Cloudflare Reports Record 31.5% Year-Over-Year Revenue Growth of $308.5 Million for Q2 FY2023
August 10, 2023
☀️Earnings Overview
CLOUDFLARE ($NYSE:NET): Net income, however, decreased from -63.5 million in the same quarter of the prior year to -94.5 million.
Analysis
GoodWhale has conducted an in-depth analysis of CLOUDFLARE’s wellbeing. After rigorous examination, GoodWhale has determined that CLOUDFLARE is a medium risk investment when looking at financial and business aspects. In particular, there are two risk warnings present in the balance sheet and cashflow statement that should be taken into account. To learn more about the risks associated with investing in CLOUDFLARE, register with GoodWhale to be able to explore our findings in-depth. Cloudflare_Reports_Record_31.5_Year-Over-Year_Revenue_Growth_of_308.5_Million_for_Q2_FY2023″>More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cloudflare. More…
| Total Revenues | Net Income | Net Margin |
| 1.13k | -221.01 | -16.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cloudflare. More…
| Operations | Investing | Financing |
| 221.68 | -53.17 | -157.91 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cloudflare. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.53k | 1.89k | 1.92 |
Key Ratios Snapshot
Some of the financial key ratios for Cloudflare are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 47.8% | – | -18.6% |
| FCF Margin | ROE | ROA |
| 5.6% | -20.3% | -5.2% |
Peers
Cloudflare Inc is a leading provider of internet security and performance services. Its main competitors are Okta Inc, Ubiquitous AI Corp, NetLinkz Ltd.
– Okta Inc ($NASDAQ:OKTA)
Okta, Inc. is a publicly traded company with a market capitalization of $8.27 billion as of April 2021. The company provides a platform that helps organizations manage and secure user identities and access to applications. Okta’s products are used by more than 8,000 customers, including some of the world’s largest companies. The company has a negative return on equity of 9.74% as of April 2021.
– Ubiquitous AI Corp ($TSE:3858)
Ubiquitous AI Corp is a leading provider of artificial intelligence technology and services. The company has a market cap of 4.16B as of 2022 and a return on equity of 0.0%. Ubiquitous AI Corp is a pioneer in the development and application of artificial intelligence technology. The company’s technology is used in a wide range of industries, including automotive, healthcare, finance, manufacturing, and retail.
– NetLinkz Ltd ($ASX:NET)
NetLinkz Ltd is a publicly traded company with a market capitalization of 81.85 million as of 2022. The company has a Return on Equity of -33.68%. NetLinkz is a provider of software-defined networking and security solutions. The company’s products are used by enterprises, service providers, and government organizations to improve network performance and security.
Summary
Cloudflare, a leading provider of web and internet security solutions, reported total revenue of USD 308.5 million for the second quarter of FY2023, representing an impressive year-over-year increase of 31.5%. Despite this impressive revenue growth, the company reported a net loss of USD 94.5 million, which is still an improvement over the same quarter last year. This indicates that while Cloudflare is growing rapidly, profitability remains elusive. Investors should consider the strong revenue growth as a positive sign, but be aware of the net loss and its potential to hinder the company’s long term prospects.
