Aug 6 (Reuters) - Cloudflare NET.N raised its full-year revenue forecast above Wall Street expectations after strong quarterly results, betting that the rapid rise of AI agents will keep driving traffic across its network, sending its shares up 18% after the bell.
The race to build and scale AI agents has led more businesses to rely on Cloudflare's network to safely route traffic and run those tools, boosting demand for its cloud and security products.
Here are more details:
Cloudflare raised its annual revenue forecast to a range of $2.86 billion to $2.87 billion, from $2.805 billion to $2.813 billion previously, and above analysts' average estimate of $2.81 billion, according to LSEG-compiled data.
The cloud services provider reported a revenue of $696.1 million for the second quarter ended June 30, above analysts' estimate of $665.5 million.
It forecast third-quarter revenue between $736 million and $737 million, also higher than estimates of $722.1 million.
Second-quarter adjusted earnings came in at $0.29 per share, above expectations of $0.27 per share.
Cloudflare also raised its annual adjusted earnings guidance to $1.25 to $1.26 per share, from $1.19 to $1.20 per share previously.
In May, Cloudflare announced it would cut roughly 20% of its workforce, more than 1,100 jobs, as part of AI-led restructuring.
(Reporting by Nithyashree R B in Bengaluru; Editing by Diti Pujara)