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Jun 30, 2023

Cloudflare Q2 2023 Earnings Report

Cloudflare's Q2 2023 revenue increased by 32% year-over-year, reaching $308.5 million. The company achieved a record quarter for new ACV bookings and delivered its fourth consecutive quarter of record operating profit.

Key Takeaways

Cloudflare's second quarter 2023 results showed strong revenue growth of 32% year-over-year, reaching $308.5 million. The company also reported GAAP loss from operations of $56.2 million, or 18% of revenue, and non-GAAP income from operations of $20.3 million, or 7% of revenue. Additionally, Cloudflare achieved operating cash flow of $64.5 million and free cash flow of $20.0 million.

Revenue totaled $308.5 million, up 32% year-over-year.

GAAP loss from operations was $56.2 million, or 18% of revenue.

Non-GAAP income from operations was $20.3 million, or 7% of revenue.

Operating cash flow reached $64.5 million, or 21% of revenue, while free cash flow was $20.0 million, or 6% of revenue.

Total Revenue
$308M
Previous year: $235M
+31.5%
EPS
$0.1
Previous year: -$0.195
-151.2%
Gross Margin
75.6%
Previous year: 76.2%
-0.8%
Free Cash Flow Margin
6%
Previous year: 2%
+200.0%
Gross Profit
$233M
Previous year: $179M
+30.5%
Cash and Equivalents
$159M
Previous year: $143M
+11.7%
Free Cash Flow
$20M
Previous year: -$4.4M
-554.5%
Total Assets
$2.53B
Previous year: $2.47B
+2.6%

Cloudflare

Cloudflare

Forward Guidance

For the third quarter of fiscal 2023, Cloudflare expects total revenue of $330.0 to $331.0 million, non-GAAP income from operations of $20.0 to $21.0 million, and non-GAAP net income per share of $0.10, utilizing weighted average common shares outstanding of approximately 347 million. For the full year fiscal 2023, the company expects total revenue of $1,283.0 to $1,287.0 million, non-GAAP income from operations of $81.0 to $85.0 million, and non-GAAP net income per share of $0.37, utilizing weighted average common shares outstanding of approximately 345 million.

Positive Outlook

  • Total revenue of $330.0 to $331.0 million is expected for Q3 2023.
  • Non-GAAP income from operations of $20.0 to $21.0 million is anticipated for Q3 2023.
  • Non-GAAP net income per share of $0.10 is projected for Q3 2023.
  • Total revenue of $1,283.0 to $1,287.0 million is expected for the full year fiscal 2023.
  • Non-GAAP income from operations of $81.0 to $85.0 million is anticipated for the full year fiscal 2023.