Cloudflare, Inc. (NET) stock soared 5.28% in the after-hours session on Thursday, following the release of its better-than-expected Q4 2024 earnings results and positive outlook for continued growth.
The cloud services provider reported adjusted earnings per share of $0.19 for the fourth quarter, surpassing the consensus estimate of $0.18 by 5.56%. Cloudflare's revenue for the quarter came in at $459.9 million, up 26.88% year-over-year and beating analysts' expectations of $452.1 million.
Cloudflare's strong performance in Q4 was driven by robust demand for its internet security and performance solutions, as well as its expanding product offerings. The company recently unveiled a new feature called "Content Credentials" aimed at enhancing the authenticity and integrity of digital content, positioning itself as a pioneer in combating AI-generated misinformation and strengthening its competitive edge in the digital security and media verification sectors.
Analysts are optimistic about Cloudflare's growth prospects, citing its "large addressable market" and "long runway for growth." With an expected earnings growth rate of 32.2% per annum, the company is poised to capitalize on the increasing demand for secure and verifiable online content.
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