Cloudflare Stock Soars 21% Postmarket on Upbeat Guidance as Large Customer Base Grows

seekingalpha2022-08-04

CloudFlare (NYSE:NET) stock soared 21% postmarket on Thursday after the firm raised its 2022 revenue guidance as it added a record number of large customers in Q2.

NET now expects 2022 revenue of $968M-$972M vs. consensus estimate of $958.7M. Its prior outlook was $955M-$959M.

The company maintained its outlook for 2022 adj. EPS at $0.03-$0.04.

NET expects to achieve positive free cash flow in H2 2022.

The company projects Q3 adj. EPS of $0-$0.01 vs. consensus estimate of $0.01.

Q3 revenue is expected to be $250M-$251M vs. consensus estimate of $246.95M.

NET reported Q2 adj. EPS of $0 vs. -$0.02 in Q2 2021.

Revenue rose 53.9% Y/Y to $234.5M, driven by strength in large customers and a record number of large customer additions (at 212).

Large customers now represent 60% of NET's revenue and total number of large customers now stands at 1,749.

Shares of NET have declined 53.7% YTD.

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