🏢 Company overview
- Founded in 2009 in San Francisco
- Global network in 300+ cities
- Focus: Internet infrastructure & cybersecurity
🙋 Personal reference
I use Cloudflare myself - for faster loading times, DDoS protection and blocking unwanted AI crawlers. It's stable, secure and efficient.
🧰 What does Cloudflare offer?
1. CDN (Content Delivery Network)
📦 Faster loading times for websites worldwide
2. DDoS protection
🛡️ Automatic defense against botnets & attacks
3. zero trust security
🔐 No access without verification - ideal for companies with remote teams
4. cloudflare workers
🧠 Serverless computing directly at the edge → fast, scalable, affordable
5. R2 & D1
📁 R2 = S3-compatible object storage without exit fees
🧮 D1 = serverless SQL database
6 Magic Transit / Magic WAN
🌐 Network infrastructure & routing for large companies
7. bot management & web application firewall (WAF)
🤖 Protects web applications from malicious access
8. recently: pay-per-crawl (July 2025)
💰 Websites decide for themselves whether and at what price AI crawlers are allowed to use content
📈 Growth & cash flow
- Turnover growth (TTM): +27.8%
- 2-year growth: +30.8 %
- Free cash flow margin: 11%
- Operating cash flow: doubled to USD 145.8 million
- ACV Q1 2025: largest new customer contract (USD 130 million)
💪 Efficiency
- Rule of 40: ~43 % (28 % sales growth + 15 % EBITDA margin)
- Magic number: ~1.1 ✅
- Net retention rate: ~115% → Existing customers spend more in the following year
🧱 Investments instead of profit maximization
Cloudflare could have been profitable for a long time, but has made a conscious decision to invest in its own growth. In 2025, for example, another bond was issued to drive forward new infrastructure and products such as "pay-per-crawl".
💡 Clear message: the focus is on scaling instead of short-term margin optimization.
📊 Valuation & risks
- EV/FCF: ~32×
- Not yet consistently profitable (no P/E)
- Competition: AWS, Akamai, Fastly, among others
- High expectations in the market - but solid delivery so far
🧠 Conclusion
Cloudflare is for me:
- A real growth stock with tech quality
- Strong NRR, Rule of 40 fulfilled, innovative product range
- I use the services myself & see the growth potential
- Not a dividend payer - but scalable, efficient and future-oriented
➡️ Buy & Hold.
What do you think - is Cloudflare more tech hype or tech infrastructure with substance for you?
👇 Write it in the comments!
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