Cloudflare (NYSE:NET) Updates FY 2024 Earnings Guidance

Cloudflare (NYSE:NET) issued an update on its FY 2024 earnings guidance on Friday morning. The company provided EPS guidance of 0.600-0.610 for the period, compared to the consensus EPS estimate of 0.600. The company issued revenue guidance of $1.6 billion-$1.7 billion, compared to the consensus revenue estimate of $1.7 billion. Cloudflare also updated its Q2 2024 guidance to 0.140-0.140 EPS.

Cloudflare Price Performance

NYSE NET traded down $0.11 on Monday, hitting $74.29. The company had a trading volume of 6,576,970 shares, compared to its average volume of 3,961,452. Cloudflare has a 12-month low of $44.60 and a 12-month high of $116.00. The company has a market capitalization of $25.08 billion, a PE ratio of -141.34 and a beta of 1.15. The company’s fifty day moving average price is $93.67 and its 200-day moving average price is $83.75. The company has a debt-to-equity ratio of 1.61, a current ratio of 3.51 and a quick ratio of 3.51.

Cloudflare (NYSE:NET) last announced its quarterly earnings results on Thursday, February 8th. The company reported ($0.06) earnings per share for the quarter, beating the consensus estimate of ($0.07) by $0.01. The firm had revenue of $362.47 million for the quarter, compared to analysts’ expectations of $352.70 million. Cloudflare had a negative net margin of 13.10% and a negative return on equity of 12.78%. As a group, analysts predict that Cloudflare will post -0.2 earnings per share for the current year.

Wall Street Analyst Weigh In

NET has been the topic of a number of recent research reports. The Goldman Sachs Group reduced their price target on shares of Cloudflare from $89.00 to $77.00 and set a sell rating on the stock in a research report on Monday. Needham & Company LLC reaffirmed a buy rating and set a $135.00 price target on shares of Cloudflare in a research report on Friday. Piper Sandler reissued a neutral rating and set a $81.00 target price (down from $110.00) on shares of Cloudflare in a research report on Friday. KeyCorp reduced their target price on shares of Cloudflare from $132.00 to $94.00 and set an overweight rating on the stock in a research report on Friday. Finally, Wells Fargo & Company cut their price objective on Cloudflare from $125.00 to $105.00 and set an overweight rating on the stock in a research note on Friday. Four equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and nine have issued a buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of Hold and an average price target of $90.13.

Insider Buying and Selling at Cloudflare

In other news, COO Michelle Zatlyn sold 277,376 shares of the stock in a transaction that occurred on Thursday, February 15th. The stock was sold at an average price of $101.17, for a total transaction of $28,062,129.92. Following the transaction, the chief operating officer now owns 38,545 shares in the company, valued at $3,899,597.65. The sale was disclosed in a filing with the SEC, which is available through the SEC website. In related news, COO Michelle Zatlyn sold 277,376 shares of the stock in a transaction that occurred on Thursday, February 15th. The stock was sold at an average price of $101.17, for a total transaction of $28,062,129.92. Following the sale, the chief operating officer now owns 38,545 shares of the company’s stock, valued at $3,899,597.65. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Carl Ledbetter sold 7,962 shares of the stock in a transaction that occurred on Wednesday, February 7th. The stock was sold at an average price of $81.42, for a total value of $648,266.04. Following the sale, the director now directly owns 1,446,957 shares in the company, valued at approximately $117,811,238.94. The disclosure for this sale can be found here. Insiders have sold 1,044,347 shares of company stock worth $101,703,776 over the last 90 days. Company insiders own 12.83% of the company’s stock.

About Cloudflare

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.