NYSE$NET

Cloudflare · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Cloudflare's revenue grew by 30% year-over-year, reaching $378.6 million, and non-GAAP income from operations was $42.4 million.

Cloudflare reported a strong start to 2024 with a 30% increase in revenue, reaching $378.6 million. The company saw improvements in sales productivity and free cash flow, alongside continued innovation and expansion of its network and product offerings.

  • Revenue totaled $378.6 million, a 30% increase year-over-year.
  • GAAP loss from operations was $54.6 million, while non-GAAP income from operations reached $42.4 million.
  • Operating cash flow was $73.6 million, and free cash flow was $35.6 million.
  • The company achieved a double-digit year-over-year improvement in sales productivity.

Headline financials

Total Revenue

$379M

Previous: $290M+30.5%
EPS

-$0.10

Previous: $0.08-225.0%
Gross Margin

77.5%

Previous: 75.7%+2.4%
Free Cash Flow Margin

9.0%

Previous: 5.0%+80.0%
Capital Expenditures

-$32.1M

Previous: -$17.5M-82.7%
Free Cash Flow

-$67.6M

Previous: -$55.6M-21.5%
Net Income

-$35.5M

Previous: -$38.1M+6.7%
Operating Income

-$54.6M

Previous: -$47.3M-15.4%
Gross Profit

$294M

Previous: $220M+33.6%
Cash & Equivalents

$254M

Previous: $256M-0.8%
Total Assets

$2.8B

Previous: $2.67B+5.0%
R&D Expense

$87.7M

No prior period
Stock-Based Comp

$69.7M

Previous: $57.4M+21.5%

Revenue & EPS history

Cloudflare · Revenue · Quarterly

$379M

Q1 2024+30.5%vs Q1 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

For the second quarter of fiscal 2024, Cloudflare expects total revenue of $393.5 to $394.5 million, non-GAAP income from operations of $35.0 to $36.0 million, and non-GAAP net income per share of $0.14. For the full year fiscal 2024, the company expects total revenue of $1,648.0 to $1,652.0 million, non-GAAP income from operations of $160.0 to $164.0 million, and non-GAAP net income per share of $0.60 to $0.61.

Tailwinds

  • Total revenue of $393.5 to $394.5 million is expected for Q2 2024.
  • Non-GAAP income from operations is projected to be $35.0 to $36.0 million for Q2 2024.
  • Non-GAAP net income per share is expected to be $0.14 for Q2 2024.
  • Total revenue of $1,648.0 to $1,652.0 million is anticipated for the full year fiscal 2024.
  • Non-GAAP income from operations of $160.0 to $164.0 million is expected for the full year fiscal 2024.

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 2024

Historical avgQ1 2024

+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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