Investors react as Cloudflare’s quarterly report falls short
- Cloudflare’s stock drops 14% after disappointing revenue outlook
- Quarterly report largely in line with estimates
- Net loss of $35.5 million, adjusted earnings of 16 cents a share
- Revenue jumps 30% to $378.6 million
- Second-quarter revenue guidance of $393.5 million to $394.5 million
Cloudflare Inc.’s stock dropped 14% in extended trading following a quarterly report that was largely in line with analyst estimates but included a revenue outlook that fell short. The company reported a net loss of $35.5 million, or 10 cents a share, compared to a net loss of $38.1 million, or 12 cents a share, in the same quarter last year. Adjusted earnings were 16 cents a share. Cloudflare’s revenue jumped 30% to $378.6 million, exceeding expectations. However, the second-quarter revenue guidance of $393.5 million to $394.5 million was slightly lower than analysts’ forecast of $393 million.
Factuality Level: 8
Factuality Justification: The article provides a straightforward report on Cloudflare Inc.’s stock performance and quarterly report, including key financial figures and analyst expectations. There are no obvious signs of bias, sensationalism, or inaccuracies in the information presented.
Noise Level: 2
Noise Justification: The article provides relevant information about Cloudflare Inc.’s stock performance, quarterly report, revenue outlook, and comparison with analyst estimates. It stays on topic and supports its claims with data and examples. However, it lacks in-depth analysis, accountability, and actionable insights, which prevents it from scoring higher.
Financial Relevance: Yes
Financial Markets Impacted: Cloudflare Inc.’s stock
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses Cloudflare Inc.’s stock performance and quarterly report.
Public Companies: Cloudflare Inc. (NET)
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