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Sep 30, 2022

Cloudflare Q3 2022 Earnings Report

Cloudflare's revenue increased by 47% year-over-year, surpassing $1 billion in annualized revenue. The company added 159 large customers, bringing the total to 1,908. GAAP loss from operations was $45.9 million, while non-GAAP income from operations was $14.8 million.

Key Takeaways

Cloudflare's Q3 2022 results showed strong revenue growth, reaching $253.9 million, a 47% increase year-over-year. The company surpassed $1 billion in annualized revenue and saw significant growth in large customers. While GAAP operating loss was $45.9 million, non-GAAP operating income reached $14.8 million.

Total revenue reached $253.9 million, a 47% increase year-over-year.

The company surpassed $1 billion in annualized revenue.

Added 159 large customers, bringing the total to 1,908.

GAAP loss from operations was $45.9 million, while non-GAAP income from operations was $14.8 million.

Total Revenue
$254M
Previous year: $172M
+47.3%
EPS
$0.06
Previous year: -$0.341
-117.6%
Gross Margin
75.6%
Previous year: 78.2%
-3.3%
Free Cash Flow Margin
2%
Previous year: -23%
-108.7%
Gross Profit
$192M
Previous year: $135M
+42.4%
Cash and Equivalents
$138M
Previous year: $618M
-77.7%
Free Cash Flow
-$4.6M
Previous year: -$39.7M
-88.4%
Total Assets
$2.49B
Previous year: $2.32B
+7.6%

Cloudflare

Cloudflare

Forward Guidance

For the fourth quarter of fiscal 2022, Cloudflare expects total revenue of $273.5 to $274.5 million, non-GAAP income from operations of $12.0 to $13.0 million, and non-GAAP net income per share of $0.04 to $0.05, utilizing weighted average common shares outstanding of approximately 343 million. For the full year fiscal 2022, they expect total revenue of $974.0 to $975.0 million, non-GAAP income from operations of $31.0 to $32.0 million, and non-GAAP net income per share of $0.11 to $0.12, utilizing weighted average common shares outstanding of approximately 342 million.

Positive Outlook

  • Total revenue of $273.5 to $274.5 million
  • Non-GAAP income from operations of $12.0 to $13.0 million
  • Non-GAAP net income per share of $0.04 to $0.05
  • Total revenue of $974.0 to $975.0 million
  • Non-GAAP income from operations of $31.0 to $32.0 million

Challenges Ahead

  • Challenging general economic conditions
  • Inflation
  • Rising interest rates
  • Impacts of the ongoing COVID-19 pandemic
  • Russia-Ukraine conflict