Cloudflare (NET) Stock: $250 Price Target From Cowen

By Amit Chowdhry ● Nov 7, 2021
  • The shares of Cloudflare Inc (NYSE: NET) have received a price target of $250 from Cowen. These are the details.

The shares of Cloudflare Inc (NYSE: NET) have received a price target of $250 from Cowen. And Cowen analyst Shaul Eyal raised the price target from $200 while maintaining an “Outperform” rating on the shares.

Eyal noted that surging enterprise adoption helped drive 51% top-line growth and had enabled Cloudflare to achieve milestone performance targets like positive operating margins and breakeven earnings per share ahead of previous expectations.

Cloudflare had reported its third-quarter fiscal 2021 financial earnings earlier this week. For the quarter, the company reported total revenue of $172.3 million, representing an increase of 51% year-over-year. The GAAP gross profit was $134.8 million, or 78.2% gross margin, compared to $87.2 million, or 76.3%, in the third quarter of 2020. And non-GAAP gross profit was $136.6 million, or 79.2% gross margin, compared to $88.2 million, or 77.3%, in the third quarter of 2020.

The GAAP loss from operations was $26.5 million, or 15.4% of total revenue, compared to $21.3 million, or 18.6% of total revenue, in the third quarter of 2020. And non-GAAP income from operations was $2.2 million, or 1.3% of total revenue, compared to a loss from operations of $4.5 million, or 4% of total revenue, in the third quarter of 2020.

The GAAP net loss was $107.3 million, compared to $26.5 million in the third quarter of 2020. And GAAP net loss per basic and diluted share was $0.34, compared to $0.09 in the third quarter of 2020. The non-GAAP net income was $1.4 million, compared to a non-GAAP net loss of $5.8 million in the third quarter of 2020. Non-GAAP net income per diluted share was $0.00, compared to non-GAAP net loss per share of $0.02 in the third quarter of 2020.

The net cash flow from operating activities was negative $6.9 million, compared to $2 million for the third quarter of 2020. And free cash flow was negative $39.7 million, or 23% of total revenue, compared to negative $17.9 million, or 16% of total revenue, in the third quarter of 2020.

The cash, cash equivalents, and available-for-sale securities were $1.8139 billion as of September 30, 2021.

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