Cloudflare (NET)

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What to know about Cloudflare's Upcoming IPO

Formidable rivals, a focus on growth over profits, and a few unsavory customers are some of the potential risks to investing in Cloudflare, a fast-growing cloud security firm.

by Annie Gaus

More than 19 million websites use Cloudflare, a number that has grown steadily over time -- as of 2017, it provided services to 12 million websites.

Its revenue for the first half of 2019 was $129.2 million, compared to $192.7 million in 2018 and $134.9 million in the year prior.

The number of paying customers have grown along a similar trajectory.

Its losses ticked up last year, with the company reporting a net loss of $87.2 million for 2018 compared to just $10.7 million in 2017; this year, its losses are on track to fall a bit, with Cloudflare posting a $36.8 million loss in the first half.

Source: The Street

https://www.thestreet.com/investing/sto ... o-15059940

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Cloudflare Announces Pricing of Initial Public

Cloudfare (NYSE: NET) today announced the pricing of its initial public offering of its Class A common stock at a price to the public of $15 per share.

Cloudflare is offering 35,000,000 shares of its Class A common stock, plus up to an additional 5,250,000 shares that the underwriters have the option to purchaseat the initial public offering price less underwriting discounts.

The shares are expected to begin trading on the New York Stock Exchange on September 13,2019 under the ticker symbol NET and the offering is expected to close on September 17, 2019, subject to customary closing conditions.

Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, and J.P. Morgan Securities LLC are acting as joint lead book-running managers for the offering.

Jefferies LLC, Wells Fargo Securities, LLC, and RBC Capital Markets,LLC are also acting as joint book-running managers.

JMP Securities LLC,Evercore Group L.L.C., Needham & Company, LLC, Oppenheimer & Co. Inc.,BTIG, LLC, and SunTrust Robinson Humphrey, Inc. are acting as co-managers for the offering.

Source: Reuters

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HITTING NEW HIGHS WHILE KEEPING OUR ONLINE WORLD SAFE

Today's company protects some of the best businesses in the world from cybercrime...

In today's world, we rely on the Internet and flow of data to keep our economy running. That was true before the pandemic...

But it's especially so now that COVID-19 has flipped the workplace on its head. And that means there are more opportunities for cybercriminals to make trouble. Today's company makes sure that their efforts fall flat...

Cloudflare (NET) is a full-service security network that helps provide online protection for Internet properties – things like domains, websites, and applications built on those websites.

Cloudflare's 4.1 million customers include about 17% of Fortune 1,000 companies. And the company just had a record-setting quarter...

First-quarter revenue increased 51% year over year, hitting more than $138 million. And its dollar net-retention (which measures recurring revenue from existing customers) grew to 123%.

NET shares have skyrocketed more than 450% since they went public in 2019. They've been hitting new all-time highs lately. And as companies continue to use Cloudflare's products to protect themselves from cybercriminals, that trend should continue...

Source: Daily Wealth

[winston]

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DEMAND FOR ONLINE PROTECTION IS HELPING THIS NETWORKING GIANT SOAR
Today's chart highlights a company that provides online protection for some of the world's best businesses...

We rely heavily on technology in our everyday lives. This has been especially true throughout the pandemic, with many companies shifting to fully remote workplaces.

This trend has also given cybercriminals more opportunities to make mischief. Today's company aims to thwart those efforts...

Cloudflare (NET) offers a full-service, global security network. It prevents cybercrime in more than 100 countries for domains, websites, and applications.

The company serves small organizations and behemoths alike, including roughly 19% of Fortune 1,000 companies. And it has been thriving as many companies keep working remotely...

In the second quarter, Cloudflare posted $152 million in revenue, up 53% year over year. And its recurring sales from existing customers reached a record 124% of that total.

As you can see in today's chart, NET shares are taking off. They're up more than 775% since going public in September 2019...

And they just hit a new all-time high. As companies continue to seek online protection, Cloudflare should benefit...

Source: Daily Wealth

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Cloudflare Stock Falls 12% on Soft Outlook, Results Seen as 'Strong in an Unforgiving Market for Tech Stocks'

By Senad Karaahmetovic

Shares of Cloudflare (NYSE:NET) are down more than 15% in premarket trading Friday after the company’s Q2 earnings forecast missed expectations.

NET reported Q1 adjusted EPS of 1c, beating the consensus projection of 0.16c.

Revenue came in at $212.2 million, topping the analyst estimates of $205.7 million.

The adjusted gross margin stood at 78.7% in the quarter, just above the expected 78.4%.

Looking ahead to Q2, Cloudflare expects an adjusted loss per share of 1c to $0, while analysts were looking for EPS of 0.26c.

Revenue is expected in the range of $226.5 million to $227.5 million, compared to the estimates of $218 million.

The company expects a Q2 operating loss in the range of $1 million to $2 million.

For the full year, NET expects adjusted EPS in the range of 3c to 4c, compared to the analyst consensus of 3.5c.

FY revenue is expected to range between $955 million to $959 million, up from its previous guidance of $927 million to $931 million, while analysts were looking for $929.9 million.

The company forecasts FY adjusted operating income in the range of $10 million to $14 million.

Morgan Stanley analyst Keith Weiss said that the move lower in after-hours despite good results is a result of the “highest growth adjusted multiple in software.”

“Despite the >60% pullback in shares, NET remains the amongst the most expensive names in our coverage group, trading at ~18x EV/CY23revenues or 0.45x EV/Sales/Growth (AH price of ~$70/share)versus high growth peers like CRWD, DDOG, MDB, SNOW and ZS trading at an average 0.40X EV/Sale/Growth multiple.

BTIG analyst Gray Powell saw “strong” results “in an unforgiving market for tech stocks.”

See potential for NET to maintain 50% revenue growth in 2022 as the year plays out. At 18.5x 2023E EV/sales, we think the risk reward is balanced.

Source: investing.com

https://www.investing.com/news/stock-ma ... SI-2819344

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This Growth Stock Could Soar 400% in the Next 5 Years

by Trevor Jennewine

The company increased revenue by 240% over the last three years, while its share price climbed 290%.

Cloudflare has a durable competitive advantage

Its revenue increased 49% to $975 million last year, and non-GAAP net income climbed 160% to $0.13 per diluted share.

Cloudflare operates the fastest cloud network and developer platform on the market.

While Cloudflare is smaller than Amazon and Microsoft, its unmatched speed and freemium pricing strategy resulted in greater scale in certain areas.

Cloudflare management estimates the company’s addressable market at $125 billion.

Cloudflare stock currently trades at more than 20 times sales, a discount to its three-year average of 42 times sales. That valuation is certainly not cheap, but it is reasonable in context.

Source: The Motley Fool

https://tradesoftheday.com/2023/02/15/t ... t-5-years/

[winston]

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Cloudflare Announces First Quarter 2023 Financial Results

First quarter revenue totaled $290.2 million, representing an increase of 37% year-over-year

Delivered GAAP loss from operations of $47.3 million, or 16% of total revenue, and non-GAAP income from operations of $19.4 million, or 7% of total revenue

Achieved operating cash flow of $36.4 million, or 13% of total revenue, and free cash flow of $13.9 million, or 5% of total revenue

Cash, cash equivalents, and available-for-sale securities were $1,715.6 million as of March 31, 2023.

Source: Business Wire

https://finance.yahoo.com/news/cloudfla ... 00727.html

[winston]

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Cloudflare Stock Plunges On Weak Revenue Guidance

by REINHARDT KRAUSE

One concern for shareholders has been that the company could lose 2023 revenue from cryptocurrency customers.

Source: IBD

https://www.investors.com/news/technolo ... src=A00220

[winston]

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Why Cloudflare Is Not Worth the Gamble in This Bear Market

By Rob Starks Jr

KEY POINTS

Robust revenue growth and consistently high gross margins make the stock attractive to growth investors.

Its unprofitability, negative free cash flow, and high valuation are reasons to be cautious.

The company faces significant long-term competition in the high-growth areas where it competes.

Source: TMF

https://www.fool.com/investing/2023/04/ ... gn=article

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vested

Cloudflare Stock Earnings Crash: You'll Want to Know These 2 Things

by Jason Hall and Jeff Santoro

Slow, steady, bumpy road to earnings.

Loss of US$110m to Loss US$38m.

Source: The Motley Fool

https://finance.yahoo.com/m/5e4aa09e-9b ... nings.html