CloudFlare (NYSE:NET) is scheduled to announce Q4 earnings results on Thursday, Feb. 10, after market close.
The consensus EPS estimate is $0 (+100% Y/Y) and the consensus revenue estimate is $184.87M (+46.8% Y/Y).
NET shares had risen after the company achieved profitability in Q3 for the first time ever. At the time, NET forecast Q4 total revenue of $184M-185M and said it expects to either break even or lose a penny a share on a per-share basis. NET predicted FY21 total revenue of $647M-648M and adj. loss of $0.06-0.05/share.
The stock has seen a sizeable decline since late 2021 as investors rotated out of high-growth tech stocks into value stocks. NET lost 16% in value YTD.
NET was further weighed down after investor Jeremy Grantham assessed a Goldman Sachs index of non-profitable tech firms, saying he expects a "superbubble" in the S&P 500 to soon pop and lead to more losses in the index.
Credit Suisse analyst Phil Winslow said the recent selloff "presents an attractive entry point" for investors, as NET could become "the dominant NaaS" security platform.
Stifel analyst Adam Berg noted that NET is focused on growth over profit margins as it seeks to take advantage of "the massive architectural shifts impacting IT infrastructure".
On average, Wall Street analysts rated NET a Buy. But SA's Quant rating on the stock is Hold.
NET in Dec. acquired Zaraz, marking its 1st acquisition of a firm built on its own developer platform Workers.
Earlier this week, SA contributor Cestrian Capital Research wrote “Should You Buy Cloudflare Before Earnings? What You Need To Know”, rating the stock Hold. The contributor is long NET as over time, game-changing firms like NET tend to outperform. But for now, the author is neutral and will review after earnings.
Over the last 2 years, NET has beaten EPS estimates 88% of the time and has beaten revenue estimates 100% of the time.
Over the last 3 months, EPS estimates have seen 17 upward revisions and 0 downward. Revenue estimates have seen 15 upward revisions and 0 downward.
Comments