Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of NET Power, Inc. regarding a class action lawsuit alleging that the company made materially false and misleading statements about its Project Permian, which is unlikely to be completed on schedule and may incur higher costs than previously stated [1][2]. Allegations - The complaint claims that during the class period from June 9, 2023, to March 7, 2025, NET Power failed to disclose significant challenges related to the completion of its first utility-scale plant, Project Permian, including supply chain issues and site-specific challenges [1]. - It is alleged that the company's projections regarding the time and capital required for Project Permian were unrealistic, which could negatively impact its business and financial results [1]. - The public statements made by the defendants were deemed materially false and misleading throughout the relevant period [1]. Next Steps for Shareholders - Shareholders who purchased NPWR shares during the specified class period are encouraged to register for the class action by June 17, 2025, to potentially be appointed as lead plaintiffs [2]. - Upon registration, shareholders will receive updates through a portfolio monitoring software regarding the status of the case [2]. About the Law Firm - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting the rights of investors affected by deceit and illegal business practices [3]. - The firm aims to ensure that companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements or omissions [3].

Group 1 - Cloudflare's stock price surged approximately 11% in pre-market trading following a strong Q1 earnings report and positive forward guidance [1] - Q1 revenue reached $479 million, exceeding guidance by $10 million and surpassing market expectations by 300 basis points, indicating robust performance [1] - The company's significant orders in Secure Access Service Edge (SASE) and Workers products highlight its competitive position in the cybersecurity and AI-enabled markets [1] Group 2 - Jefferies maintains a "Hold" rating on Cloudflare but lowers the target price from $170 to $150, citing a 2.3% revenue beat, the highest in five quarters [2] - A five-year contract worth $130 million underscores Cloudflare's strategic position and infrastructure value in the AI era, despite cautious revenue guidance [2] - Morgan Stanley upgrades its rating to "Overweight" and raises the target price from $144 to $150, emphasizing the platform's value and customer confidence in ongoing innovation [2]

Core Viewpoint - Cloudflare, Inc. reported non-GAAP earnings of 16 cents per share for Q1 2025, matching the Zacks Consensus Estimate, with revenues increasing by 27% year-over-year to $479.1 million, driven by strong enterprise customer onboarding and a focus on security [1][2]. Financial Performance - Q1 revenues reached $479.1 million, surpassing the consensus mark by 2.2%, attributed to the onboarding of large enterprise customers and growth in the public sector [2]. - Non-GAAP gross profit increased by 22.7% year-over-year to $369.3 million, although the non-GAAP gross margin contracted by 240 basis points to 77.1% [4]. - Non-GAAP operating income rose to $56 million from $42.4 million in the previous year, with the non-GAAP operating margin expanding by 50 basis points to 11.7% [5]. Customer Metrics - Cloudflare had 250,819 paying customers at the end of Q1, a 27% increase year-over-year, including 30 new customers contributing over $100,000 in annual revenues, totaling 3,527 such customers [4]. Balance Sheet and Cash Flow - As of March 31, 2025, Cloudflare's cash, cash equivalents, and available-for-sale securities amounted to $1.91 billion, up from $1.86 billion at the end of 2024 [6]. - The company generated an operating cash flow of $145.8 million and free cash flow of $52.9 million during Q1 [6]. Guidance - For FY 2025, Cloudflare anticipates revenues between $2.09 billion and $2.094 billion, indicating a year-over-year rise of 25.3% [7]. - The company projects non-GAAP earnings per share between 79 cents and 80 cents, with the Zacks Consensus Estimate at 79 cents, reflecting a 5.3% year-over-year increase [8]. - For Q2, Cloudflare expects revenues in the range of $500 million to $501 million, suggesting a year-over-year rise of 24.9% [9]. - Non-GAAP income from operations for Q2 is expected to be between $62.5 million and $63.5 million, with anticipated earnings of 18 cents per share [10].

Group 1 - Cloudflare reported quarterly earnings of $0.16 per share, matching the Zacks Consensus Estimate, and the same as the previous year [1] - The company posted revenues of $479.09 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 2.21%, compared to $378.6 million a year ago [2] - Cloudflare shares have increased approximately 13% since the beginning of the year, while the S&P 500 has declined by 4.3% [3] Group 2 - The earnings outlook for Cloudflare is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.19 on revenues of $500.94 million, and for the current fiscal year, it is $0.79 on revenues of $2.09 billion [7] - The Internet - Software industry, to which Cloudflare belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook [8]

Financial Data and Key Metrics Changes - Cloudflare achieved revenue of $479.1 million, representing a 27% year-over-year increase [9][27] - The gross margin was 77.1%, above the long-term target of 75% to 77% [11][29] - Operating profit was $56 million, with an operating margin of 11.7%, an increase of 50 basis points year-over-year [32] - Free cash flow was $52.9 million, or 11% of revenue, compared to $35.6 million, or 9% of revenue, in the same period last year [35] Business Line Data and Key Metrics Changes - The number of customers paying more than $100,000 increased by 23% year-over-year, totaling 3,527 [9][28] - Revenue contribution from large customers grew to 69% of total revenue, up from 67% in the first quarter of the previous year [9][28] - Dollar-based net retention was 111%, consistent quarter-over-quarter [10][29] Market Data and Key Metrics Changes - U.S. revenue represented 49% of total revenue, increasing by 20% year-over-year [27] - EMEA accounted for 28% of revenue, with a 27% year-over-year increase [27] - APAC represented 15% of revenue, showing a significant 54% year-over-year growth [27] Company Strategy and Development Direction - The company is focused on disciplined execution and investing in go-to-market strategies, which have shown positive returns [14][48] - Cloudflare is positioning itself as a mission-critical partner for customers, emphasizing the importance of its innovative products and engineering capabilities [14][24] - The company is actively pursuing large contracts and has secured its largest contract in history, exceeding $100 million [13][15] Management's Comments on Operating Environment and Future Outlook - Management noted that the current global environment is more volatile than in previous quarters, but the company remains committed to its strategy [12][14] - The company is optimistic about long-term opportunities despite short-term volatility, focusing on customer needs and operational efficiency [14][38] - Management expects revenue for Q2 2025 to be in the range of $500 million to $505 million, representing a 25% year-over-year increase [37][38] Other Important Information - The company has seen a significant increase in DDoS attacks, with a 300% year-over-year rise, but its architecture allows it to absorb these attacks without additional costs [58][60] - Cloudflare's investments in AI and developer platforms have resulted in substantial growth, with AI inference requests up nearly 4000% year-over-year [22][23] Q&A Session Summary Question: Trends observed through early May regarding traffic and tariffs - Management indicated that there has been no significant change in internet traffic patterns despite tariff discussions, with traffic remaining steady [41][46] Question: Insights on margin performance and CapEx spending - Management reiterated a focus on the 40% rule for margins and indicated that there are still more margin opportunities than revenue opportunities [47][48] Question: Sales productivity and capacity tracking in the enterprise segment - Management expressed satisfaction with improvements in sales productivity and anticipated continued increases in sales capacity as new hires ramp up [52][54] Question: Impact of DDoS attacks on business - Management noted that the company’s architecture allows it to handle large-scale DDoS attacks effectively, without incurring additional costs [58][60] Question: Trends in the SaaS market and winning larger deals - Management highlighted that Cloudflare has caught up on critical features and offers superior performance compared to competitors, leading to increased success in securing larger deals [67][70] Question: Government sector traction - Management noted that governments are increasingly adopting zero trust approaches and choosing Cloudflare for its comprehensive solutions [73][74]

Financial Data and Key Metrics Changes - The company achieved revenue of $479.1 million, representing a 27% year-over-year increase [8][26] - Gross margin was 77.1%, above the long-term target of 75% to 77% [10][29] - Operating profit was $56 million, with an operating margin of 11.7%, an increase of 50 basis points year-over-year [32] - Free cash flow was $52.9 million, or 11% of revenue, compared to $35.6 million, or 9% of revenue, in the same period last year [34] Business Line Data and Key Metrics Changes - The number of large customers (paying over $100,000) increased by 23% year-over-year to 3,527 [8][28] - Revenue contribution from large customers grew to 69% of total revenue, up from 67% in the same quarter last year [8][28] - Dollar-based net retention was 111%, consistent quarter-over-quarter [9][29] Market Data and Key Metrics Changes - U.S. revenue represented 49% of total revenue, increasing by 20% year-over-year [26] - EMEA accounted for 28% of revenue, with a 27% year-over-year increase [26] - APAC represented 15% of revenue, showing a significant 54% year-over-year growth [26][28] Company Strategy and Development Direction - The company is focused on disciplined execution and investing in go-to-market strategies, which have shown positive returns [12][13] - Cloudflare is positioning itself as a mission-critical partner for customers, emphasizing the importance of its innovative products and engineering capabilities [12][23] - The company aims to capture opportunities in a volatile environment while maintaining operational efficiency [23][36] Management's Comments on Operating Environment and Future Outlook - Management noted that the global environment is more volatile than before, but the company has navigated this effectively [10][11] - There is confidence in the long-term growth opportunities despite short-term volatility [12][23] - The company expects revenue for Q2 2025 to be in the range of $500 million to $505 million, representing a 25% year-over-year increase [36][37] Other Important Information - The company signed its largest contract in history, exceeding $100 million, driven by its workers developer platform [12][14] - The longest duration contract in the company's history was also secured during the quarter [12][25] - Remaining Performance Obligations (RPO) increased by 39% year-over-year to $1.864 billion [35] Q&A Session Summary Question: Trends observed through early May regarding traffic and tariff rhetoric - Management indicated that there has been no significant change in internet traffic patterns despite tariff discussions, with traffic remaining steady [40][45] Question: Insights on margin performance and CapEx spending - Management reiterated a focus on the 40% rule for margins and indicated that there are still margin opportunities despite revenue growth [46][47] Question: Sales productivity and capacity tracking in the enterprise segment - Management expressed satisfaction with improvements in sales productivity and anticipated continued capacity ramp-up in the coming quarters [51][52] Question: Impact of increased DDoS attacks on business - Management noted that the company’s architecture allows it to absorb large-scale DDoS attacks without incurring additional costs, differentiating it from competitors [57][62] Question: Trends in the SaaS market and winning larger deals - Management highlighted that the company has caught up on critical features and offers superior performance, leading to increased success in securing larger contracts [67][70] Question: Government sector traction and Zero Trust solutions - Management reported strong interest from government agencies in adopting Cloudflare's Zero Trust solutions, reflecting a shift away from on-premise hardware [74][75] Question: Details on the $100 million workers deal - Management explained that the deal reflects the comprehensive capabilities of Cloudflare Workers, which provide better performance and lower costs compared to traditional hyperscalers [78][80] Question: Customer additions and go-to-market strategy - Management attributed strong overall customer additions to effective go-to-market strategies, while noting that timing affected the number of large customer additions [83][88]

As of March 31, 2025 © 2025 Cloudflare, Inc. Safe Harbor This presentation has been prepared by Cloudflare, Inc. ("Cloudflareˮ) 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 all of the information you may desire ...

Financial Performance - The company reported a net loss for the three months ended March 31, 2025, compared to the previous year, indicating ongoing challenges in achieving profitability [18]. - The company has a history of net losses and may not be able to achieve or sustain profitability in the future [18]. - Adverse economic conditions, including reduced spending on network security products, may adversely impact revenue and profitability [18]. - Future financial performance is uncertain due to geopolitical tensions, including conflicts in the Middle East and Ukraine, which may impact customer spending and overall demand for products [18]. - Revenue growth for the quarter was significant, but the company cautioned that this may not be indicative of future performance due to potential adverse economic conditions [18]. - The company experienced rapid revenue growth, which may not be indicative of future performance [18]. Customer Retention and Growth - The company emphasized the importance of retaining and upgrading paying customers, as well as converting free customers to paying customers, to sustain future revenue growth [19]. - There is a risk that the company may not be able to attract new paying customers or retain existing ones, which could harm future results [19]. - The company relies on its ability to retain and upgrade paying customers, which is critical for future results [19]. Competition and Market Conditions - The company is facing intense competition, which could adversely affect its business and financial condition [19]. - Intense competition could adversely affect the company's business and financial condition [19]. Operational Risks - The company highlighted the need for effective management of its global operations and compliance with applicable laws to mitigate risks [11]. - The company’s ability to maintain favorable relationships with co-location partners and ISPs is critical for its operational success [19]. - The company faces risks related to geopolitical tensions that may impact customers and vendors [18]. - Problems with internal systems or perceived security breaches could damage the company's reputation and financial results [19]. - The company’s network presence in China is dependent on its relationship with JD Cloud, which poses a risk [19]. Stock and Investor Confidence - The company acknowledged the potential volatility in the trading price of its Class A common stock, which could affect investor confidence [19]. - The trading price of the company's Class A common stock may be volatile, potentially leading to investment losses [19]. Innovation and Development - The company is focused on innovation and the development of new products to maintain its competitive edge in the market [11]. - The ability to attract and retain key personnel is essential for the company's growth [19].

Core Insights - Palantir Technologies has seen a remarkable share price increase of 550% since January 2024, making it the best-performing stock in the S&P 500 and the second-best in the Nasdaq-100 during this period [1][2] Financial Performance - The company's financial results have been impressive, with a 39% increase in revenue to $884 million and a 62% rise in non-GAAP earnings to $0.13 per diluted share [9] - The number of customers grew by 39% to 769, and the average existing customer spent 124% more [9] Valuation Concerns - Palantir is currently the most expensive software stock, trading at 64 times 2026 consensus sales, significantly higher than the second-highest, CrowdStrike, at 18 times [3] - The stock's trailing-12-month sales valuation reached 107 times in February and recently rebounded to 100 times [4] - Historical data shows that six software stocks have previously reached a P/S ratio above 100, all of which eventually fell at least 70% [4][5] Market Predictions - Dan Ives predicts Palantir could reach a trillion-dollar market cap in the next two to three years, suggesting a 285% upside from its current market value of $260 billion [10] - However, the median 12-month target price among 27 analysts is $98 per share, indicating an 11% downside from the current price of $110, with the lowest target at $40 per share implying a 64% downside [11] Investment Strategy - It is suggested that prospective investors should wait for a better entry point, while current shareholders may consider holding their shares for at least three to five years due to the unsustainable valuation [12]

Core Viewpoint - SEALSQ Corp's QVault Trusted Platform Module (TPM) achieves compliance with the highest-security parameter sets of NIST-standardized CRYSTALS-Dilithium and CRYSTALS-Kyber algorithms, reinforcing its position in quantum-resistant security solutions for various markets [1][2][8] Group 1: Technology and Compliance - QVault TPM is compliant with ML-DSA-87 and ML-KEM-1024, which are the most robust variants of post-quantum cryptography algorithms standardized by NIST [2][3] - ML-DSA-87 features a public key size of 1,952 bytes and a signature size of 4,595 bytes, targeting security equivalent to AES-256, making it suitable for applications requiring long-term data integrity [7] - ML-KEM-1024 has a public key size of 1,568 bytes and a ciphertext size of 1,568 bytes, also achieving AES-256-equivalent security for robust key exchange [7] Group 2: Market Demand and Industry Trends - The demand for quantum-resistant cryptography is increasing due to advancements in quantum computing, with predictions of relevant quantum computers emerging within a decade [4] - Industry leaders like IBM emphasize the importance of these standards for protecting encrypted data, with expectations of significant adoption in products for government and financial services [5] - Cloudflare reported that nearly 2% of TLS 1.3 connections were PQC-secured by early 2024, with expectations of double-digit adoption by year-end [5] Group 3: Applications and Use Cases - QVault TPM supports a range of applications, including secure firmware signing, quantum-safe authentication for IoT devices, and secure vehicle-to-everything communications [8][13] - The integration of ML-DSA-87 and ML-KEM-1024 into QVault TPM provides a tamper-resistant environment for cryptographic operations and key storage [8] - SEALSQ's technology is designed to address urgent security challenges posed by quantum computing across various sectors, including defense, IoT, and automotive [10]