Cloudflare Inc. exceeded expectations with its fourth-quarter sales and profits, leading to a surge in its stock price in extended trading. The San Francisco-based company reported a 32% increase in revenue to $362.5 million, marking its largest quarterly growth since 2012. Additionally, profit, excluding certain items, amounted to 15 cents per share, surpassing the average analyst projection of 12 cents per share on sales of $353.8 million.
A positive effect from a restructuring of the sales force and indications that the company is moving beyond previous growth issues contributed to Cloudflare’s strong performance. Chief Executive Officer Matthew Prince credited the results to the company’s strong momentum with large customers, progress in the public sector, and growth in Cloudflare One, its unified networking and security product. This success led to a 21% increase in the company’s stock price in extended trading, with a 56% gain over the past year.
Cloudflare’s software, which includes cybersecurity products, helps businesses manage their websites and corporate network equipment across various platforms, including public cloud, on-site data centers, or a combination of the two. These positive trends demonstrate the company’s potential for continued growth and success in the future.
