NYSE$NET

Cloudflare · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Cloudflare's Q3 2024 revenue increased by 28% year-over-year, reaching $430.1 million. The company reported a GAAP loss from operations of $30.8 million, but a non-GAAP income from operations of $63.5 million. They added a record 219 large customers.

Cloudflare's Q3 2024 showed strong revenue growth, exceeding expectations for revenue, operating margin, and free cash flow. They reached a key inflection point in the transformation of their go-to-market organization and added a record 219 large customers. 35% of the Fortune 500 are now paying Cloudflare customers.

  • Revenue totaled $430.1 million, up 28% year-over-year.
  • GAAP loss from operations was $30.8 million, while non-GAAP income from operations reached $63.5 million.
  • Operating cash flow was $104.7 million, and free cash flow was $45.3 million.
  • Added a record 219 large customers, with 35% of the Fortune 500 now being paying customers.

Headline financials

Total Revenue

$430M

Previous: $336M+28.2%
EPS

-$0.04

Previous: $0.16-125.0%
Gross Margin

77.7%

Previous: 76.7%+1.3%
Free Cash Flow Margin

11.0%

Previous: 10.0%+10.0%
Capital Expenditures

-$112M

Previous: -$83.6M-33.9%
Free Cash Flow

-$127M

Previous: -$107M-18.8%
Net Income

-$15.3M

Previous: -$23.5M+34.9%
Operating Income

-$30.8M

Previous: -$39.2M+21.5%
Gross Profit

$334M

Previous: $258M+29.7%
Cash & Equivalents

$183M

Previous: $94.1M+94.3%
Total Assets

$3.06B

Previous: $2.59B+18.3%
R&D Expense

$111M

Previous: $90.6M+22.4%
Stock-Based Comp

$88.3M

Previous: $73.8M+19.6%

Revenue & EPS history

Cloudflare · Revenue · Quarterly

$430M

Q3 2024+28.2%vs Q3 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

For the fourth quarter of fiscal 2024, Cloudflare expects total revenue of $451.0 to $452.0 million, non-GAAP income from operations of $57.0 to $58.0 million, and non-GAAP net income per share of $0.18, utilizing weighted average common shares outstanding of approximately 360 million. For the full year fiscal 2024, they expect total revenue of $1,661.0 to $1,662.0 million, non-GAAP income from operations of $220.0 to $221.0 million, and non-GAAP net income per share of $0.74, utilizing weighted average common shares outstanding of approximately 357 million.

Tailwinds

  • Total revenue of $451.0 to $452.0 million is expected for Q4 2024.
  • Non-GAAP income from operations of $57.0 to $58.0 million is expected for Q4 2024.
  • Non-GAAP net income per share of $0.18 is expected for Q4 2024.
  • Total revenue of $1,661.0 to $1,662.0 million is expected for the full year fiscal 2024.
  • Non-GAAP income from operations of $220.0 to $221.0 million is expected for the full year fiscal 2024.

Headwinds

  • Non-GAAP net income per share of $0.74 is expected for the full year fiscal 2024.
  • Actual results may differ materially due to various factors.
  • Impact of adverse macroeconomic conditions.
  • Impact of conflicts in the Middle East and Ukraine.
  • Risks associated with managing rapid growth.

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 Q3 2024

Historical avgQ3 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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