Financial Data and Key Metrics Changes - The company generated $274.7 million in revenue for Q4 2022, representing a 42% year-over-year increase [35] - Operating profit reached a record $16.8 million, with an operating margin of over 6% [35] - Free cash flow for the quarter was $34 million, equating to a free cash flow margin of 12% [37] - Gross margin was over 77%, exceeding the long-term target range of 75% to 77% [37] - The dollar-based net retention rate decreased to 122%, down 200 basis points sequentially and 300 basis points year-over-year [61] Business Line Data and Key Metrics Changes - The company added 134 large customers (those paying over $100,000 annually), totaling 2,042 large customers, which now contribute 63% of total revenue [39][60] - Revenue from large customers grew 56% year-over-year [39] - The company saw a record number of net new customers paying over $500,000 annually [59] Market Data and Key Metrics Changes - U.S. revenue represented 53% of total revenue, increasing 44% year-over-year; EMEA accounted for 27% with a 42% increase; APAC represented 13% with a 40% increase [57] - The total number of paying customers reached 162,086, with an addition of approximately 22,000 customers in 2022, marking a 16% year-over-year increase [58] Company Strategy and Development Direction - The company aims to build a leading sales organization and is focusing on optimizing its go-to-market strategy [52] - The leadership team is committed to achieving $5 billion in annualized revenue within five years while maintaining profitability [81] - The company is enhancing its marketing and sales efforts to better compete in the Zero Trust and cloud security markets [43][45] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the economic uncertainty leading to longer decision-making processes and sales cycles, impacting revenue growth [80] - The company is not factoring in any improvement in the macroeconomic environment for its 2023 guidance, maintaining a conservative outlook [67][91] - Management expressed confidence in the company's ability to generate free cash flow and improve operational efficiency despite current challenges [92][93] Other Important Information - The company received FedRAMP certification, covering nearly its full suite of products, which is expected to enhance its public sector opportunities [76] - A significant $7.2 million five-year deal with the U.S. government was secured, showcasing the company's capabilities in cybersecurity [77] Q&A Session Summary Question: What drives the conservatism in the 2023 revenue outlook? - Management emphasized a prudent approach, not assuming any macroeconomic improvements and focusing on controllable initiatives to accelerate sales productivity [98] Question: How are new products performing in a challenging sales environment? - Management noted that while new products are ramping up, the impact on dollar-based net retention will take time to reflect in the numbers [115] Question: What are the barriers to entry for competitors? - Management highlighted the significant network effects and the difficulty for new entrants to replicate the existing infrastructure and services [120]

Cloudflare, Inc. (NYSE:NET) Credit Suisse 26th Annual Technology Conference November 30, 2022 3:00 PM ET Company Participants Thomas Seifert ??? Chief Financial Officer Conference Call Participants Phil Winslow ??? Credit Suisse Phil Winslow All right. All right. Good afternoon, everyone. Welcome to the Final Day of the Credit Suisse 26th Annual Technology Conference. My name is Phil Winslow. I???m the software analyst. I recognize many of you from prior sessions, so thank you joining us as always. Very exc ...

Cloudflare, Inc. (NYSE:NET) Q3 2022 Earnings Conference Call November 3, 2022 5:00 PM ET Company Participants Jayson Noland - Head, IR Matthew Prince - Co-Founder, Chairman & CEO Chris Merritt - Chief Revenue Officer Marc Boroditsky - President of Revenue Thomas Seifert - CFO Conference Call Participants Philip Winslow - Cr??dit Suisse Matthew Hedberg - RBC Capital Markets Brent Thill - Jefferies Hamza Fodderwala - Morgan Stanley James Fish - Piper Sandler & Co. James Breen - William Blair & Company Fatima ...

Cloudflare, Inc. (NYSE:NET) Piper Sandler Technology and Consumer Growth Frontiers Conference September 13, 2022 2:30 PM ET Company Participants Thomas Seifert - CFO Conference Call Participants James Fish - Piper Sandler James Fish Well, I guess we'll get started here, people trickling in. Well, for those on the webcast, we have Tom Seifert, CFO of Cloudflare here. There'll be - keep in mind, everything about the safe harbor, everybody, just for safe - Jason here as well. So thanks for joining us, Thomas. ...

Cloudflare, Inc. (NYSE:NET) Deutsche Bank 2022 Technology Conference September 1, 2022 12:30 PM ET Company Participants Thomas Seifert - Chief Financial Officer Conference Call Participants Brad Zelnick - Deutsche Bank Brad Zelnick Thanks, everybody, for joining. I'm Brad Zelnick with the Deutsche Bank software team. We're here for the Deutsche Bank Tech Conference in sunny Las Vegas, Nevada. For this session, I am delighted to be joined by the good folks from Cloudflare, in specific an old friend, the CFO, ...

Cloudflare, Inc. (NYSE:NET) Q2 2022 Results Conference Call August 4, 2022 5:00 PM ET Company Participants Jayson Noland - VP, IR Matthew Prince - Co-Founder and CEO Michelle Zatlyn - Co-Founder, President and COO Thomas Seifert - CFO Conference Call Participants Matt Hedberg - RBC Capital Markets James Fish - Piper Sandler Alex Henderson - Needham & Co. Shaul Eyal - Cohen Fatima Boolani - Citi Joel Fishbein - Truist Hamza Fodderwala - Morgan Stanley Adam Borg - Stifel Andrew Nowinski - Wells Fargo Trevor W ...

FORM 10-Q __________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________ For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-39039 __ ...

Cloudflare, Inc. (NYSE:NET) Jefferies Software Conference Call Summary Company Overview - **Company**: Cloudflare, Inc. - **Industry**: Internet security and performance services - **Participants**: Matthew Prince (Co-Founder and CEO), Brent Thill (Jefferies) Key Points Company Vision and Strategy - Cloudflare aims to create a more efficient, reliable, secure, and private internet, reflecting on the original design flaws of the internet [3] - The company is focused on enhancing online activities, ensuring that services are faster and more secure, which is expected to keep the team busy for years to come [3] Economic Outlook - The mood at recent conferences, particularly in Europe, is pessimistic, with expectations of a challenging economic environment ahead [6] - Cloudflare experienced its hardest quarter in Q1 2022 since the onset of COVID-19, indicating potential pipeline issues for companies with longer sales cycles [6][7] Market Positioning - Cloudflare is positioned as a "must-have" service for companies, especially in light of increasing cyber threats and the growing importance of internet services [9] - The company is seen as a low-cost leader with high ROI, which is advantageous in a difficult economic climate [9] Supply Chain and Hardware Issues - Current supply chain challenges are causing hardware vendors to charge more and extend delivery times, which may drive customers towards Cloudflare's services [11][12] - Cloudflare's ability to adapt quickly to market changes is highlighted as a competitive advantage [7] Financial Strategy - Cloudflare is focused on maintaining high growth rates (over 40%) while aiming for breakeven cash flow, indicating a commitment to reinvest in the business rather than prioritize short-term margins [14] - The company emphasizes transparency and adaptability in its operations, preparing for potential economic hardships [14][16] M&A Activity - Cloudflare has a cautious approach to mergers and acquisitions, preferring to maintain its culture and technology integrity [19] - The recent acquisition of Area 1 is seen as a strategic fit, enhancing Cloudflare's email security offerings and threat intelligence capabilities [20][21] Go-to-Market Strategy - Cloudflare has significantly increased its presence in the Fortune 1000, growing from 10% to approximately 26% [24] - The company focuses on investing behind demand rather than ahead of it, ensuring that sales and product development align with customer needs [25][26] Future Aspirations - Cloudflare aims to be the connective fabric between various cloud providers rather than competing directly with them, positioning itself as a critical infrastructure component for internet services [28][29][30] Conclusion - Cloudflare is navigating a challenging economic landscape while maintaining a strong market position and commitment to innovation, with a focus on long-term growth and customer-centric strategies [9][14][16]

As of March 31, 2022 Investor Presentation Safe Harbor This presentation and the accompanying oral commentary have been prepared by Cloudflare, Inc. ("Cloudflare") for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise, or representation by the presenter or Cloudflare or any officer, director, employee, agent, or advisor of Cloudflare. This presentation does not purport to be all-inclusive or to contain a ...

Cloudflare, Inc. (NYSE:NET) Q1 2022 Earnings Conference Call May 5, 2022 5:00 PM ET Company Participants Jayson Noland - Head, IR Matthew Prince - Co-Founder, Chairman & CEO Thomas Seifert - CFO Conference Call Participants Joel Fishbein - Truist Securities Brent Thill - Jefferies James Fish - Piper Sandler & Co. Philip Winslow - Cr??dit Suisse Adam Borg - Stifel, Nicolaus & Company Amit Daryanani - Evercore ISI James Breen - William Blair & Company Alexander Henderson - Needham & Company Operator Ladies an ...