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Jun 30, 2022

Cloudflare Q2 2022 Earnings Report

Cloudflare's revenue increased by 54% year-over-year, driven by strong large customer growth.

Key Takeaways

Cloudflare announced strong second quarter results with revenue growth of 54% year-over-year. The company achieved positive operating cash flow and added a record number of large customers.

Total revenue reached $234.5 million, a 54% increase year-over-year.

Added a record 212 large customers, bringing the total to 1,749.

Operating cash flow was $38.3 million, representing 16% of total revenue.

Free cash flow was negative $4.4 million, or 2% of total revenue.

Total Revenue
$235M
Previous year: $152M
+53.9%
EPS
-$0.195
Previous year: -$0.02
+876.9%
Gross Margin
76.2%
Previous year: 77%
-1.0%
Free Cash Flow Margin
2%
Gross Profit
$179M
Previous year: $117M
+52.2%
Cash and Equivalents
$143M
Previous year: $248M
-42.4%
Free Cash Flow
-$4.4M
Previous year: -$9.78M
-55.0%
Total Assets
$2.47B
Previous year: $1.45B
+70.7%

Cloudflare

Cloudflare

Forward Guidance

For Q3 2022, Cloudflare expects revenue between $250.0 to $251.0 million and non-GAAP net income per share of $0.00 to $0.01. For the full year 2022, Cloudflare expects revenue of $968.0 to $972.0 million and non-GAAP net income per share of $0.03 to $0.04.

Positive Outlook

  • Total revenue of $250.0 to $251.0 million for Q3 2022
  • Non-GAAP income from operations of $0.0 to $1.0 million for Q3 2022
  • Non-GAAP net income per share of $0.00 to $0.01 for Q3 2022
  • Total revenue of $968.0 to $972.0 million for full year 2022
  • Non-GAAP income from operations of $7.0 to $11.0 million for full year 2022

Challenges Ahead

  • Challenging general economic conditions, including inflation
  • Rising interest rates
  • Ongoing COVID-19 pandemic
  • Russia-Ukraine conflict
  • Customer demand and spending patterns