Cloudflare, Inc. (NET) shares plummeted 12.30% in after-hours trading following the release of the company's first-quarter earnings results. The sharp decline reversed earlier gains from the regular trading session as investors reacted to the financial report.

The cybersecurity firm reported Q1 revenue of $639.8 million, which fell short of the FactSet consensus estimate of $655.3 million. Additionally, Cloudflare posted a net loss of $22.927 million for the quarter, translating to a loss per share of $0.07. While the company's adjusted earnings per share of $0.25 exceeded both FactSet and Ibes estimates of $0.23, the revenue miss and net loss weighed heavily on investor sentiment.

Looking ahead, Cloudflare provided Q2 revenue guidance of $664-665 million, slightly below the Ibes estimate of $665.3 million. However, the company raised its full-year outlook, projecting revenue of $2,805-2,813 million versus the Ibes estimate of $2,799 million and adjusted EPS of $1.19-1.20 compared to the $1.14 estimate.