Cloudflare (NYSE:) stock plunged more than 13% in premarket trading Friday after the cloud services provider left the outlook for the full fiscal year unchanged.

For the fiscal Q1, the company reported earnings per share (EPS) of $0.16, topping the consensus estimates of $0.13. Revenue came in at $378.6 million, beating the expected $373.24 million.

The non-GAAP gross profit reached $301.1 million, equating to a 79.5% gross margin, compared to $225.9 million or a 77.8% gross margin in the first quarter of 2023.

Looking forward, Cloudflare provided guidance for Q2 2024, expecting an EPS of $0.14, slightly above the consensus of $0.13. The company anticipates Q2 revenue to be between $393.5 million and $394.5 million, aligning closely with the consensus forecast of $393.5 million.

For the full year 2024, Cloudflare projects an EPS range of $0.60 to $0.61, with the lower end matching analyst expectations. The company forecasts full-year revenue to be between $1.648 billion and $1.652 billion, compared to the consensus projection of $1.65 billion.

“I'm incredibly proud of the fact that our team has been able to continue to build our network, service larger and larger customers, and launch entirely new categories of products—including in the AI space—while also remaining disciplined with our gross and operating margins and our free cash flow,” said Matthew Prince, co-founder & CEO of Cloudflare.

“We’ve also delivered a double-digit year-over-year improvement in sales productivity again this quarter. Cloudflare has always been powered by our relentless innovation engine, and I’m encouraged by our progress in building a go-to-market engine that will also be the envy of the industry.”

Commenting on the report, Stifel analysts said the post-earnings sell-off was "not surprising."

Despite beating expectations, management has decided to maintain its full-year revenue guidance. According to Stifel, this cautious approach comes from providing a buffer for the new Chief Risk Officer and the need for prudence in light of ongoing macroeconomic uncertainties and geopolitical tensions.

"While Cloudflare does not believe the signals it sees are as clear around a slowing economy as what it saw 2 years ago, Cloudflare downticked in sentiment and acknowledges its crystal ball is less clear. Investors are left debating if its simply conservatism or something else," analysts said.

The quarter itself, however, was "quite good," analysts said, adding they see a number of drivers for the company to deliver 25% to 30% growth in the coming years. Key catalysts include broadening portfolio, strong signs of GTM improvements, "and an emerging Zero-Trust/AI opportunity."