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Jun 30, 2021

Cloudflare Q2 2021 Earnings Report

Cloudflare had its strongest quarter ever as a public company, with revenue growth accelerating and a record number of large customers added.

Key Takeaways

Cloudflare's second quarter revenue totaled $152.4 million, representing an increase of 53% year-over-year. The company also added a record number of large customers, signing the equivalent of more than two six-figure customers every single business day in Q2.

Total revenue reached $152.4 million, a 53% increase year-over-year.

Dollar-based net retention rate hit a record 124%, up 900 basis points year-over-year.

The company added a record of roughly 140 large customers, bringing the total to 1,088.

GAAP gross profit was $117.4 million, with a 77.0% gross margin.

Total Revenue
$152M
Previous year: $99.7M
+52.9%
EPS
-$0.02
Previous year: -$0.03
-33.3%
Gross Margin
77%
Previous year: 75.8%
+1.6%
Gross Profit
$117M
Previous year: $75.6M
+55.4%
Cash and Equivalents
$248M
Previous year: $314M
-21.2%
Free Cash Flow
-$9.78M
Previous year: -$20.2M
-51.5%
Total Assets
$1.45B
Previous year: $1.36B
+6.0%

Cloudflare

Cloudflare

Forward Guidance

For the third quarter of fiscal 2021, Cloudflare expects total revenue of $165.0 to $166.0 million and non-GAAP net loss per share of $0.04 to $0.03. For the full year fiscal 2021, the company expects total revenue of $629 to $633 million and non-GAAP net loss per share of $0.12 to $0.11.

Positive Outlook

  • Total revenue of $165.0 to $166.0 million is expected for Q3 2021.
  • Non-GAAP loss from operations of $9.5 to $8.5 million is expected for Q3 2021.
  • Non-GAAP net loss per share of $0.04 to $0.03 is expected for Q3 2021.
  • Total revenue of $629 to $633 million is expected for the full year fiscal 2021.
  • Non-GAAP net loss per share of $0.12 to $0.11 is expected for the full year fiscal 2021.

Challenges Ahead

  • The forward-looking statements are subject to substantial uncertainty due to the ongoing COVID-19 pandemic.
  • The estimates are based on the impact of the pandemic on operations as of August 5, 2021.
  • The estimates are highly dependent on numerous factors that may not be predictable or controllable.
  • The pandemic's duration, spread, and severity could impact customer demand and spending patterns.
  • Global and regional economies and economic activity generally could be impacted by the pandemic.