CloudFlare falls 12% despite Q1 earnings, guidance beat

May 06, 2022 9:04 AM ETCloudflare, Inc. (NET)AKAM, FSLY, ZSBy: Chris Ciaccia, SA News Editor

Exterior view of Cloudflare headquarters, San Francisco

Sundry Photography/iStock Editorial via Getty Images

  • CloudFlare (NYSE:NET) shares fell sharply on Friday even as the security and content delivery provider posted first-quarter results and guidance that topped estimates.
  • For the period ending March 31, CloudFlare (NET) said it earned an adjusted 1 cent per share on $212.2 million in revenue, compared to estimates of a breakeven quarter and $205.6 million in sales.
  • CloudFlare (NET) shares plunged more than 13% to $67.34 in premarket trading on Friday.
  • Several other security and content deliver names fell on Friday, including Zscaler (ZS), Fastly (FSLY) and Akamai (AKAM), led by Akamai's near 2% decline.
  • Additionally, CloudFlare (NET), which added 14,000 customers in the customer to bring the total to more than 154,000, said it expects second-quarter revenue to be between $226.5 million and $227.5 million, compared to estimates of $217.76 million.
  • For the full-year, CloudFlare (NET) expects sales to be within a range of $955 million and $959 million, with analysts expecting the company to generate $932.44 million in revenue.
  • In late April, Cloudflare (NET) said it had completed its purchase of Area 1 Security.
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