Q2 Earnings Roundup: Cloudflare (NYSE:NET) And The Rest Of The Content Delivery Segment

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The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how content delivery stocks fared in Q2, starting with Cloudflare (NYSE: NET).

The amount of content on the internet is exploding, whether it is music, movies and or e-commerce stores. Consumer demand for this content creates network congestion, much like a digital traffic jam which drives demand for specialized content delivery networks (CDN) services that alleviate potential network bottlenecks.

The 4 content delivery stocks we track reported an exceptional Q2. As a group, revenues beat analysts’ consensus estimates by 2.7% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 7.4% on average since the latest earnings results.

Cloudflare (NYSE: NET)

With a massive network spanning more than 310 cities in over 120 countries, Cloudflare (NYSE: NET) provides a global network that delivers security, performance and reliability services to protect websites, applications, and corporate networks.

Cloudflare reported revenues of $512.3 million, up 27.8% year on year. This print exceeded analysts’ expectations by 2.3%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.

Cloudflare Total Revenue

Cloudflare scored the fastest revenue growth but had the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is up 2.1% since reporting and currently trades at $212.

We think Cloudflare is a good business, but is it a buy today? Read our full report here, it’s free for active Edge members.

Best Q2: Fastly (NYSE: FSLY)

Taking its name from the core advantage it delivers to customers, Fastly (NYSE: FSLY) operates an edge cloud platform that processes, secures, and delivers web content as close to end users as possible, enabling faster digital experiences.

Fastly reported revenues of $148.7 million, up 12.3% year on year, outperforming analysts’ expectations by 2.7%. The business had an exceptional quarter with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

Fastly Total Revenue

The market seems happy with the results as the stock is up 26.4% since reporting. It currently trades at $8.23.

Is now the time to buy Fastly? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q2: Akamai Technologies (NASDAQ: AKAM)

With a massive distributed network spanning 4,100+ points of presence in nearly 130 countries, Akamai Technologies (NASDAQ: AKAM) provides a global distributed cloud platform that helps businesses deliver, secure, and optimize their digital experiences online.

Akamai Technologies reported revenues of $1.04 billion, up 6.5% year on year, exceeding analysts’ expectations by 2.2%. It may have had the worst quarter among its peers, but its results were still good as it also locked in EPS guidance for next quarter exceeding analysts’ expectations and full-year EPS guidance exceeding analysts’ expectations.

Akamai Technologies delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 1.1% since the results and currently trades at $75.76.

Read our full analysis of Akamai Technologies’s results here.

F5 (NASDAQ: FFIV)

Originally named after the F5 tornado, the most powerful on the meteorological scale, F5 (NASDAQ: FFIV) provides security and delivery solutions that protect applications across cloud, data center, and edge environments for large organizations.

F5 reported revenues of $780.4 million, up 12.2% year on year. This print beat analysts’ expectations by 3.6%. Overall, it was an exceptional quarter as it also produced an impressive beat of analysts’ billings estimates and full-year revenue guidance exceeding analysts’ expectations.

F5 delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is flat since reporting and currently trades at $299.21.

Read our full, actionable report on F5 here, it’s free for active Edge members.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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