Cloudflare shares moved lower in premarket trade on Friday after it issued weaker-than-expected sales guidance for the fourth quarter.
For the December quarter, the cloud cybersecurity services provider expects sales in the range of $352 million to $353 million, below Wall Street analysts’ expectations of $356.38 million.
It also forecast adjusted earnings per share (EPS) of $0.12, above expectations of $0.10.
For 3Q, both Cloudflare’s sales and earnings topped estimates.
Revenue grew 32% year over year to $335.6 million, compared to estimates of $330.45 million.
Adjusted EPS improved from $0.06 in the same period in 2022 to $0.16, ahead of estimates of $0.10.
“We delivered another strong quarter, growing revenue by 32% year-over-year to $335.6 million and delivering our fifth consecutive quarter of record operating profitability," Cloudflare CEO Matthew Prince said in a statement.
Cloudflare shares were down 1.8% to US$55.55 ahead of Friday’s opening bell in New York.
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