Cloudflare shares added more than 23% after the cloud services provider’s fourth-quarter earnings topped estimates and it issued better-than-expected sales and profit guidance for the current quarter.
For 4Q, Cloudflare said its revenue increased 32% year over year to $362.5 million, ahead of estimates of $353.1 million.
Adjusted earnings per share (EPS) were $0.15, up from $0.06 in the year-ago quarter and ahead of expectations of $0.12.
For 1Q, the company projected revenue in the range of $372.5 million to $373.5 million, above estimates of $372.3 million.
It expects adjusted EPS of $0.13, ahead of estimates of $0.12.
“To close out the year, strength in our business was driven by robust momentum with large customers, significant progress in the public sector, and growth in Cloudflare One," Cloudflare CEO Matthew Prince in a statement.
"The machine that underlies Cloudflare is firing efficiently on all cylinders, and while the macro environment remains challenging to predict, customers continue to turn to us to connect, protect, and optimize their systems so they can gain the control they need to accelerate their businesses."
Cloudflare shares added 23.7% to about $111 in early trade on Friday.