Cloudflare Reports Strong Q1 2025 Growth and Record Deals

Cloudflare Inc ( (NET) ) has released its Q1 earnings. Here is a breakdown of the information Cloudflare Inc presented to its investors.

Cloudflare, Inc. is a leading connectivity cloud company that enhances internet security and performance for organizations worldwide. In its first quarter of 2025, Cloudflare reported a significant revenue growth of 27% year-over-year, reaching $479.1 million. Despite a GAAP loss from operations of $53.2 million, the company achieved a non-GAAP income from operations of $56.0 million, highlighting its strong operational performance.

Key financial metrics for the quarter include a gross profit of $363.5 million with a 75.9% gross margin, and a notable increase in net cash flow from operating activities to $145.8 million. The company also secured its largest contract ever, valued at over $100 million, showcasing its robust market presence and strategic growth initiatives.

Cloudflare’s strategic focus on innovation and expanding its customer base is evident from its record growth in net new annual contract value. The company continues to invest in its Workers developer platform and SASE solutions, which have been pivotal in securing long-term contracts and enhancing customer trust.

Looking ahead, Cloudflare projects continued revenue growth, with expectations of reaching up to $501 million in the second quarter of 2025. The company remains optimistic about its ability to capitalize on market opportunities, driven by its technological advancements and strategic partnerships.