Internet security and content delivery network Cloudflare (NYSE:NET) will be reporting results tomorrow after market hours. Here’s what investors should know.
Cloudflare beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $430.1 million, up 28.2% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.
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 24.7% year on year to $451.8 million, slowing from the 32% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.18 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 three times over the last two years.
Looking at Cloudflare’s peers in the software development segment, some have already reported their Q4 results, giving us a hint as to what we can expect. F5 delivered year-on-year revenue growth of 10.7%, beating analysts’ expectations by 7.2%, and Dynatrace reported revenues up 19.5%, topping estimates by 2.3%. F5 traded up 11.4% following the results while Dynatrace’s stock price was unchanged.
Read our full analysis of F5’s results here and Dynatrace’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 6.4% on average over the last month. Cloudflare is up 22.7% during the same time and is heading into earnings with an average analyst price target of $114.01 (compared to the current share price of $139.73).
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