NYSE$NET

Cloudflare · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Cloudflare's financial performance for Q4 2023 showed revenue growth and improved profitability.

Cloudflare announced strong Q4 2023 results with a 32% increase in revenue year-over-year, reaching $362.5 million. The company also achieved record operating and free cash flow during the quarter, driven by robust momentum with large customers, progress in the public sector, and growth in Cloudflare One.

  • Revenue totaled $362.5 million, a 32% increase year-over-year.
  • GAAP loss from operations was $42.8 million, while non-GAAP income from operations was $39.8 million.
  • Operating cash flow reached $85.4 million, representing 24% of total revenue.
  • Free cash flow was $50.7 million, or 14% of total revenue.

Headline financials

Total Revenue

$362M

Previous: $275M+32.0%
EPS (adj)

$0.15

Previous: $0.06+150.0%
Capital Expenditures

-$34.7M

Previous: $40.1M-186.5%
Free Cash Flow

$50.7M

Previous: $33.7M+50.4%
Net Income

-$27.9M

Previous: -$45.9M+39.2%
Operating Income

-$42.8M

Previous: -$50.7M+15.6%
Gross Profit

$279M

Previous: $207M+34.9%
Stock-Based Comp

$74.4M

Previous: $60.2M+23.6%

Revenue & EPS history

Cloudflare · Revenue · Quarterly

$362M

Q4 2023+32%vs Q4 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

Cloudflare provided guidance for Q1 2024 and full year 2024, including revenue, non-GAAP income from operations, and non-GAAP net income per share estimates.

Tailwinds

  • Q1 2024 total revenue is expected to be $372.5 to $373.5 million.
  • Q1 2024 non-GAAP income from operations is expected to be $34.0 to $35.0 million.
  • Q1 2024 non-GAAP net income per share is expected to be $0.13.
  • Full year 2024 total revenue is expected to be $1,648.0 to $1,652.0 million.
  • Full year 2024 non-GAAP income from operations is expected to be $154.0 to $158.0 million.

Headwinds

  • Full year 2024 non-GAAP net income per share is expected to be $0.58 to $0.59.
  • The forward-looking statements are subject to risks and uncertainties.
  • Actual results may differ materially from the forward-looking statements.
  • Adverse macroeconomic conditions could impact future financial performance.
  • Geopolitical tensions could impact future financial performance.

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 2023

Historical avgQ4 2023

+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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