Cloudflare Investor Day 2025

And now please welcome Vice President of Strategic Finance, Treasury, and Investor Relations at Cloudflare, Phil Winslow.

Hello everyone. That was a dramatic pause for the safe harbor statement. Welcome, and thank you for joining us. I know it's been a volatile time in the market, so we really appreciate you taking time to understand the Cloudflare story. The underlying theme connecting today's presentations is 'accelerating'—accelerating innovation, accelerating our go-to-market transformation, and re-accelerating revenue while maintaining our unit economics. We'll start with a fireside chat with CEO Matthew Prince, followed by CJ Desai and Rita Klov on product and AI, Mark Anderson on go-to-market, Thomas Seifert on financials, and open Q&A. We're mixing it up this year with a fireside chat. Matthew didn't want to see the questions beforehand, and Michelle suggested I should be 'evil Phil.' So let's start: looking back at last year, what are you most proud of and what accomplishments position us for 2025? On the flip side, what could Cloudflare have done better in 2024?

You mentioned security week. Last year we said two-thirds of our ACV was application security, zero trust, or network services. There's been a lot of talk about platformization in security. How do you see Cloudflare's competitive position evolving versus leading point product vendors and other platform-branded competitors?

Let's jump to Act Three. I was the original Workers fanboy on Wall Street, going back to that 2017 blog post. Serverless computing is still relatively limited. What's been the biggest bottleneck to enterprise adoption of serverless, and what will change adoption for serverless generally and Workers specifically?

Let's talk about competitive moats in cloud computing. AWS established its moat when critical mass of data in S3 created data gravity. Satya Nadella recently said the speed of light is the speed of light, so they've got to serve the world with an inference fleet everywhere. I felt like Satya was interviewing for my job.

But let's say the shift to inference continues and agentic workflows need to become more distributed—what's Cloudflare's competitive moat for AI inference and agents?

Next question—evil Phil territory. Microsoft reported $13 billion in annualized AI revenue and said they're on track to spend $80 billion on AI-enabled data centers in fiscal '25. Let's say Cloudflare gets to $5 billion-plus in revenue with outsized developer platform growth from AI—is network CapEx still in the low double digits as a percentage of revenue? Or is that all Cloudflare will need when Microsoft and AWS are buying hundreds of thousands of GPUs each year?

Let's shift gears but stay on AI. In your founders' letter and on the Q4 call, you said the current business model of the web is eroding because of AI. You and your wife also own a content creator, the Park City Record newspaper. Can you walk us through: first, how the internet business model is breaking; second, what you meant by post-search web; and third, Cloudflare's potential role in helping figure out that business model?

All right, last question—good Phil, evil Phil. You've talked about playing the long game. Cloudflare is about to celebrate its 15th birthday. What do you think about Cloudflare on its 20th birthday—what are you most excited about? And evil Phil: what keeps you up at night?

Thank you, Matthew. That's the end of our fireside chat—you'll be back for open Q&A later. I'm very excited to introduce our next presenter. I've known CJ for many years and marveled at his track record of delivering innovation at scale—and the key word is 'at scale.' I couldn't be more excited to have him at Cloudflare. Please welcome CJ Desai.

Hello everyone, good afternoon. The question I get asked most is, 'Why Cloudflare?' It boils down to three things. First, I'm a believer in platform strategy—a single platform with a single architecture for multiple products. This programmable, composable network was super attractive, and the TAM is massive as customers pursue network modernization. Second, super innovative culture—my past job had releases every three months; here the teams can do daily releases deployed globally. Third, the potential across industries, geographies, and public sector. The mission to build a better internet appeals to me—I was at the University of Illinois when the browser was created. Having every Cloudflare service run on every server across 335-plus cities, with more than 190 now having GPU capacity for AI inference, is phenomenal. The network is the product and the platform—that's the competitive advantage. We're adding capacity in India, doubling compute capacity, and adding three new sites to prepare for $5 billion-plus revenue growth. Multicloud is a very acute phenomenon today—enterprise customers deal with massive complexity across on-premises, multiple public clouds, and SaaS. Cloudflare simplifies this: a connected, secure, high-availability network replacing multiple point solutions with lower total cost of ownership. In just our existing customer base, full product adoption represents a $7 billion TAM. I recently spoke to a Fortune 10 customer who didn't know our portfolio had become this broad—they said they had three to five point solution vendors they could potentially replace with Cloudflare.

There is a huge headroom for our act one, act two, and act three products for Cloudflare. I mean this is similar to when I joined the last employer I was with, which was not penetrated as much, and then over time we really focused on these type of customers and got a much higher market share. So this is a massive opportunity from my perspective. Now organization needs vary. Sometimes when I meet these large enterprise customers, they say, 'CJ, is security for external users, we want to replace some of the legacy incumbents and that's where we want to use Cloudflare.' Sometimes when I meet the customers, they'll say, 'Hey, the first-generation vendor when it comes to our employees and contractors and making sure they have secure access, we may want to replace that with Cloudflare.' And sometimes certain AI native companies will say, 'Hey, can you tell us more about the developer platform and what we can build?' And sometimes it's a combination of all three. One of the large customers that I spoke to last week basically told me, 'Can we use this thing from your act one, this thing from act two, and from act three? Can we build an app that is solving for some of our B2B traffic?' Which is phenomenal, right? So I personally feel that the portfolio is wide but also really good in terms of what we propose to our customers. Now, any modernization project, you know, people will say we want to go with SaaS architecture, we want to go with cloud architecture, and typically what you will see is that they may buy a point product and then eventually feel like the project was successful and it got some returns. But Cloudflare's positioning with the platform and the products we have is that once you have the first product in, and as Matthew said, that might have a higher barrier to entry, but once you are in and you deploy it and you configure it, then to have the incremental products, whether it's to reflect your existing DDoS mitigation solution or whether it's something related to application firewall or API Shield, whatever the case might be, you start seeing the benefits because you have a center of excellence related to Cloudflare and then you can just say, 'Let me turn this on, let me turn this on' and continue to use the products while you get rid of some of the traditional legacy solutions. You know, I've been spending a lot of time really understanding customers, use Cloudflare for what and why, right? Canva is a great company, you see a lot of them on billboards even in Manhattan, and they are also on the forefront of AI. If you go to their website and if you're a creator, it will say, 'Hey, we'll help you create very easy text campaigns or some images or some video using AI.' And they also, similar to Cloudflare, have free customers, self-service business customers, and of course enterprise customers. They are using us across all three apps, right? And that company is a big company. It's a digital native but it is a big company that is taking on in a very competitive market and doing really, really well. But if you think about them, they're using us across 3X. When I think about this brand as in Porsche, and they initially started in 2022 with 3,000 websites that are dealer-facing for sales and service and converting them to use Cloudflare for security. And then because of European Union regulation and some data localization requirement, they used our worker platform to create apps specifically for that region, right? So this is the real advantage of Cloudflare, that while we have a global network, we will still comply with data regulation and other things if necessary and demanded by a great customer like this. Now Matthew talked about the mission. You know, all the employees of Cloudflare, when you ask them, because I have asked them when I joined, I said, 'Hey, why are you at Cloudflare? What keeps you here?' And everybody is aligned to help build a better internet. So they will say that. Okay, CJ, I'm excited because, you know, one of the engineers in Germany I spoke to yesterday said, 'I'm excited because we help sometimes with governance on the internet, sometimes we make sure that, as you see here, advocating for network neutrality.' And you can see some of the bullet points here, but Cloudflare does really, really care about making sure that we are helping build a better internet, because internet is the foundation for every business. Network is the foundation for every business, and we want to make sure that it's open, it's connected, it's secure, and it's available. And that is a fundamental thing that we stand for, and it's a very purpose-driven company. Now, 2025, you know, one of the questions I get asked, 'Okay, CJ, you've been here, what do you think? Where do we need to go?' So I wanted to share just two or three lessons from my past. The one thing that I learned at ServiceNow was the land-and-expand motion. What does that mean really for product and engineering? What does that really mean? And you have to really, really focus that customers get value out of whichever product you land with, as in the first product that they buy, and that is absolutely applicable here as Mark Anderson and the team try to run the motion of land and expand within the go-to-market. Number two, you know, a few years at Symantec in the first decade of this century, being there for the customer when they need us. If there is a security incident or if there is a network that they want to rely on, just a couple of days ago, a large customer had an issue with their incumbent. They switched over to Cloudflare, and the way the team helped them out while they were under attack is super, super meaningful and creates massive customer loyalty. And number three, what I learned was how does the go-to-market team work really well with engineering as we scale our enterprise motion. We have such a massive TAM in enterprise and large enterprise, including public sector, that if the teams really partner well together, and that's why I'm excited to be working with Mark Anderson and the teams, magic really happens. So these three are very applicable when I think about Cloudflare and what my previous experience can help as we scale this company. So what's the plan for 2025? So first of all, it always starts with the network. Network has to be super resilient. And oh by the way, while it is being resilient, is it really going to be there to scale for $5 billion plus revenue? And when I say $5 billion plus, our free customer base is growing, our enterprise customer base is growing, our sales service customer base is growing. So we have to make sure that network stays resilient and we continue to add the capacity, as I touched on early on on the network list here. Second, the foundational platform. So one of the biggest asks from the enterprise customers is, 'CJ, we are complex and we need Cloudflare's help to ensure that the platform really works within our infrastructure.' So whether it's identity and access management, role-based access controls, and many other things that enterprise customers demand, even from an integration perspective, we are investing in it and we are investing and making progress so that enterprise customers, large enterprise customers, feel that we are serving them at the highest levels. Because most of them tell me, 'You have a great piece of technology in this area or you have great technology in this area, but we really, really want you to give us very robust enterprise-level controls.' And the good news is, we know how to do that and we can give them. And then when I think about the portfolio, making sure that we are the fastest network, we are the most secure network, whether it's for external users or internal users, that is something table stakes and we'll continue to make progress there. It's a race with no finish line. Number two on Cloudflare One, when I think about this portfolio and the massive TAM it has, we want to focus in certain areas. And one of the areas that we are focused on with these large enterprises, or you think about retail locations, bank branches, and so on, is co-pilot networking. So making it simpler rather than using a variety of point solutions for a remote user versus a branch location versus a corporate head office. Can you just use Cloudflare and it will be fast and it will be secure? Right, I mean, that's the simple message that will provide secure access, we'll provide secure web gateway, and whether it's co-pilot networking by aligning fundamentally principles between network and security, you get the best of both worlds when it comes to your employee base. Right, so that's how I would classify on our act two. And you'll hear from Rita on act three a lot of innovation that is going on just right now. So, last point on customer support. We have a massive customer base, we are expanding our enterprise customer base, so how can we serve them even better than we are today? So we are going to focus on providing a great customer experience for all of our customers, and that's the work both Mark Anderson's team and my team are doing jointly to do that. So my final remark is, you know, where I started, I joined this special company because it has platform architecture, massive TAM and potential in the enterprise and public sector, and that really excites me. Very innovative company, and just by focusing on certain foundations while staying innovative across act one, act two, and act three, I will do my small part in building a great iconic company for the future to come. Thank you very much, and I'm going to invite Rita to talk about our AI strategy.

Hello everyone, my name is Rita Klug. I'm the VP of product for Cloudflare's developer platform. It's the year 2025, so obviously we're going to talk about AI. And I promise I will mention the hot word right now, agents, as well. But before we get into all of that, I'd like to start with Cloudflare's vision for developers, which I think is really inspiring. Cloudflare's vision for developers, in a nutshell, is to make it possible for every single developer out there to bring their ideas to life, and to make that as easy as possible, from the moment that they write their first line of code to deploying it to the first user and the millions of users to come after that. But here's the thing, making something easy is actually in and of itself really hard. And to do this, when we started on the developer platform eight years ago, we had to take a really big, really bold, and even non-consensus bet. And that was to build our architecture for the platform on top of something called isolates. Now Matthew talked about this before. All code running on the server up until this point had been running on a virtual machine or container. And the problem with that model is that it makes it fundamentally impossible to abstract away infrastructure in a way that really allows developers not to worry about it. We know this actually because Cloudflare's entire first act, when you think about it, has been about bridging that gap between the way that the centralized cloud running VMs and containers works and the way that users actually interact with the internet. Now with isolates, isolates compared to VMs or containers are really, really lightweight, which means that they can spin up really, really quickly and reliably. And they give you that platform that you need in order to be able to run fast. When we made this decision, we knew that we were making a tradeoff, that it would be harder to lift and shift existing applications onto Cloudflare's platform. But when you're making a bet, you want to bet on the future and not on the past. And so we wanted to build the best platform for building greenfield applications. And what's really incredible is that today, if you're a developer, Cloudflare offers you an entire full-stack platform of offerings. Everything from compute to storage to AI and media, literally all of the different pieces that you need in order to build an application. And every single line of code that you write gets instantly deployed to Region Earth, which means that you never have to think about scaling it. It's just fast, it's performant, it's reliable, all of these things from the very beginning. Now, a few clever developers clued on to Cloudflare being their secret weapon for running ahead of everyone really, really early on. And for those developers, well, I have a little bit of bad news. And it's that, well, the secret is out. This platform is not so secret anymore. Today there are over 3 million developers that are building on Cloudflare, and we're continuing to see that number grow and accelerate. And part of this is due to this large paradigm shift that we're seeing with AI. We started to talk about this shift a year ago, and how it represented something as big as the cloud, mobile, and social before it. And that statement is truer today than it actually was a year ago. Now I realized that I'm talking to a finance audience, and you all get held accountable to your predictions all the time, so I thought I would give you a chance to hold me accountable to some of my predictions from a year ago. So a year ago, we talked about how 44% of developers, no surprise, were already using AI to help them write code. And analysts were predicting that by the year 2030, about 50% of knowledge workers would be using AI to help them augment their day-to-day tasks. And I remember seeing this figure and thinking, well, they're being a bit conservative. And guess what? They were. Today, not in five years, but already we've surpassed that figure with 75% and not 50% of knowledge workers already using AI. And the number of developers, well, that's almost doubled as well, from 44% to 76%. But there was another, actually more interesting prediction that we made, and it was that workloads in AI were going to shift from training to inference. And guess what? We're starting to see that play out in real time as well. We're seeing that with OpenAI reporting that their new O1 model is now spending more and more time in inference than in pre- and post-training. We're seeing a similar thing with DeepSeek, who is optimizing training so much that they're starting to spend again more of their time in inference. But this is all a year ago. This is all a recap. So let's talk about what's coming next. And while we're still in the early innings of that migration from training to inference, the next shift that's going to happen is going to be around inference being focused rather than on augmentation, to inference being focused on automation. When you hear the words 'agent,' that's exactly what people are talking about. So I know that there's a lot of jargon that's flying around right now, and I think people are using the word 'agent' very loosely. So I wanted to share my framework for thinking about the different types of AI. The first type of AI is predictive AI. It's been around for a long time. It's often referred to as machine learning. Cloudflare has been using predictive AI since the very, very beginning of the company. And a really canonical example here is taking something like all past internet traffic and looking at it in order to be able to predict whether a new piece of traffic is a DDoS attack or someone just having a Black Friday sale. Now, generative AI is the new type of AI that's come in over the past couple of years, and as the name would suggest, it allows you to generate something that didn't quite exist before. That can be a piece of code, some text, an image, a video. But generative AI has largely been focused on making us more efficient through augmentation. So rather than having to manually artisanally handcraft an email, I can now ask AI to assist me with that. Now, agentic AI is focused not on just the augmentation piece but the full end-to-end automation of a task. So let's run through an example. I think everyone here is familiar with a UI that looks something like this. Maybe you've asked it for some help with a task recently. If I'm a junior salesperson and I need to follow up with a customer, I might ask it to help me write an email so I can follow up more quickly. With an agent, AI can not just help me write the email but it can help me automate the entire end-to-end flow of what you might ask a junior salesperson to do. So if I went to a conference last week and I met a whole bunch of people, I can ask an agent to generate me a list of all of the people that I talked to, then to write me that email. But it's not going to stop there. It will let me review that email if I want to, but then it will actually send it on my behalf. And when a customer follows up, it can either notify me or even write back to the customer. So how do agents work? Agents are really made up of three core pieces. So there's the AI piece, that's the thinking of the operation. There's the workflow piece, that's going to be the executive arm that helps the AI then go and make sure that those things all happen. And then there are the APIs or the tools that actually go and make those actions. But now let's take a look at this through a developer perspective. What would it take for someone to build an agent? So first you need a way to get user input, and more and more we're seeing agents that are communicating over voice. So for that you would need something that talks over WebRTC, which is the internet voice protocol, and then you need to convert that from speech to text in order to execute those next steps. You might also use a chat UI, that's a very common pattern. You need somewhere to host it. From there you need somewhat of a gateway like Cache so you can cache responses. If a query comes in that you've seen before, you want to be able to respond fast as opposed to doing the whole thing all over again. You want to be able to observe the AI, make sure that it gets better over time as opposed to worse. Then you need access to the actual large language model, the LLM, that's going to generate all the content, that's going to come up with a plan, that's going to constantly be doing the reassessing of it. And the LLM needs then access to an orchestration layer, kind of like the workflow. For the orchestration layer, you need a unique combination of compute that can actually do the task, but you also need some storage in order to keep track of all of the tasks that have been completed and make sure you're executing on the next one. You also need access to a whole bunch of different tools. So that can be a browser. If I go back to the example of a salesperson sending an email, if that email needs to be personalized, you might want to go to your customer's website, make sure you're including relevant information from there. You need an API for sending the actual email. You need maybe to connect to an internal service to pull up any open support cases to make sure that you're addressing them in the email. And then you need a vector database to hold all of the domain knowledge that's related to your own industry. Finally, sometimes AI is going to need to ask a human for help. This is commonly known as a human-in-the-loop architecture. Now, when we talk about building out all of the primitives and all of the pieces that developers need to build a full-stack application, agents are a perfect example of that type of application. And today Cloudflare provides all of the different pieces that you need in one place in order to build an agent. We offer everything from real-time, which was previously known as our Calls product, to take in that voice input. We have Pages that can help you with the UI. We have our AI Gateway that can help you with caching responses and with constantly evaluating and observing your AI. We have Workers AI for hosting the models themselves, whether that's the LLM or the voice-to-speech, the voice-to-text piece. We have all of these different tools for your agent to be able to connect to, whether it's a browser, an API, an internal service behind Zero Trust, or a vector database. And we have actually the perfect pieces for that orchestration layer. So if in the past you've seen us talk about a primitive that might have seemed a bit more obscure, like Durable Objects, it is actually such a good building block for exactly an agent, because it takes those two things, compute and storage, and puts them together into one piece. Now, I'm not going to take credit for having invented agents, though funnily enough we did consider agents as a name for a Durable Objects product. That would have been very prescient. But we did inadvertently build the best platform for building agents. And it's not just about having all of these different pieces. You might be thinking, well, don't cloud providers have hundreds of different services? Surely you could spin something like this up on one of them, right? So what makes Cloudflare unique? Why is Cloudflare the best platform for building agents? This comes down to three key reasons. The first is the cost and scalability that are always going to be intertwined with each other. The second is performance. And the third is developer experience. So let's get into it. I'll start with the cost and scalability piece, and within that I was talking before about how agents are made up of AI, workflows, and APIs. So let's start with that AI piece. Now Matthew was talking before about how GPU utilization tends to be really low for companies. It can float at around 30%. For 30% of organizations it's around 15%. So why is it so low? Well, if you were to run a workload on a hyperscaler, the very first thing that you need to do is pre-provision all the resources you're going to need. Now for training, this is very easy because you have all of the variables ahead of time. You know how large a data set you're looking at, you know how large a model you're going to train, and you're fully in control of the start and the stop buttons. Inference, on the other hand, is incredibly unpredictable. This is because inference relies on human behavior, and that's going to rely on what time it is in the day and what people are doing. Many of our customers are also launching inference products for the very first time. They have no frame of reference to look at for how the product is going to do. So what they have to do is hope for the best and provision their capacity right around that top line. So regardless of how they do, that's just how much capacity they need to have in order for the best-case scenario. But what ends up happening in reality is that again, that traffic is going to continue up and down, and with any other cloud provider you are paying for that 70% of resources to in reality be sitting there completely idle. With Cloudflare, we took a serverless approach to inference, which means that we can spin up those resources as you need and scale up, and that we're only going to charge you based on the usage that you end up having. So all of this blue area is what the cost savings look like for our customers. And we're not doing this just because we're being nice, although this is a nice benefit for our customers, but it also helps us get better utilization out of our resources, because it means that when one customer is having that trough in traffic, we're able to schedule another workload on those exact same machines. Now this is just the AI piece. Now let's talk about the workflows piece. I was talking before about how the orchestration layer needs to connect to all of these different pieces outside of it, and all of these are again outside of your control. Frequently it can be an LLM that's going to take several seconds to think. It can be a human that could take minutes, hours, days to respond. On any hyperscaler out there, you're paying for that entire duration of the request. This is known as wall clock time, because if you were to look at the clock on the wall from the moment that an operation starts to the moment that it ends, you're paying for that entirety of time. Now I talked in the beginning about the big bet that we took with isolates, and this is where it really pays off. Because isolates are so lightweight that we're able to spin them down when we're waiting on something else to happen and then spin them back up just as quickly. This is something containers can't do. They're just not going to spin up quickly enough, so you have to leave them on the entire time. And we're able to pass those cost savings onto our customers. I'll use an analogy that I think every single person in this room is familiar with, which is if you've ever been in a cab to JFK and you're sitting in that stop-and-go traffic, there's nothing more unnerving than watching that meter tick up even though you're not moving. This is what it's like to be paying a hyperscaler for any of these workloads. Now, if you can imagine that you would only pay for the bits you're actually getting closer to your destination, that's what it's like to be building this on Cloudflare. So cost and scalability was the first piece. Now let's talk about performance. And keep in mind that for agents to really take off, performance needs to be really, really fast, because our expectation of agents is going to be the same as it is of humans. And this is where Cloudflare is in the perfect Goldilocks zone of being able to service these use cases, because we're able to get as close to the user as possible but with the entire power of a GPU or an entire data center behind it, as opposed to devices that are always going to be just too small to be able to run the types of workloads you need for an agent. But it's not just the ability to get close to the user, it's about that end-to-end experience of an agent. And this is where we built a really connected and a really smart network that's able to move workloads around based on where it's going to make the most sense for the entire flow to run. And sometimes that does mean that you're going to have the AI piece, the API, all of these things running in the same data center, which is going to lead to the best end-to-end performance. Now, the third reason Cloudflare is the best place for building agents, and this is the one that's closest to me because I started my career in software engineering, it's the developer experience. And I've built applications on the hyperscalers, and the thing that's so painful about it is that you spend about 50% of your time on things that again are not getting you any closer to your destination. And actually, in this environment where things are moving so quickly with AI, every single day there's a new innovation, you just don't have time to waste on all of that. Whereas again, on Cloudflare, because you get all of these benefits out of the box, you don't have to spend time on them. That's time back that you get as a developer to actually build the best application possible. By being able to combine AI, compute, storage, our network, and then obsessing over the developer experience, we can create experiences that really resonate with developers. In fact, recently a customer was telling me about how ever since they moved their development from a hyperscaler to us, they have a new problem where their developers are going so fast that their product managers are having a hard time keeping up with them. That's a world-class problem to have. But it's not just about having the pieces, it's about making sure that they all connect and integrate with each other in a really seamless way. And this is what we spend a lot of time thinking about and optimizing. Developers' workflows. Just a couple weeks ago we announced our agents framework that allows developers to spin up an architecture that's quite complex like this all in a single command. That's what we talk about when we talk about developer experience. So why is Cloudflare the best place for building agents? Well, Sun Microsystems had it better than we could have, they were just a few decades early. But it's because the network is the computer. And for agents, you need a really smart computer, you need a really interconnected computer, you need a really private computer, secure computer, and Cloudflare's network offers all of these different things. And we know that this is resonating for developers, because developers sometimes they tweet about it, but more importantly, when developers are really excited about a technology, what they build is just really incredible. And today already over 13,300 AI companies are building on top of Cloudflare, and I'll share just a couple of the use cases with you today, but I am really, really inspired by the innovation that's coming out of developers. So one use case is in finance. It's an agent that helps out with actually due diligence, and it will go and research everything about a company, including the funding that they've raised, the founders, the team size, their budgets, all of that, and help you come up with the next decisions to make. There's even a company that's actually in the medical space that's helping build an agent for clinical trials, and it will go and analyze and summarize all of the data that's been collected so far and help doctors with those next steps, just as you would expect of a lab assistant. And these are just the tip of the iceberg. We're seeing so much innovation coming out of developers every single day. But before I go, I wanted to leave you with one final thought. We talked in the beginning about the big bet that Cloudflare took with structuring our platform on top of isolates. And at the time we got a lot of skepticism. People were thinking, well, it's a pretty big tradeoff that you can't take applications and lift and shift them. And yes, you can be the best in greenfield, but is that market even large enough? Aren't the incumbents too big? And this reminds me actually of something that happened in another industry where technology completely transformed the landscape. So 15 years ago, you might have asked similar questions about photos. Cameras had existed for over a century, and the players were pretty well established. But then a new technology came along, and we started carrying around a smartphone in our pockets at all times. And this completely changed the trajectory of the industry. All of a sudden, in the matter of a couple of days, the same number of photos was being taken as would have taken years to take before that. We're in a similar inflection point right now with AI, with AI driving an explosion of new applications that are being built. In fact, over the next five years, more code will be written than has been written over the course of the entire history of software. And for those applications to be successful, you need a platform that's going to make it as easy to deploy that code as it is to write that code. And that's exactly what we've built. The greenfield opportunity is bigger than it's ever been with AI and now agents, and I can't imagine a company better positioned to win all of that opportunity than Cloudflare. It's an exciting time to be a developer, and I'm really honored to get to work on this every day. So with that, I'll pass it over to Mark.

All right, good afternoon everybody. Thanks so much for being here. My name is Mark Anderson, I'm the president of Revenue here at Cloudflare, and excited to talk about, you know, what's going on in go-to-market. My first 13 months on the job, I've probably done about 250,000 air miles meeting with customers, prospects, partners all around the world in every geographic theater. And our people, and at this point, you know, a lot of these large customer meetings were with C-level executives at, you know, traditional enterprise companies, companies that maybe were a little outside of the realm of who we sold to in the past at Cloudflare — banks, insurance companies, governments, and whatnot. The conversations were remarkably consistent, which was eye-opening to me. You know, we've all felt in this industry since the beginning of — sorry, since the end of the financial crisis — the IT budgets have gone crazy. They've doubled from 2010 to 2011 for IT, infosec budgets almost tripled in that time. More and more people being hired, more and more apps, more and more infrastructure. It was almost like easy money. When budgets are going up every year, even the most progressive CISOs and CIOs were pretty less about tackling technology debt. The very best of them kind of kicked the can a little farther down the road. However, customers in the last two years that I've talked to are reporting — not everyone, but a lot of them are reporting — budgets are flat to down. I think this is a massive forcing function in our industry right now. You know, when budgets were going up every year, we all witnessed a low sense of urgency on prosecuting that technology debt. What do I mean by technology debt? It's the bloat of vendors, infrastructure, applications that every large enterprise has tolerated for decades. In fact, you know, most of the big banks that some of you all work for here still have IBM mainframes that they're running critical applications on. So with budgets constraining, companies are being forced to confront that technology debt faster than I've ever seen it in 30 years in tech. I think the pressure is on, and this is going to drive what I think is going to be a massive consolidation faster than ever before to platform players and fewer vendors. Fewer necks to choke, as some of my favorite customers like to say. At the same time, Gartner is telling us that companies are looking to get higher revenues from their IT and infosec investments, especially around the age of AI. Not just tech companies but every company. You know, years ago companies were afraid of being Airbnb'd or Amazon'd in the cloud era. Now I think companies are worrying about their competitor down the road doing a better job with AI and taking better care of their customers, maybe putting them out of business. The problem is, however, 70% of large-scale tech programs fail to meet timeline, budget, and scope expectations. This has to change. This technology sprawl across legacy networks and point products highlights the mess that these executives must face. This requires a complex balancing act to address five critical and often competing IT priorities: user experience, resiliency, security, agility, and cost. You know, modern users are increasingly expecting seamless and intuitive digital experiences, yet delivering these at scale can strain system resiliency and really drive up cost. At the same time, this growing sophistication of cybersecurity threats demands robust defenses, often constraining operational agility and impacting the overall user experience. Now, Cloudflare defined the notion of the connectivity cloud as the way for customers to connect, protect, accelerate, and build their businesses so that they can be more agile while retaining control. And as companies move aggressively to a more digital native environment, being able to connect your infrastructure, your SaaS providers, your developers, your employees, and customers — it just becomes mega imperative. Cloudflare, from my perspective, is the only cloud-native, organically built network out there in the modern world. Customers everywhere that I talk to, they get this massive differentiation. When I stepped off the board 13 months ago, I was super excited at the opportunity here at Cloudflare, and at last year's investor day I stated that I really believe the market is coming to where we are already. And when I talk to customers, I see the light bulbs going off, you know, more and more every day. The potential in front of us, as you heard from Matthew, as you heard from Rita and CJ, I think it's massive. And customers are just waking up to the fact that they need Cloudflare now more than ever. So let's talk about what we're doing to capture this significant opportunity that's ahead of us. Stepping back for a moment again, while I was on the board back in 2023, we really — we knew we needed to start transforming our go-to-market operations. And we knew that the mountain that we were about to climb felt very far away. We navigated a lot of change and made a lot of progress in 2023 and 2024, but I'm not going to be satisfied until we've built a world-class go-to-market organization. That's how much of my career success has come — building these high-performing teams. So in 2025, I'm focused on four incremental key actions that are going to help us scale and enhance our go-to-market momentum to take Cloudflare to $5 billion and beyond. Our momentum to bring the right AEs and sales pod team members to customer teams globally is going full steam ahead, and this ensures that we engage with senior executive relationships at the biggest spending prospects and customers, regardless of segment, regardless of vertical, regardless of geo. To drive this momentum and focus on developer products, I brought back the amazing Ali Kabal to Cloudflare, and we've created a dedicated speedboat organization that you're going to hear from Ali directly talking about our developer go-to-market motions. I'll bring her up specifically to get into the details, but I'll tell you, 60 days into this move, we have driven a ton of excitement in the market and seeing a lot of opportunity here. Also made significant progress with our partner-first motion that I started early last year. But first, let me go back to business-to-business go-to-market university from last year. Last year, you remember my equation for momentum is the product of mass times velocity. And in sales, momentum, or ACV, is the product of sales capacity times productivity. Now during the fourth quarter, we again delivered double-digit year-over-year improvements in sales productivity. This continues the uptrend from the trough that we saw early last year, where productivity levels were consistently achieved in the 2021 and 2022 cohorts. We're focused on continuing to improve this positive trajectory, especially while onboarding many new senior go-to-market resources that have proven track records. They've built relationships and trust with large enterprise, large spenders out there all around the world. And the drive that I'm seeing in the market to consolidate vendors to fewer, more capable platform players, combined with the vast lineup of innovation that we have here at Cloudflare, leaves me confident that we can ramp AE productivity up for a very long time. Now going back to these 400-plus meetings that I've had over the past 13 months, interestingly, many of these CIOs, CISOs, and CTOs — they had little to no contact with Cloudflare. I was often the first executive that they met with. Now our success with these large customers was often done at the project level. Maybe a WAF deal that we worked on. We worked with a senior manager. Her job was to land this project on time, in scope, on budget. It's not necessarily the strategic level. Well, that's changed a lot. Just on the go-to-market team, we've brought in stage-appropriate talent to build relationships and earn that really important trust. In 2024 alone, we hired over 250 AEs. But we also managed out about 100 of them — people that just didn't have the right competencies or stage experiences at the next few legs of our journey. Really important for us to have the very best team out there, and we expect that the capacity of these ramped AEs will accelerate each quarter in 2025. Second point: Gartner predicts that enterprise IT investment trends will heavily focus on AI, particularly generative AI and agentic AI, with a strong emphasis on data-driven decision-making, cybersecurity, cloud infrastructure modernization, and platform engineering to unify and automate operations across many different environments. Now, by understanding these digital imperatives, our AEs can deliver solutions or sales play combinations against them. In other words, sell a combination of individual products to provide a unified solution for customers. You know, I say this to customers all the time: for Cloudflare, the network is the platform. Third, we launched this developer speedboat a few months ago. Instead of hearing from me, I'd like to invite Ali Kabal, who heads up our developer go-to-market speedboat team, to walk you through what we're doing here.

Thank you, Mark. And if I look familiar to any of you, it's because I was on this stage two years ago talking about our product strategy for the developer platform as a VP of product for that business. Now I'm back to manage the developer go-to-market team for those same products. So taking all of that deep, entrenched knowledge on our product and customers from four years of running that team, now applying that to our go-to-market strategy. Now look, we built this developer platform under constraint. For act one, we had extreme needs around scale, reliability, performance that we could not compromise. Our act two business needed to deliver quickly and best-in-class products to meet an evolving security landscape. We needed that developer velocity. These constraints really powered our technology strategy for the act three business, and I'm excited about how that technology strategy is meeting the moment in this market that we're all seeing us in. So there's a huge industry shift underneath us, and that industry shift is AI. We really were truly built for this moment. Okay, when I was in Rita's shoes, we had built this exciting technology but we were in search of a big motivating shift in the way developers were building and what they were building. In other words, we were looking for that killer app. AI is that moment. And our compounding effect of all of our businesses amplifies the opportunity we have in front of us. And nothing is more motivating to me than capturing that opportunity. So how are we going to capitalize on this moment? We shifted our internal teams to respond and adjust to the market movements to grow our developer business. Mark made the decision that the time is now to build this speedboat around the developer go-to-market function that combines sales, marketing, developer relations, our growth programs, and our startup program, all empowered to maniacally focus on that developer persona. We learn quickly, we adjust quickly, we operate independently while building bridges to the rest of the business. This speedboat bridges the gap between our product-led growth products and our strategic sales team. Often for the developer business, that qualified pipeline lies in early interest and like experimental usage that often can be missed if you're not focused on it maniacally. So our developer go-to-market team will amplify that early interest and that early consumption while seamlessly converting that interest into strategic, large conversations. So to expand the strategic focus in this area, we're going to have a list of targeted accounts that we focus on that really are designed to be maniacally focused on that Workers opportunity. We'll build deep, entrenched partnerships with them by doing unscalable things like mutual roadmap development. We'll do specialized hackathons, we'll do focused events together. This is going to allow us to build a developer business that's truly grounded in our customers' needs and allow us to refine a repeatable approach to large and strategic deals. My team owns our developer go-to-market team, our talented go-to-market team, digestible playbooks and snackable talking points, and we're ready to take all of the organic success we've already seen in the field and make that repeatable for our teams so that we can repeat those things again and again and again. We have the data, we have the products, we have the team, and I could not be more excited to be back at Cloudflare to accelerate this growth and the developer platform and take it to new heights. And with that, I'm going to pass it back to Mark.

Great job. All right, it's so great to have you back. She's been shot out of a cannon since she got here. And we had our three regional kickoffs — APAC, EMEA, and Americas — over the last month and a half, and I think she was the top presenter there. So we also want to talk a bit about partners. They're playing an increasingly crucial role in Cloudflare's growth strategy. We can't build a better internet by ourselves. We've got to do it with partners, both technology partners and distribution partners. And these are important routes to market that we're big-time investing in in FY25. The ecosystem supports all of our customers regardless of how they want to purchase or consume our innovation. For example, solution providers — you focus on resell and potentially wrap services around it. Systems integrators — very much focused on the delivery and ongoing implementation and ongoing management. Managed service providers who offer more cloud technologies as services and implementation services. Service providers who embed our offerings into their practice. And then technology partners where we can offer our customers solutions to enhance their tech stack, offering a better-together alternative where the integration is slick and modern. And distributors, you know, people that can provide scale for us, that can bring in their group of resellers to go out and represent Cloudflare. We need more feet on the street that have subject matter expertise, but they also have, you know, in many cases, decades of success with customers and do a lot of business with them. You know, Tom Evans, I hired him as our chief partner officer almost a year ago. We've met with over 100 principals at many of the biggest partners that I had at Palo Alto Networks. You know, when I joined Palo Alto Networks in 2020 at the end...

In 2011 I went to a lot of my F5 resellers and said we're building a better mousetrap for security, we want to get you in on it. The interest was high but there was a lot of fear from American resellers about what Cisco might do and European resellers about what Checkpoint might do. When I talked to them about Cloudflare this time, I called every CEO of every partner I've worked with and said not only is this a better mousetrap, this is the future. I got zero resistance and very high level of interest. Wrapping up, I think we have a lot of opportunity ahead. You've heard from Matthew, CJ, Rita, and myself that we all believe we're the right company at the right time to get customers to the next level. We came here because we love our mission and the business that Thomas, Matthew, Michelle, and others have built. Being able to partner with world-class people like Steph from Goldman Sachs and my brother from another mother CJ on the product side — he is the best product leader I've ever known, the most polished customer-facing product leader I've worked with. As a team we can do some incredible things together. In 2025 the bottom line is we will be world-class in the go-to-market organization. With that, I'm going to pass it over to our CFO Thomas. Thank you.

Mark, well I'm Thomas Seifert, I'm the CFO. Welcome, and hello everyone. You might remember last year I had to hurry out to catch a wedding. While we have a wedding this year again, we did a better job planning for it, so you have my undivided attention after this speech and Q&A too. It was interesting when all of you came in — an astonishing amount of you asked me "How are you, Thomas?" I understand by now this is more than small talk. I know that is one of your KPIs — figuring out what the sentiment of the CFO is and is he optimistic enough. So it made me think of yesterday. We were all sitting here going through a little dry run and I was in the corner really proud of the team, how everything came together. It made me think of my first investor day. I looked at my script and it said "Pause here, Thomas. Pause here. Pause here." I looked at my CEO and he had smile, smile, smile. I said to my head of IR, "Why does he get the smileys?" She said, "Because you're the CFO." This year, I think this script would have deserved a couple of smileys. I think we are in a year of inflection points, and you saw this already in all the presentations before us where things fall in place and come together, and why we're excited about what is ahead. Before we go to the meat of my presentation, we got so many questions on pool of funds I wanted to spend some minutes on why — what is the rationale behind pools of funds and why do they impact our financials the way they do. A little Financial Accounting 101. Pool of funds are good — they allow us to accelerate adoption of our customers. But like so many good things in life, they come at a price. The consumption-based nature of these contracts can impact the shape of our financial reporting. Enterprises are increasingly accustomed to purchasing cloud services through flexible consumption methods. As Mark is successful and we migrate up the Enterprise stack, our customers and opportunities become bigger — this is how they want to purchase. We had significant adoption of pool of fund deals over the last five to six quarters, but with this increased adoption the noise also increased compared to a purely recurring model. I picked two cases to demonstrate this. One is an existing very large technology customer on our platform for many years. In their first quarter of last year they adopted a pool of funds contract with a significantly larger annual commitment, shifting down the pricing curve. When they started to transition, revenue dropped because of the lower pricing curve. Then adoption picked up again, revenue grew, and even exceeded pre-pool of funds run rates. We have other cases too — a fast-growing AI company signed on early with a very small deal, half a million dollars, and after two months figured out their need would be significantly bigger, signing a north of $7 million pool fund deal for a year. Then the service took a while to ramp and we only recognize revenue when the service runs. We see this more often — our deals are becoming bigger, addressing more traditional Enterprises with heavy Microsoft and incumbent installations. Pool of fund contracts are effectively ramp deals in terms of Revenue recognition. They start lower in the near term compared to recurring structures, but in the end they lead to higher revenue growth over time and accelerated adoption. We think the negative headwinds from pool of funds deals are disappearing — by the second half of 2025, the negative impact will have faded away. So let's talk about why we're excited. I want to frame the rest of my conversation around two things: how we look at growth, and how this relates to profitability. Starting with growth — this seems to be the year where things are coming together, where technology and platform is accelerating, and you have an Enterprise-ready team to take on the excitement. First data point: super good progress in productivity and attainment. The curve has shifted to the right and improved by over 10 percentage points for AEs to achieve north of 80% of their quota. What we also see is that all the product-side efforts are generating significant momentum from a pipeline creation perspective. We literally exited 2024 with a carry-forward pipeline that was 40% over the previous year. Higher productivity, higher attainment, being fed by a stronger pipeline year-over-year. On the go-to-market systems side, we've upleveled our processes, the folks we put in place. The amount of AEs on Enterprise seats is encouraging. This year will be the year where we can accelerate hiring — net sales capacity is increasing. This will drive ACV acceleration moving forward. On the customer side, we're stacking customer cohorts of larger and larger customers on top of each other. We have incredible success in small and medium-sized businesses from our free origin, and we're now stacking larger customers on top. There are very few tech companies in the world that serve such a broad continuum. The amount of $1 million customers we have — we seem to be in an inflection point. We reached our revenue run rate with significantly less $1 million customers than our peers, only 1% of total paying customers. That's an incredible wide space of opportunity. Our largest and fastest-growing cohorts — the north of $5 million customer cohort is now up 31 times since 2018. We announced our largest deal ever in Q4 last year. Normally it takes 12 to 15 months to jump to the next large customer cohort. I'm quite convinced this will be the shortest lifetime of a large customer in our portfolio. The rate at which we jump to larger cohorts is accelerating. CJ did a really good job of the lessons from ServiceNow on land and expand. Our platform is designed with inherent easy use — once you're in with your first product, every additional product is literally only a mouse click away. Revenue contribution from number of products used, especially north of 10, is accelerating. This is the chart that shows how things are coming together. At the IPO we talked about five revenue-generating products in wave one, mostly SMB, Enterprise share less than 10%. Now 60 revenue-generating products across three acts feeding off each other, a massive increase in TAM — six times over the last seven years. Traffic has been exploding. We've architected a network and architecture to take full advantage of it. Workloads in all places, on all platforms that need to talk to each other, all under an umbrella of security and privacy. Finally — one of the bears was that when you transition from one act to another there would be pauses in revenue. I think we can put this to rest. We see accelerated traction in all key areas that drive wave two and acts two and three, including Workers and SASE. In 2024, ACV bookings for Cloudflare One and Developer grew by 43% year over year, and Developer was up 76%, significantly accelerating. Now let's switch to profitability. We've always taken a disciplined, data-driven approach on how we scale Cloudflare, balancing investments for future expansion with financial and operational efficiency. The business model allows us to follow the data — CPU capacity, legal entities, market footprint, Enterprise Salesforce ramp. This disciplined approach gives us flexibility to lean in when we see opportunities. The data we saw gave us the confidence to continue reinvesting and accelerate growth. We exited 2024 maintaining unit economic margins of more than 40% while transforming and re-accelerating R&D and innovation. We continued to drive down cost of serve quite significantly. We will remain focused to become even more efficient and productive. Every dollar we put into Cloudflare needs to deliver more revenue, profits, and shareholder value. Our North Star has been the rule of 40-plus, and this will continue. Our target gross margin range is 75 to 77 — we've been way better despite all the re-architecting and investment. We're light today on R&D spend and are setting up legal entities to increase R&D capacity. On G&A, we're getting close to our target range. The long-term operating model is holding up nicely — 20% plus is very achievable, and 25% free cash flow margin as a long-term target is a really good target. With that, before I head back to Phil, I have to put on one more big smile despite the pause in my script. Thank you for listening, and I hand it back to Phil.

Well that was fantastic. We'll take questions from the audience now. If you could raise your hand, and then Heather and Alexi will bring over a mic. Why don't we start with Joel. Joel also had nice things to say about Colorado when you walked in, so he gets that first question.

Joel Fishbein from Truist. Mark, I'm going to pick on you — it's a multi-part question since Kash isn't here, so I'll make it complicated. When you talked about vendor consolidation and go-to-market, are we past the education phase that Cloudflare is a vendor that can take out the network stack and some of the other DNS layers, or are companies still looking at incumbent vendors to do that as well? Number one. And number two, how do you balance between that part of the go-to-market sales and then the greenfield opportunity around AI, and how do you have your Salesforce going after those two opportunities at the same time?

Yeah, great question, Joel. There are two pretty massive colliding forcing functions facing every IT and infosec leader. The first is the need to consolidate and manage expense, and the second is what is AI going to do to my business and how will that profoundly change everything. Are we there yet? No, I don't think we're there yet. We're still building out capacity. We've hired a lot of really good people and really upticked our enablement activities to teach our people how to sell business outcomes to customers, especially to traditional companies that maybe haven't naturally come to Cloudflare in the past. It's a work in progress. We're well underway, a lot farther ahead today than a year ago, but this takes time. Every customer I meet with, every head in the room nods when I talk about these forcing functions, and oftentimes they're learning about things we do that they didn't know. That's another reason why partners are really important — it gives us a lot more feet on the street with existing relationships globally. On the AI front, that was one of the primary reasons I wanted to build a dedicated focused speedboat. Getting Ali Diab to come back and run that for us was far too good to pass up. She's been shot out of a cannon since she joined 60 days ago. It was a big part of our training at sales kickoffs, and the inbound interest from the field into her team is off the charts. I feel really good about where we are.

Great. Andy Nowinski. Joel, can you pass him the mic?

Oh, can I say one more thing? Sorry, Joel. It's interesting in these meetings that I have, especially if I know the customers — I've been doing this for a long time — I will almost virtually poke them and say, who are you going to pick for your partner for this coming wave of AI? You're going to have to pick somebody that looks a lot like Cloudflare. And especially if I know the people well, they'll chuckle and go, yeah, you're right.

Thank you. Andy Nowinski, Wells Fargo. Thanks for hosting, great event and great location. The theme of the day was accelerating. A few years ago you put out a $5 billion target for the end of 2027. Do you have any updated thoughts on that goal, and are there any new contributors to that $5 billion that maybe you didn't think about when you put that out originally?

Yeah, we put that out in 2022. A lot of things have changed — 2023, 2024 IT spending came down, but also Cloudflare changed a lot. We made a lot of changes, you saw that clearly today. To be honest, I think the net impact is probably less than we all thought, maybe a year later is probably where we stand. Just to frame this: if you annualize consensus for the fourth quarter of this year and say $5 billion in 2028, that would be a CAGR of 28 to 29%. I think where we are today, that is a very reasonable assumption. Mark and CJ are significantly more ambitious and hopeful that we can get there faster, but that CAGR would be a very reasonable assumption at this point in time.

And do you still have the mic?

This question is for CJ. Jonathan Ho from William Blair. With 60-plus products, how do you balance between focus and broad coverage by your platform?

First of all, innovation and laying that out in front of the customer is a very positive thing. When you say these are the specific use cases that this particular product can solve, that's always a good thing. However, to make it easier from a go-to-market perspective for Mark and the team, we are working on the right way to package the products — say for security for external users or for employees and contractors. Having the right packaging and the right pricing is work that is going on right now where we are making progress, so that we simplify both the message to our customers and partners on how they should position Cloudflare, and make it easier for the customer to say, at the end of the day, this is security for all your external users, or these are the products that do it.

Thank you so much. Shaul with TD Cowen. Actually a question for Matthew. Over the course of the past few years, in some quarters you have become maybe unofficially the harbinger of economic direction. You recall 2022 the crypto, 2023, actually 2024 seems to be getting a little better. My question to you: what's your current thought? I think also in terms of federal spending, DOGE, etc.

Adam.

Hey guys, Adam Borg with Stifel. Thanks so much for the time today and taking the question. Maybe for both Mark and CJ — just as we think about Cloudflare One and Zero Trust more broadly, talk a little bit about how you feel where we are in the go-to-market motion, specifically where we are on the R&D side. What still needs to happen to maybe win at the uppermost Enterprise level on both sides?

Sure. First of all, Zero Trust — massive space, TAM is massive and still growing, so fundamentally it's a good place to have great products. From an R&D perspective, we have a phenomenal team, great leaders — Anika who is here and a few others who run that team. We are very focused on making sure that where Cloudflare's strengths are, which is around Access and Gateway, we go really deep and become world-class to get hundreds of millions of users on it. The team is already delivering great pieces of innovation this quarter, next quarter. As we penetrate the Enterprise space, what I hear from customers when I ask about this portfolio specifically for Zero Trust, they always say your performance for end users is so much better than the other players out there that you have a chance to win, and you provide great pricing and value. Very optimistic on where the product direction is, specifically going deep where it's our strength around Network, Access, and Gateway.

On the go-to-market side, we spent a lot of time in the last year making sure that all of our sellers and solution architects really become very competent in articulating why security controls belong over a performing, highly secure network like ours. You've heard Matthew in the last couple of earnings calls talk about some pretty large Zero Trust or SASE wins. It continues to be a work in progress. The products from my perspective are terrific, and our sellers are getting more and more capable of articulating that. My earlier point about the drive for consolidation — I spent almost eight years acquiring companies at Palo Alto trying to chase the security controls that were moving off of people's data centers and real estate. That's why I really believe the market is coming to Cloudflare, because they belong over an edge network like ours.

Gabriel.

Thank you so much. Two quick ones. One is a clarification: you mentioned doubling the capex, doubling the compute capacity in the network this year. You also said you normally invest capex behind demand. Does this inherently mean that demand signals are doubling? Maybe just clarify that for us. And then the follow-up is on Isolates — maybe a little bit more about how that technology has evolved over the last four years. I think it was 2021 when you first talked about it coming out of the remote browser isolation category. Would love to hear what's unique versus serverless.

Hi, Madeline Brooks with Bank of America. Thanks for taking the question, and it's really for Matt and for Mark. Just to follow up earlier on macro and outlook — just talking about Enterprise, I think the last couple of weeks have been really volatile outside of just government, but for everyone here. When you talk with Enterprise customers, are they starting to feel the uncertainty that's ahead of us, and is that giving them any pause or hesitation in moving forward with any type of purchasing decisions?

Yeah, I think the longer-term trends around consolidation and embracing more modern architecture to exploit the benefits of AI and all that that means — I think those are the things that people are more focused on than sort of one, two-month kind of horizons. CJ, you talk to a lot of customers as well.

Same. I would just echo — it has not shown up. Customers are very focused on whether there is a modernization initiative on the network side or the cyber side, but it has not come up.

And maybe one follow-up if I could. In terms of putting any of the risk or uncertainty in the future into that $5 billion guide that's now 2028 — what were the puts and takes for moving it to 2028? Was it really more just previously things that Cloudflare has experienced, or is there a level of uncertainty going forward that you also took into account?

Well, to a large extent it's just math. If you put it into 2028 and get to the consensus run rate in the fourth quarter, 28 to 29% CAGR to get to $5 billion in 2028 seems like a very reasonable assumption at this point in time, with ambition to do better of course. This was clearly obvious in the presentations you saw. We are where we are today. We were in an earnings call where even a slight acceleration — were you sure? But from where we are today, that is a very reasonable assumption.

Mark Murphy with JP Morgan. Fantastic presentation. Wondering if you can speak to the GPU Fleet — the nature of it, the direction it's going to take. Specifically on two topics: one is do you want to be able to handle super complex, multi-step reasoning — the type of thing we see with deep research, which is pretty amazing, it'll work on something for 15 to 20 minutes, it'll write Python scripts for you to answer a question. Do you want to architect to that or to sort of smaller language model types of use cases? And the other concept that's coming up is the intertwining of training and inference, where you have runtime training. If that is a trend you think is emerging, do you want to architect to that where you might want to take on some of the training workloads?

In the middle, a friend from UBS.

Awesome, thank you for the day. Roger Bo with UBS. Matthew, you were talking earlier about giving content owners more controls over how their content is accessed by AI. That seems like a massive opportunity. How do you think about that playing out, and how do you see that kind of trickle into Act One, bot management?

All right, that will actually be the last question of the day. The day went fast, that was very fast. Thank you everyone. Thank you everyone on the live webcast for joining us. And for those in the room, stick around for just a moment while the webcast ends. Thank you.