Cloudflare (NET) Q4 FY12/25 Earnings Review

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Where the Rubber Hits the Road

By Hermit Warrior a.k.a. Richard Iacuelli

...we're seeing the shift to AI and agents drive more demand for Cloudflare services. What we're witnessing is a fundamental replatforming of the internet. AI is driving a paradigm shift in how software is both created and consumed, and that is turning out to be the biggest tailwind for Cloudflare's network and Workers developer platform.

Matthew Prince, Co-founder and CEO, Cloudflare

House View

The above quote, and not the existential angst the current market narrative is assigning to all software companies is what we, as investors, need to be focussed on. As Cloudflare (NET) stock gets tossed around like a rag doll - first surging on news of Clawdbot (now OpenClaw) running over their infrastructure, then down double-digits on the release of a research report modelling 10% unemployment and 40% stock market losses as AI (theoretically) displaces millions of knowledge workers - the company's actual experience of surging adoption and use of its products and infrastructure speaks volumes.

Strong revenue growth, accelerating for the third consecutive quarter, an order book growing at the fastest rate since 2022, and of course management commentary, all point to AI being an incredibly strong future growth driver, with Cloudflare believing themselves to be positioned right at the point where the rubber hits the road.

Here are the headlines.

Analyst Insights -

NOTE: As we've highlighted several times in previous NET earnings reviews, their earnings call transcripts offer many interesting insights and anecdotes that investors may find useful. This quarter's can be reached here.