Company: NET
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001477333-25-000082
Chunk: 335

Company: Cloudflare, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 335
---
. No goodwill impairments were recorded during the three months ended March 31, 2025 and 2024.Acquired Intangible Assets, NetAcquired intangible assets, net consisted of the following:March 31, 2025Gross CarryingAmountAccumulatedAmortizationNet BookValue(in thousands)Developed technology$22,861 $10,702 $12,159 Customer relationships11,680 4,375 7,305 Other4,462 30 4,432 Total acquired intangible assets, net$39,003 $15,107 $23,896 December 31, 2024Gross CarryingAmountAccumulatedAmortizationNet BookValue(in thousands)Developed technology$22,131 $7,878 $14,253 Customer relationships11,600 3,988 7,612 Total acquired intangible assets, net$33,731 $11,866 $21,865 Amortization of acquired intangible assets was $3.2 million and $5.3 million for the three months ended March 31, 2025 and 2024, respectively. 

19

As of March 31, 2025, the estimated future amortization expense of acquired intangible assets was as follows:EstimatedAmortization(in thousands)Year ending December 31,2025 (remaining nine months)$9,724 20265,809 20271,896 20281,896 20291,896 Thereafter2,675 Total$23,896 

Note 6. Leases

The Company's lease portfolio consists of real estate and co-location agreements in the United States and internationally. The real estate leases include leases for office space and have remaining lease terms of up to 6.3 years. Certain of these leases contain options that allow the Company to extend or terminate the lease agreement. The Company's co-location leases have remaining lease terms of up to 8.3 years. All of the Company's leases are classified as operating leases.The components of lease cost related to the Company's operating leases included in the condensed consolidated statements of operations were as follows:Three Months Ended March 31,20252024(in thousands)Operating lease cost$14,657 $11,863 Total lease cost$14,657 $11,863 Variable lease cost and short-term lease cost for the three months ended March 31,