Shares of Cloudflare (NYSE: NET) plunged in pre-market trading on Friday despite the content delivery network’s strong Q3 results. Revenues surged 47% year-over-year to $253.9 million, beating Street estimates by $4.02 million.
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Adjusted net earnings came in at $0.06 per share versus breaking even in the same period last year. Analysts were anticipating earnings of around $0.01 per share.
Matthew Prince, Co-Founder & CEO of Cloudflare commented, “We achieved an important milestone in the third quarter, surpassing $1 billion in annualized revenue for the first time. The opportunity we have in front of us is enormous. Even with this achievement, we’ve penetrated less than 1 percent of our identified market for the products we have available today.”
Prince added that the company is now “focused on the path to organically achieve $5 billion in annualized revenue in 5 years, and we’re confident we have the products already in-market to get us there.”
