Cloudflare Stock Higher as Results, Outlook Top Estimates

Cloudflare reported a narrower-than-expected loss and stronger-than-expected revenue.
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Shares of Cloudflare  (NET) - Get Report jumped on Friday after the cloud platform provider  reported third-quarter results that topped analyst estimates.

The San Francisco company reported a third-quarter adjusted net loss of 2 cents a share, shrunk from a loss of 16 cents in the year-earlier period. Revenue of $114.2 million was up 54% year over year. 

Analysts were expecting an adjusted loss of 5 cents a share on revenue of $103.7 million. 

In the quarter the company passed $100 million of revenue, crossed 100,000 paying customers, and released more than a dozen new products and features, Chief Executive Matthew Prince said in a statement. 

Cloudflare shares at last check jumped 17% to $67.98. 

The company expects a fourth-quarter loss of 3 cents to 4 cents a share on revenue of $117.5 million to $118.5 million. Analysts are looking for a 5-cent loss on revenue of $112.2 million. 

For the full year, the company expects a net loss of 12 cents to 13 cents a share on revenue between $422.5 million and $423.5 million. 

Analysts are expecting a 17-cent loss on revenue of $406.4 million. 

The company said that free of charge it provided state and local governments with tech to protect against cyberattacks during the 2020 U.S. elections.

"The world has never needed the Internet more than it has over the last nine months, and we're laser focused on helping to keep it fast, reliable, and secure," Prince said.