Cloudflare (NET) Q2 FY25 earnings call

Earnings call· Jun 2025 (Q2 FY25)· Information Technology· Jul 31, 2025

Source: earnings call transcript

Cloudflare delivered reaccelerated revenue growth in Q2 FY25, driven by strong enterprise momentum, particularly with large customers, and record ACV bookings. The company is strategically positioning itself for the "Agentic Web" and AI-driven content monetization, which it internally refers to as "Act 4," while continuing to innovate across its core product lines and enhance its go-to-market strategy.

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NET operating KPIs by quarter

NET operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	This call Jun 2025 Q2 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
Customers above an annual spend threshold Paying >$100,000 per year	3,497 During the quarter, we added a record number of new large customers those that pay us more than $100,000 per year, and now have 3,497 large customers, also up 27% year-over-year. Source: earnings call transcript	3,712 We now have 3,712 customers paying us more than $100,000 per year, a 22% increase year-over-year. Source: earnings call transcript	4,009 We now have 4,009 large customers, those that pay us more than $100,000 per year, a 23% increase year-over-year. Source: earnings call transcript	4,298 We now have 4,298 customers paying us more than $100,000 per year, up 23% year-over-year. Source: earnings call transcript	4,416 We now have 4,416 customers paying us more than $100,000 per year, a 25% increase year-over-year. Source: earnings call transcript	4,698 We now have 4,698 customers paying us more than $100,000 per year, a 27% increase year-over-year. Source: earnings call transcript	+6.4%
Net revenue retention rate	111% Our dollar-based net retention ticked up 1 percentage point quarter-over-quarter to 111%. Source: earnings call transcript	114% Our dollar-based net retention was 114%, up 3% quarter-over-quarter. Source: earnings call transcript	119% Our dollar-based net retention was 119%, up 5 percentage points quarter-over-quarter. Source: earnings call transcript	120% Our dollar-based net retention was 120%, up 1% quarter-over-quarter and 9% year-over-year. Source: earnings call transcript	118% Our dollar-based net retention was 118%, down 2% quarter-over-quarter and up 7% year-over-year. Source: earnings call transcript	120% Our dollar-based net retention was 120%, up 2% quarter-over-quarter and up 6% year-over-year. Source: earnings call transcript	+2 pt
Customers	~237.7K In the fourth quarter, we had approximately 237,700 paying customers, representing a record addition of nearly 48,000 paying customers in 2024 and an increase of 25% year-over-year. Source: earnings call transcript	~266K In the second quarter, we had approximately 266,000 paying customers, representing an addition of over 15,000 paying customers sequentially and an increase of 27% year-over-year. Source: earnings call transcript	~296K In the third quarter, we had approximately 296,000 paying customers, representing a record net addition of nearly 30,000 paying customers sequentially and an increase of 33% year-over-year, driven by an uptick in customers, including those graduating from the free tier to small paid accounts for developer platform products around our AI Week and birthday week. Source: earnings call transcript	~332K In the fourth quarter, we had approximately 332,000 paying customers, representing a record addition of nearly 37,000 paying customers sequentially and an increase of 40% year-over-year, driven again by an uptick in customers, including those graduating from the free tier to small paid accounts, particularly for our developer platform products. Source: earnings call transcript	—	—	—
Employees	~4,300 Our total number of employees increased 16% year-over-year, bringing our total headcount to about 4,300 at the end of the quarter. Source: earnings call transcript	4,600+ Our total number of employees increased 18% year-over-year, bringing our total headcount to more than 4,600 at the end of the quarter. Source: earnings call transcript	~4,800 Our total number of employees increased 16% year-over-year, bringing our total headcount to roughly 4,800 at the end of the quarter. Source: earnings call transcript	~5,200 Our total number of employees increased 21% year-over-year, bringing our total headcount to approximately 5,200 at the end of the quarter. Source: earnings call transcript	~5,500 Our total headcount ended the quarter at approximately 5,500. Source: earnings call transcript	4,700 Our total head count ended the quarter at 4,700. Source: earnings call transcript	—
Remaining performance obligation (RPO)	$1.687B Remaining performance obligations, or RPO, came in at $1.687 billion, representing an increase of 12% sequentially and 36% year-over-year. Source: earnings call transcript	$1.977B Remaining performance obligations, or RPO, came in at $1.977 billion, representing an increase of 6% sequentially and 39% year-over-year. Source: earnings call transcript	$2.143B Remaining performance obligations, or RPO, came in at $2.143 billion, representing an increase of 8% sequentially and 43% year-over-year. Source: earnings call transcript	$2.496B Remaining performance obligations, or RPO, came in at $2.496 billion, representing an increase of 16% sequentially and 48% year-over-year. Source: earnings call transcript	$2.543B Remaining performance obligations, or RPO, came in at $2.543 billion, representing an increase of 2% sequentially and 36% year-over-year. Source: earnings call transcript	$2.732B Remaining performance obligations, or RPO, came in at $2.732 billion, representing an increase of 7% sequentially and 38% year-over-year. Source: earnings call transcript	+7.4%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

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