Company: NET
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001477333-25-000082
Chunk: 334

Company: Cloudflare, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 334
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 In addition to these unobservable inputs, the valuation models for Level III financial instruments typically also rely on a number of inputs that are readily observable, either directly or indirectly. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability. There were no financial instruments classified as Level III of the fair value hierarchy as of March 31, 2025 and December 31, 2024.

Note 5. Balance Sheet Components

Accounts Receivable, NetAs of March 31, 2025 and December 31, 2024, the Company’s allowance for doubtful accounts was $8.3 million and $8.2 million, respectively. Provision for bad debt for the three months ended March 31, 2025 and 2024 was $3.3 million and $2.6 million, respectively. Write-off of uncollectible accounts receivable for the three months ended March 31, 2025 and 2024 was $3.2 million and $1.4 million, respectively.Property and Equipment, Net

18

Property and equipment, net consisted of the following:March 31, 2025December 31, 2024(in thousands)Property and equipment:Servers—network infrastructure$555,590 $488,799 Construction in progress69,958 68,973 Capitalized internal-use software107,613 98,055 Office and computer equipment32,385 30,872 Office furniture7,191 7,068 Software5,013 4,097 Leasehold improvements49,569 49,047 Asset retirement obligation827 827 Gross property and equipment828,146 747,738 Less accumulated depreciation and amortization(314,280)(280,318)Total property and equipment, net$513,866 $467,420 Depreciation and amortization expense on property and equipment for the three months ended March 31, 2025 and 2024 was $37.1 million and $24.1 million, respectively. This includes amortization expense for capitalized internal-use software which totaled $7.4 million and $5.5 million for the three months ended March 31, 2025 and 2024, respectively.GoodwillAs of March 31, 2025 and December 31, 2024, the Company's goodwill was $181.1 million