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Mar 31, 2025
Cloudflare Q1 2025 Earnings Report
Cloudflare reported strong revenue growth and signed its largest contract ever in Q1 2025.
Key Takeaways
Cloudflare posted a robust Q1 2025 with $479.1 million in revenue and its highest net new ACV growth in three years, despite a GAAP net loss.
Revenue grew to $479.1 million, driven by strong enterprise demand.
Signed a $100M+ contract, the largest in company history, fueled by Workers platform.
GAAP net loss widened slightly to $38.5 million, while non-GAAP net income reached $58.4 million.
Free cash flow improved to $52.9 million, reflecting operational efficiency gains.
Forward Guidance
Cloudflare expects continued growth into Q2 2025 and the full fiscal year, supported by strong demand and strategic contract wins.
Positive Outlook
- Q2 revenue expected between $500M and $501M.
- Q2 non-GAAP operating income forecasted at $62.5M to $63.5M.
- Q2 non-GAAP EPS projected at $0.18.
- Full-year revenue outlook raised to $2.090B to $2.094B.
- Non-GAAP net income for the year expected at $0.79 to $0.80 per share.
Challenges Ahead
- Continued GAAP net losses expected.
- Gross margin slightly declined from prior year.
- Stock-based compensation remains a significant expense.
- Increased operating expenses in R&D and G&A.
- Macroeconomic and geopolitical risks remain material concerns.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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