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Cloudflare shares plunged as much as 25% in after-hours trading Thursday after the internet services and security company reported first-quarter results that missed on the top line, and also revised its full-year revenue guidance down.
Here are the key numbers:
- Earnings: 8 cents per share, adjusted, vs. 3 cents per share expected, according to a Refinitiv survey of analysts
- Revenue: $290.2 million vs. $290.8 million expected, according to Refinitiv
Cloudflare revised their full-year revenue guidance for 2023 down. The company guided to full-year revenue around $1.28 billion, versus a prior consensus of $1.33 billion. That revision is down significantly from Cloudflare’s prior guidance as well, which was between $1.33 billion and $1.34 billion.
The company also reported a net loss of $38 million for the quarter, compared to a $41 million loss for the year ago quarter.
Despite the bottom-line beat, investors apparently reacted to commentary from Cloudflare chief financial officer Thomas Seifert, who said that “increasing macroeconomic uncertainty over the course of the first quarter resulted in a material lengthening of sales cycles and a significant backend-weighting of linearity.”
Cloudflare’s guidance for the second-quarter of 2023 was also below consensus estimates. Cloudflare guided to revenue between $305 and $306 million, versus a consensus estimate of $319 million.