Cloudflare Inc (NYSE:NET) stock rose 0.76% (As on February 10, 11:41:03 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 22. Non-GAAP gross profit was $212.5 million or 77.4% gross margin, compared to $153.3 million, or 79.2%, in the fourth quarter of 2021. Non-GAAP income from operations was $16.8 million, or 6.1% of total revenue, compared to $2.3 million, or 1.2% of total revenue, in the fourth quarter of 2021. Non-GAAP net income was $21.6 million, compared to $0.1 million in the fourth quarter of 2021. Net cash flow from operating activities was $78.1 million, compared to $40.6 million for the fourth quarter of 2021. Free cash flow was $33.7 million, or 12% of total revenue, compared to $8.6 million, or 4% of total revenue, in the fourth quarter of 2021. Cash, cash equivalents, and available-for-sale securities were $1,649.9 million as of December 31, 2022. In the fourth quarter, the company also surpassed more than 2,000 large customers paying us over $100,000 per year and signed a record number of deals greater than $500,000
NET in the fourth quarter of FY 22 has reported the adjusted earnings per share of 6 cents, beating the analysts’ estimates for the adjusted earnings per share of 4 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 42 percent to $274.7 million in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $274.3 million.
Looking forward, Cloudflare said it expects adjusted earnings per share of three to four cents in the first quarter of 2023 on revenue of $290 million to $291 million. For the first quarter of 2023, the company expects Non-GAAP income from operations to be in the range of $11.5 to $12.5 million
For the full year 2023, the company expects adjusted earnings per share of 15 to 16 cents and revenue of $1.33 billion to $1.324 billion. For the full year 2023, the company expects Non-GAAP income from operations the company expects of $54.0 to $58.0 million
Meanwhile, the company has been awarded a $7.2 million contract from the Cybersecurity and Infrastructure Security Agency (CISA) to provide Registry and Authoritative DNS services to the .gov TLD (Top Level Domain). Cloudflare recently achieved FedRAMP moderate authorization and is available on the FedRAMP marketplace. Cloudflare provides security, performance, and reliability services through its global network to over 40 United States Federal Government agencies.