Earnings Preview For Cloudflare
Cloudflare (NYSE:NET) will release its quarterly earnings report on Thursday, 2025-07-31. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Cloudflare to report an earnings per share (EPS) of $0.09.
The market awaits Cloudflare's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Earnings Track Record
During the last quarter, the company reported an EPS missed by $0.00, leading to a 6.46% increase in the share price on the subsequent day.
Here's a look at Cloudflare's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.16 | 0.18 | 0.18 | 0.14 |
| EPS Actual | 0.16 | 0.19 | 0.20 | 0.20 |
| Price Change % | 6.0% | 18.0% | -5.0% | 7.000000000000001% |
Tracking Cloudflare's Stock Performance
Shares of Cloudflare were trading at $199.43 as of July 29. Over the last 52-week period, shares are up 169.5%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Views on Cloudflare
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Cloudflare.
Analysts have given Cloudflare a total of 18 ratings, with the consensus rating being Outperform. The average one-year price target is $174.17, indicating a potential 12.67% downside.
Comparing Ratings with Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of Snowflake, CoreWeave and GoDaddy, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Snowflake, with an average 1-year price target of $229.77, suggesting a potential 15.21% upside.
- Analysts currently favor an Neutral trajectory for CoreWeave, with an average 1-year price target of $87.5, suggesting a potential 56.12% downside.
- Analysts currently favor an Outperform trajectory for GoDaddy, with an average 1-year price target of $221.0, suggesting a potential 10.82% upside.
Snapshot: Peer Analysis
In the peer analysis summary, key metrics for Snowflake, CoreWeave and GoDaddy are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Cloudflare | Outperform | 26.54% | $363.51M | -3.11% |
| Snowflake | Outperform | 25.75% | $693.29M | -15.91% |
| CoreWeave | Neutral | 420.25% | $719.24M | -25.86% |
| GoDaddy | Outperform | 7.74% | $753.80M | 49.23% |
Key Takeaway:
Cloudflare ranks at the top for Revenue Growth and Gross Profit among its peers. However, it ranks at the bottom for Return on Equity. Overall, Cloudflare's performance is strong in terms of revenue growth and gross profit, but it lags behind in return on equity compared to its peers.
About Cloudflare
Cloudflare is a software company based in San Francisco, California, that offers security and web performance offerings by utilizing a distributed, serverless content delivery network, or CDN. The firm's edge computing platform, Workers, leverages this network by providing clients the ability to deploy, and execute code without maintaining servers.
A Deep Dive into Cloudflare's Financials
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Positive Revenue Trend: Examining Cloudflare's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 26.54% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Cloudflare's net margin excels beyond industry benchmarks, reaching -8.03%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Cloudflare's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -3.11%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Cloudflare's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -1.1% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Cloudflare's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.04.
To track all earnings releases for Cloudflare visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
