Cloudflare Reports Strong Q4 Results; EPS and Revenue Beat Expectations

Cloudflare (NYSE: NET) announces Q4 2024 earnings, showcasing impressive growth. Revenue reached $459.9M, exceeding expectations, while EPS stood at $0.19, above the expected $0.18. Positive trends in customer acquisition signal ongoing operational success.

Date: 07-02-2025

AI Rating: 7

Earnings Per Share (EPS)
Cloudflare reported a non-GAAP EPS of $0.19 for Q4 2024, which surpassed the analyst expectation of $0.18. This demonstrates the company's effective management and operational efficiency, resulting in a solid growth trajectory.

Revenue Growth
The company achieved a revenue of $459.9 million, representing a 27% increase year-over-year. This not only exceeded the analyst expectations of $452 million but also surpassed Cloudflare’s own guidance of $451 to $452 million. Such substantial revenue growth indicates strong market demand and successful customer acquisition efforts.

Net Income
During the quarter, Cloudflare recorded a GAAP net loss of $12.8 million. While this figure reflects challenges, the company is focused on long-term growth and is investing in expanding its product offerings and market share.

Profit Margins
The gross profit margin slightly decreased to 77.6% from 78.9% in the previous year. This decrease may prompt strategic evaluations to manage rising costs or competitive pressures better.

Free Cash Flow (FCF)
Cloudflare reported free cash flow of $47.8 million, which represents a decline of 5.8% compared to the previous year. While still positive, this downturn suggests that cash management strategies may need to be assessed moving forward.

Return on Equity (ROE)
The report did not mention any details regarding Cloudflare's return on equity, leaving this aspect unassessed in this analysis. Hence, investors may want to look for future disclosures to better understand the company’s financial efficiency.

Overall, the report indicates a robust performance by Cloudflare, highlighted by substantial revenue growth and surpassing EPS expectations. However, the net loss and slight decline in margins should be monitored for long-term sustainability and profitability.

Stocks: NET