Cloudflare Q1 Earnings Call Highlights

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Cloudflare (NYSE:NET) reported a beardown archetypal 4th of 2026, with gross rising 34% twelvemonth implicit twelvemonth to $639.8 million, arsenic executives said request tied to AI, agentic workloads and its Workers developer level continued to accelerate.

Co-founder and CEO Matthew Prince said the institution began the twelvemonth with “very strong” momentum, citing gains successful ample customers, income productivity and caller pipeline generation. Cloudflare ended the 4th with 4,416 customers paying much than $100,000 annually, up 25% from a twelvemonth earlier. Revenue from those ample customers grew 38% twelvemonth implicit twelvemonth and accounted for 72% of full revenue, compared with 69% successful the prior-year period.

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The company’s dollar-based nett retention complaint was 118%, down 2 percent points sequentially but up 7 percent points twelvemonth implicit year. Gross borderline was 72.8%, and Cloudflare reported operating income of $73.1 million, representing an 11.4% operating margin. Free currency travel was $84.1 million, oregon 13% of revenue.

Cloudflare Announces AI-Driven Restructuring

Alongside the net results, Cloudflare announced a important workforce simplification arsenic portion of what Prince described arsenic a displacement toward an “agentic AI-first operating model.” Prince said the institution is reducing the size of its squad by much than 1,100 people. CFO Thomas Seifert aboriginal described the simplification arsenic astir 20% of the workforce, crossed each functions and geographies.

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