Cloudflare raises annual outlook above market estimates on AI-driven demand

Aug 6 (Reuters) - Cloudflare ‌raised its ​full-year ​revenue forecast above Wall Street expectations after strong quarterly results, betting that the ‌rapid rise of AI agents will keep ⁠driving traffic across its network, sending its shares up 18% ‌after the bell.

The race ‌to build and scale AI agents has led more businesses to rely on Cloudflare's network ​to safely route traffic and run those tools, boosting demand for its cloud and security ⁠products.

Here are more details:

• Cloudflare raised its annual revenue forecast to ​a range of $2.86 billion to $2.87 billion, from $2.805 billion to $2.813 billion previously, and above ​analysts' average estimate of $2.81 billion, ‌according to LSEG-compiled data.

• The cloud services provider reported a revenue of $696.1 million ⁠for the second quarter ended June 30, above analysts' estimate of $665.5 million.

• It forecast third-quarter revenue between $736 ⁠million and $737 million, also higher than estimates of $722.1 million.

• Second-quarter ​adjusted earnings came in at $0.29 per share, above expectations of $0.27 per share.

• Cloudflare also raised its annual adjusted ‌earnings guidance to $1.25 to $1.26 per share, from $1.19 to $1.20 per share previously.

• In May, ‌Cloudflare announced it would cut roughly 20% of ⁠its workforce, more ‌than 1,100 jobs, ​as part of AI-led restructuring.

(Reporting by Nithyashree R B in Bengaluru; Editing by Diti ‌Pujara)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Barrick Mining said to delay IPO of American gold business to 2027
• ADP Employment Change (Aug) 38K vs 47K Expected
• DA Davidson Reiterates Buy Rating on CrowdStrike (CRWD) Ahead of User Conference