Internet security and content delivery network Cloudflare (NYSE:NET) will be announcing earnings results tomorrow after the bell. Here's what to look for.
Last quarter Cloudflare reported revenues of $308.5 million, up 31.5% year on year, in line with analyst expectations. It was a mixed quarter for the company, with revenue and EPS exceeding analysts' expectations.
Is Cloudflare buy or sell heading into the earnings? Read our full analysis here.
This quarter analysts are expecting Cloudflare's revenue to grow 30.2% year on year to $330.6 million, slowing down from the 47.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.19%.
Looking at Cloudflare's peers in the software development segment, only F5 Networks has so far reported results, delivering top-line growth of 0.99% year on year, and beating analyst estimates by 0.67%. The stock traded down 2.2% on the results.Read our full analysis of F5 Networks's earnings results here.
Tech stocks have been under pressure, and while some of the software development stocks have fared somewhat better, they have not been spared, with share price declining 4.45% over the last month. Cloudflare is down 3.58% during the same time, and is heading into the earnings with analyst price target of $68.2, compared to share price of $56.31.
One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.
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The author has no position in any of the stocks mentioned.