Cloudflare (NET) Q4 earnings report 2023

Cloudflare shares rose 20% in extended trading on Thursday after the web security and content distribution network provider issued results and quarterly guidance that proved more robust than analysts had projected.

Here’s how the company did, in comparison with estimates from analysts polled by LSEG, formerly known as Refinitiv:

• Earnings per share: 15 cents, adjusted, vs. 12 cents expected
• Revenue: $362.5 million, vs. $353.1 million expected

Cloudflare’s revenue rose about 32%, consistent with growth in the third quarter, according to a statement. The company’s net loss of $27.9 million, or 8 cents per share, narrowed from $45.9 million in the year-ago quarter.

Matthew Prince, Cloudflare’s co-founder and CEO, said in the statement that Cloudflare signed its largest new customer deal and biggest renewal to date during the quarter, resulting in the highest annual contract value in corporate history. On a conference call with analysts, Prince mentioned business from the U.S. Commerce Department.

Also on Thursday, Cloudflare said Mark Anderson, a board member who was formerly CEO of Alteryx, is joining Cloudflare as president and replacing Marc Boroditsky. Private equity firms Clearlake Capital Group and Insight Partners announced in December that they would acquire Alteryx for $4.4 billion. Prince said he and co-founder and operating chief Michelle Zatlyn wouldn’t be going anywhere.

With respect to guidance, Cloudflare called for 13 cents in adjusted net earnings per share on $372.5 million to $373.5 million in revenue. Analysts surveyed by LSEG had expected 12…