Company: NET
Filing Date: 2025-04-21
Form Type: DEF 14A
Source: 0001477333-25-000065
Chunk: 40

Company: Cloudflare, Inc.
Filing Date: 2025-04-21
Form: DEF 14A
Chunk 40
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 our executive compensation program during 2024. It also provides an overview of our executive compensation philosophy, including our principal compensation policies and practices. Finally, it analyzes how and why our Board of Directors and the compensation committee arrived at the specific compensation decisions for our named executive officers in 2024 and discusses the key factors that were considered in making these decisions.

#### Executive Summary
Who We Are

We are a leading connectivity cloud company that delivers a broad range of services to businesses of all sizes and in all geographies, making them more secure, enhancing the performance of their business-critical applications, and eliminating the cost and complexity of managing individual network hardware. Our network serves as a scalable, easy-to-use, unified control plane to deliver security, performance, and reliability across on-premises, hybrid, cloud, and software-as-a-service (SaaS) applications. We serve comprehensive customer needs across security and connectivity, and increasingly, the distributed and programmable nature of our network is resulting in customers building their applications on top of our network, too — including both traditional applications and those that are enhanced with artificial intelligence.

2024 Business Highlights

Our 2024 financial highlights included the following:

• Revenue – Total revenue of $1,669.6 million, representing an increase of 29% year-over-year.

• Gross Profit – GAAP gross profit was $1,290.9 million, or 77.3% gross margin, compared to $989.7 million, or 76.3%, in fiscal 2023. Non-GAAP gross profit was $1,313.6 million, or 78.7% gross margin, compared to $1,015.8 million, or 78.3%, in fiscal 2023.

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• Operating Income/Loss – GAAP loss from operations was $154.8 million, or 9.3% of total revenue, compared to a GAAP loss from operations of $185.5 million, or 14.3% of total revenue, in fiscal 2023. Non-GAAP income from operations was $230.1 million, or 13.8% of total revenue, compared to non-GAAP income from operations of $122.0 million, or 9.4% of total revenue, in fiscal 2023.

• Net Income/Loss – GAAP net loss was $78.8 million, compared to a GAAP net loss of $183.9 million for fiscal 2023