NYSE$NET

Cloudflare · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Cloudflare's financial performance for Q4 2022 demonstrated strong revenue growth and improved profitability.

Cloudflare announced strong Q4 2022 results, with revenue reaching $274.7 million, a 42% year-over-year increase. The company achieved record operating cash flow and free cash flow during the quarter, alongside delivering record non-GAAP income from operations.

  • Revenue totaled $274.7 million, up 42% year-over-year.
  • GAAP loss from operations was $50.7 million, while non-GAAP income from operations reached $16.8 million.
  • Operating cash flow was $78.1 million, representing 28% of total revenue.
  • Free cash flow was $33.7 million, or 12% of total revenue.

Headline financials

Total Revenue

$275M

Previous: $194M+41.9%
EPS (adj)

$0.06

Previous: -$0.24+124.8%
Gross Margin

75.3%

Previous: 78.0%-3.5%
Free Cash Flow Margin

12.0%

Previous: 4.0%+200.0%
Capital Expenditures

$40.1M

Previous: $28.3M+41.7%
Free Cash Flow

$33.7M

Previous: $8.6M+291.9%
Net Income

-$45.9M

Previous: -$77.5M+40.8%
Operating Income

-$50.7M

Previous: -$41.1M-23.5%
Gross Profit

$207M

Previous: $151M+36.9%
Cash & Equivalents

$204M

Previous: $314M-34.9%
Total Assets

$2.59B

Previous: $2.37B+9.1%
Stock-Based Comp

$60.2M

Previous: $28.5M+111.3%

Revenue & EPS history

Cloudflare · Revenue · Quarterly

$275M

Q4 2022+41.9%vs Q4 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

Cloudflare provided financial outlook for Q1 2023 and full year 2023, with revenue and non-GAAP income expectations.

Tailwinds

  • Q1 2023 total revenue is expected to be $290.0 to $291.0 million.
  • Q1 2023 non-GAAP income from operations is expected to be $11.5 to $12.5 million.
  • Q1 2023 non-GAAP net income per share is expected to be $0.03 to $0.04.
  • Full year 2023 total revenue is expected to be $1,330.0 to $1,342.0 million.
  • Full year 2023 non-GAAP income from operations is expected to be $54.0 to $58.0 million.

Headwinds

  • The forward-looking statements are subject to substantial uncertainty due to challenging general economic conditions.
  • These conditions include inflation and rising interest rates.
  • These conditions include the ongoing COVID-19 pandemic and the Russia-Ukraine conflict.
  • The estimates are as of February 9, 2023, and are highly dependent on numerous factors that Cloudflare may not be able to predict or control.
  • These factors include 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 Q4 2022

Historical avgQ4 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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