Cloudflare Inc - Class A
Q1 2024 Earnings
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 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.
- 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)
“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.”
Cloudflare CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2024, Cloudflare expects revenue of $393.5–$394.5 million, non-GAAP operating income of $35.0–$36.0 million, and non-GAAP EPS of $0.14 on approximately 360 million diluted shares. For full-year 2024, the company guides for revenue of $1,648.0–$1,652.0 million, non-GAAP operating income of $160.0–$164.0 million, and non-GAAP EPS of $0.60–$0.61 on approximately 361 million diluted shares.
NET YoY Financials
Figures from SEC filings and company reports. Not investment advice.