Company: NET
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001477333-25-000082
Chunk: 395

Company: Cloudflare, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 395
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utable to Common Stockholders

The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders:Three Months Ended March 31,20252024Class AClass BClass AClass B(in thousands, except per share data)Net loss attributable to common stockholders$(34,365)$(4,089)$(31,429)$(4,114)Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted308,964 36,759 299,398 39,185 Net loss per share attributable to common stockholders, basic and diluted$(0.11)$(0.11)$(0.10)$(0.10)Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares outstanding would have been antidilutive. The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive are as follows:March 31,20252024(in thousands)2026 Notes6,762 6,762 Unexercised stock options7,849 10,731 Unvested RSUs11,209 9,967 Shares issuable pursuant to the ESPP170 186 Total25,990 27,646 

Note 12. Income Taxes

The computation of the provision for income taxes for interim periods is determined by applying the estimated annual effective tax rate to year-to-date earnings from recurring operations and adjusting for discrete tax items recorded in the period. The Company's ability to estimate the geographic mix of earnings is impacted by the relatively high-growth nature of the business, fluctuations of business operations by country, and implementation of tax planning strategies.The Company recorded an income tax expense of $1.7 million and $2.3 million for the three months ended March 31, 2025 and 2024, respectively, primarily related to withholding taxes in the United States and income tax expense from profitable foreign jurisdictions.In determining the need for a valuation allowance, the Company weighs both positive and negative evidence in the various jurisdictions in which it operates to determine whether it is more likely than not that its deferred tax assets are realizable. A full valuation allowance has been established in the United States and United Kingdom and no deferred tax assets and related tax benefits have been recognized in the