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]

Financial Data and Key Metrics Changes - First quarter revenue reached $1,015 million, representing a 3% year-over-year increase and a 4% increase in constant currency [5][24] - Non-GAAP operating margin was reported at 30%, exceeding guidance [5] - Non-GAAP earnings per share (EPS) was $1.7, up 4% year-over-year and 6% in constant currency, surpassing the high end of guidance [5][26] - Total Q1 CapEx was $226 million, accounting for 22% of revenue [26] Business Line Data and Key Metrics Changes - Security and compute combined accounted for 69% of total revenue, growing 10% year-over-year as reported and 11% in constant currency [6][24] - Compute revenue grew to $165 million, a 14% year-over-year increase as reported and 15% in constant currency [24] - Security revenue was $531 million, growing 8% year-over-year as reported and 10% in constant currency [24] - Delivery revenue was $319 million, down 9% year-over-year as reported and down 8% in constant currency [24] Market Data and Key Metrics Changes - International revenue was $486 million, up 2% year-over-year or 5% in constant currency, representing 48% of total revenue [25] - Foreign exchange fluctuations negatively impacted revenue by $5 million sequentially and $14 million year-over-year [25] Company Strategy and Development Direction - Akamai is transforming from a CDN pioneer into a cybersecurity and cloud computing company [6] - The company is focusing on enhancing its security offerings, particularly in API security and Guardicore segmentation solutions [6][9] - New product introductions, such as the firewall for AI, are aimed at addressing emerging threats in AI applications [10][11] - The sales transformation efforts are on track, with a focus on new customer acquisition and longer-term contracts [19][65] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding potential recession impacts on bookings later in the year [20][21] - The company anticipates a $10 million impact from tariffs in 2025, amortized over six years [20] - Akamai expects to maintain revenue growth and healthy margins despite heightened economic volatility [36] Other Important Information - Akamai was recognized as one of the most trustworthy companies in America by Newsweek [22] - The company has approximately $1.3 billion in cash, cash equivalents, and marketable securities [27] Q&A Session Summary Question: What drove the upside in delivery revenue? - Management indicated that traffic growth was the primary driver, with strong performance across various sub-verticals [40][41] Question: How did security revenue perform in Q1? - Security revenue met internal expectations, with strong growth in API security and Guardicore solutions [43][45] Question: What role can Akamai play with AgenTeq AI and the AI firewall? - Akamai aims to protect AI applications from various attacks and ensure they do not ingest harmful information [48][50] Question: What differentiates Akamai in the segmentation market? - Akamai's scale, ease of use, and trustworthiness set it apart in the market, particularly for large enterprises [58][60] Question: What are the expectations for compute growth? - The growth in compute is driven by cloud infrastructure services, with expectations of 40-45% ARR growth [86]

Financial Data and Key Metrics Changes - First quarter revenue reached $1,015 million, representing a 3% year-over-year increase and a 4% increase in constant currency [4][23] - Non-GAAP operating margin was reported at 30%, exceeding guidance [4] - Non-GAAP earnings per share (EPS) was $1.7, up 4% year-over-year and up 6% in constant currency, surpassing the high end of guidance [4][26] - Total Q1 CapEx was $226 million, accounting for 22% of revenue [26] Business Line Data and Key Metrics Changes - Security and compute combined accounted for 69% of total revenue, growing 10% year-over-year as reported and 11% in constant currency [5][24] - Security revenue was $531 million, growing 8% year-over-year as reported and 10% in constant currency [24] - Compute revenue grew to $165 million, a 14% year-over-year increase as reported and 15% in constant currency [23][24] - Delivery revenue was $319 million, down 9% year-over-year as reported and down 8% in constant currency [24] Market Data and Key Metrics Changes - International revenue was $486 million, up 2% year-over-year or 5% in constant currency, representing 48% of total revenue [24] - Foreign exchange fluctuations negatively impacted revenue by $5 million sequentially and $14 million year-over-year [24] Company Strategy and Development Direction - Akamai is transforming from a CDN pioneer into a cybersecurity and cloud computing company, focusing on security solutions like Guardicore and API security [5][6] - The company introduced new products such as the firewall for AI, aimed at protecting AI applications from emerging threats [10][11] - Akamai aims to enhance its edge computing capabilities with the introduction of a managed container service [17] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding potential recession impacts on bookings later in the year, although no current impacts were noted [20] - The company expects to lose a few million dollars in revenue in the latter half of 2025 due to federal cutbacks, but sees potential for increased revenue from solutions that generate savings for federal agencies [21] - Akamai remains committed to maintaining strong customer relationships and trust, which are core values for the company [22] Other Important Information - Akamai's capital allocation strategy includes share buybacks, with approximately $1.5 billion remaining on the current repurchase authorization [27] - The company completed the migration of Edgeio customers to its platform, expecting revenue contributions from Edgeio to remain between $85 million to $105 million for 2025 [28] Q&A Session Summary Question: What drove the upside in delivery revenue? - Management indicated that traffic growth was the primary driver, with strong performance across various sub-verticals [38][39] Question: How did security revenue perform in March? - Security revenue met internal expectations, with growth driven by strong API security and Guardicore performance [41][42] Question: What role can Akamai play with AgenTic AI and its AI firewall? - Akamai's AI firewall is designed to protect AI applications from various attacks, ensuring the integrity of AI agents and their data [47][50] Question: What differentiates Akamai's segmentation product in the market? - Akamai's scale, ease of use, and trustworthiness set it apart, allowing it to protect large enterprises effectively [56][60] Question: What are the expectations for security revenue growth? - Management expects security revenue growth of approximately 10% in constant currency for 2025, driven by strong demand for segmentation and API security solutions [34][90]

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 ...

Core Viewpoint - Zscaler, Inc. is set to release its third quarter fiscal year 2025 earnings on May 29, 2025, after market close, followed by an investor conference call to discuss the results [1]. Group 1: Earnings Release Details - The earnings report will be released after the market closes on Thursday, May 29, 2025 [1]. - An investor conference call is scheduled for 1:30 p.m. Pacific time (4:30 p.m. Eastern time) on the same day [1][2]. - A live webcast of the conference call will be available on the Zscaler website [2]. Group 2: Company Overview - Zscaler is a leader in cloud security, facilitating digital transformation for customers to enhance agility, efficiency, resilience, and security [3]. - The Zscaler Zero Trust Exchange™ platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications globally [3]. - The platform is distributed across more than 150 data centers worldwide, making it the largest in-line cloud security platform based on SASE [3].

Core Viewpoint - Cloudflare is expected to report strong revenue growth for Q1 2025, with anticipated revenues between $468 million and $469 million, reflecting a year-over-year increase of 23.8% [1][2] Financial Performance - The company expects non-GAAP earnings of 16 cents per share for Q1 2025, with the Zacks Consensus Estimate also at 16 cents, indicating no change from the previous year [2] - Cloudflare has consistently beaten earnings estimates in the past four quarters, with an average surprise of 20.7% [4] Customer Growth and Market Trends - The first-quarter performance is likely to benefit from the shift towards zero-trust cybersecurity solutions and the hybrid working trend, which necessitates enhanced network security [7] - Cloudflare added approximately 16,174 new paying customers in Q4 2024, bringing the total to around 237,714, and added 232 new large customers, totaling 3,497 [8][9] Competitive Landscape - The market for web infrastructure and security services is highly competitive, with established players like Akamai, Fastly, and Amazon Web Services competing for market share [18][20] - Cloudflare is focusing on AI and expanding its Zero Trust security offerings, positioning itself for long-term growth potential [21] Valuation and Investment Considerations - Cloudflare's shares have increased by 67.8% over the past year, outperforming the S&P 500 index's growth of 10% [11] - The company is currently trading at a forward 12-month price-to-sales ratio of 18.86X, significantly higher than the industry average of 5.12X, indicating a stretched valuation [14] - Despite strong growth prospects, the current overvaluation raises concerns for investors, suggesting a hold position for the stock [23]

RESTON, Va., May 5, 2025 /PRNewswire/ -- Leidos (NYSE:LDOS) will modernize and operate information technology systems for the Defense Threat Reduction Agency (DTRA) enterprise that will help the agency deter, prevent and prevail against emerging threats around the world.  As part of this IT transformation, Leidos will support DTRA's advance toward a Zero Trust cybersecurity posture.Through a recently awarded $205 million contract, Leidos will use artificial intelligence technologies to accelerate DTRA's pro ...

Core Viewpoint - Akamai Technologies and P3M Works have formed a strategic partnership to provide zero trust identity, credential, and access management (ICAM) solutions specifically for UK government and defense supply chains, addressing the need for enhanced security in third-party access and supply chain operations [1][2][3] Group 1: Partnership Details - The collaboration combines Akamai's zero trust security capabilities, already implemented in U.S. Department of Defense networks, with P3M's expertise in UK government requirements [1][2] - The focus will be on Akamai's Zero Trust Federated ICAM solutions, which facilitate secure collaboration with vendors and contractors while minimizing exposure to cyber threats [2][3] - The joint offering will be available to UK government agencies and their supply chain partners starting in Q3 2025 [4] Group 2: Security Features - Key features include federated identity management, zero trust policy enforcement, continuous authentication, and comprehensive auditing of third-party activities [7] - The solutions will utilize a policy engine for dynamic, context-aware access decisions based on identity, device health, and behavioral analytics [3] - The approach aims to mitigate supply chain vulnerabilities and insider threats through continuous verification of access requests, even in challenging environments [3] Group 3: Company Backgrounds - Akamai is recognized for its cybersecurity and cloud computing solutions, providing defense-in-depth to safeguard enterprise data and applications globally [9] - P3M Works specializes in cyber resilience consultancy for public sector and defense organizations, focusing on protecting national security against evolving cyber threats [6][8]

Core Insights - Palo Alto Networks has launched Prisma Access Browser 2.0, the world's only SASE-native secure browser, aimed at enhancing security in a cloud-first environment [1][4] - The new browser is designed to secure generative AI usage, improve user experience, and enhance operational resilience in modern workplaces [1][5] Group 1: Product Features and Innovations - Prisma Access Browser 2.0 provides real-time visibility and access control to secure generative AI adoption, preventing data leaks through context-based classification [5] - The browser includes advanced protection against sophisticated web attacks, utilizing Precision AI to detect evasive threats such as AI-generated cloaking and phishing attacks [5] - New features also include Endpoint Data Loss Prevention (DLP) to enhance data classification accuracy and safeguard sensitive information from insider threats [6] Group 2: Market Context and Demand - With 85% of work occurring in browsers, there is a significant risk of data exposure, as 44% of security incidents are linked to browser activities [2][3] - The shift towards remote, cloud-based work necessitates a unified security approach, making secure browsers essential for modern work environments [4][5] Group 3: Strategic Partnerships and Future Plans - Palo Alto Networks collaborates with Oracle Cloud Infrastructure to enhance operational resiliency and user experience globally [7] - The new SASE features are expected to be generally available in Q4 FY25, indicating a strategic timeline for market introduction [8]