Companies /Technology

Cloudflare Inc - Class A

NYSE: NET Software - Infrastructure
$299.55
▼ $8.68 (−2.82%) today
Markets closed · 6:10pm ET

Q4 2024 Earnings

Reported Feb 6, 2025, 4:18pm ET · SEC source
$0.19
Beat +4.97%
EPS · est. $0.18
$459.9M
Beat +1.73%
Revenue · est. $452.1M
−21.4%
Trailing market
NET vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%0+6%+12%Feb 6Feb 7report 4:18pm ETearnings−0.8%+9.2%
−6%0+6%+12%Feb 6Feb 7earnings−0.8%+9.2%
NET +9.2%S&P 500 −0.8%
−6%0+6%+12%Feb 6Feb 7report 4:18pm ETearnings−1.3%+9.2%
−6%0+6%+12%Feb 6Feb 7earnings−1.3%+9.2%
NET +9.2%NASDAQ −1.3%
−8%0+8%+16%Feb 5Feb 14report 4:18pm ETearnings+0.8%+13.1%
−8%0+8%+16%Feb 5Feb 14earnings+0.8%+13.1%
NET +13.1%S&P 500 +0.8%
−8%0+8%+16%Feb 5Feb 14report 4:18pm ETearnings+1.8%+13.1%
−8%0+8%+16%Feb 5Feb 14earnings+1.8%+13.1%
NET +13.1%NASDAQ +1.8%
+17.76%
Day of report
+3.50%
Next session
+2.70%
One week
−28.36%
30 days

S&P 500 over the same 30 days: −6.97%.

Did NET Beat Earnings? Q4 2024 Results

Cloudflare closed out 2024 on a strong note, posting fourth-quarter earnings and revenue that topped Wall Street expectations and signaling growing enterprise momentum. The networking and security platform reported non-GAAP EPS of $0.19, edging past the $0.18 consensus estimate by 5.56%, while revenue climbed 26.9% year-over-year to $459.95 million, ahead of the $452.13 million analysts had anticipated. The clearest engine behind the beat was enterprise expansion, with customers spending more than $1.00 million annually surging 47% year-over-year to 173, and more than half of those new million-dollar relationships closing in Q4 alone. Non-GAAP operating income reached $67.25 million for the quarter, pushing the full-year figure to $230.11 million at a 13.8% margin. Looking ahead, Cloudflare guided full-year 2025 revenue to approximately $2.09 billion, implying roughly 25% growth, with non-GAAP EPS expected between $0.79 and $0.80, as CEO Matthew Prince pointed to AI innovation and customer ROI as central to the company's reacceleration strategy.

Key Takeaways
  • Record growth in largest customers spending more than $1 million annually, reaching 173 (47% YoY increase)
  • 55 new million-dollar customers added in 2024, with more than half added in Q4 alone
  • 27% year-over-year Q4 revenue growth and 29% full-year revenue growth
  • Non-GAAP operating margin expansion to 14.6% in Q4 from 11.0% in Q4 2023
  • Operating cash flow increased to $127.3 million in Q4, up from $85.4 million in Q4 2023

“We had a very strong end of 2024. We saw record growth in our largest customers, those that spend more than $1 million with Cloudflare per year—closing the year with 173. We added 55 of those customers in 2024, and more than half of these new additions came in during fourth quarter alone.”

Cloudflare CEO, on the earnings call

Forward Guidance & Outlook

For Q1 2025, Cloudflare expects revenue of $468.0 to $469.0 million, non-GAAP operating income of $54.0 to $55.0 million, and non-GAAP EPS of $0.16 on approximately 362 million diluted shares. For full year 2025, the company expects revenue of $2,090.0 to $2,094.0 million, non-GAAP operating income of $272.0 to $276.0 million, and non-GAAP EPS of $0.79 to $0.80 on approximately 366 million diluted shares.

NET YoY Financials

Q4 2024 vs Q4 2023 · SEC filings Q4 2023 Q4 2024
$0$200.0M$400.0M$362.5M$459.9MRevenue$278.6M$351.3MGross Profit$-29,190,348$-34,719,000Operating Income$-8,348,821$-12,848,000Net Income
$0$200.0M$400.0MRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.