Cloudflare, Inc. · NYSE:NET
Cloudflare — Investor Presentation (June 2025)
35 slides from Cloudflare's investor presentation, Jun 26, 2025
Slide 1: Investor Presentation
Investor Presentation As of March 31, 2025 © 2025 Cloudflare, Inc.
Slide 2: Safe Harbor
Safe Harbor This presentation has been prepared by Cloudflare, Inc. (“Cloudflareˮ) for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise, or representation by the presenter or Cloudflare or any o
Slide 3: Cloudflare at a Glance
Cloudflare at a Glance 2010 250K Total Revenue $M Large Customers Launched Paying > $100,000 Annualized Revenue Customers $1,670 3,527 % $479 GR 27 GR A CA 330 69% 31 % C $1,297 $379 28 % 2,878 Cities in Of Revenue from Network Large Customers 2,156 $975 4,400 77% Employees Non-GAAP Gross Margin
Slide 4: Helping Build a Better Internet
Helping Build a Better Internet “We need more tech companies to realize that civil society needs [programs like Project Galileo]. . .We need more value driven Project Galileo Cybersafe Schools 2024 Impact Report companies that realize the critical role that civil Free services for Free services fo
Slide 5: Fighting for the open Internet
Fighting for the open Internet The Internet is a miracle. The connection of diverse networks with common standards enables us to exchange Advocating for network data around the world in a way that is resilient, interoperable, and accessible to anyone. Today, we neutrality depend on it for economic g
Slide 6: Help build a better Internet
Cloudflareʼs mission is to Help build a better Internet 6 © 2025 Cloudflare, Inc.
Slide 7: The Internet was not built for what it has become
The Internet was not built for what it has become. 7 © 2025 Cloudflare, Inc.
Slide 8: From Endless Hardware to a Global Cloud Platform
From Endless Hardware to a Global Cloud Platform BANDAID BOXES BETTER INTERNET • Costly and complex • Easy-to-use, flexible, and scalable • Web of dependencies • Unified control plane • Specialized hardware • Serverless cloud architecture • On-premise only • Cloud, hybrid, on-premise, and SaaS • Po
Slide 9: Evolution of the Enterprise Stack
Evolution of the Enterprise Stack Yesterday Tomorrow Hardware / Software / Products Buy Services / Cloud Rent Network / Security Application Store/Compute 9 © 2025 Cloudflare, Inc.
Slide 10: An Integrated Global Cloud Platform
An Integrated Global Cloud Platform Cloudflare Cloudflare Cloudflare Cloudflare Platform Zero Trust Services Network Services Application Services 1 Cloudflare One Zero Trust Network Access WAN-as-a-Service WAF with API Protection Secure Web Gateway Firewall-as-a-Service Rate Limiting Cloud Access S
Slide 11: We Operate at Massive Scale
We Operate at Massive Scale 247B 250K 69% 51% Cyber Threats Total Paying Of Revenue from Of Revenue from Blocked per Day Customers Large Customers Outside of the U.S. Cyber threats blocked per day is approximate average over the three months ended March 31, 2025. All other figures are as of the th
Slide 12: Our Flexible, Scalable, & Efficient Serverless Architecture
Our Flexible, Scalable, & Efficient Serverless Architecture • Abstracts underlying infrastructure • Dynamically optimizes and leverages capacity across network • Single unified code base • Deployment on commodity hardware 12 © 2025 Cloudflare, Inc.
Slide 13: A Global Network Powering our Platform
A Global Network Powering our Platform 330 cities in 125+ countries, including mainland China 13,000 networks directly connect to Cloudflare, including ISPs, cloud providers, and large enterprises 388 Tbps of network capacity and growing 250,000 Paying Customers Cloudflare city (as of Q1 2025 36
Slide 14: Our Product & Network Flywheels Drive Our Business
Our Product & Network Flywheels Drive Our Business Serve Everyone Network Product Better Increased Helping Build a Serverless Ease of Products Efficiency Better Internet Architecture use Global 14 © 2025 Cloudflare, Inc. Scale
Slide 15: Data Intelligence & Quality Assurance at Scale
Data Intelligence & Quality Assurance at Scale Machine learning systems Global sensor network improve products with with paying customers in 190+ countries. every customerʼs request. Immune system for the Rapid development cycles Internet blocking an average of and QA through free users 247 billion
Slide 16: Our Competitive Advantages
Our Competitive Advantages NETWORK EASE SHARED NO SCALE OF USE INTELLIGENCE TRADE OFFS 16 © 2025 Cloudflare, Inc.
Slide 17: Our Favorable Competitive Position
Our Favorable Competitive Position Limitations • Complex and expensive On-Premises • Not suited to address cloud-based and hybrid deployments • Architected to deliver single point / more narrow product portfolio Point Solutions • Customers are increasingly looking for an integrated platform offering
Slide 18: Consistent & Deliberate TAM Expansion
Consistent & Deliberate TAM Expansion Cloudflare $231B Developer Services $214B Areas for Potential ● Application Platform Incremental Growth $196B ● Object Storage $181B Cloudflare Network Services AI 1 Cloudflare One ● Network Firewall ● MPLS ● SDWAN Database ● Intrusion Detection & Prevention ●
Slide 19: Traditional Go-To-Market Model Inverted
Traditional Model Go-To-Market Get customers Model Inverted We donʼt build ahead of the curve. Add sales reps to service new customer segments Sources of Leverage • Self service adoption for customers of all sizes Spend • Natural expansion marketing • Pulled into new geographies budget • Pulled up m
Slide 20: Our Strategy for Growth
Our Strategy for Growth Extend our serverless platform strategy Develop new products Expand • Enable a new class of applications relationships • Power store and compute with existing workloads customers • High product velocity • Increase stickiness Acquire new • Set pace for innovation in market • O
Slide 21: Financial Overview
Financial Overview © 2025 Cloudflare, Inc.
Slide 22: Key Financial Highlights
Key Financial Highlights $181B 27% 77% 3,527 Large Q1ʼ25 Y/Y Q1ʼ25 Non-GAAP Large Addressable Revenue Growth Gross Margin Customers Market in 2025 Note: Total Addressable Market represents 2025 expected spend from our analysis based on Gartner and IDC market data. Year-over-year revenue growth and N
Slide 23: Track Record of Delivering Revenue Growth
Track Record of Delivering Revenue Growth Investment in enterprise sales Total Revenue $M $1,670 % $479 27 Large customer momentum $379 AGR $1,297 C 42% Land and expand strategy drives growth $975 across cohorts $656 Strong penetration $431 across the entire $287 product portfolio 2019 2020 2021 2
Slide 24: Rapid Customer Growth
Rapid Customer Growth Paying Customers Large Customers $100,000 Annualized Revenue R 250,819 3,527 CAG 19 % GR 197,138 CA % 2,878 168,159 32 148,184 69% 2,156 revenue 67% revenue 1,537 62% revenue 58% revenue Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2022 2023 2024 2025 2022 2023 2024 2025 Note: Paying and Large Cus
Slide 25: Strong Dollar-Based Net Retention
Strong Dollar-Based Net Retention DNR includes all 115% paying customers 112% 110% 111% 111% Large customers are a long-term tailwind to DNR Continuous innovation offers expansion opportunities Q1ʼ24 Q2ʼ24 Q3ʼ24 Q4ʼ24 Q1ʼ25 Note: See the Appendix for how we define “Dollar-Based Net Retention.ˮ 25 ©
Slide 26: Attractive & Consistent Gross Margin
Attractive & Consistent Non-GAAP Gross Margin Gross Margin 80% 79% 79% 78% 77% Serverless architecture deployed on commodity hardware Single software stack across the network Symbiotic relationship with ISPs Leverage idle capacity across network Q1ʼ24 Q2ʼ24 Q3ʼ24 Q4ʼ24 Q1ʼ25 Note: See Appendix for G
Slide 27: Elasticity of & Leverage in Our Operating Model
Elasticity of & Leverage in Our Operating Model Non-GAAP Operating Expenses & Operating Margin % of Revenue) 2020 2021 2022 2023 2024 2025E 14% 13% 9% 4% 8% 1% 22% 21% 22% 22% 21% 45% 42% 40% 38% 46% 16% 19% 17% 20% 11% 21% 12% 14% 15% 18% COGS S&M R&D G&A Operating Margin Note: See the Appendix
Slide 28: Strong Cash Position
Strong Cash Position ● Issued 2025 Notes: Raised $495 million in our Convertible Notes Offering due 2025 that priced on May 13, 2020, net of issuance costs and a capped call with respect to the 2025 convertible notes. ● Issued 2026 Notes: Raised $790 million in our Convertible Note Offering due 2026
Slide 29: Guidance
Guidance Q2 2025 FY 2025 FY 2025 Network Capex as % of Revenue Revenue $500.0 $501.0 Revenue $2,090.0 $2,094.0 Y/Y Growth 25% Y/Y Growth 25% 12%13% Operating Income $62.5 $63.5 Operating Income $272.0 $276.0 Operating Margin 1213% Operating Margin 13% EPS $0.18 EPS $0.79 $0.80 Note: Thes
Slide 30: Long-Term Operating Model
Unit economics Long-Term Operating Model support 20% long-term operating Q1 margins Long-Term 2022 2023 2024 2025 Model Gross Leverage efficiency and 78 % 78 % 79 % 77 % elasticity of our network and 75% 77% Margin ingress/egress dynamics Sales & Marketing Scale go-to-market operations 42 % 40 %
Slide 31: Our Business Model
Our Business Model Disrupting a large and growing total addressable market Widely distributed global cloud platform Expansive product portfolio; open to developer innovation Highly efficient business model and low fundamental cost structure High growth subscription revenue model with attractive gros
Slide 32: Appendix
Appendix © 2025 Cloudflare, Inc.
Slide 33: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly) 33 © 2025 Cloudflare, Inc.
Slide 34: Key Business Metrics
Appendix Key Business Metrics Paying Customers Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 174,129 182,027 189,791 197,138 210,166 221,540 237,714 250,819 y-y growth 15% 17% 17% 17% 21% 22% 25% 27% Paying Customers (> $100,000 Annualized Revenue) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q
Slide 35: Definitions
Appendix Definitions Paying Customers. We believe our ability to grow the number of paying customers on our network provides a key indicator of growth of our business and our future business opportunities. We define a paying customer at the end of the quarter as a person or entity who has generated