Company: NET
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001477333-25-000082
Chunk: 397

Company: Cloudflare, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 397
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 loss for purposes of allocating resources and evaluating financial performance, including monitoring actual results versus historical periods. Adjusted cost of revenue, adjusted sales and marketing, adjusted research and development and adjusted general and administrative expenses are considered significant segment expenses that are regularly provided to the CODM and included within consolidated net loss. The measure of segment assets is the total assets on the Company’s condensed consolidated balance sheets. Capital expenditures are reported on a consolidated basis on the Company’s condensed consolidated statements of cash flows. The following table includes the Company's segment revenue, significant segment expenses, and other segment items to reconcile to net loss:Three Months Ended March 31,20252024Revenue$479,087 $378,602 Less:Adjusted cost of revenue(1)(109,817)(77,525)Adjusted sales and marketing expense(1)(183,418)(156,752)Adjusted research and development expense(1)(76,820)(58,723)Adjusted general and administrative expense(1)(53,031)(43,159)Other segment items(2)(94,455)(77,986)Net loss$(38,454)$(35,543)(1) Cost of revenue, sales and marketing expense, research and development expense and general and administrative expense in the condensed consolidated statements of operations are adjusted to exclude stock-based compensation and related employer payroll taxes, amortization of 

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acquired intangible assets, and acquisition-related and other expenses during the three months ended March 31, 2025 and 2024, and a one-time compensation charge during three months ended March 31, 2024.(2) Other segment items include the adjustments described in the notes above, as well as interest income, interest expense, other income (expense), net and provision for income taxes in the condensed consolidated statements of operations. Refer to Note 3 to these condensed consolidated financial statements for revenue by geography.The Company’s property and equipment, net, by geographic area were as follows: March 31, 2025December 31, 2024  (in thousands)United States$259,100 $233,818 Rest of the world254,766 233,602 Total property and equipment, net$513,866 $467,420 No single country other than the United States accounted for more than 10% of total property and equipment, net as of March 31, 2025 and December 31, 2024.

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Item 2.   MANAGEMENT’S DISCUSSION AND