Cloudflare Inc. - Financial Analysis

CLOUDFLARE INC.

NYSE: NET

$213.82

AS OF OCT 13, 2025

MARKET CAP: $74.51B

ENTERPRISE VALUE

$77.76B

Q2 2025 REVENUE

$512.3M

YoY GROWTH

+28%

ARR (ANNUALIZED)

$2.0B+

GROSS MARGIN

74.9%

PAYING CUSTOMERS

12,000+

REVENUE TRAJECTORY & GROWTH ANALYSIS

| PERIOD | REVENUE ($M) | YoY GROWTH | QoQ GROWTH | STATUS | | --- | --- | --- |

| FY2024 (Annual) | $1,670.0 | +29% | -- | REPORTED | | Q1 2025 | $479.1 | +27% | -- | REPORTED | | Q2 2025 | $512.3 | +28% | +6.9% | REPORTED | | FY2025 (Guidance) | $2,114.5 | +27% | -- | PROJECTED | | FY2028 (Analyst) | $3,800.0 | 26.5% CAGR | -- | FORECAST |

FINANCIAL PERFORMANCE BREAKDOWN - Q2 2025

KEY FINANCIAL HIGHLIGHTS

GAAP Gross Profit: $383.6M (74.9% margin, +3% YoY improvement) | GAAP Operating Loss: $67.3M | Non-GAAP Net Income: $73.9M | TTM Revenue (June 30, 2025): $1.881B (+27.3% YoY)

MARKET POSITION & COMPETITIVE LANDSCAPE

BUSINESS MODEL

Freemium model with Pro plans at $20/month, custom Enterprise pricing. Cloud-based services for web performance, security, DDoS mitigation, and edge computing.

KEY PRODUCTS

CDN, Workers (serverless computing), AI-driven security tools, zero-trust security solutions, edge computing platform.

CUSTOMER BASE

12,000+ paying customers including 2% of Fortune 500. Notable clients: IBM, Shopify, government entities.

WORKFORCE

Approximately 3,500 employees globally.

COMPETITIVE DIFFERENTIATION vs. VERCEL

Cloudflare operates at significantly larger scale ($2B+ ARR vs. Vercel's ~$200M) with broader focus on cybersecurity and global infrastructure. While Vercel concentrates on frontend/AI developer tools, Cloudflare emphasizes comprehensive cloud security, DDoS protection, and edge computing. Cloudflare's public status provides financial transparency through quarterly SEC filings, contrasting with Vercel's private funding structure.

VALUATION METRICS & GROWTH OUTLOOK

HISTORICAL GROWTH (FY2019-FY2024)

Revenue CAGR: 42%+ demonstrating exceptional growth trajectory in cloud security and edge computing markets.

CURRENT VALUATION

Trading at ~39x Price/Sales (trailing), reflecting premium valuation for high-growth cloud infrastructure leader.

2025-2028 OUTLOOK

Projected revenue growth from $2.1B (2025) to $3.8B (2028) at 26.5% CAGR, driven by AI integration and edge computing adoption.

UPCOMING CATALYSTS

Q3 2025 earnings scheduled for October 30, 2025. Investor Day 2025 highlighted long-term vision for AI and zero-trust security expansion.

DATA AS OF: OCTOBER 13, 2025 | SOURCE: SEC FILINGS, EARNINGS REPORTS, ANALYST ESTIMATES