Cloudflare IPO Roadshow Video

Summary

Cloudflare's mission is to revolutionize Internet infrastructure with a global cloud platform, offering security, performance, and reliability services. With a serverless architecture, they provide an integrated solution that replaces traditional network hardware, serving over 20 million Internet properties. Cloudflare Workers, their serverless development platform, empowers innovation, while their commitment to a neutral, efficient, and secure Internet for all, positions them at the forefront of modern digital transformation.

Takeaways

• 🌐 The Internet's infrastructure was not originally designed for its current scale and complexity, leading to a tangled network of equipment and high maintenance costs.
• 💡 Cloudflare offers a modern solution with a global cloud platform that simplifies the management of Internet security, performance, and reliability from a single dashboard.
• 📈 Over 2 million customers, including 10% of the Fortune 1,000, use Cloudflare's services to power more than 20 million Internet properties.
• 🛡️ Cloudflare's core security services protect customers from sophisticated cyber attacks by leveraging data from millions of properties on its network.
• 🚀 The company has a strong focus on innovation, as evidenced by the development of products like Cloudflare Workers, a serverless platform for modern Internet applications.
• 📊 Cloudflare has experienced significant growth with a compound annual growth rate of 51% over the last three fiscal years and maintains a GAAP gross margin of 77%.
• 💼 The business model is efficient, with low customer acquisition costs and minimal capital expenditure, contributing to the company's high gross margins.
• 🔄 Cloudflare's serverless architecture allows every server in its network to run every service, increasing efficiency and enabling the company to offer free tiers of service.
• 🌍 The company's global network spans over 190 cities in more than 90 countries, ensuring close proximity to the majority of the developed world's Internet-connected population.
• 🛂 Cloudflare Access provides a zero trust security solution that verifies all connections to the Internet, offering a secure and user-friendly alternative to traditional VPNs.
• 🔄 Argo Smart Routing uses Cloudflare's network as a vast sensor to find the fastest routes for data, improving performance with a simple click of a button.

Q & A

What is the primary issue with the current state of the Internet infrastructure?

The primary issue is that the Internet infrastructure was not originally designed for its current usage. It is described as an unruly mess of network equipment connected through a complex cabling system, requiring significant financial investments in hardware and IT support.

What is Cloudflare's vision for improving Internet infrastructure?

Cloudflare envisions a global cloud platform that can manage the security, performance, and reliability of any Internet property, along with cloud services and on-premise hardware, from a single, user-friendly dashboard.

How many Internet properties does Cloudflare currently power?

Cloudflare powers over 20 million Internet properties for both free and paying customers globally.

What percentage of the Fortune 1,000 companies are already paying Cloudflare customers?

Approximately 10% of the Fortune 1,000 companies are already paying Cloudflare customers.

What is Cloudflare's approach to security and performance?

Cloudflare's approach is to develop products that deliver security without sacrificing performance. They have technology that optimizes and routes data intelligently to bypass network congestion.

How does Cloudflare's load balancing product differ from traditional hardware solutions?

Cloudflare's load balancing product operates on a global cloud platform and can handle traffic spikes and unforeseen events in real-time, unlike traditional hardware solutions which are limited by physical constraints and complexity.

What is Cloudflare Workers and how does it contribute to Cloudflare's network?

Cloudflare Workers is a serverless platform that allows developers to run code directly at Cloudflare's edge. It provides a fast, secure, and scalable platform for deploying applications and customizing Cloudflare's performance, security, and reliability solutions.

What are the two main trends driving the change in the Internet infrastructure market?

The two main trends are the transition from on-premise hardware and software to cloud-based services, and the need for a unified control plane to manage configurations across hybrid environments, which traditional network hardware boxes cannot provide.

How does Cloudflare's business model demonstrate efficiency?

Cloudflare's business model demonstrates efficiency through its serverless architecture, which allows for the use of commodity hardware and the ability to serve customers with compelling new products at low marginal costs. This has resulted in high gross margins and rapid revenue growth.

What is Cloudflare's total addressable market based on IDC data?

Cloudflare's total addressable market, based on IDC data, was nearly $32 billion in 2018 and is expected to grow to $47 billion by 2022.

How does Cloudflare's customer adoption process work?

Cloudflare follows a 'land and expand' model where customers often start with a self-service plan and then adopt more enterprise-grade services on longer-term contracts as they expand their usage and see the value in Cloudflare's platform.