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Dec 31, 2019

Cloudflare Q4 2019 Earnings Report

Announced fourth quarter and fiscal year 2019 financial results, demonstrating robust revenue growth and strategic market expansion.

Key Takeaways

Cloudflare reported a strong Q4 2019, with revenue growing 51% year-over-year to $84 million. The company also achieved a GAAP gross margin of 78.3% and made strides in the enterprise security market with its Cloudflare for Teams offering.

Q4 revenue increased by 51% year-over-year, reaching $84 million.

GAAP gross margin was 78.3%, a 160 basis point increase year-over-year.

Non-GAAP gross margin was 78.7%, a 180 basis point increase year-over-year.

Cloudflare entered the enterprise security market with Cloudflare for Teams.

Total Revenue
$83.9M
Previous year: $55.5M
+51.2%
EPS
-$0.06
Previous year: -$0.0665
-9.7%
Gross Margin
78.3%
Free Cash Flow Margin
-28%
Previous year: -52%
-46.2%
Gross Profit
$65.7M
Previous year: $42.5M
+54.5%
Cash and Equivalents
$139M
Free Cash Flow
-$23.5M
Total Assets
$831M

Cloudflare

Cloudflare

Forward Guidance

For Q1 2020, Cloudflare anticipates revenue between $87 and $88 million and a non-GAAP loss per share between $0.06 and $0.05. For the full year 2020, the company projects revenue between $389 and $393 million and a non-GAAP loss per share between $0.21 and $0.19.

Positive Outlook

  • Expects Q1 2020 revenue of $87 to $88 million
  • Anticipates FY 2020 revenue of $389 to $393 million
  • Projects Q1 2020 non-GAAP loss from operations of $20 to $19 million
  • Estimates FY 2020 non-GAAP loss from operations of $65 to $61 million
  • Forecasts Q1 2020 non-GAAP net loss per share of $0.06 to $0.05

Challenges Ahead

  • Projects Q1 2020 non-GAAP loss from operations of $20 to $19 million
  • Estimates FY 2020 non-GAAP loss from operations of $65 to $61 million
  • Forecasts Q1 2020 non-GAAP net loss per share of $0.06 to $0.05
  • Estimates FY 2020 non-GAAP net loss per share of $0.21 to $0.19
  • Uncertainty of expenses that may be incurred in the future