Shares of Cloudflare, Inc. (NET) surged 6.99% in after-hours trading on Thursday, following the release of its first-quarter 2025 financial results that exceeded analyst expectations in key areas and the announcement of a record-breaking contract.

The cloud services provider reported Q1 revenue of $479.1 million, significantly beating the FactSet analyst consensus estimate of $469.3 million. This represents a robust 26.54% increase compared to the same period last year. Despite the impressive top-line growth, Cloudflare's adjusted earnings per share came in at $0.16, slightly below the analyst estimate of $0.17.

Investors were particularly encouraged by Cloudflare's announcement of landing the largest contract in the company's history, a deal worth over $100 million driven by their Workers developer platform. CEO Matthew Prince emphasized the significance of this achievement, stating, "We have the scale, the technology, and the team to capture the massive opportunity ahead of us — as evidenced by the size and the length of the deals we're closing and the caliber of customers betting on Cloudflare."

Looking ahead, Cloudflare provided an optimistic outlook for Q2, projecting revenue between $500 million and $501 million, slightly above analyst expectations. The company also reaffirmed its full-year 2025 guidance, with expected revenue ranging from $2.09 billion to $2.094 billion, and adjusted EPS forecasted between $0.79 and $0.80. These projections, coupled with the strong Q1 performance and the landmark contract, appear to have bolstered investor confidence in Cloudflare's growth trajectory.