Cloudflare Inc. saw a rise in its stock value following its report of fourth-quarter sales and profit that surpassed analysts’ predictions. The company revealed a 32% increase in revenue, reaching $362.5 million for the period ending on Dec. 31, marking its most substantial quarterly growth since 2012. Additionally, the San Francisco-based company announced a profit of 15 cents per share, excluding certain items. This figure exceeded the average analyst estimate of 12 cents per share on sales of $353.8 million.According to John Butler, an analyst at Bloomberg Intelligence, a restructuring of the sales force had a positive impact, and the company seems to be moving past the growth challenges it faced last year. He also commented that “Guidance for a 27% sales gain in 2024 aligns with consensus and might prove low if momentum with large customers continues.”Matthew Prince, the Chief Executive Officer, credited the strong results to the company’s success with large clients, significant progress in the public sector, and growth in Cloudflare One, its integrated networking and security product. Following the report, the company’s shares surged by 21% in after-hours trading, having closed at $90.31 in New York. Over the past 12 months, the stock has seen an impressive 56% increase.Cloudflare offers a range of software, including cybersecurity products, designed to help businesses manage their websites and corporate network equipment, whether utilizing public cloud services, on-site data centers, or a combination of both.Most Read from Bloomberg Businessweek©2024 Bloomberg L.P.
