Internet security and content delivery network Cloudflare (NYSE:NET) will be reporting earnings tomorrow after the bell. Here's what you need to know.
Last quarter Cloudflare reported revenues of $212.1 million, up 53.6% year on year, beating analyst revenue expectations by 3.16%. It was a very strong quarter for the company, with an exceptional revenue growth and a very optimistic guidance for the next quarter.
Is Cloudflare buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Cloudflare's revenue to grow 49.1% year on year to $227.3 million, in line with the 52.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 per share.
The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing two upwards revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 5.57%.
Looking at Cloudflare's peers in the software development segment, only F5 Networks has so far reported results, delivering top-line growth of 3.52% year on year, and beating analyst estimates by 0.99%. The stock traded up 10.8% on the results. Read our full analysis of F5 Networks's earnings results here.
Investors in the software segment have had steady hands going into the earnings, with the stocks down on average 0.79% over the last month. Cloudflare is up 5.14% during the same time, and is heading into the earnings with with analyst price target of $89.7, compared to share price of $53.1.
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.
The author has no position in any of the stocks mentioned.