Cloudflare stock tumbled on Thursday despite the company beating views on earnings and revenue for the March quarter and offering an outlook ahead of estimates. Software growth stocks continue to sell off.
San Francisco-based Cloudflare (NET) reported first-quarter earnings after the market close. Shares tumbled nearly 12% to 68.50 in extended trading on the stock market today. Cloudflare stock dropped 14% in Thursday’s regular session amid a broad sell-off in the Nasdaq.
The software company said it had profits amounting to 1 cent a share on an adjusted basis vs. a loss of 3 cents per share in the year-earlier period. Revenue for the provider of cloud-based networking and cybersecurity services jumped 54% to $212.2 million.
But revenue topped estimates by 3.2% vs. a bigger 4.8% beat in the December quarter, noted a RBC Capital report.
Analysts expected Cloudflare to report earnings of zero cents per share on revenue of $205.7 million for the period ended March 31.
Heading into the Cloudflare earnings report, NET stock had retreated 45% in 2022.
Cloudflare Stock: Revenue Guidance Tops Views
For the current quarter ending in June, Cloudflare expects revenue of $227 million at the midpoint of guidance vs. estimates of $217.9 million.
Also, NET stock owned a Relative Strength Rating of 32 out of a best-possible 99, according to IBD Stock Checkup.
Started in 2009, Cloudflare speeds up and provides security for web applications routed through its intelligent global network. In addition, the company competes in both corporate and consumer markets.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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