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Cloudflare forecasts weak fourth-quarter revenue, shares fall

Cloud services provider Cloudflare on Thursday forecast current-quarter revenue below Wall Street estimates on worries that corporate spending will remain tight triggered by economic uncertainty.

Shares of the company fell more than 4 per cent in afermarket trading.

“With broadening geopolitical uncertainty and increasingly mixed macroeconomic data points… the business environment in which we operate remains challenging to predict,” CFO Thomas Seifert said on an earnings call.

In an uncertain economic environment, clients look for inexpensive and integrated solutions as IT budgets remain under pressure.

Cloudflare, which offers a suite of website and application services products including content delivery network services, said it expects fourth-quarter revenue between $352 million and $353 million, compared with market estimates of $356.3 million, according to LSEG data.

For the third-quarter ended Sept. 30, the company’s revenue rose 32 per cent to $335.6 million, beating analysts’ estimates of $330.5 million.

The company’s loss per share narrowed to 7 cents in the reported quarter, from 13 cents per share a year earlier.

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