Cloudflare Stock Tanks Following Q1 Results, Subpar Guidance - Here's Why
Portfolio Pulse from Erica Kollmann
Cloudflare, Inc. (NYSE:NET) exceeded Q1 earnings and revenue expectations with earnings of 16 cents per share and sales of $378.6 million, representing a 30.47% year-over-year growth. Free cash flow increased to $35.6 million. Despite this, Cloudflare's stock dropped 14.20% after-hours following guidance that barely surpasses analyst estimates for Q2 and the full year of 2024.
May 02, 2024 | 9:04 pm
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Cloudflare reported strong Q1 results, surpassing analyst expectations in earnings and revenue, with significant year-over-year growth. However, its stock price plummeted after-hours due to its future guidance barely meeting analyst projections.
Cloudflare's stock price decline is directly related to its future guidance, which, although positive, did not exceed analyst expectations by a significant margin. This has likely led to investor disappointment, resulting in a sharp decline in stock price after-hours.
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