Cloudflare Share Tumble Wipes Out $4 Billion of Market Value
Cloudflare headquarters in San Francisco.
Photographer: Michael Short/BloombergThis article is for subscribers only.
Cloudflare Inc. lost $4.2 billion of its market value after the cybersecurity-focused provider of cloud services joined Amazon.com Inc. in reporting a hit to demand for remote computing power, sparking the company’s worst day of trading on record.
The San Francisco-based company on Thursday lowered its full-year revenue outlook to $1.28 billion to $1.284 billion from an earlier estimate for $1.33 billion to $1.34 billion. Chief Executive Officer Matthew Prince said on an earnings call that, after bank failures intensified “macroeconomic uncertainty,” it took the company longer to sell its products and it converted fewer sales leads into customers. Cloudflare shares closed 21% lower at $47.05 Friday.