Internet security and content delivery network Cloudflare (NYSE: NET) will be reporting earnings tomorrow after the bell. Here’s what you need to know.
Cloudflare beat analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $459.9 million, up 26.9% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations significantly.
Is Cloudflare a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Cloudflare’s revenue to grow 23.9% year on year to $469.1 million, slowing from the 30.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.16 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Cloudflare has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Cloudflare’s peers in the software development segment, some have already reported their Q1 results, giving us a hint as to what we can expect. F5 delivered year-on-year revenue growth of 7.3%, beating analysts’ expectations by 1.7%, and Datadog reported revenues up 24.6%, topping estimates by 2.8%. F5’s stock price was unchanged following the results.
Read our full analysis of F5’s results here and Datadog’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 17% on average over the last month. Cloudflare is up 26.7% during the same time and is heading into earnings with an average analyst price target of $139.01 (compared to the current share price of $123.50).
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