Q1 24 EPS
$0.16
BEAT +23.08%
Est. $0.13
Q1 24 Revenue
$378.6M
BEAT +1.48%
Est. $373.1M
vs S&P Since Q1 24
+151.5%
BEATING MARKET
NET +195.0% vs S&P +43.5%
Market Reaction
Did NET Beat Earnings? Q1 2024 Results
Cloudflare kicked off fiscal 2024 with a notably strong first quarter, posting non-GAAP earnings of $0.16 per diluted share against a consensus estimate of $0.13, a beat of 23.08%, while revenue of $378.60 million topped expectations of $373.09 milli… Read more Cloudflare kicked off fiscal 2024 with a notably strong first quarter, posting non-GAAP earnings of $0.16 per diluted share against a consensus estimate of $0.13, a beat of 23.08%, while revenue of $378.60 million topped expectations of $373.09 million by 1.48% and grew 30.5% year over year. The headline driver behind the quarter's momentum was a record number of net-new large customers, with Cloudflare adding clients across its $100,000, $500,000, and $1 million annualized spending tiers simultaneously, a signal of deepening enterprise adoption. Non-GAAP operating margin expanded to 11.2% from 6.7% a year prior, even as a one-time $15.00 million compensation charge weighed on GAAP results. Free cash flow nearly quadrupled to $35.61 million, underscoring improving capital discipline. Looking ahead, management guided Q2 revenue to $393.50 to $394.50 million and full-year 2024 revenue to $1.65 billion, with full-year non-GAAP EPS expected in the range of $0.60 to $0.61, reflecting continued confidence in its connectivity cloud and expanding AI-focused product portfolio.
Key Takeaways
- • 30% year-over-year revenue growth
- • Record number of net-new customers spending more than $100,000, $500,000, and $1 million annually
- • Double-digit year-over-year improvement in sales productivity
- • Non-GAAP operating margin improvement to 11.2% from 6.7% year-over-year
- • GAAP gross margin expansion to 77.5% from 75.7% year-over-year
- • Non-GAAP gross margin expansion to 79.5% from 77.8% year-over-year
- • Operating cash flow nearly doubled to $73.6 million (19% of revenue)
NET YoY Financials
Q1 2024 vs Q1 2023, source: SEC Filings
“The first quarter marked a strong start to the year, as we grew revenue 30% year-over-year to $378.6 million—fueled by a record number of net-new customers year-over-year spending more than $100,000, $500,000, and $1 million with Cloudflare on an annualized basis. I'm incredibly proud of the fact that our team has been able to continue to build our network, service larger and larger customers, and launch entirely new categories of products—including in the AI space—while also remaining disciplined with our gross and operating margins and our free cash flow.”
— Matthew Prince, Q1 2024 Earnings Press Release
NET Earnings Trends
NET vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
NET EPS Trend
Earnings per share: estimate vs actual
NET Revenue Trend
Quarterly revenue: estimate vs actual
NET Quarterly Results
10 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $0.23 | $0.25 | +6.47% | $639.8M | +2.72% |
| Q4 25 BEAT FY | $0.27 | $0.28 | +3.21% | $614.5M | +3.91% |
| FY Full Year | $0.91 | $0.93 | +1.81% | $2.17B | +1.08% |
| Q3 25 BEAT | $0.23 | $0.27 | +15.34% | $562.0M | +3.13% |
| Q2 25 BEAT | $0.18 | $0.21 | +15.51% | $512.3M | +2.14% |
| Q1 25 MISS | $0.16 | $0.16 | -1.54% | $479.1M | +2.00% |
| Q4 24 BEAT FY | $0.18 | $0.19 | +4.97% | $459.9M | +1.73% |
| FY Full Year | $0.74 | $0.75 | +0.81% | $1.67B | +0.47% |
| Q3 24 BEAT | $0.18 | $0.20 | +11.11% | $430.1M | +1.41% |
| Q2 24 BEAT | $0.14 | $0.20 | +42.86% | $401.0M | +1.53% |
| Q1 24 BEAT | $0.13 | $0.16 | +23.08% | $378.6M | +1.48% |
| Q3 21 | $-0.04 | — | — | — | — |