The stock of Cloudflare (NET) is up 13% after the cybersecurity firm reported solid fourth-quarter 2024 financial results and provided upbeat guidance for the year ahead.
The San Francisco-based company announced earnings per share (EPS) of $0.19, topping analysts’ consensus estimates of $0.18. Revenue for the period came in at $459.9 million, surpassing estimates of $452.04 million. Sales were up 27% from a year earlier.
Additionally, Cloudflare reported that its customer base spending over $1 million annually grew 47% year-over-year to 173, with more than half of the new additions coming in the fourth quarter. “We had a very strong end of 2024,” said Cloudflare CEO Matthew Prince.
Positive Outlook
In terms of forward guidance, Cloudflare said that it expects first quarter 2025 revenue of $468 million to $469 million, below the consensus estimate of of $474.1 million. The company projects earnings of $0.16, which was below forecasts of $0.18.
For all of 2025, Cloudflare forecasts revenue of $2.09 billion to $2.094 billion, just shy of the $2.097 billion consensus estimate. However, the company’s earnings guidance of $0.79 to $0.80 surpassed expectations of $0.74. The company finished 2024 with $1.86 billion of cash on its balance sheet.
NET stock has increased 70% over the past year.
Is NET Stock a Buy?
The stock of Cloudflare has a consensus Moderate Buy rating among 23 Wall Street analysts. That rating is based on 11 Buy, 11 Hold, and one Sell recommendations issued in the past three months. The average NET price target of $126.29 implies 10.76% downside from current levels. These ratings could change after the just released earnings report.
