- First quarter revenue totaled $378.6 million, representing an increase of 30% year-over-year
- GAAP loss from operations of $54.6 million, or 14% of revenue, and non-GAAP income from operations of $42.4 million, or 11% of revenue
- Operating cash flow of $73.6 million, or 19% of revenue, and free cash flow of $35.6 million, or 9% of revenue
SAN FRANCISCO–(BUSINESS WIRE)–Cloudflare, Inc. (NYSE: NET), the leading connectivity cloud company, today announced financial results for its first quarter ended March 31, 2024.
“The first quarter marked a strong start to the year, as we grew revenue 30% year-over-year to $378.6 million—fueled by a record number of net-new customers year-over-year spending more than $100,000, $500,000, and $1 million with Cloudflare on an annualized basis. I’m incredibly proud of the fact that our team has been able to continue to build our network, service larger and larger customers, and launch entirely new categories of products—including in the AI space—while also remaining disciplined with our gross and operating margins and our free cash flow,” said Matthew Prince, co-founder & CEO of Cloudflare. “We’ve also delivered a double-digit year-over-year improvement in sales productivity again this quarter. Cloudflare has always been powered by our relentless innovation engine, and I’m encouraged by our progress in building a go-to-market engine that will also be the envy of the industry.”
First Quarter Fiscal 2024 Financial Highlights
- Revenue: Total revenue of $378.6 million, representing an increase of 30% year-over-year.
- Gross Profit: GAAP gross profit was $293.6 million, or 77.5% gross margin, compared to $219.7 million, or 75.7%, in the first quarter of 2023. Non-GAAP gross profit was $301.1 million, or 79.5% gross margin, compared to $225.9 million, or 77.8%, in the first quarter of 2023.
- Operating Income (Loss): GAAP loss from operations was $54.6 million, or 14.4% of revenue, compared to $47.3 million, or 16.3% of revenue, in the first quarter of 2023. Non-GAAP income from operations was $42.4 million, or 11.2% of revenue, compared to $19.4 million, or 6.7% of revenue, in the first quarter of 2023.
- Net Income (Loss): GAAP net loss was $35.5 million, compared to $38.1 million in the first quarter of 2023. GAAP net loss per basic and diluted share was $0.10, compared to $0.12 in the first quarter of 2023. Non-GAAP net income was $58.2 million, compared to $27.2 million in the first quarter of 2023. Non-GAAP net income per diluted share was $0.16, compared to $0.08 in the first quarter of 2023.
- Cash Flow: Net cash flow from operating activities was $73.6 million, compared to $36.4 million for the first quarter of 2023. Free cash flow was $35.6 million, or 9% of revenue, compared to $13.9 million, or 5% of revenue, in the first quarter of 2023.
- Cash, cash equivalents, and available-for-sale securities were $1,716.2 million as of March 31, 2024.
The section titled “Non-GAAP Financial Information” below describes our usage of non-GAAP financial measures. Reconciliations between historical GAAP and non-GAAP information are contained at the end of this press release following the accompanying financial data.
Financial Outlook
For the second quarter of fiscal 2024, we expect:
- Total revenue of $393.5 to $394.5 million
- Non-GAAP income from operations of $35.0 to $36.0 million
- Non-GAAP net income per share of $0.14, utilizing weighted average common shares outstanding of approximately 360 million
For the full year fiscal 2024, we expect:
- Total revenue of $1,648.0 to $1,652.0 million
- Non-GAAP income from operations of $160.0 to $164.0 million
- Non-GAAP net income per share of $0.60 to $0.61, utilizing weighted average common shares outstanding of approximately 361 million
These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
Conference Call Information
Cloudflare will host an investor conference call to discuss its first quarter ended March 31, 2024 earnings results today at 2:00 p.m. Pacific time (5:00 p.m. Eastern time). Interested parties can access the call by dialing (877) 400-4517 from the United States or (332) 251-2620 internationally with conference ID 3723782. A live webcast of the conference call will be accessible from the investor relations website at https://cloudflare.NET. A replay will be available approximately two hours after the conclusion of the live event and will remain available for approximately one year.
Supplemental Financial and Other Information
Supplemental financial and other information can be accessed through the Company’s investor relations website at https://cloudflare.NET.
Non-GAAP Financial Information
Cloudflare believes that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to the Company’s financial condition and results of operations. Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future. For further information regarding why Cloudflare believes that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the “Explanation of Non-GAAP Financial Measures” section at the end of this press release.
Available Information
Cloudflare intends to use its press releases, website, investor relations website, news site, blog, X account, Facebook account, and Instagram account, in addition to filings made with the Securities and Exchange Commission (SEC) and public conference calls, as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “explore,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these words, or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. However, not all forward-looking statements contain these identifying words. Forward-looking statements expressed or implied in this press release include, but are not limited to, statements regarding our future financial and operating performance, our reputation and performance in the market, general market trends, our estimated and projected revenue, non-GAAP income from operations and non-GAAP net income per share, shares outstanding, the benefits to customers from using our products, the expected functionality and performance of our products, the demand by customers for our products, our plans and objectives for future operations, growth, initiatives, or strategies, our market opportunity, and comments made by our CEO and others. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: the impact of adverse macroeconomic conditions, such as inflation, high interest rates, actual or potential bank failures and recessionary concerns, on our and our customers’, vendors’, and partners’ operations and future financial performance; the impact of the Hamas-Israel and Russia-Ukraine conflicts and other areas of geopolitical tension around the world, or any potential worsening or expansion of those conflicts or geopolitical tensions; our history of net losses; risks associated with managing our rapid growth; our ability to attract and retain new customers (including new large customers); our ability to retain and upgrade paying customers and convert free customers to paying customers; our ability to expand the number of products we sell to paying customers; our ability to effectively increase sales to large customers; our ability to increase brand awareness; our ability to continue to innovate and develop new products and product features; our ability to generate demand for our products; our ability to effectively attract, train, and retain our sales force to be able to sell our existing and new products and product features; our sales team’s productivity; our ability to effectively attract, integrate and retain key personnel; problems with our internal systems, network, or data, including actual or perceived breaches or failures; rapidly evolving technological developments, including advancements in AI, in the market; length of our sales cycles and the timing of payments by our customers; activities of our paying and free customers or the content of their websites and other Internet properties that use our network and products; foreign currency fluctuations; changes in the legal, tax, and regulatory environment applicable to our business; and other general market, political, economic, and business conditions. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in our filings with the SEC, including our Annual Report on Form 10-K filed on February 21, 2024, as well as other filings that we may make from time to time with the SEC.
The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.
About Cloudflare
Cloudflare, Inc. (NYSE: NET) is the leading connectivity cloud company on a mission to help build a better Internet. It empowers organizations to make their employees, applications and networks faster and more secure everywhere, while reducing complexity and cost. Cloudflare’s connectivity cloud delivers the most full-featured, unified platform of cloud-native products and developer tools, so any organization can gain the control they need to work, develop, and accelerate their business.
Powered by one of the world’s largest and most interconnected networks, Cloudflare blocks billions of threats online for its customers every day. It is trusted by millions of organizations – from the largest brands to entrepreneurs and small businesses to nonprofits, humanitarian groups, and governments across the globe.
Learn more about Cloudflare’s connectivity cloud at cloudflare.com/connectivity-cloud. Learn more about the latest Internet trends and insights at radar.cloudflare.com.
|
CLOUDFLARE, INC. |
|||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
|
(in thousands, except per share data) |
|||||||
|
(unaudited) |
|||||||
|
|
Three Months Ended |
||||||
|
|
2024 |
|
2023 |
||||
|
Revenue |
$ |
378,602 |
|
|
$ |
290,175 |
|
|
Cost of revenue(1)(2) |
|
85,038 |
|
|
|
70,432 |
|
|
Gross profit |
|
293,564 |
|
|
|
219,743 |
|
|
Operating expenses: |
|
|
|
||||
|
Sales and marketing(1)(2)(3) |
|
194,102 |
|
|
|
137,001 |
|
|
Research and development(1) |
|
87,703 |
|
|
|
81,539 |
|
|
General and administrative(1) |
|
66,309 |
|
|
|
48,475 |
|
|
Total operating expenses |
|
348,114 |
|
|
|
267,015 |
|
|
Loss from operations |
|
(54,550 |
) |
|
|
(47,272 |
) |
|
Non-operating income (expense): |
|
|
|
||||
|
Interest income |
|
21,252 |
|
|
|
13,487 |
|
|
Interest expense(4) |
|
(1,100 |
) |
|
|
(2,126 |
) |
|
Other income (expense), net |
|
1,124 |
|
|
|
(857 |
) |
|
Total non-operating income, net |
|
21,276 |
|
|
|
10,504 |
|
|
Loss before income taxes |
|
(33,274 |
) |
|
|
(36,768 |
) |
|
Provision for income taxes |
|
2,269 |
|
|
|
1,314 |
|
|
Net loss |
$ |
(35,543 |
) |
|
$ |
(38,082 |
) |
|
Net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.10 |
) |
|
$ |
(0.12 |
) |
|
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted |
|
338,583 |
|
|
|
330,389 |
|
|
____________ |
|||||||
|
(1) Includes stock-based compensation and related employer payroll taxes as follows: |
|||||
|
Cost of revenue |
$ |
2,822 |
|
$ |
1,803 |
|
Sales and marketing |
|
21,775 |
|
|
15,868 |
|
Research and development |
|
28,980 |
|
|
30,216 |
|
General and administrative |
|
23,150 |
|
|
13,863 |
|
Total stock-based compensation and related employer payroll taxes |
$ |
76,727 |
|
$ |
61,750 |
|
(2) Includes amortization of acquired intangible assets as follows: |
|||||
|
Cost of revenue |
$ |
4,691 |
|
$ |
4,311 |
|
Sales and marketing |
|
575 |
|
|
576 |
|
Total amortization of acquired intangible assets |
$ |
5,266 |
|
$ |
4,887 |
|
(3) Includes one-time compensation charge as follows: |
|||||
|
Sales and marketing |
$ |
15,000 |
|
$ |
— |
|
Total one-time compensation charge |
$ |
15,000 |
|
$ |
— |
|
(4) Includes amortization of debt issuance costs as follows: |
|||||
|
Interest expense |
$ |
990 |
|
$ |
1,163 |
|
Total amortization of debt issuance costs |
$ |
990 |
|
$ |
1,163 |
|
CLOUDFLARE, INC. |
|||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
|
(in thousands, except par value) |
|||||||
|
(unaudited) |
|||||||
|
|
March 31, |
|
December 31, |
||||
|
Assets |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
254,401 |
|
|
$ |
86,864 |
|
|
Available-for-sale securities |
|
1,461,801 |
|
|
|
1,586,880 |
|
|
Accounts receivable, net |
|
213,183 |
|
|
|
248,268 |
|
|
Contract assets |
|
11,589 |
|
|
|
11,041 |
|
|
Restricted cash short-term |
|
5,535 |
|
|
|
2,522 |
|
|
Prepaid expenses and other current assets |
|
69,663 |
|
|
|
47,502 |
|
|
Total current assets |
|
2,016,172 |
|
|
|
1,983,077 |
|
|
Property and equipment, net |
|
329,422 |
|
|
|
322,813 |
|
|
Goodwill |
|
148,047 |
|
|
|
148,047 |
|
|
Acquired intangible assets, net |
|
14,298 |
|
|
|
19,564 |
|
|
Operating lease right-of-use assets |
|
141,820 |
|
|
|
138,556 |
|
|
Deferred contract acquisition costs, noncurrent |
|
137,527 |
|
|
|
133,236 |
|
|
Restricted cash |
|
1,838 |
|
|
|
1,838 |
|
|
Other noncurrent assets |
|
12,506 |
|
|
|
12,636 |
|
|
Total assets |
$ |
2,801,630 |
|
|
$ |
2,759,767 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable |
$ |
47,832 |
|
|
$ |
53,727 |
|
|
Accrued expenses and other current liabilities |
|
68,412 |
|
|
|
63,597 |
|
|
Accrued compensation |
|
62,299 |
|
|
|
63,801 |
|
|
Operating lease liabilities |
|
39,273 |
|
|
|
38,351 |
|
|
Deferred revenue |
|
356,243 |
|
|
|
347,608 |
|
|
Total current liabilities |
|
574,059 |
|
|
|
567,084 |
|
|
Convertible senior notes, net |
|
1,284,352 |
|
|
|
1,283,362 |
|
|
Operating lease liabilities, noncurrent |
|
113,017 |
|
|
|
113,490 |
|
|
Deferred revenue, noncurrent |
|
17,645 |
|
|
|
17,244 |
|
|
Other noncurrent liabilities |
|
15,333 |
|
|
|
15,540 |
|
|
Total liabilities |
|
2,004,406 |
|
|
|
1,996,720 |
|
|
Stockholders’ Equity |
|
|
|
||||
|
Class A common stock; $0.001 par value; 2,250,000 shares authorized as of March 31, 2024 and December 31, 2023; 301,023 and 298,089 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively |
|
300 |
|
|
|
297 |
|
|
Class B common stock; $0.001 par value; 315,000 shares authorized as of March 31, 2024 and December 31, 2023; 38,710 and 39,443 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively |
|
39 |
|
|
|
40 |
|
|
Additional paid-in capital |
|
1,857,168 |
|
|
|
1,784,566 |
|
|
Accumulated deficit |
|
(1,059,383 |
) |
|
|
(1,023,840 |
) |
|
Accumulated other comprehensive income (loss) |
|
(900 |
) |
|
|
1,984 |
|
|
Total stockholders’ equity |
|
797,224 |
|
|
|
763,047 |
|
|
Total liabilities and stockholders’ equity |
$ |
2,801,630 |
|
|
$ |
2,759,767 |
|
|
CLOUDFLARE, INC. |
|||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
|
(in thousands) |
|||||||
|
(unaudited) |
|||||||
|
|
Three Months Ended March 31, |
||||||
|
|
2024 |
|
2023 |
||||
|
Cash Flows from Operating Activities |
|
|
|
||||
|
Net loss |
$ |
(35,543 |
) |
|
$ |
(38,082 |
) |
|
Adjustments to reconcile net loss to cash provided by operating activities: |
|
|
|
||||
|
Depreciation and amortization expense |
|
30,112 |
|
|
|
31,509 |
|
|
Non-cash operating lease costs |
|
11,863 |
|
|
|
11,061 |
|
|
Amortization of deferred contract acquisition costs |
|
18,107 |
|
|
|
14,109 |
|
|
Stock-based compensation expense |
|
69,723 |
|
|
|
57,401 |
|
|
Amortization of debt issuance costs |
|
990 |
|
|
|
1,163 |
|
|
Net accretion of discounts and amortization of premiums on available-for-sale securities |
|
(12,713 |
) |
|
|
(8,228 |
) |
|
Deferred income taxes |
|
(276 |
) |
|
|
(120 |
) |
|
Provision for bad debt |
|
3,223 |
|
|
|
1,576 |
|
|
Other |
|
106 |
|
|
|
(14 |
) |
|
Changes in operating assets and liabilities, net of effect of acquisitions: |
|
|
|
||||
|
Accounts receivable, net |
|
31,862 |
|
|
|
(32,781 |
) |
|
Contract assets |
|
(548 |
) |
|
|
269 |
|
|
Deferred contract acquisition costs |
|
(22,398 |
) |
|
|
(19,391 |
) |
|
Prepaid expenses and other current assets |
|
(23,022 |
) |
|
|
(8,934 |
) |
|
Other noncurrent assets |
|
760 |
|
|
|
(811 |
) |
|
Accounts payable |
|
3,073 |
|
|
|
11,634 |
|
|
Accrued expenses and other current liabilities |
|
3,838 |
|
|
|
650 |
|
|
Operating lease liabilities |
|
(14,678 |
) |
|
|
(6,908 |
) |
|
Deferred revenue |
|
9,036 |
|
|
|
21,881 |
|
|
Other noncurrent liabilities |
|
64 |
|
|
|
430 |
|
|
Net cash provided by operating activities |
|
73,579 |
|
|
|
36,414 |
|
|
Cash Flows from Investing Activities |
|
|
|
||||
|
Purchases of property and equipment |
|
(32,056 |
) |
|
|
(17,541 |
) |
|
Capitalized internal-use software |
|
(5,916 |
) |
|
|
(4,970 |
) |
|
Purchases of available-for-sale securities |
|
(298,995 |
) |
|
|
(476,206 |
) |
|
Sales of available-for-sale securities |
|
— |
|
|
|
20,248 |
|
|
Maturities of available-for-sale securities |
|
433,903 |
|
|
|
493,988 |
|
|
Other investing activities |
|
14 |
|
|
|
48 |
|
|
Net cash provided by investing activities |
|
96,950 |
|
|
|
15,567 |
|
|
Cash Flows from Financing Activities |
|
|
|
||||
|
Proceeds from the exercise of stock options |
|
4,422 |
|
|
|
3,305 |
|
|
Payment of tax withholding obligation on RSU settlement |
|
(4,401 |
) |
|
|
(2,058 |
) |
|
Net cash provided by financing activities |
|
21 |
|
|
|
1,247 |
|
|
Net increase in cash, cash equivalents, and restricted cash |
|
170,550 |
|
|
|
53,228 |
|
|
Cash, cash equivalents, and restricted cash, beginning of period |
|
91,224 |
|
|
|
215,204 |
|
|
Cash, cash equivalents, and restricted cash, end of period |
$ |
261,774 |
|
|
$ |
268,432 |
|
|
CLOUDFLARE, INC. |
|||||||
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
|||||||
|
(in thousands, except per share amounts) |
|||||||
|
(unaudited) |
|||||||
|
|
Three Months Ended |
||||||
|
|
2024 |
|
2023 |
||||
|
Reconciliation of cost of revenue: |
|
|
|
||||
|
GAAP cost of revenue |
$ |
85,038 |
|
|
$ |
70,432 |
|
|
Less: Stock-based compensation and related employer payroll taxes |
|
(2,822 |
) |
|
|
(1,803 |
) |
|
Less: Amortization of acquired intangible assets |
|
(4,691 |
) |
|
|
(4,311 |
) |
|
Non-GAAP cost of revenue |
$ |
77,525 |
|
|
$ |
64,318 |
|
|
Reconciliation of gross profit: |
|
|
|
||||
|
GAAP gross profit |
$ |
293,564 |
|
|
$ |
219,743 |
|
|
Add: Stock-based compensation and related employer payroll taxes |
|
2,822 |
|
|
|
1,803 |
|
|
Add: Amortization of acquired intangible assets |
|
4,691 |
|
|
|
4,311 |
|
|
Non-GAAP gross profit |
$ |
301,077 |
|
|
$ |
225,857 |
|
|
GAAP gross margin |
|
77.5 |
% |
|
|
75.7 |
% |
|
Non-GAAP gross margin |
|
79.5 |
% |
|
|
77.8 |
% |
|
Reconciliation of operating expenses: |
|
|
|
||||
|
GAAP sales and marketing |
$ |
194,102 |
|
|
$ |
137,001 |
|
|
Less: Stock-based compensation and related employer payroll taxes |
|
(21,775 |
) |
|
|
(15,868 |
) |
|
Less: Amortization of acquired intangible assets |
|
(575 |
) |
|
|
(576 |
) |
|
Less: One-time compensation charge |
|
(15,000 |
) |
|
|
— |
|
|
Non-GAAP sales and marketing |
$ |
156,752 |
|
|
$ |
120,557 |
|
|
GAAP research and development |
$ |
87,703 |
|
|
$ |
81,539 |
|
|
Less: Stock-based compensation and related employer payroll taxes |
|
(28,980 |
) |
|
|
(30,216 |
) |
|
Non-GAAP research and development |
$ |
58,723 |
|
|
$ |
51,323 |
|
|
GAAP general and administrative |
$ |
66,309 |
|
|
$ |
48,475 |
|
|
Less: Stock-based compensation and related employer payroll taxes |
|
(23,150 |
) |
|
|
(13,863 |
) |
|
Non-GAAP general and administrative |
$ |
43,159 |
|
|
$ |
34,612 |
|
|
Reconciliation of income (loss) from operations: |
|
|
|
||||
|
GAAP loss from operations |
$ |
(54,550 |
) |
|
$ |
(47,272 |
) |
|
Add: Stock-based compensation and related employer payroll taxes |
|
76,727 |
|
|
|
61,750 |
|
|
Add: Amortization of acquired intangible assets |
|
5,266 |
|
|
|
4,887 |
|
|
Add: One-time compensation charge |
|
15,000 |
|
|
|
— |
|
|
Non-GAAP income from operations |
$ |
42,443 |
|
|
$ |
19,365 |
|
|
GAAP operating margin |
|
(14.4 |
)% |
|
|
(16.3 |
)% |
|
Non-GAAP operating margin |
|
11.2 |
% |
|
|
6.7 |
% |
|
CLOUDFLARE, INC. |
|||||||
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
|||||||
|
(in thousands, except per share amounts) |
|||||||
|
(unaudited) |
|||||||
|
|
Three Months Ended |
||||||
|
|
2024 |
|
2023 |
||||
|
Reconciliation of interest expense: |
|
|
|
||||
|
GAAP interest expense |
$ |
(1,100 |
) |
|
$ |
(2,126 |
) |
|
Add: Amortization of debt issuance costs |
|
990 |
|
|
|
1,163 |
|
|
Non-GAAP interest expense |
$ |
(110 |
) |
|
$ |
(963 |
) |
|
Reconciliation of provision for income taxes: |
|
|
|
||||
|
GAAP provision for income taxes |
$ |
2,269 |
|
|
$ |
1,314 |
|
|
Income tax effect of non-GAAP adjustments |
|
4,290 |
|
|
|
2,537 |
|
|
Non-GAAP provision for income taxes |
$ |
6,559 |
|
|
$ |
3,851 |
|
|
Reconciliation of net income (loss) and net income (loss) per share: |
|
|
|
||||
|
GAAP net loss attributable to common stockholders |
$ |
(35,543 |
) |
|
$ |
(38,082 |
) |
|
Add: Stock-based compensation and related employer payroll taxes |
|
76,727 |
|
|
|
61,750 |
|
|
Add: Amortization of acquired intangible assets |
|
5,266 |
|
|
|
4,887 |
|
|
Add: One-time compensation charge |
|
15,000 |
|
|
|
— |
|
|
Add: Amortization of debt issuance costs |
|
990 |
|
|
|
1,163 |
|
|
Income tax effect of non-GAAP adjustments |
|
(4,290 |
) |
|
|
(2,537 |
) |
|
Non-GAAP net income |
$ |
58,150 |
|
|
$ |
27,181 |
|
|
|
|
|
|
||||
|
GAAP net loss per share, basic |
$ |
(0.10 |
) |
|
$ |
(0.12 |
) |
|
|
|
|
|
||||
|
GAAP net loss per share, diluted |
$ |
(0.10 |
) |
|
$ |
(0.12 |
) |
|
Add: Stock-based compensation and related employer payroll taxes |
|
0.23 |
|
|
|
0.19 |
|
|
Add: Amortization of acquired intangible assets |
|
0.02 |
|
|
|
0.01 |
|
|
Add: One-time compensation charge |
|
0.04 |
|
|
|
— |
|
|
Add: Amortization of debt issuance costs |
|
— |
|
|
|
— |
|
|
Income tax effect of non-GAAP adjustment |
|
(0.01 |
) |
|
|
(0.01 |
) |
|
Effect of dilutive shares |
|
(0.02 |
) |
|
|
0.01 |
|
|
Non-GAAP net income per share, diluted(1)(2) |
$ |
0.16 |
|
|
$ |
0.08 |
|
|
|
|
|
|
||||
|
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic |
|
338,583 |
|
|
|
330,389 |
|
|
Weighted-average shares used in computing non-GAAP net income per share attributable to common stockholders, diluted(2) |
|
356,206 |
|
|
|
342,005 |
|
|
____________ |
|
(1) Totals may not sum due to rounding. Figures are calculated based upon the respective underlying non-rounded data. |
|
(2) For the period in which we had non-GAAP net income, diluted non-GAAP net income per share is calculated using weighted-average shares, adjusted for dilutive potential shares that were assumed outstanding during period. |
|
CLOUDFLARE, INC. |
|||||||
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
|||||||
|
(in thousands, except per share amounts) |
|||||||
|
(unaudited) |
|||||||
|
|
Three Months Ended |
||||||
|
2024 |
|
2023 |
|||||
|
Free cash flow |
|
|
|
||||
|
Net cash provided by operating activities |
$ |
73,579 |
|
|
$ |
36,414 |
|
|
Less: Purchases of property and equipment |
|
(32,056 |
) |
|
|
(17,541 |
) |
|
Less: Capitalized internal-use software |
|
(5,916 |
) |
|
|
(4,970 |
) |
|
Free cash flow |
$ |
35,607 |
|
|
$ |
13,903 |
|
|
Net cash provided by investing activities |
$ |
96,950 |
|
|
$ |
15,567 |
|
|
Net cash provided by financing activities |
$ |
21 |
|
|
$ |
1,247 |
|
|
Net cash provided by operating activities (percentage of revenue) |
|
19 |
% |
|
|
13 |
% |
|
Less: Purchases of property and equipment (percentage of revenue) |
|
(8 |
)% |
|
|
(6 |
)% |
|
Less: Capitalized internal-use software (percentage of revenue) |
|
(2 |
)% |
|
|
(2 |
)% |
|
Free cash flow margin(1) |
|
9 |
% |
|
|
5 |
% |
|
____________ |
|
(1) Totals may not sum due to rounding. Figures are calculated based upon the respective underlying non-rounded data. |
Explanation of Non-GAAP Financial Measures
In addition to our results determined in accordance with generally accepted accounting principles in the United States (U.
Contacts
Investor Relations Information
Phil Winslow
[email protected]
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Daniella Vallurupalli
[email protected]
