Cloudflare (NYSE:NET) Updates FY 2025 Earnings Guidance

Cloudflare (NYSE:NET) updated its FY 2025 earnings guidance on Thursday. The company provided EPS guidance of 0.790-0.800 for the period, compared to the consensus EPS estimate of 0.850. The company issued revenue guidance of $2.1 billion-$2.1 billion, compared to the consensus revenue estimate of $2.1 billion. Cloudflare also updated its Q1 2025 guidance to 0.160-0.160 EPS.

Cloudflare Price Performance

NYSE:NET traded down $3.04 during trading hours on Thursday, reaching $141.25. 6,620,979 shares of the company were exchanged, compared to its average volume of 3,314,011. The company has a market capitalization of $48.47 billion, a P/E ratio of -543.25 and a beta of 1.12. The company has a debt-to-equity ratio of 1.32, a current ratio of 3.37 and a quick ratio of 3.37. The business has a 50 day moving average of $116.71 and a 200 day moving average of $95.92. Cloudflare has a 1-year low of $66.24 and a 1-year high of $144.30.

Cloudflare (NYSE:NET) last issued its quarterly earnings results on Thursday, February 6th. The company reported ($0.03) EPS for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.21). Cloudflare had a negative return on equity of 7.18% and a negative net margin of 5.97%. Research analysts forecast that Cloudflare will post -0.1 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on NET. Mizuho raised their target price on Cloudflare from $102.00 to $125.00 and gave the company a “neutral” rating in a report on Friday, December 13th. Citigroup raised shares of Cloudflare from a “neutral” rating to a “buy” rating and increased their target price for the stock from $95.00 to $145.00 in a report on Friday, January 17th. Morgan Stanley upped their price objective on shares of Cloudflare from $130.00 to $140.00 and gave the stock an “overweight” rating in a research report on Tuesday, January 21st. Royal Bank of Canada raised their target price on shares of Cloudflare from $99.00 to $123.00 and gave the company an “outperform” rating in a research report on Friday, January 3rd. Finally, The Goldman Sachs Group upgraded shares of Cloudflare from a “sell” rating to a “buy” rating and upped their price target for the stock from $77.00 to $140.00 in a report on Thursday, January 2nd. Three investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating and thirteen have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $112.32.

Insider Activity

In other news, CFO Thomas J. Seifert sold 15,000 shares of Cloudflare stock in a transaction dated Monday, February 3rd. The shares were sold at an average price of $136.63, for a total value of $2,049,450.00. Following the completion of the transaction, the chief financial officer now owns 252,869 shares in the company, valued at $34,549,491.47. This trade represents a 5.60 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Matthew Prince sold 52,384 shares of the firm’s stock in a transaction that occurred on Friday, November 15th. The stock was sold at an average price of $89.06, for a total transaction of $4,665,319.04. Following the completion of the transaction, the chief executive officer now directly owns 192,177 shares of the company’s stock, valued at approximately $17,115,283.62. This trade represents a 21.42 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 633,738 shares of company stock valued at $69,632,506 in the last three months. Company insiders own 12.83% of the company’s stock.

About Cloudflare

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.