Cloudflare reveals revenue and client details ahead of IPO

Cloudflare, which is preparing for an initial public offering (IPO), had a $36.8 million (+13 percent) net loss on $129.2 million (+48 percent) in revenue in the first half of 2019, as per the IPO prospectus.

The company plans to start trading under the ticker symbol NET. The lead underwriters are Goldman Sachs, Morgan Stanley and JP Morgan.

Cloudflare’s investors include Fidelity, NEA and Pelion Ventures and Venrock.

Matthew Prince, Cloudflare’s CEO, owns more than 20 percent of the company’s class B shares.

Cloudflare’s rivals include Cisco, Zscaler, content-delivery network provider Akamai and cloud providers like Amazon and Microsoft. The San Francisco-based company says 20 million internet properties use its services, CNBC reported.

The company had 74,873 paying customers at the end of the first half of 2019, with 408 of them contributing more than $100,000 in annualized billings. The company’s clients include cloud infrastructure providers like DigitalOcean and IBM, along with software companies like Discord, Marketo and Zendesk.

Chinese web company Baidu is a customer, and it provides Cloudflare with a network presence in China. Terms of Cloudflare’s deal with Baidu conclude at the end of 2020, but it can be terminated at the end of 2019 under certain circumstances.

“The risk of such an early termination event may have increased during the current environment of economic trade negotiations and tensions between the Chinese and U.S. governments,” Cloudflare says in the prospectus.

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