Cloudflare 's stock rallied 10% Wednesday after the company beat Wall Street's fourth-quarter estimates and issued upbeat guidance as artificial intelligence adoption fuels demand for its networking and security tools.
In an earnings call with analysts Tuesday, CEO Matthew Prince said the rise of AI and agentic tools that can carry out tasks on a user's behalf has driven more demand to Cloudflare's networking and security offerings
Prince said the company is seeing a boost from a so-called "fundamental re-platforming" of the Internet.
"If AI agents are the new users of the internet, Cloudflare is the platform they run on and the network they pass through," he said. "This creates a virtuous flywheel."
The global networking and cloud provider reported adjusted earnings of 28 cents per share on $615 million in revenue. That topped the 27 cents per share and $591 million in revenue expected by analysts polled by LSEG. Revenue jumped 34% from a year ago.