Cloudflare Shares Jump Most in Almost a Year on Sales Growth – Yahoo Finance

(Bloomberg) — Cloudflare Inc.’s shares surged the most in almost a year, after the company announced fourth-quarter revenue that beat expectations.

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Revenue for the quarter ending Dec. 31 increased 27% to about $460 million, the company said in a statement, ahead of analysts’ estimate for $452.3 million.

The San Francisco-based company’s stock was up as much as 16% to $163.50 in New York on Friday, the biggest intraday jump since Feb. 9, 2024.

Cloudflare’s fourth-quarter earnings per share of 19 cents narrowly beat the analyst consensus estimate of 18 cents.

The confidence buoys hopes that the cybersecurity firm’s internal push to target larger clients is starting to take hold.

“We had a very strong end of 2024,” Chief Executive Officer Matthew Prince said in a statement. “We saw record growth in our largest customers, those that spend more than $1 million with Cloudflare per year — closing the year with 173. We added 55 of those customers in 2024, and more than half of these new additions came in during fourth quarter alone.”

Still, the company’s report was tempered by first-quarter sales forecast of $468 million to $469 million, short of analysts’ estimate of $475.2 million. The full year revenue forecast for 2025 of $2.09 billion matched expectations.

While the pace of hiring new salespeople has lagged overall headcount additions, improved efficiency among its ranks should aid further growth this year, Mike Cikos, Needham & Co. senior analyst, said in a note prior to the report.

Cloudflare Shares Jump Most in Almost a Year on Sales Growth – Yahoo Finance

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