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 +1.48% change in stock price 10 days leading up to the earnings, and a -0.77% change 10 days following the report. On the earnings day itself, the stock moves by -0.20%. 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
430.08M
28.15%
7.25%
Gross Margin
77.69%
1.24%
-0.14%
Operating Margin
-7.14%
-38.87%
-17.07%
Net Margin
-3.56%
-49.22%
-5.32%
EPS
-0.04
-42.86%
-0.00%
No Data Available
NET Earnings Analysis
Cloudflare, Inc. Class A common stock, par value $0.001 per share Corporation (NET.N) Earnings Conference Call
Positive
Third Quarter Revenue Increase: Revenue for the third quarter increased by 28% year-over-year to $430.1 million.
Customer Growth Surge: The company added a record 219 new large customers, now totaling 3,265, representing a 28% year-over-year increase.
Fortune 500 Customer Milestone: Achieved a milestone of 35% of the Fortune 500 as paying Cloudflare customers.
Operating Income Surge: Operating income was $63.5 million, representing a nearly 50% year-over-year increase compared to $42.5 million in the same period last year.
Free Cash Flow Increase: Free cash flow came in at $45.3 million, ahead of expectations, representing 11% of revenue compared to $34.9 million or 10% of revenue in the same period last year.
Negative
Net Retention Decline: Our dollar-based net retention was 110%, down 2 percentage points sequentially.
Customer Cohort Expansion Decline: The decline in D&R was driven by slower net expansion in our larger customer cohort.
Sales and Marketing Expenses: Sales and marketing expenses were $160.2 million for the quarter, a decrease to 37% from 38% in the same quarter last year.
R&D Expense Consistency: Research and development expenses were $70.5 million in the quarter, remaining consistent at 16% compared to the same quarter last year.
General and Administrative Expenses: General and administrative expenses were $45 million for the quarter.
NET FAQs
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NET Earning Call Sentiment
Cloudflare, Inc. (NET) Q3 2024 Earnings Call Transcript
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00:00
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NET.N
1.08%Positive
The earnings call summary indicates strong financial performance with a 28% YoY revenue increase and improved margins. Despite some sales cycle challenges, the company expects meaningful sales capacity growth in 2025. The Q&A section suggests optimism in product development and regional performance. The positive guidance and high RPO further support a positive sentiment. However, cautious IT spending and unclear management responses temper the outlook slightly. Overall, the financial strength and optimistic guidance suggest a positive stock price movement, potentially within the 2% to 8% range.