- Cloudflare (NET, Financial) reported a 27% year-over-year increase in Q1 2025 revenue, totaling $479.1 million.
- Non-GAAP income from operations was $56.0 million, representing 12% of the total revenue.
- The company signed its largest-ever contract, valued at over $100 million, during this quarter.
Cloudflare, Inc. (NET), a prominent connectivity cloud company, has released its financial results for the first quarter ending March 31, 2025. The company reported a significant revenue growth of 27% year-over-year, reaching $479.1 million. This growth underscores the increasing demand for Cloudflare's innovative solutions in networking, security, and AI sectors.
Despite a GAAP loss from operations amounting to $53.2 million or 11% of total revenue, Cloudflare achieved a non-GAAP income from operations of $56.0 million, translating to approximately 12% of revenue. This reflects an improved non-GAAP operating margin compared to the same quarter in the previous year.
Cloudflare's CEO, Matthew Prince, highlighted the quarter's achievements, notably securing the largest contract in the company's history—exceeding $100 million—powered by the Workers developer platform. Additionally, Cloudflare signed its longest-term SASE contract to date, reinforcing its strong market position and the effectiveness of its innovative strategies.
Looking ahead, Cloudflare projects revenue for Q2 2025 to range between $500.0 million and $501.0 million, with a non-GAAP net income per share anticipated to reach $0.18. The full-year outlook suggests total revenue between $2,090.0 million and $2,094.0 million, further positioning Cloudflare as a leader in the sector.
The company continues to demonstrate robust financial health, supported by $1,914.9 million in cash, cash equivalents, and available-for-sale securities as of the end of Q1 2025. Cloudflare's strategic investments in technology and infrastructure are expected to sustain its growth trajectory and enhance its competitive advantage in the evolving digital landscape.
