it’s been hard week. After the Supreme Court leak, too many layoff news stories, stock prices of the biggest tech companies in retreat, and a general sense that the economy is headed in the wrong direction, it’s easy to think that everything sucks.
But we’re here to cheer you up a bit, at least to tell you that it’s not everyone bad news. There are companies that are still doing quite well, and we wanted to highlight four that had good earnings reports this week.
While it’s easy to think that everyone is suddenly on a train to nowhere, recent earnings reports from several software companies are proof that we still have tech stores growing at a high rate. How high? Some were above 50%, and 60% growth was not unheard of.
In addition, the companies we analyzed today largely shared a positive orientation. And yet, even with positive earnings and a favorable outlook, the companies received treatment from investors that ranged from evasive to downright hostile.
It can be argued that some tech companies might fare a little better in a recession or similar macroeconomic slowdown than some seem to anticipate today; in other words, the lessons of mid-2020 may need to be relearned.
Let’s take a look at the results from Cloudflare and Confluent to assess how the market is treating even results that seem pretty strong. We’ll also look at Amplitude, a company that took big lumps after its Q4 2021 earnings report and was therefore doing a bit of makeup work on its latest financial report, and we’ll close with Appian.
Cloudflare’s Q1 2022 earnings report is a good indicator of where things stand. How is that? The company beat expectations for revenue in the recent period, posting a top line worth $212.2 million, well above expectations of around $205 million. That’s the kind of growth result that would have been electric last year.
For those of you keeping score at home, Cloudflare’s first quarter revenue was up 54% from a year ago. There was also other good news, like adding 14,000 new customers in the period. Additionally, customers who spent at least $500,000 grew 68% and those who spent $1 million or more grew 72%.
As CEO and co-founder Matthew Prince said, Cloudflare’s best customers continued to grow, bringing in more revenue. Furthermore, the company’s guidance indicates no signs of slowing down.