Q3 2025 Cloudflare Inc Earnings Call Transcript

Oct 30, 2025 / 09:00 PM GMT

Transcript 10-Q8-K

Key Points

Positve

Cloudflare Inc (NET) achieved a revenue of $562 million, marking a 30.7% year-over-year increase.
The company reported a 23% increase in large customers, with revenue contribution from these customers growing 42% year-over-year.
Cloudflare Inc (NET) delivered an operating profit of $85.9 million, representing an operating margin of 15.3%.
The company's dollar-based net retention rate improved to 119%, up 5 percentage points quarter-over-quarter.
Cloudflare Inc (NET) generated strong free cash flows of $75 million during the quarter, exceeding expectations.

Negative

The departure of a key executive, CJ Desai, who is leaving to become CEO of another technology company, could impact leadership continuity.
Gross margin decreased by 100 basis points sequentially and 350 basis points year-over-year, indicating potential cost pressures.
Despite strong revenue growth, the company faces challenges in maintaining high gross margins for newer products like Workers.
The transition from a product-led growth model to an enterprise sales model may introduce complexities and require adjustments.
There is a risk of increased competition from hyperscalers in the AI inference workload space, which could impact market share.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

NET.N - Cloudflare Inc
Q3 2025 Cloudflare Inc Earnings Call
Oct 30, 2025 / 09:00PM GMT

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