Cloudflare ($NET (-8.55%) ) has delivered figures this evening and the reaction is clear: The market is enthusiastic and sends the share up almost 10% after trading! 🚀
At first glance, the figures looked mixed:
- Profit (EPS): At $0.21 clearly above expectations (beat) 🟢
- Revenue: Just below expectations at $512.3m (Miss) 🔴
But the future is what is traded on the stock market, and Cloudflare has impressed across the board. The reason for the explosion in share price lies beneath the surface and shows the blatant growth that characterizes this company:
1. Explosion in key accountsManagement reports that demand from major customers is stronger than it has been since 2022. This is the key signal: the world's largest companies are entrusting Cloudflare with more and more critical infrastructure.
2. Uninterrupted growth rateRevenue growth of +28% year-on-year is an absolute demonstration of power for a company that already generates over 2 billion dollars in annual revenue.
3. Strong guidanceThe outlook for the next quarter and the year as a whole has been raised and is well above analysts' estimates. This shows the management's confidence in its own strength.
My conclusion: The market completely ignores the small blemish on sales and celebrates the extremely strong outlook. For me as a long-term investor, this is the perfect confirmation of the investment thesis. Cloudflare remains one of my core positions in the tech sector.
#Cloudflare
#NET
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#Earnings
