Cloudflare (NYSE:NET) Issues Q3 2024 Earnings Guidance

Cloudflare (NYSE:NET) updated its third quarter 2024 earnings guidance on Thursday. The company provided EPS guidance of 0.180-0.180 for the period, compared to the consensus EPS 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.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on NET. Guggenheim boosted their price objective on Cloudflare from $50.00 to $57.00 and gave the stock a sell rating in a report on Friday. JPMorgan Chase & Co. decreased their target price on Cloudflare from $90.00 to $80.00 and set a neutral rating for the company in a research report on Friday, May 3rd. Cantor Fitzgerald boosted their target price on Cloudflare from $80.00 to $85.00 and gave the stock a neutral rating in a research report on Friday. Bank of America boosted their target price on Cloudflare from $52.00 to $60.00 and gave the stock an underperform rating in a research report on Friday, May 3rd. Finally, The Goldman Sachs Group decreased their target price on Cloudflare from $77.00 to $68.00 and set a sell rating for the company in a research report on Tuesday, June 4th. Three equities research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and ten have assigned a buy rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of Hold and a consensus target price of $92.08.

Cloudflare Price Performance

Shares of NET traded up $5.06 during trading hours on Friday, hitting $79.46. 10,348,642 shares of the company were exchanged, compared to its average volume of 2,542,594. The company has a market cap of $27.00 billion, a price-to-earnings ratio of -149.92 and a beta of 1.10. Cloudflare has a fifty-two week low of $53.88 and a fifty-two week high of $116.00. The company has a quick ratio of 3.51, a current ratio of 3.51 and a debt-to-equity ratio of 1.61. The firm’s fifty day moving average is $77.83 and its 200 day moving average is $85.17.

Cloudflare (NYSE:NET) last released its earnings results on Thursday, May 2nd. The company reported ($0.03) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.05) by $0.02. The company had revenue of $378.60 million for the quarter, compared to analyst estimates of $372.93 million. Cloudflare had a negative return on equity of 8.90% and a negative net margin of 6.90%. On average, equities analysts anticipate that Cloudflare will post -0.19 earnings per share for the current fiscal year.

Insider Activity at Cloudflare

In other Cloudflare news, COO Michelle Zatlyn sold 102,580 shares of the stock in a transaction dated Monday, July 1st. The stock was sold at an average price of $82.52, for a total value of $8,464,901.60. Following the completion of the transaction, the chief operating officer now directly owns 211,394 shares in the company, valued at $17,444,232.88. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. In other news, COO Michelle Zatlyn sold 102,580 shares of the firm’s stock in a transaction dated Monday, July 1st. The stock was sold at an average price of $82.52, for a total transaction of $8,464,901.60. Following the completion of the transaction, the chief operating officer now directly owns 211,394 shares in the company, valued at $17,444,232.88. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Matthew Prince sold 52,384 shares of the firm’s stock in a transaction dated 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 transaction, the chief executive officer now owns 230,612 shares of the company’s stock, valued at $16,721,676.12. The disclosure for this sale can be found here. Insiders have sold 691,210 shares of company stock valued at $53,578,881 over the last ninety days. 12.83% of the stock is owned by corporate insiders.

About Cloudflare

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.