After the cybersecurity business released results that exceeded Wall Street estimates and increased its revenue outlook for the year, Cloudflare Inc. shares soared in the extended session on Thursday.
Shares of Cloudflare (NYSE:NET), which closed at $58.43 in the regular session, surged by nearly 21% after hours.
The company recorded a loss of $63.5 million, or 20 cents per share, for the second quarter, up from a loss of $35.5 million, or 12 cents per share, in the same quarter last year.
Compared to a loss of 2 cents per share at the same time last year, adjusted bottom-line results—which don’t include stock-based compensation costs and other items—came in at break-even per share.
Last year’s revenue increased from the same quarter by $152.4 million to $234.5 million.
According to FactSet’s survey of analysts, the $227.3 million in revenue would result in a loss of one penny per share.
According to a statement from Matthew Prince, chief executive and co-founder of Cloudflare, “We delivered another strong quarter, with revenue growth up 54% year over year, driven by strength in our large customers, and a record number of large customer additions.”
While analysts had predicted earnings of a cent per share on revenue of $246.9 million for the third quarter, Cloudflare forecasts bottom-line results of break-even to earnings of a penny per share on revenue between $250 million and $251 million.
The company increased its projected revenue range for the year. Still, it kept its adjusted earnings prediction of 3 to 4 cents per share. From an earlier forecast of $955 million to $959 million, Cloudflare now anticipates revenue of $968 million to $972 million.
Analysts forecast 3 penny earnings per share on $958.4 million in revenue.
Shares of Cloudflare have decreased by 56% year to date, compared to declines of 13% for the S&P 500 index (SPX) and 19% for the tech-heavy Nasdaq Composite Index (COMP).
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