Cloudflare’s third-quarter sales climbed to 782.5 million dollars as adjusted operating profitability improved. Free cash flow increased in dollar terms but declined as a share of revenue, and the company’s net loss widened. Management also issued fourth-quarter and annual forecasts, putting the growth figures alongside a less uniform picture of profitability.
Cloudflare, which supplies internet infrastructure and cybersecurity services, reported third-quarter revenue of 782.5 million dollars, an annual increase of 39 per cent. Free cash flow reached 82.1 million dollars against 75.0 million dollars a year earlier. Its share of sales nevertheless dropped from 13 per cent to 10 per cent.[1], [2]
Operating cash flow increased from 167.1 million dollars to 215.4 million dollars.[1]
Adjusted operating income increased from 85.9 million dollars to 137.1 million dollars, lifting the corresponding margin from 15.3 per cent to 17.5 per cent. Under generally accepted accounting principles, however, operating loss widened from 37.5 million dollars to 67.9 million dollars. Net loss increased from 1.3 million dollars to 34.1 million dollars. The accounting gross margin declined from 74.0 per cent to 71.2 per cent.[1]
Management forecast fourth-quarter revenue of 845–846 million dollars and adjusted operating income of 156–157 million dollars. For the full year it projected sales of 2,963–2,964 million dollars and adjusted operating income of 462–463 million dollars. At the end of the third quarter, cash, cash equivalents and available-for-sale securities totaled 5,128.7 million dollars. Current remaining performance obligations increased 37 per cent year on year.[1]
