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I agree with all of that, but the other important thing (at least to me as an investor) is their 51% growth over two years (with 77% gross margin). You can have
by bonestamp2 7y ago
I agree with all of that, but the other important thing (at least to me as an investor) is their 51% growth over two years (with 77% gross margin). You can have the best product, but if you're not actually growing and profitable then as much as I like the company or the product I'll put my investment dollars elsewhere.
- ttul 7y ago77% GM is incredible for a cloud infrastructure service!
- justicezyx 7y agoCliudFlare can hardly qualified as cloud infrastructure, it's more like a group of acceleration products. Also, with the more widely adopted terms like iaas, it's easy to confuse with the VM or container type of services.
- repolfx 7y agoThey're growing but not profitable. It's easy to grow by giving valuable stuff away below cost. It's not so easy to grow if you're making positive margin. Given CloudFlare's size and age, why are they losing money?
- bonestamp2 7y ago> why are they losing money? I don't know for sure, but I would guess it's their aggressive expansion efforts. Those might cost more than they've returned so far. If that is the case, and since their GM is so high, they should be profitable once buildout costs start to plateau.
- vikramkr 7y agoLooks like a lot of it is sales and marketing expenses which probably help drive growth, their gross margin is pretty great, I think that the key to profitability for them now is a high enough retention rate that they can turn down sales costs when they saturate the market