Cloudflare (NYSE:NET) Releases Quarterly Earnings Results, Misses Expectations By $0.21 EPS

Cloudflare (NYSE:NET) issued its quarterly earnings results on Thursday. The company reported ($0.03) EPS for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.21), Zacks reports. Cloudflare had a negative return on equity of 7.18% and a negative net margin of 5.97%. Cloudflare updated its FY 2025 guidance to 0.790-0.800 EPS and its Q1 2025 guidance to 0.160-0.160 EPS.

Cloudflare Stock Down 2.1 %

Shares of NET traded down $3.04 during trading hours on Thursday, reaching $141.25. 6,722,994 shares of the stock traded hands, compared to its average volume of 3,330,880. Cloudflare has a 52 week low of $66.24 and a 52 week high of $144.30. The company has a market cap of $48.47 billion, a price-to-earnings ratio of -543.25 and a beta of 1.12. The stock has a fifty day simple moving average of $116.71 and a 200 day simple moving average of $95.92. The company has a current ratio of 3.37, a quick ratio of 3.37 and a debt-to-equity ratio of 1.32.

Analyst Ratings Changes

A number of brokerages have weighed in on NET. Stifel Nicolaus raised Cloudflare from a “hold” rating to a “buy” rating and raised their target price for the company from $95.00 to $136.00 in a report on Tuesday, December 17th. Jefferies Financial Group lifted their price target on shares of Cloudflare from $100.00 to $125.00 and gave the stock a “hold” rating in a report on Thursday, December 19th. Citigroup raised shares of Cloudflare from a “neutral” rating to a “buy” rating and increased their target price for the company from $95.00 to $145.00 in a research report on Friday, January 17th. UBS Group upped their target price on Cloudflare from $88.00 to $95.00 and gave the company a “neutral” rating in a research report on Friday, November 8th. Finally, Robert W. Baird reaffirmed a “neutral” rating and set a $140.00 target price (up previously from $125.00) on shares of Cloudflare in a research note on Monday. Three research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and thirteen have assigned a buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $112.32.

Insiders Place Their Bets

In other news, CFO Thomas J. Seifert sold 15,000 shares of the firm’s stock in a transaction on Monday, February 3rd. The stock was sold at an average price of $136.63, for a total value of $2,049,450.00. Following the completion of the transaction, the chief financial officer now directly owns 252,869 shares of the company’s stock, valued at $34,549,491.47. This trade represents a 5.60 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Douglas James Kramer sold 2,481 shares of the company’s stock in a transaction dated Monday, February 3rd. The shares were sold at an average price of $131.66, for a total value of $326,648.46. Following the sale, the insider now owns 175,688 shares in the company, valued at approximately $23,131,082.08. This represents a 1.39 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 633,738 shares of company stock valued at $69,632,506. Corporate insiders own 12.83% of the company’s stock.

Cloudflare Company Profile

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.