Cloudflare executives on Thursday forecast adjusted earnings of 3 cents to 4 cents a share on revenue of $290 million for the first quarter, and 15 cents to 16 cents a share on revenue of $1.33 billion to $1.34 billion for the year. Analysts had estimated 3 cents a share on revenue of $250.6 million for the first quarter, and 15 cents a share on revenue of $1.31 billion for the year.

“In the fourth quarter, we delivered record operating profit, operating margin, and free cash flow,” Cloudflare co-founder and Chief Executive Matthew Prince said in a statement. “We also surpassed more than 2,000 large customers paying us over $100,000 per year and signed a record number of deals greater than $500,000.”

The company reported a fourth-quarter loss of $45.9 million, or 14 cents a share, compared with a loss of $77.5 million, or 24 cents a share, in the year-ago period. The adjusted loss, which excludes stock-based compensation expenses and other items, was 6 cents a share, compared with break-even a share in the year-ago period.

Revenue rose to $274.7 million from $193.6 million in the year-ago quarter. Analysts surveyed by FactSet had forecast net income of 5 cents a share on revenue of $250.6 million.

“During economic slowdowns, we believe that it’s important to show discipline and optimize for efficiency,” Prince said. “We have our hands on the levers of our business and a full-throttle innovation engine that is the envy of the industry.” 

Cloudflare’s stock price is down 47.1% over the past 12 months, while the S&P 500 index
SPX,
-0.88%
fell 9.7% and the tech-heavy Nasdaq 
COMP,
-1.02%
dropped 18.6%