Shares of Cloudflare (NYSE: NET) were up by 12.9% as of 10:48 a.m. ET Friday after the cybersecurity company soundly beat expectations with the Q2 report it delivered Thursday evening.

Analysts had forecast that it would earn $0.07 per share on $305.6 million in revenue for the second quarter. Instead, Cloudflare earned $0.10 per share, and its sales were ahead of expectations at $308.5 million.  

The news wasn't all good. Turns out, Cloudflare's estimate-beating "earnings" were of the pro forma variety -- i.e., not calculated according to generally accepted accounting principles (GAAP). The GAAP result for the quarter was a $0.28 per share loss -- a loss 40% deeper than Cloudflare suffered in the prior-year period.

Continue reading

Source Fool.com