NYSE$NET

Cloudflare · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Delivered a record fourth quarter and full year, with paid customer count growing to more than 111,000.

Cloudflare announced strong Q4 and fiscal year 2020 financial results, with Q4 revenue totaling $126 million, representing a 50% year-over-year increase. The company's paid customer count grew to more than 111,000, and they delivered over 550 products and capabilities during the year.

  • Q4 revenue totaled $126 million, representing an increase of 50% year-over-year.
  • GAAP gross profit was $96.9 million, or 76.9% gross margin.
  • GAAP loss from operations was $24.7 million, or 19.6% of total revenue.
  • Free cash flow was negative $23.5 million, or 19% of total revenue.

Headline financials

Total Revenue

$126M

Previous: $83.9M+50.0%
EPS (adj)

-$0.02

Previous: -$0.06+66.7%
Gross Margin

76.9%

Previous: 78.3%-1.8%
Free Cash Flow Margin

-19.0%

Previous: -28.0%+32.1%
Capital Expenditures

$10.4M

Previous: $12.3M-15.4%
Free Cash Flow

-$23.5M

Previous: -$23.5M+0.2%
Net Income

-$34M

Previous: -$28.2M-20.8%
Operating Income

-$24.7M

Previous: -$29.9M+17.5%
Gross Profit

$96.9M

Previous: $65.7M+47.4%
Cash & Equivalents

$109M

Previous: $139M-21.6%
Total Assets

$1.38B

Previous: $831M+66.2%
Stock-Based Comp

$16.2M

Previous: $11.6M+39.8%

Revenue & EPS history

Cloudflare · Revenue · Quarterly

$126M

Q4 2020+50%vs Q4 2019
Beat estimate in 9 of 10 quarters(90%)
ActualEstimate

Forward guidance

Cloudflare provided financial outlook for Q1 2021 and full year 2021, but it is subject to substantial uncertainty as a result of the COVID-19 pandemic.

Tailwinds

  • Total revenue of $130 to $131 million for the first quarter of 2021
  • Non-GAAP loss from operations of $9 to $8 million for the first quarter of 2021
  • Non-GAAP net loss per share of $0.03 to $0.02 for the first quarter of 2021, utilizing weighted average common shares outstanding of approximately 306 million
  • Total revenue of $589 to $593 million for the full year 2021
  • Non-GAAP loss from operations of $25 to $21 million for the full year 2021

Headwinds

  • Non-GAAP net loss per share of $0.09 to $0.08 for the full year 2021, utilizing weighted average common shares outstanding of approximately 309 million
  • Outlook is subject to substantial uncertainty as a result of the COVID-19 pandemic
  • Estimates as of February 11, 2021 regarding the impact of the pandemic on operations
  • Highly dependent on numerous factors that may not be able to predict or control
  • Customer demand and spending patterns may 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 Q4 2020

Historical avgQ4 2020

+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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