: Cloudflare stock rallies on better-than-expected results, outlook

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Cloudflare Inc. NET shares rallied in the extended session Thursday after the cybersecurity company’s results and forecast for the current quarter topped Wall Street expectations. Cloudflare shares surged 11% after hours, following a 3.4% gain in the regular session to close at $58.00. The company reported a third-quarter loss of $26.5 million, or 9 cents a share, compared with a loss of $40.9 million, or 35 cents a share, in the year-ago period. The adjusted loss, which excludes stock-based compensation expenses and other items, was 2 cents a share, compared with 16 cents a share in the year-ago period. Revenue rose to $114.2 million from $73.9 million in the year-ago quarter. Analysts surveyed by FactSet had forecast a loss of 5 cents a share on revenue of $103.2 million. “Our third quarter represented many significant milestones including surpassing $100M in revenue, crossing 100,000 paying customers, and releasing more than a dozen new products and features,” said Matthew Prince, Cloudflare co-founder and chief executive, in a statement. Cloudflare expects an adjusted loss of 4 cents to 3 cents a share on revenue of $117.5 million to $118.5 million for the fourth quarter, while analysts had forecast a loss of 5 cents a share on revenue of $112.3 million. For the year, the company forecast an adjusted loss of 13 cents to 12 cents a share on revenue of $422.5 million to $423.5 million, while analysts estimate a loss of 17 cents a share on revenue of $406.4 million.
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