Cloudflare (NYSE:NET) saw its shares climb 12% in after-hours trading Thursday after the connectivity cloud company reported better-than-expected fourth-quarter results and provided an optimistic outlook for 2025.

The company posted adjusted earnings per share of $0.19 for the fourth quarter, surpassing analyst estimates of $0.18. Revenue for the period came in at $459.9 million, up 27% YoY and exceeding the consensus forecast of $452.04 million.

Cloudflare's customer base spending over $1 million annually grew 47% YoY to 173, with more than half of the 55 new additions coming in the fourth quarter alone.

"We had a very strong end of 2024," said Matthew Prince, co-founder & CEO of Cloudflare. 

For the first quarter of 2025, Cloudflare expects revenue between $468 million and $469 million, slightly below the analyst consensus of $474.1 million. The company projects adjusted EPS of $0.16, compared to the $0.18 estimate.

Looking ahead to full-year 2025, Cloudflare forecasts revenue of $2.09 billion to $2.094 billion, just shy of the $2.097 billion consensus. However, the company's adjusted EPS guidance of $0.79 to $0.80 surpassed analyst expectations of $0.74.

The company's free cash flow for Q4 was $47.8 million, representing 10% of total revenue.

Cloudflare ended 2024 with $1.86 billion in cash, cash equivalents, and available-for-sale securities on its balance sheet.