NYSE$NET

Cloudflare · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Cloudflare had its strongest quarter ever as a public company, with revenue growth accelerating and a record number of large customers added.

Cloudflare's second quarter revenue totaled $152.4 million, representing an increase of 53% year-over-year. The company also added a record number of large customers, signing the equivalent of more than two six-figure customers every single business day in Q2.

  • Total revenue reached $152.4 million, a 53% increase year-over-year.
  • Dollar-based net retention rate hit a record 124%, up 900 basis points year-over-year.
  • The company added a record of roughly 140 large customers, bringing the total to 1,088.
  • GAAP gross profit was $117.4 million, with a 77.0% gross margin.

Headline financials

Total Revenue

$152M

Previous: $99.7M+52.9%
EPS (adj)

-$0.02

Previous: -$0.03+33.3%
Gross Margin

77.0%

Previous: 75.8%+1.6%
Capital Expenditures

-$35.8M

Previous: -$30.6M-17.1%
Free Cash Flow

-$71.4M

Previous: -$56.7M-25.7%
Net Income

-$35.5M

Previous: -$26.1M-35.9%
Operating Income

-$28.9M

Previous: -$24.7M-16.9%
Gross Profit

$117M

Previous: $75.6M+55.4%
Cash & Equivalents

$248M

Previous: $314M-21.2%
Total Assets

$1.45B

Previous: $1.36B+6.0%
Stock-Based Comp

$20.5M

Previous: $12.4M+65.0%

Revenue & EPS history

Cloudflare · Revenue · Quarterly

$152M

Q2 2021+52.9%vs Q2 2020
Beat estimate in 10 of 11 quarters(91%)
ActualEstimate

Forward guidance

For the third quarter of fiscal 2021, Cloudflare expects total revenue of $165.0 to $166.0 million and non-GAAP net loss per share of $0.04 to $0.03. For the full year fiscal 2021, the company expects total revenue of $629 to $633 million and non-GAAP net loss per share of $0.12 to $0.11.

Tailwinds

  • Total revenue of $165.0 to $166.0 million is expected for Q3 2021.
  • Non-GAAP loss from operations of $9.5 to $8.5 million is expected for Q3 2021.
  • Non-GAAP net loss per share of $0.04 to $0.03 is expected for Q3 2021.
  • Total revenue of $629 to $633 million is expected for the full year fiscal 2021.
  • Non-GAAP net loss per share of $0.12 to $0.11 is expected for the full year fiscal 2021.

Headwinds

  • The forward-looking statements are subject to substantial uncertainty due to the ongoing COVID-19 pandemic.
  • The estimates are based on the impact of the pandemic on operations as of August 5, 2021.
  • The estimates are highly dependent on numerous factors that may not be predictable or controllable.
  • The pandemic's duration, spread, and severity could impact customer demand and spending patterns.
  • Global and regional economies and economic activity generally could be impacted by the pandemic.

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 Q2 2021

Historical avgQ2 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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