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Sep 30, 2023

Cloudflare Q3 2023 Earnings Report

Cloudflare's Q3 2023 financial performance was strong, marked by revenue growth and continued operating profitability.

Key Takeaways

Cloudflare reported a strong third quarter in 2023, with revenue reaching $335.6 million, a 32% increase year-over-year. The company achieved its fifth consecutive quarter of record operating profitability and made significant strides in AI innovation.

Revenue totaled $335.6 million, up 32% year-over-year.

GAAP loss from operations was $39.2 million, or 12% of revenue; non-GAAP income from operations was $42.5 million, or 13% of revenue.

Operating cash flow reached $68.1 million, or 20% of revenue.

Free cash flow was $34.9 million, or 10% of revenue.

Total Revenue
$336M
Previous year: $254M
+32.2%
EPS
$0.16
Previous year: $0.06
+166.7%
Gross Margin
76.7%
Previous year: 75.6%
+1.5%
Free Cash Flow Margin
10%
Previous year: 2%
+400.0%
Gross Profit
$258M
Previous year: $192M
+34.2%
Cash and Equivalents
$94.1M
Previous year: $138M
-31.7%
Free Cash Flow
$34.9M
Previous year: -$4.6M
-858.7%
Total Assets
$2.59B
Previous year: $2.49B
+4.0%

Cloudflare

Cloudflare

Forward Guidance

For the fourth quarter of fiscal 2023, Cloudflare expects total revenue of $352.0 to $353.0 million and non-GAAP net income per share of $0.12. For the full year fiscal 2023, the company expects total revenue of $1,286.0 to $1,287.0 million and non-GAAP net income per share of $0.45 to $0.46.

Positive Outlook

  • Total revenue of $352.0 to $353.0 million is expected for Q4 2023.
  • Non-GAAP income from operations of $28.0 to $29.0 million is projected for Q4 2023.
  • Non-GAAP net income per share of $0.12 is anticipated for Q4 2023.
  • Total revenue of $1,286.0 to $1,287.0 million is expected for the full year 2023.
  • Non-GAAP net income per share of $0.45 to $0.46 is projected for the full year 2023.