Cloudflare Shares Surge as Revenue Soars with Landmark Contract Wins
Cloudflare exceeded first-quarter revenue expectations, fueled by signing two unprecedented contracts, driving significant stock gains.
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Highlights
- Cloudflare surpassed revenue forecasts by securing two historic agreements.
- The cloud service leader finalized its largest-ever contracts, including the longest-term Secure Access Service Edge (SASE) deal.
- Cloudflare's stock jumped 9% on Friday morning, marking a 25% increase year-to-date in 2025.
Cloudflare (NET) shares surged significantly Friday after the cloud infrastructure company reported better-than-expected first-quarter revenue, driven by two major contract signings.
The company posted a 27% year-over-year revenue increase to $479.1 million, surpassing Visible Alpha’s estimates by approximately $10 million. Adjusted earnings per share came in at $0.16, slightly below projections by one cent.
CEO and co-founder Matthew Prince revealed that Cloudflare secured the largest contract in its history, exceeding $100 million, powered by its innovative Workers developer platform. Additionally, the firm inked its longest-duration SASE contract to date.
Prince emphasized, "Cloudflare possesses the scale, cutting-edge technology, and dedicated team to seize the vast opportunities ahead."
For the full year, Cloudflare forecasts adjusted EPS between $0.79 and $0.80, with revenue expected to range from $2.090 billion to $2.094 billion. Analysts polled by Visible Alpha anticipated $0.80 EPS and $2.095 billion in revenue.
The stock’s 9% gain on Friday contributed to an approximate 25% rise in 2025.
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