Cloudflare (NYSE:NET) shares plunged more than 23% after-hours following the company’s reported Q1 results. While Q1 EPS of $0.08 and revenue of $290.2 million (up 37% year-over-year) came in better than the consensus estimates of $0.03 and $290.8M, respectively, revenue guidance disappointed investors.
“Increasing macroeconomic uncertainty over the course of the first quarter resulted in a material lengthening of sales cycles and a significant backend-weighting of linearity,” said Thomas Seifert, CFO of Cloudflare, adding that the company’s guidance assumes these external headwinds will persist through the end of the fiscal year.
For Q2/23, the company expects EPS of $0.07-$0.08, compared to the consensus of $0.03, and revenue of $305-306M, below the consensus of $319M.
For the full year, the company anticipates EPS of $0.34-$0.35, compared to the consensus of $0.16, and revenue of $1.28-1.284 billion, below the consensus of $1.33B.