Company: NET
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001477333-25-000082
Chunk: 365

Company: Cloudflare, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 365
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 to an increase of $3.6 million in travel related expenses and an increase of $2.5 million in expenses for marketing programs due to acquisitions, investments in brand awareness advertising, third-party industry events, and digital performance marketing.

Research and Development

Three Months EndedMarch 31,Change20252024$%(dollars in thousands)Research and development$115,089 $87,703 $27,386 31 %

Research and development expenses increased by $27.4 million, or 31%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was primarily driven by $25.0 million in increased employee-related costs due to a 26% increase in headcount in our research and development organization, including an increase of $6.9 million in stock-based compensation expense, partially offset by increased capitalized internal-use software development costs of $1.4 million.

General and Administrative

Three Months EndedMarch 31,Change20252024$%(dollars in thousands)General and administrative$87,658 $66,309 $21,349 32%

General and administrative expenses increased by $21.3 million, or 32%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was primarily driven by $16.6 million in increased employee-related costs due to a 16% increase in headcount in our general and administrative organization, including an increase of $12.2 million in stock-based compensation expense. This increase was partially offset by $1.9 million of decreased allocated overhead costs.

41

Non-Operating Income (Expense)

Interest Income

Three Months EndedMarch 31,Change20252024$%(dollars in thousands)Interest income$21,399 $21,252 $147 1 %

Interest income did not significantly fluctuate during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. 

Interest Expense

Three Months EndedMarch 31,Change20252024$%(dollars in thousands)Interest expense$(1,443)$(1,100)$(343)31 %

Interest expense did not significantly fluctuate during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. 

Other Income (Expense), net