Large customer cohorts (>$1M and >$5M spend) delivered record growth in the quarter.
Pool-of-funds deals now represent low double digits of total ACV; consumption is balanced and slightly ahead on average.
Dollar-based net retention is ticking back up after initial downward pressure from pool-of-funds rollout.
Mgmt stance: Bullish — management attributes acceleration to enterprise sales transformation, platform expansion, and successful pool-of-funds deployment.
Q2 — Adam Borg
Topic: Sales productivity gains and Oracle OCI integration
Key points:
Sales productivity expected to continue ticking up in coming quarters; ramped rep capacity also started ticking up last quarter.
Cloudflare will be natively available within Oracle OCI, covering hybrid, multi-cloud, and OCI-hosted workloads.
Integration provides Oracle customers access to Cloudflare’s security and network performance tools.
Mgmt stance: Bullish — sees further headroom in sales productivity and views Oracle partnership as a strategic multi-cloud alignment.
Q3 — Gabriela Borges
Topic: Capacity constraints in Workers, CapEx philosophy, and AI inference competition
Key points:
Cloudflare is not capacity constrained; it invests behind demand, not ahead, using a global scheduler to move workloads.
CPU utilization runs at 70%–80%; GPU utilization is below that but expected to reach similar levels.
Supply chain uses off-the-shelf equipment; hardware can be deployed in Tier 1 cities and generate revenue before payment is due.
Primary competition for inference workloads remains hyperscalers; Cloudflare offers better TCO and lower cost.
Mgmt stance: Bullish — confident in flexible CapEx model and ability to drive GPU utilization higher, with sticky customer relationships.
Q4 — Shaul Eyal
Topic: NET Dollar regulatory framework, AI gatekeeper, and agent-to-agent payments
Key points:
NET Dollar is designed for agent-to-agent commerce; Cloudflare is unlikely to do it entirely alone due to regulatory considerations.
Partnerships include Coinbase (X402), Visa, Mastercard, American Express for agent-to-agent payments.
AI gatekeeper (for media companies) is seeing strong engagement; deals with AI companies have “gotten markedly better.”
Interest extends beyond media to banks (research departments) and brands.
Mgmt stance: Bullish — approaching NET Dollar thoughtfully with regulatory awareness; sees Cloudflare as a neutral facilitator for multiple payment and agentic protocols.
Q5 — Fatima Boolani
Topic: AI native exposure, concentration risk, and edge inference differentiation
Key points:
AI inference is a “de minimis” portion of overall revenue; no customer exceeds 2% of revenue.
About 80% of AI companies use Cloudflare, often initially for security products (e.g., fraud prevention) rather than inference.
Cloudflare’s edge network provides latency advantages for real-time AI interactions (e.g., voice); lower cost due to high utilization.
Cloudflare is the only network offering global inference capability today.
Mgmt stance: Bullish — sees no concentration risk, strong cross-sell from security to inference, and unique architectural advantage for edge AI.