Cloudflare delivered a first-quarter performance that outpaced Wall Street’s revenue expectations, driven by strong growth in its large enterprise customer base and continued demand for its security and developer platforms. CEO Matthew Prince credited the quarter’s momentum to notable wins, including the largest contract in company history—over $100 million—stemming from its Workers developer platform. Management emphasized that improvements in sales productivity and a disciplined approach to cost control enabled Cloudflare to navigate a volatile macroeconomic environment. Prince noted, “We saw particular strength with our largest customers, those that spend over $1 million and $5 million with Cloudflare per year.”
Growth is a hallmark of all great companies, but the laws of gravity eventually take hold.
Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market’s punishment can be swift and severe when trajectories fall.
Cloudflare, Inc. announced pricing of $1.75B convertible senior notes due 2030, option for additional $250M, and intends to use proceeds for corporate purposes.
When Wall Street turns bearish on a stock, it’s worth paying attention.
These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.
The past six months have been a windfall for Cloudflare’s shareholders. The company’s stock price has jumped 58.8%, setting a new 52-week high of $180.80 per share. This run-up might have investors contemplating their next move.
