Company: NET
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001477333-25-000082
Chunk: 378

Company: Cloudflare, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 378
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 Consolidated Financial Statements, Note 2. Summary of Significant Accounting Policies" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024. There have been no changes to these policies that have had a material impact on the Company's condensed consolidated financial statements and related notes, except as noted below.Recent Accounting PronouncementsRecently Adopted Accounting PronouncementsThere have been no recently adopted accounting pronouncements since the filing of the Company's Annual Report on Form 10-K for the year ended December 31, 2024 that may have a material impact on the Company's condensed consolidated financial statements.

Note 3. Revenue

Disaggregation of RevenueSubscription and support revenue is recognized over time and accounted for substantially all of the Company’s revenue for the three months ended March 31, 2025 and 2024.The following table summarizes the revenue by region based on the billing address of customers who have contracted to use the Company’s global network and products:Three Months Ended March 31,20252024(dollars in thousands)AmountPercentageof RevenueAmountPercentageof RevenueUnited States$234,887 49 %$196,463 52 %Europe, Middle East, and Africa133,853 28 %105,384 28 %Asia Pacific73,395 15 %47,651 12 %Other36,952 8 %29,104 8 %Total$479,087 100 %$378,602 100 %

15

The following table summarizes the revenue from contracts by type of customer:Three Months Ended March 31,20252024(dollars in thousands)AmountPercentageof RevenueAmountPercentageof RevenueChannel partners$112,555 23 %$70,451 19 %Direct customers366,532 77 %308,151 81 %Total$479,087 100 %$378,602 100 %Contract BalancesContract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period. For the three months ended March 31, 2025, the Company recognized revenue of $240.5 million, that was included in the corresponding contract liability balance at the beginning of the period presented.The Company receives payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. Standard payment terms are due upon receipt. Contract assets include amounts