Investing.com -- Cloudflare (NYSE:NET) shares spiked prior to the opening bell on Friday after the internet firm unveiled first-quarter income and revenue guidance that topped Wall Street expectations.
The California-based group forecast current-quarter adjusted per-share earnings of $0.13 on revenue of $372.5M-$373.5 million, above projections of $0.12 and $372.3M, respectively. Analysts at Jefferies called the outlook "pragmatic" in the face of "tepid IT buyers, although they noted that macroeconomic conditions are beginning to show "signs of improving."
In the fourth quarter, Cloudflare's profit beat estimates, as the company benefited from solid demand for its cloud and content delivery services. The firm reported adjusted earnings of $0.15 a share on revenue of $362.5 million during the three months ended on Dec. 31, up from $0.06 and $274.7M in the year-ago period.
"The machine that underlies Cloudflare is firing efficiently on all cylinders, and we've been able to execute even as the macro environment remains choppy," said Chief Executive Officer Matthew Prince in a post-earnings call.
Yasin Ebrahim contributed to this report.