Cloudflare Stock Rises As 2022 Revenue Outlook Tops Estimates

Cloudflare stock gained late Thursday on December-quarter profit that met views and revenue that topped analyst estimates. In addition, the 2022 revenue guidance for NET stock came in above expectations.

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San Francisco-based Cloudflare (NET) reported fourth-quarter earnings after the market close.

The company said it had zero profit on an adjusted basis vs. a loss of 2 cents per share in the year-earlier period. Revenue for the provider of cloud-based networking and cybersecurity services jumped 54% to $193.6 million.

Analysts expected Cloudflare to report earnings of zero cents per share on revenue of $185.2 million for the period ended Dec. 31.

Cloudflare stock climbed 6.2% to near 123 in extended trading on the stock market today. Heading into the Cloudflare earnings report, NET stock had retreated 12% in 2022.

In addition, Cloudflare announced the acquisition of Vectrix. Terms were not disclosed.

Cloudflare Stock: Revenue Guidance Tops Views

For the current quarter ending in March, Cloudflare expects revenue in a range of $205 million to $206 million vs. estimates of $196.2 million.

For full-year 2022, it forecast revenue of $929 million at the midpoint of its guidance range vs. estimates of $891 million.

Also, NET stock owned a Relative Strength Rating of 86 out of a best-possible 99, according to IBD Stock Checkup.

Started in 2009, Cloudflare speeds up and provides security for web applications routed through its intelligent global network. In addition, the company competes in both corporate and consumer markets.

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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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