NYSE$NET

Cloudflare · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Cloudflare's revenue increased by 54% year-over-year, driven by strong large customer growth.

Cloudflare announced strong second quarter results with revenue growth of 54% year-over-year. The company achieved positive operating cash flow and added a record number of large customers.

  • Total revenue reached $234.5 million, a 54% increase year-over-year.
  • Added a record 212 large customers, bringing the total to 1,749.
  • Operating cash flow was $38.3 million, representing 16% of total revenue.
  • Free cash flow was negative $4.4 million, or 2% of total revenue.

Headline financials

Total Revenue

$235M

Previous: $152M+53.9%
EPS (adj)

-$0.20

Previous: -$0.02-876.9%
Gross Margin

76.2%

Previous: 77.0%-1.0%
Free Cash Flow Margin

2.0%

No prior period
Capital Expenditures

-$61.6M

Previous: -$35.8M-71.8%
Free Cash Flow

-$125M

Previous: -$71.4M-75.3%
Net Income

-$63.5M

Previous: -$35.5M-78.9%
Operating Income

-$64.5M

Previous: -$28.9M-123.5%
Gross Profit

$179M

Previous: $117M+52.2%
Cash & Equivalents

$143M

Previous: $248M-42.4%
Total Assets

$2.47B

Previous: $1.45B+70.7%
Stock-Based Comp

$54.8M

Previous: $20.5M+166.8%

Revenue & EPS history

Cloudflare · Revenue · Quarterly

$235M

Q2 2022+53.9%vs Q2 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

For Q3 2022, Cloudflare expects revenue between $250.0 to $251.0 million and non-GAAP net income per share of $0.00 to $0.01. For the full year 2022, Cloudflare expects revenue of $968.0 to $972.0 million and non-GAAP net income per share of $0.03 to $0.04.

Tailwinds

  • Total revenue of $250.0 to $251.0 million for Q3 2022
  • Non-GAAP income from operations of $0.0 to $1.0 million for Q3 2022
  • Non-GAAP net income per share of $0.00 to $0.01 for Q3 2022
  • Total revenue of $968.0 to $972.0 million for full year 2022
  • Non-GAAP income from operations of $7.0 to $11.0 million for full year 2022

Headwinds

  • Challenging general economic conditions, including inflation
  • Rising interest rates
  • Ongoing COVID-19 pandemic
  • Russia-Ukraine conflict
  • Customer demand and spending patterns

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 2022

Historical avgQ2 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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