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Jun 30, 2020
Cloudflare Q2 2020 Earnings Report
Cloudflare's second quarter results demonstrated strong revenue growth and customer acquisition.
Key Takeaways
Cloudflare announced strong second quarter results with a 48% year-over-year revenue increase, reaching $99.7 million. The company also improved both GAAP and non-GAAP operating margins and added a record number of large and paying customers.
Revenue increased by 48% year-over-year, totaling $99.7 million.
GAAP operating margin improved by 450 basis points year-over-year, while non-GAAP operating margin improved by 1,820 basis points year-over-year.
GAAP net loss per share improved by $0.14 year-over-year, and non-GAAP net loss per share improved by $0.19 year-over-year.
Net cash flow from operations was $4.0 million, compared to negative $2.9 million in the second quarter of 2019.
Cloudflare
Cloudflare
Forward Guidance
For the third quarter of fiscal 2020, Cloudflare expects total revenue of $102.5 to $103.5 million, non-GAAP loss from operations of $16 to $15 million, and non-GAAP net loss per share of $0.06 to $0.05. For the full year fiscal 2020, the company expects total revenue of $404 to $408 million, non-GAAP loss from operations of $55 to $53 million, and non-GAAP net loss per share of $0.18 to $0.17.
Positive Outlook
- Total revenue of $102.5 to $103.5 million is expected for Q3 2020.
- Full year revenue is projected to be between $404 and $408 million.
- Non-GAAP loss from operations is expected to improve to $16 to $15 million for Q3 2020.
- Full year non-GAAP loss from operations is expected to be $55 to $53 million.
- Non-GAAP net loss per share is expected to be $0.06 to $0.05 for Q3 2020.
Challenges Ahead
- The forward-looking statements are subject to substantial uncertainty due to the COVID-19 pandemic.
- The estimates are based on conditions as of August 6, 2020, regarding the impact of the pandemic on operations.
- The estimates are highly dependent on numerous factors that Cloudflare may not be able to predict or control.
- Non-GAAP loss from operations is still expected, though improving, for Q3 2020.
- Non-GAAP net loss per share is still expected for Q3 2020.