The stock market is down, but these 4 tech companies prove there’s still good news – TechCrunch
It’s been hard the week. After the Supreme Court leak, far too much news about layoffs, declining stock prices of the biggest tech companies, and the general feeling that the economy is headed in the wrong direction, it’s easy to think it’s all sucks .
But we’re here to cheer you up a bit, at least to tell you that it’s not everything bad news. There are companies that are still doing quite well, and we wanted to highlight four that posted strong 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 over 50%, and 60% growth was not unheard of.
Additionally, the companies we review today have widely shared positive forecasts. And yet, even with positive earnings and a favorable outlook, the companies received treatment from investors ranging from indifferent to downright hostile.
There is an argument to be made that some tech companies might fare a little better in a recession or similar macro downturn than some seem to be anticipating today; the lessons of mid-2020 may have to be relearned, in other words.
Let’s take a look at the results from Cloudflare and Confluent to gauge how the market treats even results that look pretty darn strong. We’ll also be looking at Amplitude, a company that took huge chunks after its Q4 2021 earnings report and therefore did a bit of makeup work in its latest financial report, and is closing in on Appian.
Cloudflare’s Q1 2022 earnings report is a good marker of the state of play. How? The company has exceeded revenue expectations in the recent period, posting revenue of $212.2 million, well ahead of expectations of around $205 million. This is the kind of growth result that would have been electric last year.
For those of you keeping score at home, Cloudflare’s Q1 revenue was up 54% year over year. There was also other good news, such as the addition of 14,000 new customers during the period. Additionally, customers spending at least $500,000 increased by 68% and those spending $1 million or more increased by 72%.
As CEO and co-founder Matthew Prince said, Cloudflare’s top customers have continued to grow, driving more revenue. Moreover, the company’s forecast indicates no signs of slowing down.