Cloudflare raises annual outlook above market estimates on AI-driven demand
NET•Key guidance and quarterly figures
- Cloudflare raised its annual revenue forecast to a range of $2.86 billion to $2.87 billion, from $2.805 billion to $2.813 billion previously, and above analysts' average estimate of $2.81 billion, according to LSEG-compiled data.
- The cloud services provider reported revenue of $696.1 million for the second quarter ended June 30, above analysts' estimate of $665.5 million.
- It forecast third-quarter revenue between $736 million and $737 million, also higher than estimates of $722.1 million.
- Second-quarter adjusted earnings came in at $0.29 per share, above expectations of $0.27 per share.
- Cloudflare also raised its annual adjusted earnings guidance to $1.25 to $1.26 per share, from $1.19 to $1.20 per share previously.
Workforce reduction announced in May
In May, Cloudflare announced it would cut roughly 20% of its workforce, more than 1,100 jobs, as part of AI-led restructuring.
