Overview
- Cloudflare reported Thursday that second-quarter revenue was $696.1 million, topping analyst estimates and sending shares higher after the close.
- The company raised full-year revenue guidance to $2.86 billion–$2.87 billion and lifted annual adjusted earnings to $1.25–$1.26 per share, while forecasting third-quarter revenue of $736 million–$737 million.
- GAAP results still showed a quarterly loss of about $170 million (a $0.48 per-share loss) even as adjusted earnings beat at $0.29 per share, highlighting differences between headline accounting and operating profitability measures.
- Cloudflare attributes the momentum to rising traffic from AI agents that route work across its edge network and said this demand is expanding sales of its cloud and security offerings.
- The company restructured in May, cutting roughly 20% of jobs as it focuses on AI products, and coverage has reported an early-stage plan for programmable stablecoin wallets for AI-agent micropayments that remains unconfirmed by Cloudflare.