Company: NET
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001477333-25-000137
Chunk: 133

Company: Cloudflare, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 4
Chunk 133
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 East and Ukraine, other areas of geopolitical tension around the world, and any economic downturns and the actions taken by governmental authorities and other third parties in response.

If we are unable to attract new paying and free customers, our future results of operations could be harmed.

The success of our business principally depends on our ability to attract new paying and free customers. To do so, we must persuade decision makers at potential customers that our products offer significant advantages over those of our competitors. Other factors, many of which are out of our control, may now or in the future impact our ability to add new paying and free customers, including:

•potential customers’ commitments to existing equipment or vendors;

•potential customers’ greater familiarity and/or comfort with on-premises, appliance-based products and concerns about potential risks associated with using cloud-based solutions;

•actual or perceived switching costs;

•the potential implementation of tariffs or retaliatory measures due to tariffs on the sales of our products in countries where our potential paying customers are located;

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•our failure to develop new products and features, and to adapt to technological developments, that our potential customers' demand, including potential large customers;

•the failure of our new or existing products and features to perform in the manner demanded or expected by potential customers and our existing customers, particularly large customers;

•delays in the general availability release of products and features after we have announced their development or beta availability;

•our failure to generate demand for our products through effective marketing efforts related to our business and products; 

•our failure to obtain additional, or maintain existing, government or industry security certifications for our network and products, such as Federal Risk and Authorization Management Program (FedRAMP) moderate authorization that we achieved in 2022;

•negative media, industry, or financial analyst commentary regarding our products and our network and the identities and activities of some of our paying and free customers;

•the adoption of new, or amendment of existing, laws, rules, or regulations that negatively impact the utility of, or increase the risk of using, cloud-based solutions generally or our network and products specifically, including changes in new or modified laws and regulations relating to privacy, data protection, and information security;

•our failure to effectively recruit, expand, develop, retain, and motivate our sales and marketing personnel;

•our failure to develop or expand relationships with existing channel partners or to attract new channel partners;

•our failure to help or provide support to our customers, particularly large customers, in order to successfully deploy and use our products in a