Core Insights - Cloudflare's stock experienced a significant increase following a positive revenue forecast for the upcoming year, with shares rising over 5% and peaking at 13% during the day [1] - The company's revenue for the fourth quarter rose by 34% year over year, reaching $614.5 million, driven by the growing adoption of AI-powered applications [1][2] - Cloudflare's adjusted net income increased by 55% to $106.8 million, translating to $0.28 per share, slightly exceeding Wall Street's expectations of $0.27 per share [3] Financial Projections - For 2026, Cloudflare anticipates revenue growth of approximately 29%, projecting total revenue of $2.79 billion, along with adjusted earnings per share expected to rise to $1.12 from $0.93 in 2025 [4] - The CEO expressed strong confidence in the company's positioning to benefit from the rise of agentic AI, indicating that Cloudflare is well-prepared for this transformative phase of the Internet [2][4] Market Positioning - Cloudflare is positioned as a key platform for the new generation of web users, referred to as "agents," which is expected to create a positive feedback loop that enhances demand for its services [3] - The company's focus on performance, security, and networking services is expected to be bolstered by the increasing number of AI agents utilizing its platform [3]

Financial Data and Key Metrics Changes - The company achieved revenue of $614.5 million in Q4 2025, representing a 34% year-over-year increase [6][22] - The number of customers paying more than $100,000 per year increased by 23% year-over-year, totaling 4,298 [6][23] - The dollar-based net retention rate was 120%, up 1% quarter-over-quarter and 9% year-over-year [6][24] - Gross margin was 74.9%, slightly below the long-term target range of 75%-77% [6][24] - Operating profit was $89.6 million, with an operating margin of 14.6%, consistent year-over-year [7][26] - Free cash flow reached $99.4 million, or 16% of revenue, compared to 10% in the same period last year [27] Business Line Data and Key Metrics Changes - Revenue from large customers contributed 73% of total revenue in Q4, up from 69% in the same quarter last year [22][24] - New Annual Contract Value (ACV) grew nearly 50% year-over-year, marking a record quarter in absolute ACV dollars [8] - The company added a record number of customers spending over $1 million per year for the fifth consecutive quarter [8] Market Data and Key Metrics Changes - The U.S. represented 49% of revenue, increasing by 31% year-over-year, while EMEA and APAC represented 27% and 16% of revenue, increasing by 31% and 50% year-over-year, respectively [22] - The company ended the year with 269 customers spending over $1 million, a 55% increase year-over-year [24] Company Strategy and Development Direction - The company is transitioning from product-led growth to true enterprise sales, with a focus on enhancing its go-to-market strategy [8] - The management highlighted a shift towards AI-driven demand for Cloudflare services, positioning the company as a critical infrastructure provider for the emerging Agentic Internet [17][20] - The company aims to define the future business model of the internet, moving away from traditional advertising and subscription models [43][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the evolving tech landscape, particularly with the rise of AI agents [34][35] - The company is focused on maintaining capital efficiency while investing in growth opportunities driven by increased demand for its services [37][38] - Management anticipates continued strong performance in 2026, with revenue guidance of $2.785 billion to $2.795 billion, representing a 28%-29% year-over-year increase [30] Other Important Information - The company reported a total of 332,000 paying customers, with a record addition of nearly 37,000 customers sequentially [23] - Remaining performance obligations (RPO) reached $2.496 billion, a 48% year-over-year increase [28] Q&A Session Summary Question: Impact of AI agents on Cloudflare - Management believes the company is well-positioned to benefit from the rise of AI agents, which are driving increased demand for Cloudflare's services [34][35] Question: Evolution of internet traffic and new acquisitions - Management discussed the integration of new acquisitions like Human Native and Astro, which are aimed at defining future business models and enhancing developer capabilities [42][43] Question: Large deal pipeline and engagement - Management noted a strong pipeline for large deals, emphasizing the importance of deep customer relationships and the ability to provide scalable, cost-effective solutions [58][59] Question: Pool of funds contracting and revenue variability - Management indicated that pool of funds contracts represent customer trust and are expected to grow, although they may introduce some revenue variability [63][66] Question: Increased demand for core application services - Management highlighted a significant uptick in demand for core application services, particularly from AI companies needing robust security and scalability [70][75]

Financial Data and Key Metrics Changes - The company achieved $614.5 million in revenue for Q4 2025, representing a 34% year-over-year increase [6][22] - The number of customers paying more than $100,000 per year increased to 4,298, up 23% year-over-year [6][23] - The dollar-based net retention rate improved to 120%, up 1% quarter-over-quarter and 9% year-over-year [6][24] - Gross margin was reported at 74.9%, slightly below the long-term target range of 75%-77% [7][25] - Operating profit reached $89.6 million, with an operating margin of 14.6%, consistent year-over-year [26] - Free cash flow for the quarter was $99.4 million, representing 16% of revenue, compared to 10% in the same period last year [27] Business Line Data and Key Metrics Changes - Revenue from large customers contributed 73% of total revenue in Q4, up from 69% in the same quarter last year [22][23] - New Annual Contract Value (ACV) grew nearly 50% year-over-year, marking a record quarter in absolute ACV dollars [8] - The company added a record number of customers spending over $1 million per year for the fifth consecutive quarter [8] Market Data and Key Metrics Changes - The U.S. market represented 49% of total revenue, increasing 31% year-over-year, while EMEA and APAC represented 27% and 16% of revenue, respectively, with APAC growing 50% year-over-year [22] - The company ended the year with 269 customers spending over $1 million, a 55% increase year-over-year [24] Company Strategy and Development Direction - The company is transitioning from product-led growth to enterprise sales, with a focus on enhancing its go-to-market strategy [8] - The management highlighted a shift towards AI-driven demand for Cloudflare services, positioning the company as a critical infrastructure provider for the emerging Agentic Internet [17][20] - The company aims to define the future business model of the internet, moving away from traditional advertising and subscription models [43][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the evolving tech landscape, particularly with the rise of AI agents [34][35] - The company anticipates continued strong demand for its services as AI applications proliferate, driving increased usage across its platform [19][20] - The management expects revenue for Q1 2026 to be in the range of $620 million-$621 million, representing a 29%-30% year-over-year increase [29][30] Other Important Information - The company plans to participate in upcoming technology conferences, indicating ongoing engagement with the investment community [5] - Remaining performance obligations (RPO) reached $2.496 billion, a 48% year-over-year increase [28] Q&A Session Summary Question: Impact of AI agents on Cloudflare - Management believes the company is well-positioned to benefit from the increased volume of interactions driven by AI agents, which enhances the demand for Cloudflare's services [34][35] Question: Evolution of internet traffic and new capabilities - Management discussed the integration of recent acquisitions like Human Native and Astro, which are expected to help define future internet business models and enhance developer capabilities [42][43] Question: Large deal pipeline and engagement - Management noted a strong pipeline for large deals, emphasizing the importance of deep customer relationships and the ability to provide scalable, cost-effective solutions [58][59] Question: Pool of funds contracting and revenue variability - Management indicated that pool of funds represents customer trust and is expected to grow, although it may introduce some revenue variability [62][66] Question: Demand for core Application Services - Management observed increased demand for core Application Services, particularly from AI companies needing security and scalability [70][75]

Financial Data and Key Metrics Changes - The company achieved revenue of $614.5 million in Q4 2025, representing a 34% year-over-year increase [5][21] - The number of customers paying more than $100,000 per year increased by 23% year-over-year, totaling 4,298 [5][23] - The dollar-based net retention rate was 120%, up 1% quarter-over-quarter and 9% year-over-year [5][24] - Gross margin was 74.9%, slightly below the long-term target range of 75%-77% [5][24] - Operating profit was $89.6 million, with an operating margin of 14.6%, consistent year-over-year [26] - Free cash flow reached $99.4 million, or 16% of revenue, compared to 10% in the same period last year [27] Business Line Data and Key Metrics Changes - Revenue from large customers contributed 73% of total revenue in Q4, up from 69% in the same quarter last year [5][23] - New Annual Contract Value (ACV) grew nearly 50% year-over-year, marking a record quarter in absolute ACV dollars [6] - The company added a record number of customers spending over $1 million per year for the fifth consecutive quarter [6] Market Data and Key Metrics Changes - The U.S. represented 49% of revenue, increasing 31% year-over-year, while EMEA and APAC represented 27% and 16% of revenue, increasing 31% and 50% year-over-year, respectively [21][22] Company Strategy and Development Direction - The company is transitioning from product-led growth to true enterprise sales, with a focus on enhancing its go-to-market strategy [6] - The management emphasized the importance of being a strategic co-innovation partner for AI companies, highlighting a shift in demand towards Cloudflare's services [15][19] - The company aims to define the future business model of the internet, particularly in the context of AI and agentic commerce [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning amidst market volatility and AI disruption, stating that Cloudflare is well-prepared for the evolving landscape [34][36] - The company anticipates continued growth driven by increased demand for its services, particularly from AI applications [19][71] - Management highlighted the importance of maintaining capital efficiency compared to hyperscalers, allowing for better scalability and cost-effectiveness [36][38] Other Important Information - The company ended Q4 with $4.1 billion in cash and cash equivalents, and remaining performance obligations (RPO) totaled $2.496 billion, up 48% year-over-year [27] - The company expects Q1 2026 revenue in the range of $620-$621 million, representing a 29%-30% year-over-year increase [28] - For the full year 2026, revenue is expected to be between $2.785 billion and $2.795 billion, reflecting a 28%-29% year-over-year increase [29] Q&A Session Summary Question: Impact of AI agents on Cloudflare - Management believes Cloudflare is well-positioned to benefit from the increased interaction of AI agents with the internet, driving demand for its services [34][35] Question: Evolution of internet traffic and new acquisitions - Management discussed the integration of new acquisitions like Human Native and Astro, which are aimed at defining future business models and enhancing developer capabilities [42][43] Question: Large deal pipeline and engagement - Management reported a strong pipeline for large deals, emphasizing the importance of deep customer relationships and the ability to provide scalable, cost-effective solutions [55][56] Question: Pool of funds contracting and revenue variability - Management noted that pool of funds contracting represents customer trust and is expected to grow, although it introduces some revenue variability [60][63] Question: Demand for core application services - Management observed increased demand for core application services, particularly from AI companies needing security and scalability [67][71]

Financial Data and Key Metrics Changes - The company achieved revenue of $562 million, representing a year-over-year increase of 30.7% [5][21] - Gross margin was reported at 75.3%, within the long-term target range of 75% to 77% [5][23] - Operating profit reached $85.9 million, with an operating margin of 15.3%, an increase of 50 basis points year over year [5][25] - Free cash flow for the quarter was $75 million, or 13% of revenue, compared to $45.3 million, or 11% of revenue in the same period last year [26] Business Line Data and Key Metrics Changes - The number of large customers (those paying more than $100,000 per year) increased by 23% year over year, totaling 4,009 [5][22] - Revenue contribution from large customers grew to 73% of total revenue, up from 67% in the same quarter last year [5][22] - Dollar-based net retention rate improved to 119%, up 5 percentage points quarter over quarter [5][23] Market Data and Key Metrics Changes - U.S. revenue represented 50% of total revenue, increasing by 31% year over year [21][22] - EMEA accounted for 27% of revenue with a 26% year-over-year increase, while APAC represented 15% of revenue with a 43% year-over-year increase [21][22] Company Strategy and Development Direction - The company is transitioning from a product-led growth model to a true enterprise sales approach, which is driving larger deal sizes and increased sales productivity [6][33] - The focus on innovation and operational excellence is evident in the strong financial results and growth in customer metrics [20][28] - The company aims to achieve $5 billion in annualized revenue by Q4 2028, with a projected $3 billion annualized revenue run rate by Q4 2026 [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the transformative potential of AI and the company's role in shaping the future of the internet [19][60] - The company is focused on ensuring that all businesses, regardless of size, can participate in the evolving digital landscape [63] Other Important Information - The company announced participation in upcoming technology conferences, indicating ongoing engagement with the industry [4] - A key executive, CJ Desai, is leaving the company to pursue a CEO role at another technology firm, which management views as a testament to the company's ability to develop leaders [6][9] Q&A Session Summary Question: What drove the acceleration in RPO growth this quarter? - Management attributed the acceleration to a transformation towards enterprise sales, increased average deal sizes, and strong performance from large customer cohorts [32][34] Question: Are sales productivity gains flattening out? - Management believes that sales productivity will continue to improve due to the caliber of new team members and the ramping up of sales capacity [39] Question: What advantages does the integration with Oracle OCI provide? - The integration allows Oracle customers to access Cloudflare's tools within OCI, facilitating a multi-cloud future with consistent security and network performance [40][41] Question: How is the company addressing capacity constraints in Workers? - Management stated that they are not capacity constrained due to their network architecture, which allows for efficient workload management across global resources [44][46] Question: What is the company's approach to quantum-safe security? - The company is proactively working on quantum-safe cryptography in partnership with Google, ensuring that security measures are in place ahead of potential future threats [73][75]

Industry Overview - The content delivery network (CDN) space is expected to grow at a CAGR of 18.04% from 2025 to 2034, indicating strong industry growth potential [1][2]. Company Analysis: Cloudflare - Cloudflare focuses on global expansion and offers a high-performance CDN platform that enhances content delivery while ensuring secure web connectivity [3][4]. - The company employs advanced technologies such as tiered caching and Argo smart routing to optimize delivery efficiency [3]. - Cloudflare's revenue is significantly influenced by international sales, making it vulnerable to U.S. tariffs and competitive pressures from major players like Amazon and Akamai [5]. - Despite revenue growth, Cloudflare's margins are under pressure due to competitive pricing strategies and heavy investments in sales and marketing [6]. - The Zacks Consensus Estimate for Cloudflare's 2025 revenues is $2.09 billion, reflecting a year-over-year growth of 25.4%, while earnings are estimated at 79 cents, indicating a growth of 5.33% [6][7]. Company Analysis: Fastly - Fastly specializes in high-performance, programmable CDN solutions, providing customers with control through dedicated servers within private networks [9][10]. - The company emphasizes faster first-byte delivery and offers features like DDoS protection and advanced rate limiting [10][11]. - Fastly's CDN platform is designed for efficiency, with capabilities that reduce costs and enhance configurability [11]. - The Zacks Consensus Estimate for Fastly's 2025 loss is projected at 9 cents, indicating a year-over-year improvement of 25% [12][13]. Stock Performance and Valuation - Year-to-date, Cloudflare's stock has increased by 69.5%, while Fastly's stock has decreased by 26% [14]. - Cloudflare trades at a forward sales multiple of 28.19X, significantly higher than Fastly's multiple of 1.67X [15]. - Fastly is noted for its robust bottom-line growth expectations and comparatively lower valuation, giving it a potential edge over Cloudflare [17].

Core Viewpoint - Cloudflare is significantly increasing operational investments to drive revenue growth, particularly through its Cloudflare Workers platform, which is widely adopted for application and AI development, indicating strong growth potential in the coming years [1][2]. Group 1: Customer Growth and Revenue - As of the end of Q1 2025, Cloudflare had a total of 251,000 customers, with 3,527 customers contributing over $100,000 in revenue [1]. - The number of large customers spending over $1 million and $5 million increased by 48% and 54% respectively, aligning with management's goal to acquire larger clients [1]. - Revenue from these large customers grew by 67% year-over-year, driven by a 17% increase in sales and marketing expenses [1]. Group 2: Sales Strategy and Market Position - Cloudflare's pragmatic approach to the sales cycle includes assisting potential clients in developing proof of concepts, enhancing understanding of the Cloudflare platform's capabilities [2]. - Many clients are transitioning from larger competitors to Cloudflare due to its extensive security solutions and automation features, largely attributed to Cloudflare Workers [2]. - Cloudflare Workers AI extends the platform's capabilities for AI application development and deployment, with partnerships in the payment industry, including Block, PayPal, and Stripe [2]. Group 3: Financial Performance and Projections - Analysts predict Cloudflare's net revenue will reach $501 million, with adjusted earnings per share of $0.18 [4]. - The company's net cash position was $626.5 million at the end of Q1 2025, showing continuous growth [4]. - Despite never having authorized stock buybacks or dividends, Cloudflare may utilize its cash reserves in the coming quarters due to sustained growth and adjusted profitability [4]. Group 4: Market Strategy and Valuation - Cloudflare is significantly investing in marketing strategies while maintaining operational profit margins, aiming for scale expansion [5]. - The company’s current price-to-sales ratio is 38 times, significantly higher than the industry average of 17.3 times, indicating a premium valuation [5]. - While Cloudflare has substantial upside potential given its growth rate, caution is advised for investors entering at current valuation levels due to market volatility risks [5]. Group 5: Long-term Outlook - Looking ahead to FY 2028, Cloudflare's stock may still have considerable upside potential, although many factors could influence this long-term trend [6].

Core Insights - Cloudflare's Workers platform is emerging as a significant driver of future growth, highlighted by a record deal exceeding $100 million, indicating a shift in perception among large customers towards Cloudflare's capabilities beyond security and networking [1][10] Company Performance - In the first quarter of 2025, Cloudflare reported a remarkable 4,000% year-over-year increase in inference requests on its Workers AI tool, showcasing strong growth in AI-driven usage [4][10] - The company's shares have increased by 66.5% year-to-date, significantly outperforming the Zacks Internet - Software industry's growth of 13.2% [9] Product Development - The Workers platform, launched in 2017, has attracted over three million developers, facilitating the building and running of applications closer to users [2] - The introduction of the Model Context Protocol (MCP) server within the Workers platform aims to enhance AI model integration, enabling clients to deploy AI agents for various tasks, which could lead to increased upselling and customer acquisition [5][10] Competitive Landscape - Cloudflare competes with major players like Alphabet and Amazon, which also offer serverless and container-based edge deployment solutions. However, Cloudflare's configuration-less auto-scaling and high-performance global network position it favorably in this competitive environment [6][8] Valuation and Earnings Estimates - Cloudflare's forward price-to-sales ratio stands at 26.61X, significantly higher than the industry average of 5.68X, indicating a premium valuation [11] - The Zacks Consensus Estimate for Cloudflare's fiscal 2025 and 2026 earnings suggests year-over-year growth of 5.33% and 31.62%, respectively, although recent revisions indicate downward adjustments for both years [12]

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]