Cloudflare Earnings: Big Deals and AI
Here's our initial take on Cloudflare's (NYSE: NET) financial report.
Cloudflare (NYSE: NET) grew revenue by 28% in the second quarter, easily beating analyst expectations. The cloud computing company ended the quarter with 3,712 large customers spending at least $100,000 annually, up 22% year over year. Those larger customers accounted for 71% of total revenue.
One driver of Cloudflare's revenue growth was a bump in the dollar-based net retention rate, which measures how quickly existing customers are expanding spending. This rate rose to 114% in the second quarter, up from 112% during the same period last year. While that's a small increase, it's a sign that customers are increasing their investments in Cloudflare's growing portfolio of products and services. "Demand remains strong, as our largest customers grow their investments with Cloudflare at the highest levels we've seen since 2022," said CEO Matthew Prince in the earnings release.
Source Fool.com
