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Dec 31, 2021

Cloudflare Q4 2021 Earnings Report

Cloudflare's Q4 2021 financial results were announced, demonstrating strong revenue growth and positive cash flow.

Key Takeaways

Cloudflare announced strong Q4 2021 results, with revenue up 54% year-over-year to $193.6 million. The company achieved record operating cash flow and positive free cash flow for the quarter.

Q4 revenue totaled $193.6 million, up 54% year-over-year.

Fiscal year 2021 revenue totaled $656.4 million, up 52% year-over-year.

Record dollar-based net retention rate of 125%.

Operating cash flow was $40.6 million, representing 21% of total revenue, and free cash flow was $8.6 million, representing 4% of total revenue.

Total Revenue
$194M
Previous year: $126M
+53.7%
EPS
-$0.242
Previous year: -$0.02
+1109.7%
Gross Margin
78%
Previous year: 76.9%
+1.4%
Free Cash Flow Margin
4%
Previous year: -19%
-121.1%
Gross Profit
$151M
Previous year: $96.9M
+55.9%
Cash and Equivalents
$314M
Previous year: $109M
+188.1%
Free Cash Flow
$8.6M
Previous year: -$23.5M
-136.6%
Total Assets
$2.37B
Previous year: $1.38B
+71.8%

Cloudflare

Cloudflare

Forward Guidance

Cloudflare provided financial outlook for Q1 2022 and full year 2022 which are subject to substantial uncertainty as a result of the ongoing COVID-19 pandemic.

Positive Outlook

  • Total revenue of $205.0 to $206.0 million for the first quarter of fiscal 2022.
  • Non-GAAP income from operations of $0.5 to $1.5 million for the first quarter of fiscal 2022.
  • Non-GAAP net income per share of $0.00 to $0.01, utilizing weighted average common shares outstanding of approximately 348 million for the first quarter of fiscal 2022.
  • Total revenue of $927.0 to $931.0 million for the full year fiscal 2022.
  • Non-GAAP income from operations of $10.0 to $14.0 million for the full year fiscal 2022.

Challenges Ahead

  • The forward-looking statements are subject to substantial uncertainty as a result of the ongoing COVID-19 pandemic.
  • Estimates as of February 10, 2022 regarding the impact of the pandemic on operations.
  • Highly dependent on numerous factors that may not be able to predict or control.
  • The timing of administering COVID-19 vaccines around the world and the long-term efficacy of these vaccines.
  • The impact of the pandemic on global and regional economies and economic activity generally.