Company: NET
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001477333-25-000082
Chunk: 419

Company: Cloudflare, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 419
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 related to operating activities, and a $3.1 million increase in accounts payable related to operating activities. 

Investing Activities

Net cash used in investing activities during the three months ended March 31, 2025 of $92.4 million resulted primarily from the purchases of available-for-sale securities of $403.7 million, capital expenditures of $85.9 million, capitalization of internal-use software development costs of $7.0 million, and cash paid for asset acquisitions and business combinations, net of cash acquired of $4.9 million, which were partially offset by the maturities of available-for-sale securities of $408.8 million.

44

Net cash provided by investing activities during the three months ended March 31, 2024 of $97.0 million resulted primarily from the maturities of available-for-sale securities of $433.9 million, which were partially offset by the purchases of available-for-sale securities of $299.0 million, capital expenditures of $32.1 million, and capitalization of internal-use software development costs of $5.9 million.

Financing Activities

Net cash provided by financing activities of $3.5 million during the three months ended March 31, 2025 was primarily due to $11.2 million of proceeds from the exercise of vested stock options, which were partially offset by $7.7 million of payments of tax withholding on RSU settlements.

Net cash provided by financing activities during the three months ended March 31, 2024 was not material, and primarily consisted of $4.4 million of proceeds from the exercise of vested stock options, which were partially offset by $4.4 million of payments of tax withholding on RSU settlements.

Off-Balance Sheet Arrangements

As of March 31, 2025, we did not have any relationships with unconsolidated organizations or financial partnerships, such as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

Critical Accounting Estimates

Our condensed consolidated financial statements are prepared in accordance with U.S. GAAP. The preparation of these condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures. Such estimates include, but are not limited to, allowance for doubtful accounts, deferred contract acquisitions costs, the period of benefit generated from the deferred contract acquisition costs, the capitalization and estimated useful