Cloudflare, a connectivity cloud company, has revealed its financial results and main achievements for its second quarter ended June 30, 2024.
Cloudflare has reported revenue of $401 million (up 30 percent) with net loss of $15.1 million during the second-quarter.
Cloudflare has 210,166 (up 21 percent) paying customers. Cloudflare’s paying customers have contributed $3,046 million in annualized revenue. Cloudflare’s paying customers are customers with billing of $100,000 and more.
Cloudflare has added 168 new large customers (those that pay more than $100,000 per year). Cloudflare has 3,046 large customers (up 30 percent). Cloudflare says revenue contribution from large customers during the quarter remained consistent at 67 percent, up from 64 percent in the second quarter last year.
The U.S. represented 51 percent of revenue and increased 28 percent. EMEA represented 28 percent of revenue and increased 32 percent. Asia Pacific represented 13 percent of revenue and increased 29 percent.
Cloudflare has generated sales revenue of $207.008 million from the US, $110.968 million from the Middle East and Africa (EMEA), $52.126 million from Asia Pacific, and $30.894 million from other regions.
Cloudflare has generated sales revenue of $76.686 million from channel partners and $324.310 million from direct customers.
Cloudflare says it delivered another double-digit improvement in sales productivity. In addition, close rates and sales cycles both also improved.
Cloudflare expects revenue of $423 million – $424 million for the third quarter of fiscal 2024. Cloudflare expects revenue of $1,657 million – $1,659 million in 2024.
“We had a strong second quarter, crossing $1.6 billion in annualized revenue and growing 30 percent year-over-year. Our team remained focused on execution and delivered terrific results, including a double-digit improvement in sales productivity,” said Matthew Prince, co-founder and CEO of Cloudflare.
San Francisco, California-based Cloudflare sells content delivery network (CDN) services helping companies manage their applications on the internet.
Customer wins
Cloudflare has announced several major customer wins, showcasing how its services are enhancing client efficiency and expanding their capabilities.
Leading Australian Technology Company:
Contract: $17.5 million over two years, including $7.2 million for expansion.
Usage: From a free customer in 2016 to using nearly all Cloudflare products today.
Expected Traffic: Over 180 petabytes and 3.9 trillion requests per month.
Second Leading Australian Technology Company:
Contract: $2.6 million over three years for 18,000 seats.
Products: Gateway, access, browser isolation, CASB, DLP, and Workers’ development platform.
Reason for Selection: Superior technical solutions, network performance, and future roadmap.
Top U.S. University:
Contract: $5.7 million over five years.
Focus: Full deployment of Cloudflare’s SASE platform for 20,000 seats.
Objective: Modernize and scale global network, replace legacy vendors with a unified cloud-first platform.
Global Research and Development Organization:
Contract: $846,000 over two years.
Products: Cloudflare’s SASE portfolio for 3,500 seats, advanced application security bundle.
Selection Criteria: Network performance, ease of use, unified platform.
Fortune 500 Financial Services Company:
Contract: $895,000 for one year.
Products: Magic Transit and Magic Firewall.
Need: Addressing security vulnerabilities from incumbent on-premise vendors.
Fortune 500 Gaming Company:
Contract: $3 million over two years.
Focus: Advanced application security, performance, and R2 storage.
Reason for Migration: Superior network performance and unified platform.
Leading AI Company:
Contract: $500,000 for one year.
Usage: Platform for AI inference, storage, image optimization, and application security.
Cost Improvement: 40 percent savings with Workers AI.
Leading Technology Company:
Contract: $4.8 million over two years.
Focus: Enterprise and FedRAMP product lines.
Usage: Cloudflare Workers for dynamic traffic routing and reliability optimization.
Platform Growth and AI Advancements
Cloudflare Workers have more than 2.4 million active developers, a 20 percent increase in the last four months.
AI Infrastructure: Inference-tuned GPUs in 167 cities worldwide, with a 700 percent increase in inference requests quarter over quarter.
Developer Preference: Growing reliance on Cloudflare for fast, global, and regulation-compliant AI tasks.
These new and expanded contracts highlight Cloudflare’s growing influence and the trust placed in its comprehensive suite of solutions by leading organizations worldwide.
Baburajan Kizhakedath
