Cloudflare rises after quarterly revenue, profit expectations high

(Bloomberg) — Cloudflare Inc. rose in extended trading after the cloud services software company reported fourth-quarter revenue and profit that beat analyst expectations.

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Revenue rose 32% to $362.5 million in the period ended Dec. 31, the biggest quarterly growth since 2012, the San Francisco-based company said in a statement Thursday. Profit, excluding some items, amounted to 15 cents per share. Analysts on average had forecast earnings of 12 cents per share on revenue of $353.8 million.

A restructuring of the sales force had a positive effect, “while the company may move beyond many of the issues that threatened growth last year,” wrote John Butler, an analyst at Bloomberg Intelligence. “Guidance for 27% revenue growth by 2024 is in line with consensus and could prove low if momentum continues with major customers.”

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Chief Executive Officer Matthew Prince attributed the strong results to “robust momentum with major customers, significant progress in the public sector and growth in Cloudflare One,” the company’s unified networking and security product.

Shares rose 21% in extended trading after closing at $90.31 in New York. The stock is up 56% in the past twelve months.

Cloudflare makes software, including cybersecurity products, that help companies manage their websites and corporate network equipment, whether they use the public cloud, on-site data centers, or a hybrid combination.

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