Company: NET
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001477333-25-000137
Chunk: 6

Company: Cloudflare, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 2
Chunk 6
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economic conditions and geopolitical tension around the world, please refer to Part II, Item 1A “Risk Factors” of this Quarterly Report on Form 10-Q.

Financial Measures and Key Business Metrics

We review a number of financial and operating metrics, including the following non-GAAP financial measures and key metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions.

Three Months EndedJune 30,Six Months EndedJune 30,2025202420252024(dollars in thousands)(dollars in thousands)Gross profit$383,639 $311,985 $747,150 $605,549 Gross margin75 %78 %75 %78 %Loss from operations$(67,264)$(34,698)$(120,511)$(89,248)Non-GAAP income from operations$72,315 $56,953 $128,316 $99,396 Operating margin(13)%(9)%(12)%(11)%Non-GAAP operating margin14 %14 %13 %13 %Net cash provided by operating activities$99,796 $74,815$245,580$148,394Net cash used in investing activities$(793,025)$(183,742)$(885,463)$(86,792)Net cash provided by financing activities$2,007,603 $7,143$2,011,125$7,164Free cash flow$33,280 $38,275$86,147$73,882Net cash provided by operating activities (as a percentage of revenue)19 %19 %25 %19 %Free cash flow margin6 %10 %9 %9 %Paying customers(1)265,929 210,166 Paying customers (> $100,000 Annualized Revenue)(1)3,712 3,046 

(1)Key business metrics are derived on a quarterly basis. Refer to Key Business Metrics section below for further detail. 

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The following table summarizes the revenue by region based on the billing address of customers who use the Company’s products:

Three Months Ended June 30,Six Months Ended June 30,2025202420252024(dollars in thousands)(dollars in thousands)AmountPercentageof RevenueAmountPercentageof RevenueAmountPercentageof RevenueAmountPercentageof RevenueUnited States$251,894 49