Cloudflare Earnings Call Transcripts
Fiscal Year 2026
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Record enterprise deals, accelerated revenue, and strong customer growth were driven by sales transformation and platform innovation. AI and agentic web trends are fueling new business, with the unified network and developer platform providing a defensible, scalable foundation. Gross margins remain strong despite mix shifts, and new contract models are supporting large customer expansion.
Fiscal Year 2025
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Q4 revenue grew 34% year-over-year to $614.5M, with record new ACV and strong large customer growth. Gross margin was 74.9%, operating income $89.6M, and net income $106.8M. 2026 guidance calls for 28–29% revenue growth, with continued momentum in AI, enterprise, and channel sales.
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Q3 2025 saw 31% revenue growth to $562M, strong gains in large customers, and improved net retention. Guidance for Q4 and full-year 2025 points to continued robust growth, with a focus on enterprise sales, AI, and partner-led strategies.
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Growth is accelerating across multiple vectors, with strong momentum in large customer cohorts, product innovation, and new business models like pay-to-crawl. CapEx efficiency, high margins, and internal AI adoption support scalability, while flexible contracts and increased sales capacity position the company for continued expansion.
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The forum featured a deep dive into the company’s evolution, highlighting its network-centric differentiation, rapid enterprise sales transformation, and product innovation across four strategic acts. Leadership changes and a mission-driven culture are fueling growth, while the company positions itself at the center of the evolving web business model.
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Q2 revenue grew 28% year-over-year to $512.3 million, with strong gains in large customers and record ACV bookings. Gross margin remained within target, and net retention improved to 114%. Guidance for 2025 was raised, reflecting confidence in continued growth and innovation.
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The meeting covered board elections, auditor ratification, and executive compensation, with all proposals passing. No shareholder questions were submitted, and risks related to macroeconomic and geopolitical factors were noted.
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Revenue grew 27% year-over-year to $479.1M, driven by large enterprise wins and record-breaking contracts, with strong free cash flow and robust customer growth. Guidance remains prudent amid macro volatility, with continued investment in innovation and go-to-market execution.
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Leadership and platform transformation are accelerating innovation, with a focus on AI, developer enablement, and enterprise expansion. Financial guidance targets $5B revenue by 2028, supported by improved sales productivity, a growing product portfolio, and a mission-driven culture.
Fiscal Year 2024
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Q4 2024 saw 27% revenue growth, record large customer additions, and strong free cash flow. Guidance for 2025 anticipates 25% revenue growth, increased CapEx for AI, and continued focus on sales productivity and platform innovation.
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Q3 2024 saw 28% revenue growth, record large customer additions, and strong operating margins. Pool-of-funds deals and sales transformation impacted short-term metrics but are expected to drive long-term growth, with robust AI and enterprise adoption fueling optimism for 2025.
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The session highlighted a shift toward next-gen AI and security products, with nearly 80% of top AI firms on the network. SASE and Magic WAN drive cost savings, while Pool of Funds deals and enterprise focus support growth. Macro uncertainty persists, but cyber threats provide tailwinds.
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Q2 revenue grew 30% year-over-year to $401M, with strong gains in large customers and free cash flow. Platform adoption, especially in developer and AI offerings, accelerated, while new go-to-market hires and pool-of-funds deals drove operational efficiency and long-term growth.
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The meeting covered board elections, auditor ratification, and executive compensation, with all proposals passing. No questions were submitted by stockholders, and key risks such as economic and geopolitical factors were noted.