From Nasdaq.: 2025-05-06 09:14:00

Cloudflare (NET) is set to announce its first-quarter 2025 results on May 8, 2025, with anticipated revenues between $468 million and $469 million, showing a 23.8% year-over-year growth. The company expects non-GAAP earnings of 16 cents per share, in line with the same quarter last year. Cloudflare has a history of beating earnings estimates.

Cloudflare’s first-quarter results may be influenced by the shift to zero-trust cybersecurity solutions and the rise in hybrid working trends. The company’s global expansion and diverse clientele have contributed to its revenue growth. Cloudflare added 16,174 new paying customers and 232 new large customers in the fourth quarter of 2024.

Despite positive performance indicators, Cloudflare faces challenges in closing large deals due to geopolitical and macroeconomic uncertainties. This, coupled with an overvaluation concern, has impacted the stock’s price performance, which has surged 67.8% in the past year. Cloudflare operates in a competitive market with players like Akamai Technologies, Fastly, and Amazon Web Services.

Cloudflare’s focus on AI and Zero Trust security offerings, along with its expanding customer base and sales execution strategy, positions the company for long-term growth. While the stock may be overvalued currently, its growth potential makes it a hold for investors. Cloudflare’s innovative solutions and financial performance make it a strong contender in the web infrastructure and security services market.



Read more at Nasdaq.: Cloudflare to Post Q1 Earnings: Time to Buy, Sell or Hold the Stock?