How did NET's Q4 2024 EPS surprise impact investor confidence?

**NET's Q4 2024 EPS surprise had a mixed impact on investor confidence**, as evidenced by the following: 1. **Positive Aspects**: - **Strong Q3 Performance**: Cloudflare's reported Q3 earnings per share (EPS) of $0.20 exceeded analysts' estimates of $0.18, indicating a robust performance. - **Revenue Beat**: Net's third-quarter revenues of $430.1 million surpassed the consensus mark by 1.52%, showing strong revenue growth year-over-year. - **Customer Growth**: The company added a record 219 large customers, with 35% of the Fortune 500 now relying on Cloudflare's services. 2. **Negative Aspects**: - **Disappointing Q4 Outlook**: Despite the strong Q3 results, Net provided a lower-than-expected fourth-quarter revenue outlook, which fell short of analyst expectations. - **Reduced Investor Confidence**: The Q4 revenue guidance of $451 to $452 million missed the analyst consensus of $455 million, leading to a decline in investor confidence. This was further exacerbated by expectations of reduced customer spending and heightened competition in the cybersecurity market. 3. **Stock Reaction**: Net's stock experienced a significant decline of 6.6% in extended trading following the release of the Q4 outlook, reflecting investor disappointment. In conclusion, while Net's Q4 2024 EPS surprise highlighted the company's strong operational performance and customer growth, the disappointing Q4 outlook and reduced revenue guidance tempered investor confidence, leading to a decline in stock price.