Why Cloudflare Stock Is Rising After Hours

Cloudflare Inc NET shares are trading higher in Thursday’s after-hours session after the software company reported better-than-expected financial results, showing strong top-line growth. 

What Happened: Cloudflare said fourth-quarter revenue increased 42% year-over-year to $274.7 million, which beat consensus estimates of $274.02 million, according to Benzinga Pro. The company reported quarterly earnings of 6 cents per share, which beat estimates of 4 cents per share.

Net cash flow from operating activities totaled $78.1 million, up from $40.6 million in the fourth quarter of 2021. Free cash flow came in at $33.7 million.

Cloudflare ended the quarter with cash, equivalents, and available securities for sale of $1.649 billion.

“During economic slowdowns, we believe that it’s important to show discipline and optimize for efficiency. We have our hands on the levers of our business and a full-throttle innovation engine that is the envy of the industry. There’s no better time to outpace the competition and continue to deliver products on our customers’ ‘must-have’ list,” said Matthew Prince, co-founder and CEO of Cloudflare.

Cloudflare expects first-quarter revenue to be between $290 million and $291 million. The company expects first-quarter earnings to be between 3 and 4 cents per share. 

Full-year revenue is expected to be between $1.33 billion and $1.342 billion. Cloudflare sees full-year earnings in a range of 15 cents to 16 cents per share.

Cloudflare calls itself the security, performance and reliability company that’s helping to build a better internet.

See Also: Expedia Stock Is Diving After Hours: What’s Going On?

NET Price Action: Cloudflare shares are up 12.20% after hours at $65.25 at the time of writing, according to Benzinga Pro.

Photo: Web Summit from Flickr.