Company: NET
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001477333-25-000082
Chunk: 384

Company: Cloudflare, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 384
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$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, 2025 and March 31, 2024 were not material. As of March 31, 2025, the Company had $51.8 million of total undiscounted future payments under operating leases that have not yet commenced, which were not included on the condensed consolidated balance sheets. These operating leases will commence between April 2025 and July 2026 and have an average lease term of 4.3 years.As of March 31, 2025, the weighted-average remaining term of the Company’s operating leases was 4.1 years and the weighted-average discount rate used to measure the present value of the operating lease liabilities was 4.8%.Maturities of the operating lease liabilities as of March 31, 2025 are as follows:March 31, 2025(in thousands)