Where Will Cloudflare Stock Be in 1 Year?
Cloudflare has expanded from a CDN into a broad connectivity and security platform with accelerating revenue and strong enterprise customers.
But AI-driven layoffs, falling margins, and a $1.3B maturity raise execution and valuation risks investors should monitor.
– Platform expansion: from CDN to 60+ services across 125+ countries with growing enterprise traction.
– Growth: revenue accelerated about 34% year over year in the latest quarter and dollar net retention improved.
– Customer base: roughly 72% of revenue comes from 4,400+ customers spending at least $100k annually.
– Financials: GAAP unprofitable, falling gross margins, high stock-based compensation, and cash plus short-term investments of about $3.3B with a $1.3B maturity this year.
– Management and AI shift: May layoffs were framed as an AI-first efficiency move, creating sales productivity and cultural risks.
– Watchlist: dollar net retention, gross margin trajectory, stock-based comp and FCF conversion, sales productivity after AI changes, and how the company handles near-term maturities.
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