Cloudflare's Q4 Earnings Soar, Stock Skyrockets as FY24 Forecasts Promise Continued Growth
1min read Cloudflare, a frontrunner in internet security and performance services, released its Q4 2023 earnings, showcasing impressive results that led to a surge in its stock price. The company announced a significant revenue increase of 32% year-over-year to $362.5 million, exceeding analysts' expectations and prompting a sharp rise in its stock price to $108 after hours, breaking past the previous resistance at $85.
The company's non-GAAP gross profit reached $286.0 million with a gross margin of 78.9%, up from the previous year's 77.4%. Operational efficiency was highlighted by a non-GAAP income from operations of $39.8 million, constituting 11.0% of total revenue—a substantial increase from 6.1% in Q4 2022. Cloudflare also reported a healthy non-GAAP net income of $53.5 million for the quarter, equating to $0.15 per diluted share, and a solid free cash flow of $50.7 million.
Looking ahead, Cloudflare is optimistic, raising its FY24 forecast with expected Q1 2024 revenues between $372.5 million to $373.5 million and non-GAAP operational income between $34.0 million to $35.0 million. The full year's revenue projections are set between $1,648.0 million to $1,652.0 million, with non-GAAP income from operations anticipated to be between $154.0 million to $158.0 million and a non-GAAP net income per share forecast of $0.58 to $0.59.
CEO Matthew Prince heralded Q4 2023 as a period of exceptional strength, with record-setting growth and significant deals underscoring the company's success. In essence, Cloudflare's Q4 earnings reflect a robust performance and outlook, reinforcing the company's trajectory for growth and its commitment to innovation and customer satisfaction in the expanding market for internet security and performance solutions.