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Issues with cloudflare 1) They do not have public egress pricing. That should be a red flag at this time. 2) They are currently LOSING a lot of money on their
by slownews45 5y ago
Issues with cloudflare
1) They do not have public egress pricing. That should be a red flag at this time.
2) They are currently LOSING a lot of money on their offerings - AWS makes a ton. That should be red flag #2.
- DevKoala 5y agoThey are doing R&D atm that’s where the investment is going. The Cloudflare TAM isn’t static, it keeps growing.
- viraptor 5y ago> They are currently LOSING a lot of money on their offerings This is not interesting without more context. If they lose money because their income is below costs, that's a problem. If they lose money because they have headroom and spend all of it on customer acquisition, that's an opposite of a problem.
- slownews45 5y agoProbably half R&D (no issues there), half sales and marketing. One thing - is their free service offering a sales and marketing expense or is that in cost of revenue. Last quarter they did 80M in sales costs (vs 40 in R&D and 28 in G&A). Sales costs were 50% of operating costs and close to 50% of revenue. Amazon has everything blended, but sales runs 7% of revenue.