Cloudflare (NET) Q4 2022: Earnings Call Summary

In this Cloudflare earnings call summary, we summarize key metrics and topics discussed on the Q4 2022 call, including:

• Earnings Call Summary
• Revenue Highlights
• New Initiatives
• Key Partnerships
• Guidance
• Caller Q&A, and more

This earning call summary was partially done by our GPT-3 enabled earnings call assistant, which you can learn more about here.

Earnings Call Summary

Cloudflare reported strong financial results for the fourth quarter of 2022, with revenue of $274.7 million, up 42% year-over-year, and a record operating profit of $16.8 million, representing an operating margin of over 6%.

• The company expects revenue in the range of $290 million to $291 million for the first quarter of 2023, representing an increase of 37% year-over-year, and operating income in the range of $11.5 million to $12.5 million.
• For the full year 2023, Cloudflare expects revenue in the range of $1.33 billion to $1.342 billion, representing an increase of 37% year-over-year at the midpoint, and operating income for the full year in the range of $54 million to $58 million.
• The company also expects dilutive net income per share over this period in the range of $0.15 to $0.16, assuming approximately 342 million common shares outstanding.
• Cloudflare is confident in the elasticity and durability of its business model and is committed to its goal of getting to $5 billion of run rate in five years from last quarter.
• The company is also investing in go-to-market initiatives to improve revenue growth and productivity, but has not incorporated any improvement in sales productivity in its guidance for 2023.
• Cloudflare will be participating in Baird’s 2023 Silicon Slopes event on March 2, the Morgan Stanley Technology, Media and Telecom conference on March 8, and William Blair’s 7th Annual Tech Innovators conference on March 14.
• The company is also hosting an Investor Day on Thursday, May 4, in conjunction with its user conference Cloudflare Connect in New York City.

Revenue Highlights