Shares in Cloudflare popped Friday after the company's financial results rebounded in the second-quarter. Earnings and revenue for Cloudflare stock topped Wall Street targets and the company raised its full-year 2023 outlook slightly.
For the period that ended June 30, Cloudflare earnings were 10 cents a share, up from zero a year earlier. Revenue climbed 32% to $308 million, the San Francisco-based company said.
Analysts predicted profit of 7 cents a share and revenue of $305.6 million. Cash flow rose to $64.5 million, topping estimates of $51.7 million.
Cloudflare stock surged 6.9% to close at 69.52 on the stock market today.
Meanwhile, shares plunged April 28 when the company lowered its 2023 revenue growth outlook to 31% from 37%.
Cloudflare Stock: Revenue Guidance
For full-year 2023, Cloudflare projected earnings per share of 37 cents at the midpoint of its outlook, up from a range of 34 cents to 35 cents. The company expects revenue of $1.285 billion at the midpoint, up from its earlier prediction of $1.282 billion.
"Cloudflare delivered a much-improved result, beating revenue and pro forma EPS estimates," said William Blair analyst Jonathan Ho in a report. "The company benefited from improved sales execution, sales cycles returned to 2022 levels, and the macro environment stabilized."
Ho added: "The company saw strong performance in large new customer acquisition."
Started in 2009, Cloudflare works to speed up and provide security for web applications routed through its intelligent global network.
Heading into the Cloudflare earnings report, the stock had advanced 42% in 2023.
In addition, Cloudflare stock owns a Relative Strength Rating of 91 out of a best-possible 99, according to IBD Stock Checkup.
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