Business Cloudflare sinks 22% on 'insufficient' Q3 performance despite earnings beat - LMAO "In 2022, we received negative publicity in connection with the use of our network by Kiwi Farms... and we are aware of potential customers who decided not to subscribe to our products because of this."

• Cloudflare (NYSE:NET) shares plunged -22% Friday even as the cloud-based security company exceeded Wall Street estimates with its third quarter results and raised full year forecast.
• In Q3, the company generated adj. EPS of $0.06 on revenue of $253.9M that grew 47% year-over-year, surpassing $1B in annualized revenue.
• Analysts suggested the financial performance was not strong enough to justify the stock’s high valuation, which could explain the investor rout. Citi said the results had “insufficient oomph for this multiple, in this tape” and were “disappointingly in line,” while Morgan Stanley noted revenue growth was below 50% and fell short of investor expectations, even with macro pressures.
• Still, RBC Capital Markets suggested Cloudflare (NET) is navigating macro headwinds well and is “likely more resilient than most”.
• Cloudflare expects 2022 sales to be between $974M to $975M, up from a prior outlook of $968M and $972M. Analysts currently expect the company to generate $974.67M in sales. Fourth quarter sales are estimated to be between $273.5M to $274.5M, compared to estimates of $274.17M.

https://seekingalpha.com/news/39019...fficient-q3-performance-despite-earnings-beat (Archive)

Activities of our paying and free customers or the content of their websites or other Internet properties, as well as our response to those activities, could cause us to experience significant adverse political, business, and reputational consequences with customers, employees, suppliers, government entities, and others.

Activities of our paying and free customers or the content of their websites and other Internet properties could cause us to experience significant adverse political, business, and reputational consequences with customers, employees, suppliers, government entities, and other third parties. [...] In 2022, we received negative publicity in connection with the use of our network by Kiwi Farms, a forum website tied to harassment campaigns and direct threats toward individuals. We are aware of some potential customers that have indicated their decision to not subscribe to our products was impacted, at least in part, by the actions or potential actions of certain of our paying and free customers. We may also experience other adverse political, business and reputational consequences with prospective and current customers, employees, suppliers, and others related to the activities of our paying and free customers, especially if such hostile, offensive, or inappropriate use is highly publicized.

Conversely, actions we take in response to the activities of our paying and free customers, up to and including banning them from using our products, may harm our brand and reputation. [...] following escalating, direct threats towards individuals in September 2022, we blocked access to Kiwi Farms content through our infrastructure. We received significant adverse feedback for these decisions from those concerned about our ability to pass judgment on our customers and the users of our network and products, or to censor them by limiting their access to our products, and we are aware of potential customers who decided not to subscribe to our products because of this.

Page 66: https://cloudflare.net/files/doc_financials/2022/q3/dd287e1e-06fc-4ab3-9f0b-8d87a6c40692.pdf (Archive)

 

[Hitman One]

Turns out people don't like it when you decide to unilaterally become moral arbiters of the internet on behalf of your CIA handlers.

Bit of a white pill boys.

True but as you say the glowniggers are the ones really in control and the function of the honeypot isn't to make money.

 

[Cuckoman]

So, dropping KW farms had a negative impact, eh?

This has nothing to do with companies protecting free speech or making a stand. It is all about risk.
Companies saw that a pressure campaign resulted in CF dropping a customer to satisfy the mob.
For sure a customer with a terrible reputation but that is irrelevant.

Any responsible company would ask themselves "could I be next?"
Maybe you sell products to DHS and there is suddenly a campaign against you? Maybe you sell services to the catholic church?
Maybe what you do today is ok but will be problematic tomorrow?

Why even put yourself in the position where you have to worry "what if my provider drops me?"
There are many other providers, why on earth would you sign up with one that could potentially become
a problem in the future?

That is why they saw an impact. Not because the customers liked KF (they did not) but they asked themselves "could I be next?"

 

[Manul Otocolobus]

Makes me wonder if this will cause "The Company That Is Not Currently Named" to reconsider their position regarding peering with KF's provider? Seems like when one starts playing Judge/Jury people start wondering if they are next. Not good for business.

 

[XYZpdq Jr.]

HAW HAW HAW

 

[Stabmaster Arson II]

Get fucked Cloudflare, get absolutely fucked.

 

[NoReturn]

Makes me wonder if this will cause "The Company That Is Not Currently Named" to reconsider their position regarding peering with KF's provider? Seems like when one starts playing Judge/Jury people start wondering if they are next. Not good for business.

Matt's claiming they added 8 Fortune 500s recently, so I'm wondering if that company is one of them.

 

[Kane Lives]

Makes me wonder if this will cause "The Company That Is Not Currently Named" to reconsider their position regarding peering with KF's provider? Seems like when one starts playing Judge/Jury people start wondering if they are next. Not good for business.

In the current political climate? Unlikely for the moment.

The question of "who else?" remains unanswered, since no credible alternatives have made themselves known just yet.

 

[The Big O]

Turns out that cowering to a minority of terminally online eunuch sex pests who are good at manufacturing consensus is more destructive to your profits than leaving said """hate""" websites alone because the aforementioned website is still the one paying good moolah for your service at the end of the day.

You made a huge mistake by trying to put down the Farms, Cloudflare. Keffals is a reprobate and a grifter, and so are the rest of the ilk that thinks like him.

 

[Zero Day Defense]

Was the tranny money worth it, Cloudflare?

What tranny money?

When they do have money, it's going into drugs, surgery, and wigs.

 

[Jet Fuel Johnny]

I had a little fun.

I took video of me selling off my Cloudflare stock and using the money to buy shitty crypto on the exchange, added the text "I'd trust this crypto more than Cloudflare" and emailed it with the standard "I can no longer financially support or trust any entity that thinks that they should have the power to regulate and censor what I see on the internet as an adult."

Sure, it wasn't much. Only a couple hundred bucks. It was the point. Bonus, I made money on it when I got out of the cryptocoin.

But it was the point of sending that video to a few of the Cloudflare's supporters ala advertisement and the like.

Money talks.

EDIT: This is Cloudflare's stock performance over the last week.



And the last month

 

[Lord of the Large Pants]

Eat ALL of the shit, Cuckflare. All of it, everywhere, forever.

 

[Daddy's Little Kitten]

Lmao.

Lol, even.

Get fucking rekt.

 

[WonderWino]

HN is chock full of troons just like the software industry as a whole. It's more shocking there's any dissent to be found.

Which is why i'd bet money on the author of that article backpedaling and issuing an apology before very long

Regardless all this will likely be forgotten in a year or so as far as cloudflare is concerned and they'll get most of their customers back. The alternatives are questionable at best

 

[Clem Fandango]

I had a little fun.

I took video of me selling off my Cloudflare stock and using the money to buy shitty crypto on the exchange, added the text "I'd trust this crypto more than Cloudflare" and emailed it with the standard "I can no longer financially support or trust any entity that thinks that they should have the power to regulate and censor what I see on the internet as an adult."

Sure, it wasn't much. Only a couple hundred bucks. It was the point. Bonus, I made money on it when I got out of the cryptocoin.

But it was the point of sending that video to a few of the Cloudflare's supporters ala advertisement and the like.

Money talks.

EDIT: This is Cloudflare's stock performance over the last week.

View attachment 3796160

And the last month

View attachment 3796168

#DropKiwiFarms? More like #DropYourFuckingSharePrice, amirite?

 

[Super-Chevy454]

Will the Cloudflare staff do some Pikachu surprised faces if they see that vlog posted by WillyMacShow about Keffals?

 

[Kheapathic]

This has me wanting Null to email Prince and negotiate a return and Cloudflare to issue an apology. Even if nothing is done, make Prince dance for both sides.

 

[Aero the Alcoholic Bat]

#DropKiwiFarms? More like #DropYourFuckingSharePrice, amirite?

More cynical leftists often claim that corporations go woke as a means to make money. They're full of shit.

Going broke as a result of becoming woke is well-documented by now, and multiple people in those organizations admit that they prefer wokeness over turning a profit. If they were motivated solely by materialism and greed, they would have stopped.

 

[Pee Cola]

It's encouraging to see that @moocow isn't Robinson Crusoe when it comes to company decision makers dropping Cloudflare in fear of their company being dumped by Cloudflare with no warning

When they do have money, it's going into drugs, surgery, and wigs.

You forgot DDoS attacks.

 

[moocow]

It's encouraging to see that @moocow isn't Robinson Crusoe when it comes to company decision makers dropping Cloudflare in fear of being dumped by Cloudflare with no warning.

Hey gimme some credit ... I'm not always full of shit

 

[IKOL]

Morale: never fuck with the funny looking green kiwi bird. Otherwise you'll get your money nudge by certain Joshua "Null" Moon kitten.