Cloudflare, Inc.

Enterprise customers spending more than $100K annually contributed 73% of FY2025 revenue on multi-year contracts, and the dollar-based net retention rate recovered to 120% in Q4 FY2025 after compressing to approximately 116% in 2023. Some usage-based variability in CDN and developer services introduces moderate uncertainty relative to pure-subscription SaaS peers.

Cloudflare's portfolio spans DDoS protection, content delivery, Zero Trust and SASE (Cloudflare One), email security, and the Workers developer and AI platform, covering distinct purchasing centers within enterprise IT and security organizations. All products share the same underlying global network, creating correlated delivery infrastructure, and the company does not disclose discrete revenue splits across product lines, limiting independent assessment of segment concentration.

US revenue represented 49% of FY2025 total, with EMEA at 27% and APAC at 16%, providing above-average geographic spread for a US-headquartered software company. The US share modestly exceeds the 40% single-country threshold, but EMEA and APAC together represent 43% of revenue and are both established contributors.

Cloudflare's single-network architecture delivers CDN, security, and compute at near-zero marginal cost per incremental transaction. Gross margins held around 76-77% across FY2021-FY2025 as revenue scaled from $431M to $2.17B, and GAAP operating losses narrowed from $154.8M in FY2024 to $49.2M in FY2025, with the company targeting non-GAAP operating margins of 20% or higher over the long term.

Cloudflare's enterprise contracts cover DDoS protection, Zero Trust access, and network firewall services that enterprises treat as non-discretionary infrastructure. The 120% dollar-based net retention rate in Q4 FY2025 reflects operational embedding where customers expand usage rather than merely renew, and 73% of FY2025 revenue comes from large enterprises on multi-year commitments.