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> in a few years If Cloudflare can keep on bleeding money at such scale, in a possibly interest-rate-increasing world, that is. https://cloudflare.net/news/ne

> in a few years If Cloudflare can keep on bleeding money at such scale, in a possibly interest-rate-increasing world, that is. https://cloudflare.net/news/news-details/2022/Cloudflare-Announces-Fourth-Quarter-and-Fiscal-Year-2021-Financial-Results/default.aspx https://cloudflare.net/news/news-details/2022/Cloudflare-Ann... In 2021 it had a revenue of $656M, and costs of $917M.

wyager 5y ago
I would like to thank VCs for subsidizing our web hosting!
- danuker 5y ago
  VCs? It IPO'd, they're stockholders.
  - ______-_-______ 5y ago
    I would like to thank stockholders for subsidizing our VCs!
- p0nce 5y ago
  Very happy with Cloudflare and honestly if they double their bill I'll just pay double, because it performs admirably imho.
xwdv 5y ago
Last quarter Cloudflare broke even and is now projecting profits going forward. Funny how that works.
- drexlspivey 5y ago
  Operating Income (Loss): GAAP loss from operations was $41.1 million, or 21.2% of total revenue, compared to $24.7 million, or 19.6% of total revenue, in the fourth quarter of 2020. Net loss 21% of revenue is hardly breaking even
  - xwdv 5y ago
    Revenue in Q4 rose 54%, year over year, to $193.6 million, yielding an EPS of $0.00.
e67f70028a46fba 5y ago
Cloud flare is MITM As A Service. (I say that as a user) I don’t think they will run out of money any time soon.
3pt14159 5y ago
If you've raised VC and are not bleeding money you've either done something really, really wrong or something really, really right. You're supposed to be bleeding money. That's the whole reason you gave up a chunk of your company. The only reason not to be bleeding money is because you locked into such a strong growth loop halfway into spending that VC money that you literally can't buy inputs fast enough. You're pulling 100% of the world's XY or Z.
- paxys 5y ago
  It's bizarre that the majority of people on a tech entrepreneurs' forum don't seem to understand this. If you take hundreds of millions in VC funding and immediately make healthy profits, then congrats you just gave away a large chunk of your company for nothing. The smart move is to instead pay your employees, give away your services for cheap and grow your customer base. There's no point having a long runway if you don't use it to build up speed but rather try and take off too early and crash.
  - jrwr 5y ago
    I really think this is what Gabe did with Valve. To this day they are a privately owned company. It may not be the best place to work, but I do know they get paid well.
  - corobo 5y ago
    It’s bizarre that one person said it and you’ve extrapolated that into the majority
    - Cederfjard 5y ago
      I suppose the charitable take is to infer that they have other data points to support that conclusion, they just didn’t feel it was necessary to make that explicit.
  - deleted 5y ago
    [deleted]
  - 5y ago
k4ch0w 5y ago
You know Amazon wasn't profitable as well right? These things take more time than people would like to admit. The whole point of investing is finding those gems you believe in. Cloudflare is one of mine. The physical infrastructure they have in place, their network expertise and their consistent ability to try new things make me think they will either be bought or move to be an extremely profitable company in the future.
bradwood 5y ago
> possibly interest-rate-increasing world LOL
tyrfing 5y ago
They certainly can, at most they just use their richly valued stock to raise some more money. Most of the GAAP loss is stock based compensation anyway, not directly spending money.
MaysonL 5y ago
Fourth quarter of 2021 they had positive free cash flow. In other words, they're not really bleeding money any more.
FanaHOVA 5y ago
And almost $2B of cash on hand.
MrStonedOne 5y ago
eastdakota 5y ago
Uh.... We were profitable the last two quarters and cash flow positive the last quarter. Tip to anyone reading this, even if you think you're going to be a software developer the rest of your life, take an accounting course.

wyager 5y ago

I would like to thank VCs for subsidizing our web hosting!

danuker 5y ago
VCs? It IPO'd, they're stockholders.
- ______-_-______ 5y ago
  I would like to thank stockholders for subsidizing our VCs!
p0nce 5y ago
Very happy with Cloudflare and honestly if they double their bill I'll just pay double, because it performs admirably imho.

xwdv 5y ago

Last quarter Cloudflare broke even and is now projecting profits going forward. Funny how that works.

drexlspivey 5y ago
Operating Income (Loss): GAAP loss from operations was $41.1 million, or 21.2% of total revenue, compared to $24.7 million, or 19.6% of total revenue, in the fourth quarter of 2020. Net loss 21% of revenue is hardly breaking even
- xwdv 5y ago
  Revenue in Q4 rose 54%, year over year, to $193.6 million, yielding an EPS of $0.00.

e67f70028a46fba 5y ago

Cloud flare is MITM As A Service. (I say that as a user) I don’t think they will run out of money any time soon.

3pt14159 5y ago

If you've raised VC and are not bleeding money you've either done something really, really wrong or something really, really right. You're supposed to be bleeding money. That's the whole reason you gave up a chunk of your company. The only reason not to be bleeding money is because you locked into such a strong growth loop halfway into spending that VC money that you literally can't buy inputs fast enough. You're pulling 100% of the world's XY or Z.

paxys 5y ago
It's bizarre that the majority of people on a tech entrepreneurs' forum don't seem to understand this. If you take hundreds of millions in VC funding and immediately make healthy profits, then congrats you just gave away a large chunk of your company for nothing. The smart move is to instead pay your employees, give away your services for cheap and grow your customer base. There's no point having a long runway if you don't use it to build up speed but rather try and take off too early and crash.
- jrwr 5y ago
  I really think this is what Gabe did with Valve. To this day they are a privately owned company. It may not be the best place to work, but I do know they get paid well.
- corobo 5y ago
  It’s bizarre that one person said it and you’ve extrapolated that into the majority
  - Cederfjard 5y ago
    I suppose the charitable take is to infer that they have other data points to support that conclusion, they just didn’t feel it was necessary to make that explicit.
- deleted 5y ago
  [deleted]
- 5y ago

k4ch0w 5y ago

You know Amazon wasn't profitable as well right? These things take more time than people would like to admit. The whole point of investing is finding those gems you believe in. Cloudflare is one of mine. The physical infrastructure they have in place, their network expertise and their consistent ability to try new things make me think they will either be bought or move to be an extremely profitable company in the future.

bradwood 5y ago

> possibly interest-rate-increasing world LOL

tyrfing 5y ago

They certainly can, at most they just use their richly valued stock to raise some more money. Most of the GAAP loss is stock based compensation anyway, not directly spending money.

MaysonL 5y ago

Fourth quarter of 2021 they had positive free cash flow. In other words, they're not really bleeding money any more.

FanaHOVA 5y ago

And almost $2B of cash on hand.

MrStonedOne 5y ago

eastdakota 5y ago

Uh.... We were profitable the last two quarters and cash flow positive the last quarter. Tip to anyone reading this, even if you think you're going to be a software developer the rest of your life, take an accounting course.