Cloud security and performance company Cloudflare (NYSE:NET) will be reporting results this Tuesday after the bell. Here’s what you need to know.
Cloudflare beat analysts’ revenue expectations by 3.2% last quarter, reporting revenues of $562 million, up 30.7% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.
Is Cloudflare a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Cloudflare’s revenue to grow 28.4% year on year to $590.6 million, improving from the 26.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.27 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Cloudflare has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.1% on average.
Looking at Cloudflare’s peers in the software development segment, only F5 has reported results so far. It beat analysts’ revenue estimates by 8.8%, delivering year-on-year sales growth of 7.3%. The stock traded up 8.1% on the results.
Read our full analysis of F5’s earnings results here.The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. Investors in software development stocks have been spared in this environment as share prices are down 18.8% on average over the last month. Cloudflare is down 5.8% during the same time and is heading into earnings with an average analyst price target of $229.59 (compared to the current share price of $174.86).
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