Cloudflare Q4 Revenue Up 29% to $358M Beats Forecasts, Shares Jump 8.5%
Cloudflare’s fourth-quarter revenue rose 29% year-over-year to $358.2 million, beating consensus by $14.2 million as billings climbed 28% to $411.7 million. The company generated free cash flow of $2.8 million and issued Q1 revenue guidance of $370 million–$380 million, sending shares up 8.5%.
1. Q4 Financial Beat
Cloudflare reported Q4 revenue of $358.2 million, a 29% year-over-year increase, topping the $344 million analysts expected. The company’s billings rose 28% to $411.7 million, driven by growth in its enterprise security and edge network services.
2. Positive Cash Flow
For the first time, Cloudflare delivered positive free cash flow of $2.8 million in the quarter, marking a turnaround from prior losses and reflecting tighter expense controls and operating leverage across its global network.
3. Guidance Outlook
Management issued first-quarter revenue guidance in the range of $370 million to $380 million, above the $365 million Street estimate. The outlook assumes continued enterprise customer additions and expansion in its zero-trust security offerings.
4. Market Reaction
Shares of Cloudflare climbed 8.5% in after-hours trading following the EBIT beat and upgraded outlook. Analysts have begun revising price targets higher, citing stronger-than-expected enterprise adoption and improving unit economics.