NET Earnings Prediction
The chart below shows how NET performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NET sees a +3.31% change in stock price 10 days leading up to the earnings, and a +0.55% change 10 days following the report. On the earnings day itself, the stock moves by -0.49%. This data can give you a slight idea of what to expect for the next quarter's release.
NET Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
459.95M
26.89%
6.94%
Gross Margin
76.37%
-0.84%
-1.70%
Operating Margin
-7.45%
-36.97%
4.34%
Net Margin
-2.79%
-63.72%
-21.63%
EPS
-0.04
-50.00%
-0.00%
No Data Available
NET Earnings Analysis
Cloudflare Inc Corporation (NET.N) Earnings Conference Call
Positive
Revenue Increase 27%: Revenue of $459.9 million, up 27% year over year.
Large Customer Acquisition Growth: Record addition of large customers, totaling 3,497, also up 27% year over year.
Large Customer Revenue Increase: Revenue contribution from large customers increased to 69%, up from 66% in the previous year.
Net Retention Improvement: Dollar-based net retention improved to 111%, up one percentage point quarter over quarter.
Gross Margin Performance: Gross margin at 77.6%, above the long-term target range of 75% to 77%.
Negative
Revenue Growth vs. Expectations: Revenue growth of 27% year over year, but total revenue of $459.9 million fell short of analyst expectations of $465 million.
Operating Margin Decline: Operating profit of $67.2 million resulted in an operating margin of 14.6%, which is a decline from 15.2% in the previous quarter.
Large Customer Revenue Stagnation: Despite adding a record number of large customers, the percentage of revenue from large customers increased only slightly to 69%, indicating potential stagnation in smaller customer growth.
Free Cash Flow Analysis: Free cash flow of $47.8 million for the quarter was lower than the $50 million expected by analysts, reflecting tighter cash management.
Net Retention Rate Insights: The dollar-based net retention rate of 111% is a modest increase, suggesting challenges in upselling existing customers compared to previous quarters.
NET FAQs
How does NET typically perform around its earnings report dates?
Is Cloudflare Inc (NET) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
NET Earning Call Sentiment
Cloudflare, Inc. (NYSE:NET) Q4 2024 Earnings Call Transcript
NET.N
-4.77%Positive
The earnings call highlights strong revenue growth, an increase in large customers, and a robust gross margin. The optimistic guidance and successful AI platform growth indicate positive future prospects. Although there are risks related to macroeconomic conditions and customer dependency, these are common in the industry. The Q&A session reflects positive sentiment towards product innovation and efficiency improvements. Despite the lack of a share repurchase program, the overall financial performance and strategic initiatives suggest a positive stock price movement over the next two weeks.
