Cloudflare reported second-quarter earnings and revenue that topped estimates. The internet firm's sales guidance came in slightly above expectations. Cloudflare stock dipped as Wall Street analysts mulled the size of the beat.
The company reported earnings after the market close on Thursday. For the period that ended June 30, Cloudflare earnings were 21 cents a share, up a penny from a year earlier. Revenue climbed 28% to $512.3 million, the San Francisco-based company said.
Analysts predicted profit of 18 cents a share and revenue of $501 million.
"Quarter results were very strong, with revenue and pro forma EPS above our and consensus expectations, led by large deal success, strong execution, and continued build out of sales executives," said William Blair analyst Jonathan Ho in a report.
On the stock market today, Cloudflare dipped 0.4% to 206.80 in early trading. Heading into the Cloudflare earnings report, the stock had advanced 78% in 2025.
For the current quarter ending in September, Cloudflare projects revenue of $544 million at the midpoint of guidance vs. estimates of $538 million.
"While we've continued to sign even bigger and longer deals, some of our most strategic wins have been centered around our work to help invent the new business model for content creators on the AI-driven internet," said Chief Executive Matthew Prince in a news release.
Started in 2009, Cloudflare works to speed up and provide security for web applications routed through its intelligent global network.
Cloudflare Stock Technical Ratings
Top management has been undergoing changes. Here's an in-depth look into Cloudflare's growth and road map based on an interview with Prince.
In addition, Cloudflare stock owns a Composite Rating of 97 out of a best-possible 99, according to IBD Stock Checkup.
Meanwhile, Cloudflare stock holds an Accumulation/Distribution Rating of B-plus. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. (A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.)
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