The shares of cloud-based content delivery company Cloudflare Inc. dropped in trading after hours on Tuesday after investors weren’t impressed by the magnitude of the company’s loss.
In the quarter that ended on June 30, Cloudflare reported revenues at $152.4 million, an increase of 53% over the previous year. Net loss for the period was $35.5 million, or 2 cents per share, compared to $26.1 million, or $3.50 per share in the same quarter in 2020.
Analysts had been anticipating revenues of $146 million with an operating loss of three cents.
Also Read: Facebook specifics AI that can comprehend videos
Cloudflare is a victim of a stock market decline despite beating expectations in second-quarter earnings
Highlights from the quarter included an increase of 68% in Cloudflare’s annual compound growth rate. The company added a number of large customers, those that have at least $100,000 annualized revenue to 1,088. By the end of the period, the company is able to count 19% of Fortunate 1000 as paying customers.
Total Cloudflare customers now exceed 126,000, with nearly 48 percent of its revenues coming from outside the U.S. The company has been able to block more than the 87 billion cyber threats that are posed each day.
“We have had our best quarter in the history of a public company, and our revenue growth continued to increase, increasing 53% over the last year,” Matthew Prince, co-founder, and chief executive officer at Cloudflare (pictured), announced in an announcement. “Whether Cloudflare is providing zero trust security solutions for the world’s most sophisticated enterprises or helping them build the next billion-dollar company by introducing Cloudflare Workers, we remain committed to providing secure, programmable networking solutions that our customers trust.”
Also Read: AutoX opens Real Robotaxi Service In China For The General Public
Cloudflare has estimated revenues of between $165 million to $166 million for the quarter ahead and an average loss of 4 cents to three cents. Analysts had previously predicted the company’s revenue to be $157.4 million, based on the loss of 2 cents per share.
For the whole calendar year, Cloudflare declared that for the full year, they anticipated revenue to be between $629 million and $633 million, with an adjusted loss between 11-12 cents per share.
Despite beating analyst estimates in the results for the quarter and being close to estimates, however, investors were not enthused. The share price of Cloudflare decreased 5.5 percent after-hours trading.
It wasn’t that the figures weren’t good. Rather than that, investors could have anticipated higher. Cloudflare is a dazzling company this year, and its stock price is increasing 63% year-to-date. This premium is accompanied by the expectation of a strong report, and while Cloudflare has outperformed expectations over the last 4 quarters of operation, it was not significantly better this time.
