Cloudflare (NYSE:NET) Announces Quarterly Earnings Results

Cloudflare (NYSE:NET) disclosed its quarterly earnings results on Thursday. The company reported an earnings per share (EPS) of ($0.03) for the recent quarter, which fell short of the consensus estimate of $0.18 by ($0.21), according to Zacks. Additionally, Cloudflare recorded a negative net margin of 5.97% and a negative return on equity of 7.18%. The company also provided updated guidance for its fiscal year 2025, projecting an EPS between 0.790 and 0.800, and a Q1 2025 guidance of 0.160.

Cloudflare Stock Performance

During mid-day trading on Thursday, Cloudflare's shares saw a decline of $3.04, bringing the stock price to $141.25. A total of 6,722,994 shares were exchanged, significantly exceeding its average trading volume of 3,330,880 shares. Over the past year, Cloudflare has reached a low of $66.24 and a high of $144.30. The company's 50-day simple moving average stands at $116.71, while the 200-day average is $95.92. Cloudflare maintains a current ratio of 3.37, a quick ratio of 3.37 and a debt-to-equity ratio of 1.32. With a market capitalization of $48.47 billion, the company's price-to-earnings ratio is an unusual -543.25 and it has a beta of 1.12.

Insider Transactions

In related news, Cloudflare's Chief Financial Officer, Thomas J. Seifert, sold 15,000 shares of the stock in a transaction on Monday, February 3rd, at an average price of $136.63, resulting in a total transaction value of $2,049,450.00. After this transaction, the CFO owns 252,869 shares of the company's stock, valued at approximately $34,549,491.47, marking a 5.60% decrease in his position. Additionally, insider Douglas James Kramer sold 2,481 shares on the same day at an average price of $131.66, totaling $326,648.46. Post-sale, Kramer has 175,688 shares valued at about $23,131,082.08, representing a 1.39% decrease in ownership. In the past 90 days, insiders have sold 633,738 shares worth $69,632,506. Currently, insiders hold 12.83% of the company's stock.

Analyst Outlook

Several financial analysts have recently published their evaluations of Cloudflare. Scotiabank raised its price target for Cloudflare shares from $87.00 to $110.00, assigning a 'sector perform' rating in a report on January 21st. Meanwhile, Piper Sandler increased their price target from $83.00 to $92.00, giving the company a 'neutral' rating in a report on November 8th. UBS Group also increased their target for Cloudflare shares from $88.00 to $95.00, maintaining a 'neutral' rating. Goldman Sachs upgraded the stock from a 'sell' rating to 'buy' and lifted its price target from $77.00 to $140.00 on January 2nd. Lastly, Wells Fargo upped their price target from $135.00 to $150.00 while rating the stock as 'overweight' on January 27th. Currently, the stock holds three 'sell' ratings, eleven 'hold' ratings, and thirteen 'buy' ratings, culminating in an average rating of 'Hold' and a consensus price target of $112.32.

Company Overview

Cloudflare, Inc. positions itself as a cloud services provider, delivering an extensive portfolio of services to businesses globally. The company offers an integrated cloud-based security solution that works to protect various platforms, including public cloud, private cloud, on-premise infrastructures, software-as-a-service applications, and IoT devices. Its service offering includes web application firewall, bot management, distributed denial of service protection, API gateways, SSL/TLS encryption, script management, a security center, and rate limiting products.

Cloudflare, Earnings, Stock