Cloudflare Inc NETWORK Shares traded higher in Thursday’s after-hours session after the software company reported better-than-expected financial results strong sales growth.

What happened: Cloudflare said fourth-quarter revenue grew 42% year over year to $274.7 million, which topped consensus estimates of $274.02 million Gasoline Pro. The company reported quarterly earnings of 6 cents per share, beating estimates of 4 cents per share.

Net cash flow from operations was $78.1 million compared to $40.6 million in the fourth quarter of 2021. Free cash flow was $33.7 million.

Cloudflare ended the quarter with $1.649 billion in cash, equivalents and securities for sale.

“We believe that during economic downturns it is important to exercise discipline and optimize for efficiency. We have our hands on the levers of our business and a full-throttle innovation engine that is the envy of the industry. There’s no better time to outperform the competition and continue to deliver products that are on our customers’ must-have lists,” he said Matthew PrinceCo-founder and CEO of Cloudflare.

Cloudflare expected Revenue for the first quarter is expected to be between $290 million and $291 million. The company expects earnings of between 3 and 4 cents per share for the first quarter.

Full year sales are expected to be between $1.33 billion and $1.342 billion. Cloudflare expects full-year earnings to be in a range of 15 cents to 16 cents per share.

Cloudflare bills itself as the security, performance, and reliability company helping to build a better internet.

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NET Price Action: Cloudflare shares are up 12.20% after the close of business to $65.25 at the time of writing Gasoline Pro.

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