Cloudflare, Inc. SEC 10-Q Report

Cloudflare, Inc., a leading provider of web infrastructure and website security services, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant growth in both financial and operational metrics, underscoring the company's robust performance and strategic investments in key areas.

Financial Highlights

• Revenue: $512.3 million, reflecting a 28% increase compared to the same period last year, driven by growth in both contracted and pay-as-you-go customers.
• Gross Profit: $383.6 million, indicating a strong gross margin as a result of efficient cost management and increased sales.
• Loss from Operations: $(67.3) million, highlighting increased investments in sales, marketing, and research and development.
• Net Loss: $(50.4) million, compared to $(15.1) million in the prior year, primarily due to higher operating expenses.
• Net Loss Per Share: $(0.15), consistent with the prior year, reflecting the impact of increased expenses on earnings per share.

Business Highlights

• Revenue Segments: The company reported revenue from different regions, with the United States contributing 49% of total revenue, Europe, Middle East, and Africa contributing 28%, Asia Pacific contributing 15%, and other regions contributing 8%.
• Customer Segments: Revenue from channel partners accounted for 25% of total revenue, while direct customers contributed 75%.
• Geographical Performance: International markets represented 51% of the company's revenue in the three months ended June 30, 2025, indicating strong international growth.
• Business Model: The company benefits from a scalable and efficient go-to-market model, allowing rapid customer acquisition and expansion within existing customer bases.
• Product Development: Significant investment in research and development continues to enhance the capabilities and functionality of the global network, supporting the growth of the customer base.
• Network Investments: The company is making substantial investments in its global network infrastructure, including adding servers with storage capabilities and GPUs to support AI-related products.
• Customer Acquisition: The company focuses on driving increased customer numbers onto its network and products, with a particular emphasis on contracted customer sales efforts.
• Free Customer Base: Free customers, including individual developers and startups, play a crucial role in brand marketing and product testing, contributing to the company's growth and innovation.
• Future Outlook: The company plans to continue investing in international growth, product development, and network expansion to support long-term growth and address operational challenges.

SEC Filing: Cloudflare, Inc. [ NET ] - 10-Q - Jul. 31, 2025