Shares of Cloudflare (NYSE:NET) have soared today, up by 19% as of 12:40 p.m. EST, after the company reported strong third-quarter earnings. The results topped analyst expectations, and Cloudflare issued a rosy outlook.
Revenue in the third quarter increased 54% to $114.2 million, ahead of the consensus estimate of $103.2 million. That resulted in an adjusted net loss of $5.7 million, or $0.02 per share, which was better than the $0.05 per share in adjusted losses that Wall Street was expecting. The cybersecurity and networking technology company now has 736 large customers generating over $100,000 in annualized revenue.
CEO Matthew Prince issued this statement: "I'm incredibly proud that we exceeded financial, customer, and innovation milestones, all while providing our services, at no cost, to state and local governments to ensure that cyberattacks don't disrupt the United States 2020 elections. The world has never needed the Internet more than it has over the last nine months, and we're laser focused on helping to keep it fast, reliable, and secure."
Cloudflare also offered better-than-expected guidance for the fourth quarter. Revenue is forecast in the range of $117.5 million to $118.5 million, compared with the consensus estimate of $112.2 million in sales. That should translate into an adjusted net loss per share of $0.03 to $0.04, which is less than the $0.05 per share that analysts are expecting the company to lose on an adjusted basis.