Cloudflare Stock Rises After Q3 Results: CEO Says ‘Best Quarter Ever’

Cybersecurity company Cloudflare Inc (NYSE:NET) reported third-quarter financial results Thursday after market close.

Here are the key highlights.

• Cloudflare stock is surging to new heights today. What’s fueling NET momentum?

Cloudflare Q3 Financials

Cloudflare reported third-quarter revenue of $782.513 million, up 39% year-over-year. The revenue total beat a Street consensus of $738.532 million, according to data from Benzinga Pro.

The company reported earnings of 38 cents per share for the quarter, beating a Street consensus estimate of 34 cents per share.

"The third quarter was Cloudflare’s best quarter ever," Cloudflare CEO Matthew Prince said. "We crossed $3 billion in annualized revenue."

Prince said the company is growing revenue and expanding profitability. This marked the company’s fastest revenue growth in nearly four years.

What’s Next for Cloudflare

“We have built the development platform for the AI-powered Internet — and as digital threats escalate, organizations of every size continue to rely on Cloudflare for protection," Prince said. "Our engine is firing on all cylinders, and we’ve found an even higher gear for this next phase of growth.”

The company is guiding for fourth-quarter revenue to be in a range of $845.00 million to $846.00 million, ahead of a Street estimate of $797.67 million.

Fourth-quarter earnings per share are expected to be 43 cents, compared to a Street estimate of 38 cents per share.

For the full fiscal year, Cloudflare raises its revenue guidance to a range of $2.963 billion to $2.964 billion, up from a prior range of $2.864 billion to $2.870 billion.

Earnings are expected to be $1.35 for the full fiscal year, up from a prior range of $1.25 to $1.26.

The Street is expecting full-year revenue of $2.872 billion and earnings of $1.28 per share.

Cloudflare Stock Price Action

Cloudflare stock is up 15.3% to $281.61 in after-hours trading Thursday versus a 52-week trading range of $158.83 to $370.35.

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