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CloudFlare (NYSE:NET) is scheduled to announce Q4 earnings results on Thursday, February 9th, after market close.
The consensus EPS Estimate is $0.04 (+Infinity% Y/Y) and the consensus Revenue Estimate is $274.17M (+41.6% Y/Y).
The cloud-based security company exceeded Wall Street estimates with its third quarter results and raised full year forecast, although analysts suggested the financial performance was not strong enough to justify the stock’s high valuation.
In a preview note ahead of Q4 earnings, RBC Capital Markets said it expects a slight update to estimates amid an uncertain macro backdrop, driven by the company’s broad platform, price increases and product growth drivers.
Meanwhile, Wells Fargo noted that the focus will be on management outlook for 2023 and a shift in strategy towards profitability instead of driving revenue growth. With the stock around -46.36% down in the past year, an SA contributor analysis also suggested it is time for the company to change its corporate mindset.
Wells Fargo’s Andrew Nowinski said investor sentiment has become mixed on Cloudflare (NET) as the company has to provide an initial outlook for fiscal 2023 and the consensus is calling for 35% year-over-year growth, compared to 48% growth in fiscal 2022.
Investors will be keeping a close eye on the number of large customers Cloudfare (NET) has and the company’s dollar-based net retention rate, according to one recent SA contributor.
Over the last 2 years, Cloudfare has beaten EPS estimates 88% of the time and has beaten revenue estimates 100% of the time.