Cloudflare (NYSE:NET) stock plummeted more than 14% in after-hours trading Thursday after the cloud services provider offered soft guidance for the full fiscal year.
For the fiscal Q1, the company reported earnings per share (EPS) of $0.16, topping the consensus estimates of $0.13. Revenue came in at $378.6 million, beating the expected $373.24 million.
The non-GAAP gross profit reached $301.1 million, equating to a 79.5% gross margin, compared to $225.9 million or a 77.8% gross margin in the first quarter of 2023.
Looking forward, Cloudflare provided guidance for Q2 2024, expecting an EPS of $0.14, slightly above the consensus of $0.13. The company anticipates Q2 revenue to be between $393.5 million and $394.5 million, aligning closely with the consensus forecast of $393.5 million.
For the full year 2024, Cloudflare projects an EPS range of $0.60 to $0.61, with the lower end matching analysts' expectations. The company forecasts full-year revenue to be between $1.648 billion and $1.652 billion, compared to the consensus projection of $1.65 billion.
“I'm incredibly proud of the fact that our team has been able to continue to build our network, service larger and larger customers, and launch entirely new categories of products—including in the AI space—while also remaining disciplined with our gross and operating margins and our free cash flow,” said Matthew Prince, co-founder & CEO of Cloudflare.
“We’ve also delivered a double-digit year-over-year improvement in sales productivity again this quarter. Cloudflare has always been powered by our relentless innovation engine, and I’m encouraged by our progress in building a go-to-market engine that will also be the envy of the industry.”