The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how content delivery stocks fared in Q1, starting with F5 (NASDAQ:FFIV).
The amount of content on the internet is exploding, whether it is music, movies and or e-commerce stores. Consumer demand for this content creates network congestion, much like a digital traffic jam which drives demand for specialized content delivery networks (CDN) services that alleviate potential network bottlenecks.
The 4 content delivery stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was in line.
While some content delivery stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.7% since the latest earnings results.
Best Q1: F5 (NASDAQ:FFIV)
Originally named after the F5 tornado, the most powerful on the meteorological scale, F5 (NASDAQ:FFIV) provides security and delivery solutions that protect applications across cloud, data center, and edge environments for large organizations.
F5 reported revenues of $811.7 million, up 11% year on year. This print exceeded analysts’ expectations by 3.7%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ billings estimates and full-year EPS guidance exceeding analysts’ expectations.
“Our second quarter revenue of $812 million grew 11% year over year, driven by 22% product revenue growth—our seventh straight quarter of double-digit product growth,” said François Locoh-Donou, F5’s Chairman, President, and CEO.
F5 pulled off the biggest analyst estimate beat and highest guidance raise of the whole group. Unsurprisingly, the stock is up 38.3% since reporting and currently trades at $420.00.
Is now the time to buy F5? Access our full analysis of the earnings results here, it’s free.
Cloudflare (NYSE:NET)
With a massive network spanning more than 310 cities in over 120 countries, Cloudflare (NYSE:NET) provides a global network that delivers security, performance and reliability services to protect websites, applications, and corporate networks.
Cloudflare reported revenues of $639.8 million, up 33.5% year on year, outperforming analysts’ expectations by 3%. The business had a very strong quarter with an impressive beat of analysts’ billings estimates and full-year EPS guidance exceeding analysts’ expectations.
Cloudflare scored the fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 4.4% since reporting. It currently trades at $245.50.
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