Cloudflare, Inc. (NET)
NET was up 18.3% yesterday in anticipation of earnings that were released after the market closed.
The top-line revenue and gross margin numbers are impressive but expectations were higher and futures indicate that the stock will give some of these gains back today. NET is still a buy.
First-Quarter Fiscal 2020 Financial Highlights
• Revenue: Total revenue of $91.3 million, representing an increase of 48% year-over-year.
• Gross Profit: GAAP gross profit was $70.4 million, or 77.2% gross margin, compared to $47.4 million, or 76.7%, in the first quarter of 2019.
• Operating Loss: GAAP loss from operations was $36.1 million, or 39.5% of total revenue, compared to $17.1 million, or 27.8% of total revenue, in the first quarter of 2019.
• Net Loss: GAAP net loss was $32.7 million, compared to $17.1 million in the first quarter of 2019.
• Cash, cash equivalents, and available-for-sale securities were $588 million as of March 31, 2020.