Cloudflare (NYSE:NET) Issues FY 2024 Earnings Guidance

Cloudflare (NYSE:NET) issued an update on its FY 2024 earnings guidance on Friday morning. The company provided earnings per share guidance of 0.600-0.610 for the period, compared to the consensus earnings per share estimate of 0.600. The company issued revenue guidance of $1.6 billion-$1.7 billion, compared to the consensus revenue estimate of $1.7 billion. Cloudflare also updated its Q2 2024 guidance to 0.140-0.140 EPS.

Cloudflare Price Performance

NYSE:NET traded down $0.11 during trading hours on Monday, hitting $74.29. 6,576,970 shares of the company’s stock traded hands, compared to its average volume of 3,961,452. The firm has a market cap of $25.08 billion, a P/E ratio of -141.34 and a beta of 1.15. Cloudflare has a 52 week low of $44.60 and a 52 week high of $116.00. The business’s fifty day simple moving average is $93.67 and its two-hundred day simple moving average is $83.75. 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 posted its quarterly earnings data on Thursday, February 8th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.07) by $0.01. The company had revenue of $362.47 million during the quarter, compared to analyst estimates of $352.70 million. Cloudflare had a negative return on equity of 12.78% and a negative net margin of 13.10%. On average, research analysts anticipate that Cloudflare will post -0.2 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

NET has been the subject of several research analyst reports. Susquehanna dropped their price objective on Cloudflare from $115.00 to $80.00 and set a neutral rating for the company in a research note on Monday. Piper Sandler restated a neutral rating and set a $81.00 price target (down previously from $110.00) on shares of Cloudflare in a research report on Friday. Truist Financial raised their price target on Cloudflare from $90.00 to $120.00 and gave the company a buy rating in a research report on Friday, February 9th. Robert W. Baird lowered their price target on Cloudflare from $100.00 to $94.00 and set an outperform rating on the stock in a research report on Friday. Finally, Oppenheimer lowered their price target on Cloudflare from $122.00 to $110.00 and set an outperform rating on the stock in a research report on Friday. Four research analysts have rated the stock with a sell rating, ten have given a hold rating and nine have assigned a buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of Hold and a consensus price target of $90.13.

Insider Activity at Cloudflare

In related news, Director Carl Ledbetter sold 7,962 shares of the business’s stock in a transaction dated Wednesday, February 7th. The stock was sold at an average price of $81.42, for a total transaction of $648,266.04. Following the transaction, the director now owns 1,446,957 shares in the company, valued at approximately $117,811,238.94. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. In other Cloudflare news, CFO Thomas J. Seifert sold 15,000 shares of Cloudflare stock in a transaction that occurred on Friday, May 3rd. The stock was sold at an average price of $73.97, for a total transaction of $1,109,550.00. Following the sale, the chief financial officer now directly owns 338,469 shares of the company’s stock, valued at approximately $25,036,551.93. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Carl Ledbetter sold 7,962 shares of Cloudflare stock in a transaction that occurred on Wednesday, February 7th. The shares were sold at an average price of $81.42, for a total value of $648,266.04. Following the sale, the director now directly owns 1,446,957 shares in the company, valued at $117,811,238.94. The disclosure for this sale can be found here. Insiders have sold a total of 1,044,347 shares of company stock worth $101,703,776 in the last 90 days. 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.