NYSE$NET

Cloudflare · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Cloudflare's Q1 2022 financial performance was announced, demonstrating substantial revenue growth and customer acquisition.

Cloudflare reported a strong first quarter in 2022, with revenue reaching $212.2 million, a 54% increase year-over-year. The company added a record 14,000 new paying customers, and dollar-based net retention hit a record 127%.

  • Total revenue reached $212.2 million, up 54% year-over-year.
  • Dollar-based net retention rate was a record 127%, increasing 400 basis points year-over-year.
  • The company added approximately 14,000 paying customers, bringing the total to 154,109.
  • Non-GAAP income from operations was $4.9 million, compared to a loss of $7.5 million in Q1 2021.

Headline financials

Total Revenue

$212M

Previous: $138M+53.7%
EPS (adj)

$0.01

Previous: -$0.03+133.3%
Gross Margin

77.8%

Previous: 76.8%+1.3%
Capital Expenditures

-$24.5M

Previous: -$22.3M-9.9%
Free Cash Flow

-$65.9M

Previous: -$62.2M-5.8%
Net Income

-$41.4M

Previous: -$40M-3.5%
Operating Income

-$40M

Previous: -$31.3M-28.1%
Gross Profit

$165M

Previous: $106M+55.8%
Cash & Equivalents

$152M

Previous: $187M-18.9%
Total Assets

$2.35B

Previous: $1.41B+67.5%
Stock-Based Comp

$34M

Previous: $18M+88.3%

Revenue & EPS history

Cloudflare · Revenue · Quarterly

$212M

Q1 2022+53.7%vs Q1 2021
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Forward guidance

For Q2 2022, Cloudflare expects revenue between $226.5 and $227.5 million, and for the full year 2022, revenue is expected to be between $955.0 and $959.0 million.

Tailwinds

  • Total revenue of $226.5 to $227.5 million is expected for the second quarter of fiscal 2022.
  • For the full year fiscal 2022, total revenue of $955.0 to $959.0 million is expected.
  • Second quarter non-GAAP loss from operations is projected to be between $2.0 to $1.0 million.
  • Full year fiscal 2022 non-GAAP income from operations is expected to be $10.0 to $14.0 million.
  • Non-GAAP net income (loss) per share for Q2 is expected to be between $(0.01) to $0.00.

Headwinds

  • The financial outlook is subject to uncertainty due to the ongoing COVID-19 pandemic.
  • The outlook is highly dependent on factors that are difficult to predict or control.
  • Second quarter non-GAAP loss from operations is projected to be between $2.0 to $1.0 million.
  • Non-GAAP net income (loss) per share for Q2 is expected to be between $(0.01) to $0.00.
  • The pandemic's impact on global and regional economies could affect customer demand and spending.

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 2022

Historical avgQ1 2022

+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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