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Cloudflare Announces Fourth Quarter and Fiscal Year 2020 Financial Results

cloudflare.net

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Re: Cloudflare Announces Fourth Quarter and Fiscal Year 2020 Financial Results

#81

Post by danielheath »

tidepod12 wrote: post #54
dcolkitt wrote: post #49

Earlier quoted context omitted.

Does Cloudflare have any defensible moat? If Google or Microsoft decided to muscle Cloudflare out of business tomorrow, what’s to stop them? In comparison, we already know that Google can’t take out Facebook.

The major Cloudflare products (namely the CDN, WAF, DDoS protection, DNS management, and even serverless workers) are already replicated in AWS, GCP, and Azure. AFAIK the main thing that draws people to Cloudflare instead is "it's easier to use than bloated AWS/etc." And while that might be a completely valid value proposition, I'm not sure if it's a long term winner, especially as more and more companies migrate to…

The thing that draws me to Cloudflare over AWS is AWS bandwidth charges. CF charge $20/mo for a basic business plan; fronting our domain with CF reduced our AWS egress bill by over $2500/mo.

Re: Cloudflare Announces Fourth Quarter and Fiscal Year 2020 Financial Results

#82

Post by vmception »

djrogers wrote: post #44
vmception wrote: post #10

Earlier quoted context omitted.

and if it was up you would have said "new information that the market was not able to price in" or "the forward guidance was good" or just congratulate the leadership

And it would still likely be correct. The market reacts to news - not met expectations.

and useless for all existing investors and people trading off of predicted price movements

Re: Cloudflare Announces Fourth Quarter and Fiscal Year 2020 Financial Results

#83

Post by adam_arthur »

nickysielicki wrote: post #3

Down 6% after hours, for reasons that I don't understand. Personally, I'm more-sure that Cloudflare will be around in 25 years than I am that Facebook will be around in 25 years. Their customers are real-valuable customers paying for a real-valuable service, and that's not going away anytime soon. Meanwhile, their serverless stuff is very cool and unique. I think their durable objects are going to go mainstream somed…

The stock ran up close to 20% in the last month. An even stronger earnings beat than reported was already priced in.

Even after the 7% decline, it's still higher than 1 month ago.

Re: Cloudflare Announces Fourth Quarter and Fiscal Year 2020 Financial Results

#85

Post by marktolson »

buckybadger14 wrote: post #51

What is the market for cloudflare? Do you think every company who has a website will use some of their products? Understanding TAM...

I can't speak for everyone but for every site I've created I run it through Cloudflare. Even if it's just for DNS. It takes care of so many things that would otherwise require config/setup, costs or maintenance at the click of a button.

Re: Cloudflare Announces Fourth Quarter and Fiscal Year 2020 Financial Results

#86

Post by cholmon »

nickysielicki wrote: post #3

Down 6% after hours, for reasons that I don't understand. Personally, I'm more-sure that Cloudflare will be around in 25 years than I am that Facebook will be around in 25 years. Their customers are real-valuable customers paying for a real-valuable service, and that's not going away anytime soon. Meanwhile, their serverless stuff is very cool and unique. I think their durable objects are going to go mainstream somed…

Revenue is up 50%, but profit margin is down a bit, 76.6% in 2020 versus 77.9% in 2019. Plus, the upper range of their expected 2021 revenue is ~$593 million, which would be about 40% revenue growth if I did that math right ($431 * 1.38 = $594). So less growth, decreasing margins = sell I guess?

Re: Cloudflare Announces Fourth Quarter and Fiscal Year 2020 Financial Results

#87

Post by jopsen »

xwdv wrote: post #13
nickysielicki wrote: post #3

Down 6% after hours, for reasons that I don't understand. Personally, I'm more-sure that Cloudflare will be around in 25 years than I am that Facebook will be around in 25 years. Their customers are real-valuable customers paying for a real-valuable service, and that's not going away anytime soon. Meanwhile, their serverless stuff is very cool and unique. I think their durable objects are going to go mainstream somed…

Three. Day. Rule.

Care to elaborate?

Re: Cloudflare Announces Fourth Quarter and Fiscal Year 2020 Financial Results

#88

Post by noncoml »

cholmon wrote: post #86
nickysielicki wrote: post #3

Down 6% after hours, for reasons that I don't understand. Personally, I'm more-sure that Cloudflare will be around in 25 years than I am that Facebook will be around in 25 years. Their customers are real-valuable customers paying for a real-valuable service, and that's not going away anytime soon. Meanwhile, their serverless stuff is very cool and unique. I think their durable objects are going to go mainstream somed…

Revenue is up 50%, but profit margin is down a bit, 76.6% in 2020 versus 77.9% in 2019. Plus, the upper range of their expected 2021 revenue is ~$593 million, which would be about 40% revenue growth if I did that math right ($431 * 1.38 = $594). So less growth, decreasing margins = sell I guess?

Genuine question, why are you looking at the gross profit margin? .

Re: Cloudflare Announces Fourth Quarter and Fiscal Year 2020 Financial Results

#89

Post by noncoml »

nickysielicki wrote: post #3

Down 6% after hours, for reasons that I don't understand. Personally, I'm more-sure that Cloudflare will be around in 25 years than I am that Facebook will be around in 25 years. Their customers are real-valuable customers paying for a real-valuable service, and that's not going away anytime soon. Meanwhile, their serverless stuff is very cool and unique. I think their durable objects are going to go mainstream somed…

Net loss is increasing, operating expenses increasing, cash flow looks bad. Not sure there is anything to like about this stock other than speculation. And it's already a 12yo company

Re: Cloudflare Announces Fourth Quarter and Fiscal Year 2020 Financial Results

#90

Post by lazerpants »

azinman2 wrote: post #50
judge2020 wrote: post #29

Earlier quoted context omitted.

I think the joke here is that their stock symbol is NET.

Surprised they could get that after all the net related terminology in the early 2000s.

Your comment sent me down a research hole. Turns out, stock ticker symbols can be reused but I can find no evidence that NET was used before, which seems impossible.
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