Thursday, June 13, 2024

Cloudflare stock drops more than 10% after results, outlook top Street view

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Cloudflare Inc. shares fell in the extended session Thursday even after the cybersecurity company’s results and forecast topped the Wall Street consensus.

Cloudflare NET, +0.86% shares dropped as much as 14% after hours, following a 0.9% rise in the regular session to close at $50.37, or 62% lower than they started the year.

The company reported a third-quarter loss of $42.5 million, or 13 cents a share, compared with a loss of $107.3 million, or 34 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were 6 cents a share, compared with break-even a share in the year-ago period.

Revenue rose to $253.9 million from $172.3 million in the year-ago quarter.

Analysts surveyed by FactSet had forecast break-even a share on revenue of $250.6 million.

Cloudflare forecast adjusted earnings of 4 cents to 5 cents a share on revenue of $273.5 million to $274.5 million for the fourth quarter, and 11 cents to 12 cents a share on revenue of $974 million to $975 million for the year.

Analysts had estimated earnings of 2 cents a share on revenue of $273.6 million for the fourth quarter, and 3 cents a share on revenue of $971 million for the year.

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