Q3 24 EPS
$0.20
BEAT +11.11%
Est. $0.18
Q3 24 Revenue
$430.1M
BEAT +1.41%
Est. $424.1M
vs S&P Since Q3 24
+170.9%
BEATING MARKET
NET +197.0% vs S&P +26.1%
Market Reaction
Did NET Beat Earnings? Q3 2024 Results
Cloudflare posted a clean beat across the board in Q3 2024, with revenue climbing 28.1% year-over-year to $430.08 million against a consensus estimate of $424.12 million, while non-GAAP EPS of $0.20 topped the $0.18 estimate by 11.11%, underscoring t… Read more Cloudflare posted a clean beat across the board in Q3 2024, with revenue climbing 28.1% year-over-year to $430.08 million against a consensus estimate of $424.12 million, while non-GAAP EPS of $0.20 topped the $0.18 estimate by 11.11%, underscoring the network security company's ability to scale efficiently even as it invests aggressively in growth. The quarter's standout driver was a record addition of 219 large customers, pushing Fortune 500 penetration among paying clients to 35% and signaling that enterprise adoption of Cloudflare's platform is broadening meaningfully. Non-GAAP operating margin expanded to 14.8% from 12.7% a year earlier, while free cash flow reached $45.28 million, reflecting improving operational leverage. That momentum was tempered somewhat by lengthening sales cycles and constrained capacity in North America, pressures management expects to ease by Q1 2025. Looking ahead, Cloudflare guided Q4 revenue to $451.00 to $452.00 million and full-year 2024 revenue to approximately $1.66 billion, with non-GAAP EPS of $0.74 for the year.
Key Takeaways
- • 28% year-over-year revenue growth
- • Record 219 large customers added in Q3
- • 35% of Fortune 500 are now paying Cloudflare customers
- • Go-to-market organization transformation reaching key inflection point
- • Non-GAAP operating margin expansion to 14.8% from 12.7% year-over-year
- • Operating cash flow increased to 24% of revenue from 20% year-over-year
NET YoY Financials
Q3 2024 vs Q3 2023, source: SEC Filings
“I am pleased with our results for the third quarter—exceeding expectations for revenue, operating margin, and free cash flow while also reaching a key inflection point in the transformation of our go-to-market organization. In addition, we added a record 219 large customers and achieved a new milestone—35% of the Fortune 500 are now paying Cloudflare customers.”
— Matthew Prince, Q3 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 | — | — | — | — |