Cloudflare Q4 2024 Results Show Strong Revenue Growth

Cloudflare Q4 2024 results reveal impressive revenue growth. Revenue surged by 27% year over year, fueled by new large customer additions and increased market demand.

Date: 07-02-2025

AI Rating: 8

Key Financial Metrics:
This report indicates Cloudflare's strong performance in the fourth quarter of 2024. The company's total revenue increased by 27% year over year to $459.9 million, which is indicative of solid revenue growth. Notably, the revenue contribution from large customers also grew, representing 69% of total revenue, up from 66% in the prior year. The report mentions an operating profit of $67.2 million, resulting in an operating margin of 14.6%, which demonstrates improvement in profit margins. Importantly, the company achieved free cash flow of $47.8 million during the quarter, contributing to a total of $166.9 million for the full year. This strong free cash flow generation underlines Cloudflare's operational efficiency. The dollar-based net retention improved to 111%, suggesting that existing customers are spending more over time.

As Cloudflare transforms its go-to-market strategies, there's been a notable uptick in sales productivity. The report highlights that large customer wins and contracts have positively impacted revenue growth, with a significant record in new large clients signed. The improved sales cycle and close rates are expected to pave the way for further momentum in the upcoming quarters, especially as sales capacity increases.

Overall, Cloudflare's outlook for 2025 appears promising, driven by the confidence garnered from their quarterly performance, which may have a favorable effect on stock prices as they continue to grow.

Stocks: NET