Cloudflare (NET) Q2 2024 Earnings
Did NET Beat Earnings? Q2 2024 Results
Yes. Cloudflare reported Q2 2024 earnings of $0.20 a share on Aug 1, 2024, beating the $0.14 consensus estimate by 42.9%. Revenue was $401.0M against a $394.9M estimate.
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.
- 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
“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.”
Cloudflare CEO, on the earnings call
What Was Cloudflare's Outlook in Q2 2024?
For Q3 2024, Cloudflare expects total revenue of $423.0 to $424.0 million, non-GAAP operating income of $50.0 to $51.0 million, and non-GAAP net income per share of $0.18 on approximately 359 million diluted shares. For full year 2024, the company expects total revenue of $1,657.0 to $1,659.0 million, non-GAAP operating income of $196.0 to $198.0 million, and non-GAAP net income per share of $0.70 to $0.71 on approximately 358 million diluted shares.
NET YoY Financials
| Metric | Q2 2024 | Q2 2023 | Year over year |
|---|---|---|---|
| Revenue | $401.0M | $308.5M | +30.0% |
| Gross Profit | $312.0M | $233.3M | +33.7% |
| Operating Income | −$34.7M | −$25.1M | +38.2% |
| Net Income | −$15.1M | −$8.2M | +84.0% |
Figures from SEC filings and company reports. Not investment advice.