Cloudflare's chief accounting officer sells shares worth $314,846

SAN FRANCISCO—Riley Janel, the Chief Accounting Officer of Cloudflare, Inc. (NYSE:NET), executed a notable transaction involving the company’s stock, as detailed in a recent SEC filing.

On November 18, Janel sold 3,495 shares of Cloudflare's Class A Common Stock. The shares were sold at a weighted average price of $90.08, amounting to a total value of $314,846. This transaction was carried out under a Rule 10b5-1 trading plan, which Janel adopted earlier this year on February 28.

Prior to this, on November 15, Janel had 3,593 shares withheld to satisfy tax liabilities related to the vesting of restricted stock units (RSUs) at a price of $89.77 per share, totaling $322,543.

Following these transactions, Janel holds 73,130 shares of the company's stock. This figure includes 35 shares acquired through Cloudflare’s employee stock purchase plan on November 8, 2024.

In other recent news, Cloudflare Inc (NYSE:NET). announced a robust financial performance in its third-quarter earnings call. The company reported a 28% year-over-year increase in revenue, reaching $430.1 million, and a significant rise in its customer base, now standing at 3,265, marking a 28% increase from the previous year. These developments are attributed to Cloudflare's expansion in enterprise sales and strategic involvement in cybersecurity efforts.

The company also secured notable contracts, including a $7 million deal with an AI company and a $4.2 million contract with a Fortune 100 tech firm. Looking ahead, Cloudflare projects a 25% year-over-year increase in revenue for Q4 2023, with an expected revenue between $451 million and $452 million. The company anticipates continued growth in sales capacity and productivity, particularly in 2025.

While there were some capacity issues in North America, improvements are anticipated. Furthermore, the company is experiencing increased sales productivity in Europe and Asia, with a 40% improvement in Asia over the past three quarters. These are recent developments that indicate Cloudflare's continued growth trajectory.

InvestingPro Insights

As Cloudflare's Chief Accounting Officer Riley Janel adjusts their stock holdings, it's worth examining the company's financial landscape. According to InvestingPro data, Cloudflare boasts a substantial market capitalization of $33.02 billion, reflecting its significant presence in the cloud services sector.

The company's revenue growth remains robust, with a 30.04% increase over the last twelve months as of Q3 2024, reaching $1.57 billion. This aligns with an InvestingPro Tip highlighting that 21 analysts have revised their earnings upwards for the upcoming period, suggesting positive expectations for Cloudflare's financial performance.

Another noteworthy InvestingPro Tip points to Cloudflare's impressive gross profit margins. Indeed, the data shows a gross profit margin of 77.53% for the last twelve months as of Q3 2024, underscoring the company's efficiency in its core business operations.

Despite these strengths, investors should note that Cloudflare is currently trading at a high Price / Book multiple of 33.99, indicating a premium valuation. This metric, combined with the company's negative earnings per share of -$0.28 for the same period, suggests that market expectations for future growth remain high.

For those seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Cloudflare, providing deeper insights into the company's financial health and market position.

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