Cloudflare surges as Q1 revenue tops expectations, outlook higher as well

Cloudlfare said it had more than 4 million customer’s in Q1.

Network security and content delivery network provider Cloudflare this afternoon reported Q1 revenue that topped expectations, and profit in line with Wall Street's forecast,  and an outlook for this quarter's, and the full year's revenue that was higher as well. 

The report sent Cloudflare shares up by 6% in late trading. 

CEO and co-founder Matthew Prince noted the company had a "record-setting start to the year, citing revenue growth but also the company's retention rate among its customers of 123%. 

"We crossed 4 million total customers, and our large customer count was up 70% year-over-year, accounting for more than half of our total revenue," said Prince. 

Added Prince, "We delivered terrific financial results while also investing in innovation, the fuel our engine runs on. 

"Firing on all cylinders, we've already announced or delivered more than 100 products and capabilities this year. There's no slowing down as we continue to deliver business-critical offerings and displace point solutions with Cloudflare's robust global network."

Revenue in the three months ended in March rose 51%, year over year, to $138.1 million, yielding a net loss of 3 cents a share, excluding some costs.

Analysts had been modeling $131 million and negative 3 cents per share.

For the current quarter, the company sees revenue of $145.5 million to $146.5 million, and net loss per share in a range of 3 cents to 4 cents. That compares to consensus for $139 million and a 3-cent loss per share.

For the full year, the company sees revenue in a range of $612 million to $616 million, and EPS of $TK to $TK. That compares to consensus of $593 million and a 9-cent loss per share.