Cloudflare on Thursday reported fourth-quarter earnings and revenue that edged by Wall Street targets. The company's outlook came in above expectations, and Cloudflare stock popped.
For the quarter ending Dec. 31, Cloudflare earnings were 6 cents, up from zero profit a year earlier. Revenue climbed 42% to $274.7 million, the San Francisco-based company said.
Analysts predicted fourth-quarter profit of 5 cents a share and revenue growth of 41% to $274.1 million.
Cloudflare stock jumped 10% to 63.96 in extended trading on the market today.
Cloudflare Stock: Revenue Guidance Tops Views
For full-year 2023, Cloudflare projected earnings per share of 15 cents to 16 cents. The company expects revenue of $1.33 billion to $1.34 billion. Analysts predicted profits of 15 cents a share and revenue of $1.31 billion.
"Management noted a focus on discipline and optimizing for efficiency in times of economic slowdown," RBC Capital analyst Matthew Hedberg said in a note to clients.
Started in 2009, Cloudflare speeds up and provides security for web applications routed through its intelligent global network.
Some analysts expect 2023 upside from Cloudflare's ties to artificial-intelligence startup OpenAI. The company provides secure links to cloud services when consumers sign up to use OpenAI's ChatGPT, a conversational chatbot.
But one concern for shareholders is that the company could lose 2023 revenue from cryptocurrency customers.
Heading into the Cloudflare earnings report, the stock had advanced 29% in 2023.
Cloudflare stock owns a Relative Strength Rating of 65 out of a best-possible 99, according to IBD Stock Checkup.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
