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)

 

[Justa Grata Honoria]

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.

Either you aren't informed about ESG score or you are retarded either way let me inform you ESG score is basically woke score who gets you cheap moneyz from black rock which in turn gets those moneys from federal reserve probably some autists will fill this shit up with links. But right now red states they pull their pensions from any fund that uses esg score which is going woke . And everything going to burn that includes lot of internet companies who roll over their debts and depend heavily on cheap debt. Those interest rates raising is burning the major corps who are woke hard because their model is built and based on sub 5 % credit rates . Now i can guarantee that half of the failure is connected to payment of their debts who are getting bigger with higher interest rate.

 

[NoReturn]

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.

You say this, but even CloudFlare itself put this in their SEC statement:

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

I'm going to spend money on something nice, like an animal rescue, to make up the difference in the money you lost selling off this stock.

 

[Daniel Wallace]

You say this, but even CloudFlare itself put this in their SEC statement:
View attachment 3796404

Honestly, that just sounds like a statement to cover their ass. Either they keep making money and can say "See! Even despite competition we're still the best!" or if they lose money they can go "Hey, we told you we're facing stiff competition, you can't be surprised we lost money!"

 

[Chickin BBQ]

Oh neat. I guess it wasn't only my clients that got the "Cloudflare cannot be trusted" message.

 

[NoReturn]

Oh neat. I guess it wasn't only my clients that got the "Cloudflare cannot be trusted" message.

I hope they spread it around.
If the line is "private companies can do what they want, tee hee~" then it needs to be common knowledge if you're going to be working with someone who might drop you and your business for whatever reasons they feel like.
This is like hiring a security company to monitor your building, then a hobo walks up and says "Your boss hates black people" and the shift supervisor says "Oh man, I sure do hate racists" and lets everyone take off and leaves everything unattended.
Only its worse, because with this shit you can't even sue for damages if they pull a stunt like that.

 

[stupid frog]

ya get what ya fuckin deserve

 

[WelfareNiggerQueen]

Cuckflare: Hey guys we're the leading industry in DDOS mitigation

Also Cuckflare: Hey we were given a strongly worded e-mail from literal who and some glowing fella so we're dropping you from our services (Get's DDOSed into absolute submition shortly thereafter)


Continue to drive away an actual paying customer base for that sweet ESG Matthew. Being heavily indebted always works out.

 

[George Floyd]

I was pretty sure there would be no impact on their business, after all most companies out there think they're several orders of magnitude lower profile than KF.

 

[Quiet Guy]

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.

Didn't Null say on Jim's stream that shareholders can force companies to make profitable decisions? Is there necessarily something stopping someone from buying a share in such companies and initiating a class action suit or something along those lines? Granted, I imagine it's probably not that simple to get it to be enforced.

 

[Retink Retunk]

Didn't Null say on Jim's stream that shareholders can force companies to make profitable decisions? Is there necessarily something stopping someone from buying a share in such companies and initiating a class action suit or something along those lines? Granted, I imagine it's probably not that simple to get it to be enforced.

Yes, companies have a fiduciary duty to their shareholders, the problem is that it's not just a question of whether it was the right decision long term, it's if they made the decision in good faith, believing it was the right choice at the time. There can still be options even despite that, but it's usually really hard to prove in either case unless there's very definitive proof that the decision was made against shareholder interests.

That's also why Cloudflare did it in the manner that they did, playing it as if there were unimaginable things being done on the site as it gives them that shield to say they had justifiable belief that they were doing something that did not violate their fiduciary duty to shareholders.

 

[Sic Semper Tyrannosaurus]

Good, fuck these people. It was gay enough that they stopped service, but then they also hijacked the domain to point to their manifesto. I could see buying services from someone who stops services, even when their reasoning is hypocritical and idiotic, but the hijacking isn't something I would accept from any vendor.

 

[batterybee]

ahahaAHHAAHahahaahahahahahHAHAHAAHah sucks to sug my nigga

 

[Angry Alt Right Nerd]

Has tech hubris finally reached its peak? Is this the end of overpaid mediocre engineers? Cutting off service is one thing, doing it with no grace period and hijacking the domain is a level of unprofessionalism I'd only expect from the tech industry.

 

[Celebrate Nite]

Also, if you needed any more proof they're in bed with the feds.
View attachment 3795728

This alone should make people wake up and not use Cloudflare in general.

Keyword "should" but I know they wont.

 

[Dog-O-Tron 5000v5.0]

And now I'm going to tell you about a transscorpion. This transscorpion wanted to destroy a website which made him look bad, so he asked the Prince to carry him. No, said the Prince, no thank you. If I let you destroy this website that paid me for my services, you may sting me and the sting of the transcorpion is death. Now, where, asked the transscorpion, is the logic in that? For transscorpions always try to be logical. If I sting you, you will die. I will drown. So, the Prince was convinced and allowed the transscorpion on his back. But, just in the middle of the river, he felt a terrible pain and realized that, after all, the transscorpion had stung him. Logic! Cried the dying Prince as his stock price started under, bearing the transscorpion down with him. There is no logic in this!

 

[ZazietheBeast]

This was called out right from day 1 when they stabbed the farms in the back.

By doing the equivalent of apologizing to an SJW, they had taken in woke. And now, they shall go broke.

If they stood behind that first statement, they would be doing just fine. Saying no to these perpetual whiners is something all companies must learn.

 

[Eggplant Wizard]

I was pretty sure there would be no impact on their business, after all most companies out there think they're several orders of magnitude lower profile than KF.

Reminder that lower profile means that you can be dropped and no one will find out or care. Most people know this and will find a solution ASAP.

 

[Honka Honka Burning Love]

Either you aren't informed about ESG score or you are retarded either way let me inform you ESG score is basically woke score who gets you cheap moneyz from black rock which in turn gets those moneys from federal reserve probably some autists will fill this shit up with links. But right now red states they pull their pensions from any fund that uses esg score which is going woke . And everything going to burn that includes lot of internet companies who roll over their debts and depend heavily on cheap debt. Those interest rates raising is burning the major corps who are woke hard because their model is built and based on sub 5 % credit rates . Now i can guarantee that half of the failure is connected to payment of their debts who are getting bigger with higher interest rate.

Sure If you go Woke you get Blackrock Moneys for free, but Blackrock can only take so many massive baths before it starts to hurt.

Communism works..until you run out of other people's money to spend.

 

[Slappy McGherkin]

Lame, I know. But if this isn't the perfect example of "Go woke, go broke." please feel free to enlighten my sorry old ass to a better one.

The power that a small group of totally sick motherfuckers has had on changing the course of internet freedom of speech and corporate fucktardness is beyond belief.

Yes, Dear Feeder, you are correct and thank Sweet Baby Black Jesus I'm even able to suck yer dick in this post.

 

[The Last Stand]

Lame, I know. But if this isn't the perfect example of "Go woke, go broke." please feel free to enlighten my sorry old ass to a better one.

The power that a small group of totally sick motherfuckers has had on changing the course of internet freedom of speech and corporate fucktardness is beyond belief.

Yes, Dear Feeder, you are correct and thank Sweet Baby Black Jesus I'm even able to suck yer dick in this post.

Vote with your wallet. The only language companies understand is money. If that goes away, you've made an impact. Hope it was worth it, Cloudflare. I truly do.