Company: NET
Filing Date: 2025-04-21
Form Type: DEF 14A
Source: 0001477333-25-000065
Chunk: 77

Company: Cloudflare, Inc.
Filing Date: 2025-04-21
Form: DEF 14A
Chunk 77
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 |                                                                                                                   |     | 162,057,497 |     |                                                                                   |     |         — |     |                                                                                                         |     |  20,563,348 |     |                                                                                                   |     | — |     |                                                                                                                            |     | — |     |                 |     |  182,620,846 |

_______________________

For purposes of calculating the CAP to our PEO, compensation related to equity awards was remeasured. For RSUs, the fair values and the change in fair values were determined by the closing price of our common stock at each applicable fiscal year-end date or, in the case of vested awards, the stock price on the vesting date. For stock options, a Black-Scholes-Merton option valuation model (BSM model) was used as of the applicable year-end date or, in the case of vested options, the vesting date. Similarly, for unvested performance stock options, a Monte Carlo simulation model in conjunction with the BSM model was used. The BSM model and Monte Carlo Simulation model require assumptions and judgments regarding the variables used in the calculation, including the expected remaining term, expected volatility, expected risk-free interest rate, and the expected dividend yield. The assumptions used varied by measurement date and the range of these assumptions used for each fiscal year end are as follows:

|                                    |     | Year Ended December 31, 
 2024                    |     |   |     | 2023           |     |   |     | 2022           |     |     |     | 2021           |     |   |     | 2020           |     |   |     | 2019           |     |   |
|:-----------------------------------|:----|:------------------------|:----|:--|:----|:---------------|:----|:--|:----|:---------------|:----|----:|:----|:---------------|:----|:--|:----|:---------------|:----|:--|:----|:---------------|:----|:--|
| Expected remaining term (in years) |     | 2.0-2.5                 |     |   |     | 1.0-1.5        |     |   |     |                |     | 1.5 |     | 1.5-2.5        |     |   |     | 2.0-3.0        |     |   |