Shares of Cloudflare Inc. jumped in Thursday’s extended session after the cybersecurity company reported results that beat Wall Street expectations and raised its earnings outlook for the year.
shares rose about 21% after hours, after rising 0.1% in the regular session, to close at $58.43.
The company reported a second-quarter loss of $63.5 million, or 20 cents per share, compared with a loss of $35.5 million, or 12 cents per share, in the year-earlier period. Adjusted bottom line results, which exclude stock-based compensation expense and other items, reached profitability per share, compared with a loss of 2 cents per share in the year-ago period.
Revenue rose to $234.5 million from $152.4 million in the prior quarter.
Analysts polled by FactSet had forecast a loss of a penny per share on revenue of $227.3 million.
“We delivered another strong quarter, with revenue growth of 54% year-over-year, driven by the strength of our large customers and a record number of large new customers,” said Matthew Prince, CEO and co-founder of Cloudflare, in a statement. “Large customers now account for 60% of our revenue, and they’re looking forward to hearing how Cloudflare can save them money and reduce IT complexity while increasing their security, performance and reliability.”
“Companies aren’t abandoning the Internet, rolling back to outdated pre-packaged boxes riddled with supply chain issues, or giving up on cybersecurity when attacks are bigger than ever,” Prince said. “I am confident that Cloudflare will continue to go from strength to strength even through the tough economic times that may lie ahead.”
Cloudflare expected bottom line results to a profit of one penny per share on revenue between $250 million and $251 million for the third quarter, while analysts had forecast a profit of one penny per share on revenue of $246.9 million.
For the year, the company raised its revenue guidance range but stuck to its adjusted earnings forecast of 3 cents to 4 cents per share. Cloudflare now sees revenue of $968 million to $972 million, up from a previous estimate of $955 million to $959 million.
Analysts had estimated earnings of 3 cents per share on revenue of $958.4 million.
Cloudflare shares are down 56% year-to-date, while the S&P 500
fell 13%, and the technology index Nasdaq Composite
has fallen by 19%.