 to $24 million.
  • Non-GAAP net loss per share of $0.04 to $0.03 for Q2 2021.

Headwinds

  • Substantial uncertainty due to the ongoing COVID-19 pandemic.
  • Impact of the pandemic on operations is estimated as of May 6, 2021.
  • Estimates are highly dependent on numerous factors that may not be predictable or controllable.
  • The timing of administering COVID-19 vaccines around the world and the long-term efficiency of these vaccines.
  • Non-GAAP net loss per share of $0.11 to $0.10 for full year 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.3%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+2.6%

Avg return

30 days after

48%

13 / 27 earnings

Positive

+29.5%

Q4 2023

Best reaction

-27.4%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-23.8%-25.0%-2.6%
Q4 2025+5.2%+8.8%+18.0%
Q3 2025+11.6%+2.7%-10.0%
Q2 2025-3.6%+3.8%+0.5%
Q1 2025+6.3%+24.3%+44.5%
Q4 2024+17.8%+22.1%-10.4%
Q3 2024-1.4%-1.7%+22.1%
Q2 2024+2.5%-1.6%+6.0%
Q1 2024-15.5%-15.8%-23.1%
Q4 2023+29.5%+19.8%+17.6%
Q3 2023+17.2%+20.1%+43.4%
Q2 2023+8.4%+3.9%-0.2%
Q1 2023-21.0%-28.0%+2.7%
Q4 2022+3.5%+17.8%-9.2%
Q3 2022-17.7%-19.2%-3.1%
Q2 2022+27.2%+22.7%+0.6%
Q1 2022-27.4%-37.0%-39.7%
Q4 2021-8.6%+0.5%-22.7%
Q3 2021+1.2%+5.0%-18.0%
Q2 2021-1.0%+4.6%+8.7%
Q1 2021-9.4%-9.8%+5.1%
Q4 2020-5.5%-9.7%-16.1%
Q3 2020+14.9%+9.1%+37.8%
Q2 2020-5.7%-11.0%-18.2%
Q1 2020+5.3%+15.4%+16.8%
Q4 2019-0.4%-1.8%+7.0%
Q3 2019-0.6%-0.4%+13.9%
Q2 2019
Q1 2019
Q4 2018
Q3 2018
Q2 2018
Q1 2018

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