Cloudflare(NET) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter revenue totaled $459.9 million, representing a 27$1,669.6 million, representing a 29% year-over-year increase[5] - Revenue for the three months ended December 31, 2024, was $459.946 million, a 27$362.473 million in the same period of 2023[22] - Gross profit for the year ended December 31, 2024, was $1.291 billion, up from$989.740 million in 2023, reflecting a 30% year-over-year growth[22] - Total operating expenses for the year ended December 31, 2024, increased to $1.446 billion, compared to$1.175 billion in 2023, representing a 23% increase[22] - Net loss for the year ended December 31, 2024, was $78.800 million, an improvement from a net loss of$183.949 million in 2023[27] - Non-GAAP net income for the year ended December 31, 2024, was $269,013 thousand, compared to$169,674 thousand in 2023, indicating a 58.5% increase[33] Cash Flow and Liquidity - Cash flow from operating activities for the fourth quarter was $127.3 million, compared to$85.4 million for the fourth quarter of 2023[6] - The company reported a net cash provided by operating activities of $380.429 million for the year ended December 31, 2024, compared to$254.406 million in 2023[27] - Free cash flow for Q4 2024 was $47,754 thousand, slightly down from$50,716 thousand in Q4 2023[36] - The percentage of net cash provided by operating activities relative to revenue for Q4 2024 was 28%, up from 24% in Q4 2023[36] - Cash, cash equivalents, and available-for-sale securities were $1,855.9 million as of December 31, 2024[6] - Cash and cash equivalents as of December 31, 2024, were$147.691 million, up from $86.864 million in 2023[25] Customer Metrics - Customers spending more than$1 million grew to 173, representing a 47% increase year-over-year[5] Operating Metrics - GAAP loss from operations for the fourth quarter was $34.7 million, or 7.5$42.8 million, or 11.8% of total revenue, in the fourth quarter of 2023[6] - Non-GAAP income from operations for the fourth quarter was $67.2 million, or 14.6$39.8 million, or 11.0% of total revenue, in the fourth quarter of 2023[6] - GAAP net loss for the fourth quarter was $12.8 million, compared to$27.9 million in the fourth quarter of 2023[6] - Non-GAAP net income for the fourth quarter was $68.8 million, compared to$53.5 million in the fourth quarter of 2023[6] - GAAP operating margin for Q4 2024 was (7.5)%, an improvement from (11.8)% in Q4 2023[29] - Non-GAAP operating margin for the year ended December 31, 2024, was 13.8%, compared to 9.4% in 2023[29] Investment and Assets - The company invested $185.037 million in property and equipment during the year ended December 31, 2024, compared to$114.396 million in 2023[27] - Total assets increased to $3.301 billion as of December 31, 2024, compared to$2.760 billion in 2023, marking a 20% growth[25] - Total stockholders' equity rose to $1.046 billion in 2024, up from$763.047 million in 2023, indicating a 37% increase[25] - The company reported a net cash used in investing activities of $330,224 thousand for the year ended December 31, 2024, compared to$186,201 thousand in 2023[36] Deferred Revenue - The company’s deferred revenue increased to $477.765 million as of December 31, 2024, up from$347.608 million in 2023, reflecting a 37% growth[25] Non-GAAP Metrics - Non-GAAP gross profit for the year ended December 31, 2024, reached $1,313,605 thousand, compared to$1,015,802 thousand in 2023, reflecting a 29.3% growth[29] - Non-GAAP net income per share for the full year 2025 is expected to be between $0.79 and$0.80[13] - Non-GAAP income from operations and operating margin exclude stock-based compensation expense, related employer payroll taxes, amortization of acquired intangible assets, and acquisition-related expenses[41] - Non-GAAP net income adjusts for stock-based compensation, related employer payroll taxes, amortization of acquired intangibles, acquisition-related expenses, and amortization of issuance costs[42] - Non-GAAP gross profit and gross margin exclude stock-based compensation and related employer payroll taxes, as well as amortization of acquired intangible assets[40] Future Guidance - Full year 2025 revenue is expected to be between $2,090.0 million and$2,094.0 million[13]