Company: NET
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001477333-25-000082
Chunk: 363

Company: Cloudflare, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 363
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 (Benefit from) Income Taxes

Provision for (benefit from) income taxes consists primarily of income taxes in certain foreign jurisdictions in which we conduct business, as well as state income taxes in the United States. We have a full valuation allowance on our U.S. federal, U.S. state, and U.K. deferred tax assets as we have concluded that it is more likely than not that the deferred tax assets will not be realized.

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Results of Operations

The following tables set forth our condensed consolidated results of operations for the periods presented in dollars and as a percentage of our revenue for those periods:Three Months EndedMarch 31,20252024(dollars in thousands)Revenue$479,087 $378,602 Cost of revenue115,576 85,038 Gross profit363,511 293,564 Operating expenses:Sales and marketing214,011 194,102 Research and development115,089 87,703 General and administrative87,658 66,309 Total operating expenses416,758 348,114 Loss from operations(53,247)(54,550)Non-operating income (expense):Interest income21,399 21,252 Interest expense(1,443)(1,100)Other income (expense), net(3,468)1,124 Total non-operating income, net16,488 21,276 Loss before income taxes(36,759)(33,274)Provision for income taxes1,695 2,269 Net loss$(38,454)$(35,543)

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Three Months EndedMarch 31,20252024Percentage of Revenue Data:Revenue100 %100 %Cost of revenue24 22 Gross margin76 78 Operating expenses:Sales and marketing45 51 Research and development24 23 General and administrative18 18 Total operating expenses87 92 Loss from operations(11)(14)Non-operating income (expense):Interest income4 6 Interest expense— — Other income (expense), net(1)— Total non-operating income, net3 6 Loss before income taxes(8)(8)Provision for income taxes— 1 Net loss(8)%(9)%

Comparison of Three Months Ended March 31, 2025 and 2024

Revenue

Three Months EndedMarch 31,Change20252024$%(dollars in thousands)Revenue$479