Shares of Cloudflare experienced a significant spike on Friday following the release of their quarterly earnings report that surpassed expectations.
In premarket trading, the stock surged 25% to $112.95, continuing its upward trend over the past three months with a 43% increase.
Cloudflare reported adjusted earnings of 15 cents per share, exceeding the consensus of analysts’ expectations of 12 cents. Revenue also performed well, rising by 32% to $363 million, surpassing projections. Furthermore, the company’s guidance for the first quarter of the year exceeded estimates.
Cloudflare is renowned for offering secure cloud services to both companies and governments. Moreover, it supplies software developers with graphics processors commonly used for artificial intelligence applications.
“The machine that underlies Cloudflare is firing efficiently on all cylinders,” stated Matthew Prince, the CEO of Cloudflare. Despite the unpredictable macro environment, customers continue to rely on Cloudflare for their connectivity, protection, and system optimization needs, empowering them to accelerate their businesses effectively.
Following the robust earnings report, analysts at Oppenheimer, led by Timothy Horan, raised their price target on Cloudflare’s stock from $85 to $122 and assigned it an Outperform rating. In a note, they emphasized the extraordinary breadth and depth of AI use cases associated with Cloudflare.
Other key players in the industry experienced premarket trading gains as well. Zscaler rose 1.5%, CrowdStrike Holdings gained 1.9%, and Fortinet was up 1%. Additionally, futures for the S&P 500 index increased by 0.1%.
