The earnings call highlighted strong revenue growth, improvements in operating margins, and successful AI partnerships, particularly in international markets. However, challenges include a decline in dollar-based net retention, sales cycle delays in the U.S., and short-term revenue pressures from new deal structures.

Company Guidance

In the Q3 2024 earnings call for Cloudflare, the company reported a revenue of $430.1 million, marking a 28% increase year-over-year. The firm added 219 new large customers, totaling 3,265 large customers, which also represented a 28% year-over-year growth. Revenue from large customers accounted for 67% of total revenue, up from 65% in the previous year. Despite a slight decrease in dollar-based net retention to 110%, the company achieved an operating margin of 14.8% and a gross margin of 78.8%. Free cash flow was reported at $45.3 million, and the company maintained a strong balance sheet with $1.8 billion in cash and equivalents. The firm continues to focus on expanding its enterprise sales force, with 70% of new sales hires in 2024 being in the enterprise segment. Looking ahead, Cloudflare anticipates Q4 revenue to be in the range of $451 million to $452 million, with a full-year 2024 revenue forecast of $1.661 billion to $1.662 billion.

Revenue Growth and Large Customer Addition

Achieved revenue of $430.1 million, up 28% year-over-year. Added a record 219 new large customers, those that pay more than $100,000 per year, totaling 3,265 large customers, up 28% year-over-year.

Operating Margin and Free Cash Flow

Delivered an operating profit of $63.5 million, representing an operating margin of 14.8%. Free cash flow came in at $45.3 million, ahead of expectations.

Geographic Revenue Performance

APAC revenue increased 38% year-over-year, and EMEA revenue increased 31% year-over-year, showcasing strong international performance.

AI Platform Success

Signed a $7 million 1-year contract with a leading AI company for Workers AI, demonstrating significant performance and cost benefits over traditional public clouds.

Sales Productivity Improvements

Sales productivity in Europe increased by 22% year-over-year, and Asia saw a 40% sales productivity bump over the past 3 quarters.

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Cloudflare Inc (GB:0A3Z) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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GB:0A3Z Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 07, 2019	2019 (Q3)	- / -0.16	-0.127	-25.98% (-0.03)	―	―
Feb 13, 2020	2019 (Q4)	- / -0.06	-0.056	-7.14% (>-0.01)	―	―
May 07, 2020	2020 (Q1)	- / -0.04	-0.057	29.82% (+0.02)	―	―
Aug 06, 2020	2020 (Q2)	- / -0.03	-0.2	85.00% (+0.17)	―	―
Nov 05, 2020	2020 (Q3)	- / -0.02	-0.16	87.50% (+0.14)	―	―
Feb 11, 2021	2020 (Q4)	- / -0.02	-0.06	66.67% (+0.04)	―	―
May 06, 2021	2021 (Q1)	-0.03 / -0.03	-0.04	25.00% (+0.01)	―	―
Aug 05, 2021	2021 (Q2)	-0.04 / -0.02	-0.03	33.33% (<+0.01)	―	―
Nov 04, 2021	2021 (Q3)	-0.04 / 0.00	-0.02	―	―	―
Feb 10, 2022	2021 (Q4)	>-0.01 / 0.00	-0.02	―	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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GB:0A3Z Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 07, 2024	$96.61	$90.37	-6.45%
Aug 01, 2024	$74.87	$79.19	+5.78%
May 02, 2024	$87.88	$74.03	-15.75%
Feb 08, 2024	$87.50	$109.36	+24.98%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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