Shares in Cloudflare Inc (NYSE:NET) plummeted following its disappointing earnings report, released after Thursday’s market close.
The company, which provides ‘content delivery services’ (CDNs) for websites, reported a $35.5 million loss for its first quarter, in line the same period last year.
On a per share basis, the loss was marked at 12 cents, down from 16 cents last year and short of the 13 cents that Wall Street analyst had predicted.
Revenue was up 30% to $378.6 million, from $290.2 million. And Cloudflare forecast second-quarter revenue between $393.5 million and $394.5 million, against a market consensus forecast of $393 million.
Cloudflare shares were down $13.17 or 14.8% in premarket deals, pricing the stock at $75.80.
Matthew Prince, co-founder and chief executive, described it as a “strong start to the year” which he said was fuelled by a record number of net-new customers.
“I'm incredibly proud of the fact that our team has been able to continue to build our network, service larger and larger customers, and launch entirely new categories of products—including in the AI space—while also remaining disciplined with our gross and operating margins and our free cash flow,” Prince said in a statement.