Cloudflare (NYSE: NET) Earnings Live: What You Need to Follow

As we noted in our last update, Workers is the key to Cloudflare’s AI story, so its worth zeroing in on some quotes on their conference call around Workers growth rates.

Such as:

“The number of Cloudflare Workers AI inference requests powered by our network are up nearly 4000% year over year.”

And

“The number of requests running through our AI gateway up more than 1200% year over year.”

As inference (the actual running of AI models) grows, Cloudflare is well-positioned to become the next “AI story stock.”

Cloudflare’s Workers platform, which is pivotal to their AI growth story, was responsible for their largest customer ever:

“This quarter, we achieved a number of milestones. We landed the largest contract in Cloudflare’s history, a milestone deal of more than $100,000,000 driven by our Workers Developer platform. We closed the longest duration contract in Cloudflare’s history for Zero Trust.”

And

“A leading technology company signed a five year $130,000,000 pool of funds contract primarily for our workers developer platform. This marks the largest deal in Cloudflare’s history. This existing customer significantly expanded their relationship with Cloudflare. They chose workers, durable objects, containers, and our real time products. The customer was well down the line with a traditional hyperscaler but made the decision to switch to Cloudflare when they saw our better performance lower development costs, and more modern platform. In the words of this customer, quote, the scale and performance of Cloudflare’s network and its proximity to our user base was the most powerful driver to doing more with Cloudflare.”

We believe this information likely caused Cloudflare’s large stock move during its conference call. Winning a contract of this size against hyperscalers is massive news.

We’ll dive into the details more later, but Cloudflare just saw a massive move during its earnings call. Shares are now up nearly 12% after-hours.

Shortly before Cloudflare’s conference call, the stock is up about 5%.

If you want to keep following along, here are a couple helpful resources.

• First, a link to Cloudflare’s Q1 investor presentation that highlights their most important financial metrics.
• Second, a link to the company’s conference call (requires Q4 registration).

Cloudflare beat revenue expectations for the next quarter, at $479.1 million (versus expectations of $469.7 million). That’s up 27% from last year. Earnings were largely in line last quarter.

Guidance for the fiscal year was somewhat muted, with a midpoint of $2.092 billion. That’s very close to Wall Street’s expectations of $2.09 billion in fiscal 2025.

So why is Cloudflare up 5% after-hours?

It’s a good question, seeing as how another very expensive stock (Palantir) sank after beating soundly on the prior quarter and guidance. Cloudflare has merely met (rather than beat) Wall Street’s targets and its stock is surging.

One reason may be that Cloudflare is trumpeting the strength and size of new deals.

We’ll continue following along these earnings, but for now, Cloudflare is up despite guidance that didn’t significantly top Wall Street’s expectations for the year.

Cloudflare Inc. reported its financial results for the first quarter of 2025, showing a increase in revenue and operational performance. The company achieved a total revenue of $479.1 million, marking a 27% year-over-year growth. Despite a GAAP net loss of $38.5 million, the company reported a non-GAAP net income of $58.4 million.

The GAAP loss from operations was $53.2 million, an improvement from the $54.6 million loss in the same quarter of the previous year. Cloudflare’s net cash flow from operating activities more than doubled to $145.8 million, indicating strong cash generation. The company also secured the largest contract in its history, valued at over $100 million, highlighting its strategic growth in the cloud services sector. Looking ahead, Cloudflare projects its second quarter revenue to be between $500 million and $501 million, with a non-GAAP net income per share of $0.18. For the full fiscal year 2025, the company anticipates revenue between $2.09 billion and $2.094 billion, with a non-GAAP net income per share of $0.79 to $0.80.

Cloudflare’s top brass sold tens of millions in stock between February and April:

• Matthew Prince (CEO):
  • Sold 157,152 shares in March
  • Value: $18.2M
  • Price: $112–$118

• Michelle Zatlyn (Co-Chair):
  • Sold >130K shares across multiple dates
  • Total value: $16M+

• Thomas Seifert (CFO):
  • Multiple $1M–$2M disposals

Key risks:

• AI product revenue may not show up strongly yet

• CapEx could pressure gross margins more than expected

• Large customer growth might be slowing after a big 2024

• Current Price: $124.13 (+1.99%)

• Consensus Price Target: $139.01

• Implied Upside: 12%

Cloudflare’s ~15x forward revenue multiple reflects high conviction in Workers AI, Zero Trust, and developer adoption. Bulls are watching enterprise usage trends and large-customer net adds. But with CapEx rising, tonight’s report must prove AI is driving profitable growth — not just headlines.

Traders are betting on strong AI-driven enterprise growth and large customer momentum to show up in Q1 results.

“We’re building the Tesla of the internet,” CEO Matthew Prince told investors last quarter — a bold metaphor for a company trying to win on performance, developer mindshare, and enterprise scale.

The engine? A mix of Zero Trust security, AI inference at the edge, and developer tools. Cloudflare’s Workers AI product, deployed on its global GPU network, is already serving inference requests at the edge — and enterprise clients are starting to notice.

President Michelle Zatlyn also highlighted that NET now has over 3 million developers on its platform, with growth across $1M+ customers at record levels. If usage-based expansion shows up in Q1, it may signal early traction in high-value AI workloads.

Cloudflare continues to grow above 25% annually, but margin expansion is now a key pillar of the bull case. With Workers AI and new security wins, Q1 sets the tone for 2025.

Recent quarter rundown:

• Q1 2025 (Est.): $379M revenue | $0.13 EPS

• Q4 2024: $370.5M revenue | $0.12 EPS

• Q3 2024: $355.2M revenue | $0.11 EPS

• Q2 2024: $336.7M revenue | $0.10 EPS

FY 2024 revenue totaled $1.67B. FY 2025 guidance is $2.09B–$2.10B — modest acceleration required, and large customer adds are the key lever.

Cloudflare’s business is diversified across three core pillars:

• Network Services (CDN, DNS, DDoS protection)

• Zero Trust Security (SASE, gateway, identity access)

• Developer Platform (Workers, Workers AI, R2, Queues)

The biggest growth lever this year is AI inference at the edge, powered by the company’s global infrastructure and GPU rollouts. Early traction from Workers AI and LLM partnerships is promising, especially with rising enterprise interest in decentralized AI workloads.

Cloudflare is also seeing strong expansion in its $1M+ customer cohort, up 55 logos YoY, which supports higher-margin, platform-wide adoption.

Cloudflare heads into Q1 earnings with analysts zeroed in on one question: are AI products driving real incremental growth yet? Investors want to see early revenue impact from Workers AI, inference partnerships, and edge-scale infrastructure upgrades.

Enterprise momentum is another core narrative. NET added 55 $1M+ customers last year, and continued large-deal growth is essential for sustaining its 25%+ annual revenue pace. Operating leverage is also under watch, with analysts looking for signs that rising CapEx won’t eat into gross margin expansion.

Street consensus sits at $379 million in revenue and $0.13 EPS, with bullish sentiment riding on AI-driven upside and sales productivity gains.