Cloudflare Inc. (NET), a $67 billion provider of cloud services, reported revenues of $1.67 billion for 2024, a 28.8% increase from the previous year. The company serves approximately 237,714 paying customers, with 48% of its revenue coming from outside the United States.
Despite the growth in revenue, Cloudflare faces valuation concerns, trading at over 200X EPS. This has led to a cautious outlook, as the Zacks consensus predicts only 5% EPS growth for the year, raising questions among investors about its high price-to-earnings ratio.
Cloudflare aims for continued growth, projecting 25% revenue growth for the current year, potentially crossing $2 billion in revenue, while forecasts suggest another similar increase next year to $2.5 billion.
