NYSE$NET
Cloudflare · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Cloudflare's financial performance for Q1 2023 demonstrated strong revenue growth and improved profitability.
Cloudflare announced a 37% year-over-year revenue increase to $290.2 million for Q1 2023. The company also achieved record operating profit and margin for the third consecutive quarter and significantly outperformed on free cash flow.
- Revenue increased by 37% year-over-year, reaching $290.2 million.
- GAAP loss from operations was $47.3 million, representing 16% of total revenue.
- Non-GAAP income from operations reached $19.4 million, or 7% of total revenue.
- Operating cash flow was $36.4 million, or 13% of total revenue, with free cash flow at $13.9 million, or 5% of total revenue.
Headline financials
Revenue & EPS history
Cloudflare · Revenue · Quarterly
$290M
Forward guidance
Cloudflare anticipates macroeconomic uncertainty will persist, leading to extended sales cycles and backend-weighted linearity. Despite this, Cloudflare provided guidance for Q2 2023 and full year fiscal 2023.
Tailwinds
- Q2 2023 total revenue is expected to be between $305.0 to $306.0 million.
- Q2 2023 non-GAAP income from operations is projected to be $14.0 to $15.0 million.
- Q2 2023 non-GAAP net income per share is expected to be $0.07 to $0.08, utilizing approximately 345 million weighted average common shares outstanding.
- Full year fiscal 2023 total revenue is projected to be $1,280.0 to $1,284.0 million.
- Full year fiscal 2023 non-GAAP income from operations is expected to be $73.0 to $77.0 million.
Headwinds
- Increasing macroeconomic uncertainty may lengthen sales cycles.
- Backend-weighting of linearity is expected to persist.
- External headwinds are anticipated to continue through the end of the fiscal year.
- Actual results may differ materially due to various factors.
- Guidance assumes continued reacceleration of new pipeline generation and sustained high win and renewal rates.
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 2023
+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
| Quarter | Report date | Reaction (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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