Shares of Cloudflare, Inc. surged over 11% on Thursday after the cybersecurity and internet services firm reported better-than-expected fourth-quarter results and provided an upbeat revenue outlook for 2025, reflecting its strong growth trajectory.

For the quarter ended December 31, 2024, Cloudflare posted an adjusted earnings per share of $0.19, exceeding Wall Street's consensus estimate of $0.18. The company's revenue surged 27% year-over-year to $459.9 million, outpacing analysts' expectations of $452.1 million.

Notably, Cloudflare's customer base spending over $1 million annually grew a robust 47% year-over-year to 173, with more than half of the new additions coming in the fourth quarter alone. This growth underscores the increasing demand for the company's innovative solutions, including its recently unveiled Content Credentials feature aimed at enhancing digital content authenticity and combating AI-generated misinformation.

For the full year 2025, Cloudflare forecasted revenue in the range of $2.09 billion to $2.094 billion, aligning closely with analysts' consensus estimates. However, the company's adjusted earnings per share guidance of $0.79 to $0.80 surpassed Wall Street's expectations, reflecting its confidence in continued profitability and earnings growth.

Analysts hailed Cloudflare's strong performance and viewed the company as well-positioned to capitalize on its large addressable market and long growth runway. With a commitment to innovation and a focus on addressing emerging trends such as the demand for secure and verifiable online content, Cloudflare is expected to maintain its momentum and deliver robust financial results in the coming quarters.