Companies /Technology

Cloudflare Inc - Class A

NYSE: NET Software - Infrastructure
$299.84
▼ $8.39 (−2.72%) today
Markets closed · 8:06pm ET

Q1 2025 Earnings

Reported May 8, 2025, 4:18pm ET · SEC source
$0.16
Miss −1.54%
EPS · est. $0.16
$479.1M
Beat +2.00%
Revenue · est. $469.7M
+29.2%
Beating market
NET vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+4%+8%May 8May 9report 4:18pm ETearnings−0.0%+4.8%
0+4%+8%May 8May 9earnings−0.0%+4.8%
NET +4.8%S&P 500 −0.0%
0+4%+8%May 8May 9report 4:18pm ETearnings−0.1%+4.8%
0+4%+8%May 8May 9earnings−0.1%+4.8%
NET +4.8%NASDAQ −0.1%
−8%0+8%+16%May 7May 16report 4:18pm ETearnings+4.6%+19.8%
−8%0+8%+16%May 7May 16earnings+4.6%+19.8%
NET +19.8%S&P 500 +4.6%
−8%0+8%+16%May 7May 16report 4:18pm ETearnings+6.0%+19.8%
−8%0+8%+16%May 7May 16earnings+6.0%+19.8%
NET +19.8%NASDAQ +6.0%
+6.46%
Day of report
+7.57%
Next session
+18.78%
One week
+35.79%
30 days

S&P 500 over the same 30 days: +6.56%.

Did NET Beat Earnings? Q1 2025 Results

Cloudflare posted a mixed but broadly encouraging first quarter for 2025, with revenue of $479.09 million rising 26.5% year-over-year and clearing the $469.70 million consensus by 2.00%, while non-GAAP EPS of $0.16 came in just shy of the $0.16 estimate, a miss of 1.54%. The headline story, though, was the scale of enterprise momentum: the company closed the largest contract in its history, a deal exceeding $100 million anchored by its Workers developer platform, alongside the longest-term SASE contract to date, together signaling deepening confidence among large customers. <a href="https://247wallst.com/investing/2025/05/08/cloudflare-nyse-net-earnings-live-what-you-need-to-follow/">Investors watching the print</a> were rewarded with an aftermarket surge of roughly 8.6% as the market focused on top-line strength. Operating cash flow nearly doubled to $145.78 million, or 30% of revenue. Looking ahead, Cloudflare raised its full-year 2025 revenue outlook to approximately $2.09 billion and guided Q2 revenue to $500.00 to $501.00 million, with non-GAAP EPS of $0.18.

Key Takeaways
  • 27% year-over-year revenue growth
  • Highest year-over-year growth in net new ACV in three years
  • Largest contract in company history exceeding $100 million driven by Workers developer platform
  • Longest-term SASE contract to date
  • Operating cash flow nearly doubled year-over-year to $145.8 million (30% of revenue)
  • Non-GAAP operating margin expanded to 11.7% from 11.2% year-over-year
  • Free cash flow margin improved to 11% from 9% year-over-year

“We kicked off 2025 with confidence, momentum, and strong results. In Q1, we landed the largest contract in Cloudflare's history, a more than $100 million deal driven by our Workers developer platform, and signed the longest-term SASE contract to date.”

Cloudflare CEO, on the earnings call

Forward Guidance & Outlook

For Q2 2025, Cloudflare expects revenue of $500.0–$501.0 million, non-GAAP operating income of $62.5–$63.5 million, and non-GAAP EPS of $0.18 on approximately 364 million diluted shares. For full-year 2025, the company expects revenue of $2,090.0–$2,094.0 million, non-GAAP operating income of $272.0–$276.0 million, and non-GAAP EPS of $0.79–$0.80 on approximately 364 million diluted shares.

NET YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$200.0M$400.0M$378.6M$479.1MRevenue$293.6M$363.5MGross Profit$-52,004,102$-53,247,000Operating Income$-41,884,326$-38,454,000Net Income
$0$200.0M$400.0MRevenueGross ProfitOperating IncomeNet Income

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