Company: NET
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001477333-25-000137
Chunk: 398

Company: Cloudflare, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 398
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 that are readily observable, either directly or indirectly. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or 

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liability. There were no financial instruments classified as Level III of the fair value hierarchy as of June 30, 2025 and December 31, 2024.

Note 5. Balance Sheet Components

Accounts Receivable, NetAs of June 30, 2025 and December 31, 2024, the Company’s allowance for doubtful accounts was $7.3 million and $8.2 million, respectively. Provision for bad debt for the three months ended June 30, 2025 and 2024 was $4.5 million and $1.5 million, respectively, and for the six months ended June 30, 2025 and 2024 was $7.8 million and $4.1 million, respectively. Write-offs of uncollectible accounts receivable for the three months ended June 30, 2025 and 2024 was $5.5 million and $1.0 million, respectively, and for the six months ended June 30, 2025 and 2024 was $8.7 million and $2.4 million, respectively.Property and Equipment, NetProperty and equipment, net consisted of the following:June 30, 2025December 31, 2024(in thousands)Property and equipment:Servers—network infrastructure$620,248 $488,799 Construction in progress63,771 68,973 Capitalized internal-use software116,563 98,055 Office and computer equipment37,051 30,872 Office furniture7,316 7,068 Software5,182 4,097 Leasehold improvements49,660 49,047 Asset retirement obligation827 827 Gross property and equipment900,618 747,738 Less accumulated depreciation and amortization(353,269)(280,318)Total property and equipment, net$547,349 $467,420 Depreciation and amortization expense on property and equipment for the three months ended June 30, 2025 and 2024 was $40.1 million and $26.3 million, respectively, and for the six months ended June 30, 2025 and 2024 was $77.2 million and $50.4 million, respectively