Company: NET
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001477333-25-000082
Chunk: 404

Company: Cloudflare, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
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economic conditions and geopolitical tension around the world, please refer to Part II, Item 1A “Risk Factors” of this Quarterly Report on Form 10-Q.

Financial Measures and Key Business Metrics

We review a number of financial and operating metrics, including the following non-GAAP financial measures and key metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions.

Three Months EndedMarch 31,20252024(dollars in thousands)Gross profit$363,511 $293,564 Gross margin76 %78 %Loss from operations$(53,247)$(54,550)Non-GAAP income from operations$56,001 $42,443 Operating margin(11)%(14)%Non-GAAP operating margin12 %11 %Net cash provided by operating activities$145,784 $73,579Net cash provided by (used in) investing activities$(92,438)$96,950Net cash provided by financing activities$3,522 $21Free cash flow$52,867 $35,607Net cash provided by operating activities (as a percentage of revenue)30 %19 %Free cash flow margin11 %9 %Paying customers(1)250,819 197,138 Paying customers (> $100,000 Annualized Revenue)(1)3,527 2,878 

(1)Key business metrics are derived on a quarterly basis. Refer to Key Business Metrics section below for further detail. 

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The following table summarizes the revenue by region based on the billing address of customers who use the Company’s products:

Three Months Ended March 31,20252024(dollars in thousands)AmountPercentageof RevenueAmountPercentageof RevenueUnited States$234,887 49 %$196,463 52 %Europe, Middle East, and Africa133,853 28 %105,384 28 %Asia Pacific73,395 15 %47,651 12 %Other36,952 8 %29,104 8 %Total$479,087 100 %$378,602 100 %

Non-GAAP Financial Measures

In addition to our results determined in accordance with generally accepted accounting principles in the United States (U.S. GAAP), we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate