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Cloudflare Jumps After Raising Outlook, Defying Slowdown Fears

The Cloudflare headquarters in San Francisco, California, US, on Monday, April 29, 2024. Cloudflare Inc. is expected to release earnings figures on May 2. Photographer David Paul Morris/Bloomberg Photographer: David Paul Morris/Bloomberg (David Paul Morris/Bloomberg)

(Bloomberg) -- Cloudflare Inc. surged on Thursday after raising its full-year revenue and earnings outlooks, alleviating fears business would slow in the second half of the year. 

Shares rose as much as 12% in extended trading. Cloudflare had fallen 11% this year through the close. 

The San Francisco-based security company now expects earnings less some items will be as much as 71 cents per share this year, it said in a statement. Previously, it saw 61 cents per share, in line with analysts’ expectations. Cloudflare also said sales will likely be slightly higher than previously expected this year.

“The world is still complicated, but our team remained focused on execution and delivered terrific results, including a double-digit year-over-year improvement in sales productivity,” said Chief Executive Officer Matthew Prince said. 

Prior to the report, analysts had warned that Cloudflare may have to cut its outlook as the benefits from price hikes ended and its ability to add more customers slowed.  

 

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