Cloudflare Shares Tumble After Company Posts Bigger Net Loss
Cloudflare Shares Tumble After Company Posts Bigger Net Loss
(Bloomberg) -- Cloudflare Inc. reported a bigger quarterly loss on Thursday, sending shares of the software maker down 12% in extended trading.
The net loss was $32.7 million in the first quarter, compared with a loss of $17.1 million a year earlier, the San Francisco-based company said Thursday in a statement. Revenue jumped 48% to $91 million, while operating expenses surged 65%. The company lost 4 cents a share, excluding some items.
Cloudflare projected sales of as much as $94.5 million in the period that ends June 30, and an adjusted loss of as much as 6 cents a share. The company reaffirmed its annual 2020 guidance of as much as $393 million in revenue.
Chief Executive Officer Matthew Prince says he’s building “a better internet” with Cloudflare tools that help websites with security, video streaming and traffic management. He became a billionaire on paper earlier Thursday when Cloudflare shares jumped 18% before the quarterly results.
“Our scalable global network is solving digital transformation needs for our customers in hours or minutes, faster than hardware could even ship to vacant offices,” Prince said in the statement.
Shares fell to a low of $25.30 in extended trading, after closing at $29.52 in New York. The stock has climbed 73% this year.
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