Cloudflare (NYSE:NET) posted better-than-expected Q2 earnings, resulting in a significant 6% surge in its shares on Friday.
For the second quarter, the company reported earnings per share of $0.10 on revenue of $308.5 million, surpassing the Street estimate of $0.07 on revenue of $305.6 million. Sales demonstrated an impressive 32% year-over-year growth, while the adjusted gross margin came in at 77.7%, in line with Street expectations.
Furthermore, Cloudflare achieved a record-breaking quarter for new ACV (Annual Contract Value) bookings, indicating strong demand for its services.
Cloudflare sees itself uniquely positioned to become a leader in AI inferencing and has ambitious plans across the entire AI lifecycle to facilitate companies in building the future.