Q2 24 EPS
$0.20
BEAT +42.86%
Est. $0.14
Q2 24 Revenue
$401.0M
BEAT +1.53%
Est. $394.9M
vs S&P Since Q2 24
+182.0%
BEATING MARKET
NET +223.6% vs S&P +41.5%
Market Reaction
Did NET Beat Earnings? Q2 2024 Results
Cloudflare posted a standout second quarter of fiscal 2024, delivering earnings and revenue that cleared Wall Street's bar by meaningful margins and reinforcing the company's trajectory as a high-growth connectivity cloud platform. The network securi… Read more Cloudflare posted a standout second quarter of fiscal 2024, delivering earnings and revenue that cleared Wall Street's bar by meaningful margins and reinforcing the company's trajectory as a high-growth connectivity cloud platform. The network security and infrastructure provider reported non-GAAP EPS of $0.20, beating the $0.14 consensus estimate by 42.86%, while revenue climbed 30% year-over-year to $401.00 million, edging past the $394.94 million analyst expectation by 1.53%. The outperformance was anchored by a double-digit year-over-year improvement in sales productivity, which CEO Matthew Prince cited as evidence that enterprises are increasingly treating Cloudflare's platform as a must-have as they modernize and secure their operations. Profitability also expanded sharply, with non-GAAP operating margin widening to 14.2% from 6.6% a year earlier. Looking ahead, management raised its full-year 2024 revenue outlook to approximately $1.66 billion and guided Q3 revenue to a range of $423.00 to $424.00 million, signaling continued confidence in sustaining strong growth alongside improving margins.
Key Takeaways
- • 30% year-over-year revenue growth
- • Double-digit year-over-year improvement in sales productivity
- • Non-GAAP operating margin expansion to 14.2% from 6.6% year-over-year
- • GAAP gross margin improvement to 77.8% from 75.6%
- • Free cash flow margin of 10%, up from 6% year-over-year
NET YoY Financials
Q2 2024 vs Q2 2023, source: SEC Filings
“We had a strong second quarter, crossing $1.6 billion in annualized revenue and growing 30% year-over-year. The world is still complicated, but our team remained focused on execution and delivered terrific results, including a double-digit year-over-year improvement in sales productivity.”
— Matthew Prince, Q2 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 | — | $0.25 | — | $639.8M | +2.75% |
| Q4 25 BEAT FY | $0.27 | $0.28 | +3.70% | $614.5M | +3.94% |
| 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 | +5.56% | $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 | — | — | — | — |