Cloudflare Plunges After Disappointing Revenue Outlook
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Cloudflare Inc. shares sank by 16.35% after markets opened Friday following the company’s second-quarter revenue projections, which fell short of analysts’ expectations.
The San Francisco-based security company estimated that revenue would total $393.5 million to $394.5 million in the second quarter, with the midpoint of the range missing analysts’ estimates of $394.5 million. The second quarter revenue outlook falling short of expectations sparks concerns about the company’s ability to maintain its current growth rate, Bloomberg Intelligence said in a note.