Why Cloudflare Investors Are Dealing With Stormy Weather Today
Internet security and performance expert Cloudflare (NYSE: NET) beat first-quarter earnings estimates, but investors are worried the company's growth rate is slowing. Shares of Cloudflare traded down 17% as of 12:15 p.m. ET on guidance that was not as robust as some had hoped for.
Cloudflare is in the business of improving the security and performance of websites and cloud connections. The company earned $0.16 per share on sales of $378.6 million in the first quarter, topping Wall Street expectations for $0.13 per share in earnings on sales of $373 million.
But the company's guidance for the quarters to come raised questions for investors. Cloudflare expects second-quarter revenue to come in between $393.5 million and $394.5 million and full-year revenue of between $1.648 billion and $1.652 billion. That's within Wall Street expectations, but the so-called "whisper numbers" of unofficial expectations were a lot higher.
Source Fool.com
