Cloudflare (NYSE:NET) Updates Q3 2024 Earnings Guidance

Cloudflare (NYSE:NET) issued an update on its third quarter 2024 earnings guidance on Thursday morning. The company provided earnings per share guidance of 0.180-0.180 for the period, compared to the consensus earnings per share estimate of 0.150. The company issued revenue guidance of $423.0 million-$424.0 million, compared to the consensus revenue estimate of $423.6 million. Cloudflare also updated its FY 2024 guidance to 0.700-0.710 EPS.

Cloudflare Trading Up 6.8 %

Shares of NYSE NET traded up $5.06 during trading on Friday, reaching $79.46. The company had a trading volume of 10,348,642 shares, compared to its average volume of 2,542,594. The company’s fifty day moving average price is $77.83 and its 200-day moving average price is $85.17. Cloudflare has a 12 month low of $53.88 and a 12 month high of $116.00. The stock has a market cap of $27.00 billion, a P/E ratio of -149.92 and a beta of 1.10. The company has a quick ratio of 3.51, a current ratio of 3.51 and a debt-to-equity ratio of 1.61.

Cloudflare (NYSE:NET) last announced its quarterly earnings data on Thursday, May 2nd. The company reported ($0.03) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.05) by $0.02. The company had revenue of $378.60 million for the quarter, compared to the consensus estimate of $372.93 million. Cloudflare had a negative return on equity of 8.90% and a negative net margin of 6.90%. As a group, research analysts expect that Cloudflare will post -0.19 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on NET. Cantor Fitzgerald boosted their price objective on Cloudflare from $80.00 to $85.00 and gave the company a neutral rating in a research note on Friday. Needham & Company LLC reaffirmed a buy rating and set a $135.00 price target on shares of Cloudflare in a research note on Friday. TD Cowen dropped their price target on Cloudflare from $117.00 to $110.00 and set a buy rating on the stock in a research note on Friday, May 3rd. JMP Securities reaffirmed a market outperform rating and set a $120.00 price target on shares of Cloudflare in a research note on Tuesday, May 14th. Finally, UBS Group raised Cloudflare from a sell rating to a neutral rating and upped their price target for the stock from $76.00 to $82.00 in a research note on Tuesday, June 25th. Three equities research analysts have rated the stock with a sell rating, twelve have issued a hold rating and ten have given a buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of Hold and an average price target of $92.08.

Insider Buying and Selling at Cloudflare

In other Cloudflare news, CEO Matthew Prince sold 52,384 shares of the stock in a transaction on Wednesday, May 8th. The stock was sold at an average price of $72.51, for a total transaction of $3,798,363.84. Following the completion of the transaction, the chief executive officer now directly owns 230,612 shares of the company’s stock, valued at $16,721,676.12. The sale was disclosed in a filing with the SEC, which is available through the SEC website. In other Cloudflare news, CFO Thomas J. Seifert sold 28,634 shares of the stock in a transaction on Monday, May 20th. The stock was sold at an average price of $75.13, for a total transaction of $2,151,272.42. Following the sale, the chief financial officer now owns 309,937 shares in the company, valued at $23,285,566.81. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Matthew Prince sold 52,384 shares of the stock in a transaction on Wednesday, May 8th. The stock was sold at an average price of $72.51, for a total value of $3,798,363.84. Following the sale, the chief executive officer now owns 230,612 shares in the company, valued at approximately $16,721,676.12. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 691,210 shares of company stock valued at $53,578,881. Company insiders own 12.83% of the company’s stock.

Cloudflare Company Profile

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.