Cloudflare's (NYSE: NET) stock surged 9% during after-hours trading on Feb. 9 after it released its fourth-quarter report. Revenue for the cloud-based software provider rose 42% year over year to $274.7 million, which beat analysts' estimates by $600,000. Its adjusted net income surged from $100,000 to $21.6 million, or $0.06 per share, which topped expectations by a penny.

For the full year, Cloudflare's revenue rose 49% to $975.2 million. It generated an adjusted net profit of $44.4 million, or $0.13 per share, compared to a net loss of $15.1 million, or $0.05 per share, in 2021.

Those headline numbers were impressive, but is it too late to buy Cloudflare's stock after its stunning year-to-date rally of about 40%? Let's review its business model, growth potential, and valuations to decide.

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Source Fool.com