Cloudflare reported $562 million in revenue for the last quarter, marking a 30.7% year-on-year increase and surpassing analyst expectations by 3.2%. The company also delivered billings and EPS guidance that outpaced consensus forecasts, highlighting strong demand for its cloud security and performance offerings.

For the upcoming quarter, analysts anticipate 28.4% year-on-year revenue growth to $590.6 million and adjusted earnings of $0.27 per share. These estimates reflect confidence in continued subscription growth and upselling of higher-tier services.

Cloudflare has a two-year history of exceeding revenue estimates on every earnings report, beating consensus by an average of 2.1%. Analyst estimates have remained stable over the past 30 days, suggesting expectations are well-anchored ahead of results.

In the software development segment, peer F5 reported an 8.8% revenue beat with 7.3% sales growth and saw its stock rise 8.1%. Software development stocks have fallen an average of 18.8% in the last month, while Cloudflare is down 5.8% and carries an average analyst price target of $229.59 against a current share price of $174.86.