NYSE$NET

Cloudflare · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Cloudflare's Q4 2021 financial results were announced, demonstrating strong revenue growth and positive cash flow.

Cloudflare announced strong Q4 2021 results, with revenue up 54% year-over-year to $193.6 million. The company achieved record operating cash flow and positive free cash flow for the quarter.

  • Q4 revenue totaled $193.6 million, up 54% year-over-year.
  • Fiscal year 2021 revenue totaled $656.4 million, up 52% year-over-year.
  • Record dollar-based net retention rate of 125%.
  • Operating cash flow was $40.6 million, representing 21% of total revenue, and free cash flow was $8.6 million, representing 4% of total revenue.

Headline financials

Total Revenue

$194M

Previous: $126M+53.7%
EPS (adj)

-$0.24

Previous: -$0.02-1109.7%
Gross Margin

78.0%

Previous: 76.9%+1.4%
Free Cash Flow Margin

4.0%

Previous: -19.0%+121.1%
Capital Expenditures

$28.3M

Previous: $10.4M+172.1%
Free Cash Flow

$8.6M

Previous: -$23.5M+136.6%
Net Income

-$77.5M

Previous: -$34M-127.9%
Operating Income

-$41.1M

Previous: -$24.7M-66.3%
Gross Profit

$151M

Previous: $96.9M+55.9%
Cash & Equivalents

$314M

Previous: $109M+188.1%
Total Assets

$2.37B

Previous: $1.38B+71.8%
Stock-Based Comp

$28.5M

Previous: $16.2M+75.5%

Revenue & EPS history

Cloudflare · Revenue · Quarterly

$194M

Q4 2021+53.7%vs Q4 2020
Beat estimate in 12 of 13 quarters(92%)
ActualEstimate

Forward guidance

Cloudflare provided financial outlook for Q1 2022 and full year 2022 which are subject to substantial uncertainty as a result of the ongoing COVID-19 pandemic.

Tailwinds

  • Total revenue of $205.0 to $206.0 million for the first quarter of fiscal 2022.
  • Non-GAAP income from operations of $0.5 to $1.5 million for the first quarter of fiscal 2022.
  • Non-GAAP net income per share of $0.00 to $0.01, utilizing weighted average common shares outstanding of approximately 348 million for the first quarter of fiscal 2022.
  • Total revenue of $927.0 to $931.0 million for the full year fiscal 2022.
  • Non-GAAP income from operations of $10.0 to $14.0 million for the full year fiscal 2022.

Headwinds

  • The forward-looking statements are subject to substantial uncertainty as a result of the ongoing COVID-19 pandemic.
  • Estimates as of February 10, 2022 regarding the impact of the pandemic on operations.
  • Highly dependent on numerous factors that may not be able to predict or control.
  • The timing of administering COVID-19 vaccines around the world and the long-term efficacy of these vaccines.
  • The impact of the pandemic on global and regional economies and economic activity generally.

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 2021

Historical avgQ4 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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