Company: NET
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001477333-25-000082
Chunk: 412

Company: Cloudflare, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 412
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 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)

39

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$479,087 $378,602 $100,485 27 %

Revenue increased by $100.5 million, or 27%, for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The increase in revenue was primarily due to the addition of new paying customers, as our number of paying customers increased by 27% as of March 31, 2025 compared to the prior period ended March 31, 2024, as well as the expansion within our existing paying customers, which was reflected by our dollar-based net retention rate of 111% for the three months ended March 31, 2025.

Cost of Revenue and Gross Margin

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