Cloudflare, Inc.


SKU: NET Category:


Cloudflare had another strong quarter despite a challenging macroeconomic environment. The company delivered an all-around beat and its revenue increased by 42% year over year to $274.7 million. It was able to generate a solid operating profit, operational margin, and free cash flow. They had 2,042 major customers at the end of the quarter, up 134 over the previous quarter and 44% over the same period last year. Also, their net new customers, who paid the company over $500,000 annually, increased. The significant customer revenue contribution has climbed sequentially to 63% of sales, up from 57% in Q4 last year. In fiscal 2022, major clients contributed 61% of total revenue. In addition, given the current economic difficulties facing every organisation, they took proactive steps to increase operational effectiveness and reduce discretionary spending. They also announced the new Cloudflare Digital Experience Monitoring service, which will debut a portfolio of software-as-a-service products on top of its core content delivery network. We give Cloudflare a ‘Hold’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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