Overview

* Cloudflare ( NET ) Q2 revenue grows 28% yr/yr, beating analyst expectations, per LSEG data

* Adjusted EPS for Q2 beats consensus, per LSEG data

* Q2 Non-GAAP income from operations of $72.3 million, or 14%

of revenue

Outlook

* Cloudflare ( NET ) expects Q3 revenue of $543.5 mln to $544.5 mln

* Company anticipates full-year revenue of $2,113.5 mln to $2,115.5 mln

* Cloudflare ( NET ) sees Q3 non-GAAP income from operations at $75 mln to $76 mln

* Company projects full-year non-GAAP EPS of $0.85 to $0.86

Result Drivers

* STRONG CUSTOMER DEMAND - Cloudflare ( NET ) reports strong demand from largest customers, driving revenue growth

* AI INNOVATION - Strategic wins centered around AI-driven internet business models, boosting growth

* LONGER DEALS - Signing bigger and longer deals contributed to revenue increase

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $512.32 $501.30

Revenue mln mln (26

Analysts

)

Q2 Beat $0.21 $0.18

Adjusted (27

EPS Analysts

)

Q2 EPS -$0.15

Q2 Beat $75.10 $67.50

Adjusted mln mln (25

Net Analysts

Income )

Q2 Net -$50.45

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 13 "hold" and 3 "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy"

* Wall Street's median 12-month price target for Cloudflare Inc ( NET ) is $186.00, about 8% below its July 30 closing price of $200.85

* The stock recently traded at 214 times the next 12-month earnings vs. a P/E of 130 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)