Cloudflare, Inc. (NYSE:NET) shares lost more than 15% on Friday, despite the company’s reported strong Q1 results, with EPS of $0.01 coming in above the consensus estimate of $0.00. Revenue increased 54% year-over-year to $212.2 million, beating the consensus estimate of $205.65 million. The company exhibited strong operating leverage and saw operating margins improve by 700 bps to 2.3%, with gross margins up 110bps.

According to Oppenheimer analysts, the company does a great job in selling a single product and then using its insights to upsell other services. There are hundreds of new products launched each year and ten or so major ones, all leveraging the same infrastructure/platform. The company is uniquely bundling in four key services that have large TAMs: networking, security, cloud compute and platform.

The company expects Q2/22 EPS in the range of ($0.01)-$0.00, compared to the consensus of $0.00, and revenue in the range of $226.5-227.5 million, compared to the consensus of $217.9 million.

For the full 2022-year, the company expects EPS in the range of $0.03-$0.04, compared to the consensus of $0.03, and revenue of $955-959 million, compared to the consensus of $932.7 million.