NYSE$NET

Cloudflare · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Announced fourth quarter and fiscal year 2019 financial results, demonstrating robust revenue growth and strategic market expansion.

Cloudflare reported a strong Q4 2019, with revenue growing 51% year-over-year to $84 million. The company also achieved a GAAP gross margin of 78.3% and made strides in the enterprise security market with its Cloudflare for Teams offering.

  • Q4 revenue increased by 51% year-over-year, reaching $84 million.
  • GAAP gross margin was 78.3%, a 160 basis point increase year-over-year.
  • Non-GAAP gross margin was 78.7%, a 180 basis point increase year-over-year.
  • Cloudflare entered the enterprise security market with Cloudflare for Teams.

Headline financials

Total Revenue

$83.9M

Previous: $55.5M+51.2%
EPS (adj)

-$0.06

Previous: -$0.07+9.7%
Gross Margin

78.3%

No prior period
Free Cash Flow Margin

-28.0%

Previous: -52.0%+46.2%
Capital Expenditures

$12.3M

No prior period
Free Cash Flow

-$23.5M

No prior period
Net Income

-$28.2M

Previous: -$16.7M-68.7%
Operating Income

-$29.9M

Previous: -$17.1M-75.2%
Gross Profit

$65.7M

Previous: $42.5M+54.5%
Cash & Equivalents

$139M

No prior period
Total Assets

$831M

No prior period
Stock-Based Comp

$11.6M

No prior period

Revenue & EPS history

Cloudflare · Revenue · Quarterly

$83.9M

Q4 2019+51.2%vs Q4 2018
Beat estimate in 9 of 10 quarters(90%)
ActualEstimate

Forward guidance

For Q1 2020, Cloudflare anticipates revenue between $87 and $88 million and a non-GAAP loss per share between $0.06 and $0.05. For the full year 2020, the company projects revenue between $389 and $393 million and a non-GAAP loss per share between $0.21 and $0.19.

Tailwinds

  • Expects Q1 2020 revenue of $87 to $88 million
  • Anticipates FY 2020 revenue of $389 to $393 million
  • Projects Q1 2020 non-GAAP loss from operations of $20 to $19 million
  • Estimates FY 2020 non-GAAP loss from operations of $65 to $61 million
  • Forecasts Q1 2020 non-GAAP net loss per share of $0.06 to $0.05

Headwinds

  • Projects Q1 2020 non-GAAP loss from operations of $20 to $19 million
  • Estimates FY 2020 non-GAAP loss from operations of $65 to $61 million
  • Forecasts Q1 2020 non-GAAP net loss per share of $0.06 to $0.05
  • Estimates FY 2020 non-GAAP net loss per share of $0.21 to $0.19
  • Uncertainty of expenses that may be incurred in the future

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 Q4 2019

Historical avgQ4 2019

+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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