Cloudflare, Inc. has announced its financial results for Q3 2024, surpassing expectations in revenue, operating margin, and free cash flow. The company reported $430.1 million in revenue, marking a 28% year-over-year increase. GAAP gross profit reached $334.1 million with a 77.7% gross margin, while non-GAAP gross profit stood at $339.1 million, reflecting a 78.8% margin. Operating results showed improvement, with a GAAP operating loss of $30.8 million compared to $39.2 million in Q3 2023, and a non-GAAP operating income of $63.5 million, up from $42.5 million.
CEO Matthew Prince highlighted the addition of 219 large customers and the milestone of 35% of Fortune 500 companies now being Cloudflare customers. Prince also noted the company’s role in safeguarding the 2024 U.S. election, providing free cybersecurity services to hundreds of government websites across over half of U.S. states.
Cloudflare’s cash flow performance was strong, with $104.7 million in net operating cash flow and $45.3 million in free cash flow, representing 11% of revenue. The company projects Q4 revenue of $451.0 to $452.0 million and full-year revenue of approximately $1.662 billion. Non-GAAP net income per share for the year is expected to be $0.74.
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