Cloudflare, Inc
Cloudflare, Inc

CloudFlare, Inc. operates a cloud platform that delivers a range of network services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and Internet of Things (IoT) devices. Its security products comprise cloud firewall, bot management, distributed denial of service, IoT, SSL/...
Founded: 2009
IPO date: 2019-09-13
IPO price: $15
Full Time Employees: 3,181
CEO / Co-Founder: Matthew Prince 
Sector: Technology
Industry: Software-Infrastructure
Next Earnings Date: 2023-02-09
Stock price: $48.335 (-2.49%)
This is how I use Cloudflare on my website
By: ssmlee04 Community Lead :))   💬 98   
   on Nov 22, 2022

Hi folks. This is Lee, creator of here. This post will briefly describe how I use Cloudflare tools on my website.

Cloudflare is a company that provides tools for you to analyze your website traffic. These tools enable you to detect and protect your web applications from cyber threats, and make your website run safer and faster. It has also added many features recently, like email security, workers, page functions, or zero trust. This makes it so much easier for companies to setup their basic web infrastructure and take advantage of their global network offering at an affordable price these days.

A few months ago they announced Cloudflare Registrar. A Registrar is a service that allows you to register a domain name. I used to register domain names with Godaddy, and I just recently found out that Cloudflare is also doing it, but they sell you the names at a wholesale price that is like 40% cheaper. Ouch Godaddy.

Once I added this domain name to my account I can proxy all the requests going to my website through Cloudflare servers. Without a proxy, if someone sends a request to your request would be sent to nameservers on the Internet. These nameservers would figure out what IP address those machines are located, and the request would be sent to that IP address. This approach has a few issues. That is you would expose the ip address to your application servers or load balancer. And the other is you would need to configure some firewall rules and handle things like DDOS mitigation yourself and none of those are easy things to tackle.

Instead, if you use a DNS proxy like theirs, those requests would be sent to their machines. They would figure out if the request are coming from bad actors or not before forwarding the request to your servers. And enabling this is as easy as a toggle.

Also, another thing they're doing really well is CDN. A CDN is a network of servers that you can push your resources like images or Javascript files to and keep a copy close to your users. For example, if you have a request response that never changes, it might be a viable use case to serve those responses through a CDN. You will save resources on your servers and make those requests faster.

They also have a lot of optimizations to make your website run faster. A few things worth mentioning include asset minimization, mobile redirect or image resizing. For example, you can have your images served through their network. They can, however, resize the image before delivering it to the person who requested it, based on factors like device sizes, geolocations ...etc and serves those images fast. Mobile redirect is also based on the same concept.

Zaraz is also a product they announced recently. The idea is that instead of running some 3rd party Javascript files that's causing your browser to slow down or suffer from compliance issues, you would be running those scripts on Cloudflare's machine before sending the webpage over to your users. This increases the website’s performance, and for GDPR use cases you don't need to know what you don't need to know from your users.

Pages is also a feature my website is currently using. It's well integrated with a lot of Javascript frameworks. Take my website for example, my website is using Qwik framework. And what you do is you can create a project by doing something as simple as

$ npm create [email protected]
$ git remote add origin
$ git push -u origin main

You would then tell Pages that you have these repo people taking over the building and deployment of the website. And within 10 minutes you would have a Hello World website running. In my opinion that also implies they have the ability to take on companies like $wix or $shop and it's just so easy to get started on building a web application these days using their service.

to be continued...

$net $amzn $akam $goog

Cloudflare’s “Workers Launchpad” Funding Program Grows to $2 Billion, Announces First Cohort of Startups
By: tachyon Very lazy guy   💬 23   
   on Nov 17, 2022

this looks quite bullish to me. $net

Cloudflare named a Leader by Gartner
By: ssmlee04 Community Lead :))   💬 98   
   on Sep 10, 2022

Gartner has recognised Cloudflare as a Leader in the 2022 "Gartner® Magic Quadrant™ for Web Application and API Protection (WAAP)" report that evaluated 11 vendors for their ‘ability to execute’ and ‘completeness of vision’.

Akamai is one of the pioneers in this WAF space but Cloudflare is certainly getting better everyday. $net

By: ssmlee04 Community Lead :))   💬 98   
   on Apr 06, 2022

This would get much better adoption in the future when we need fast compute at the edge for 5g and AI.

How to research companies and find stock ideas using this website
By: ssmlee04 Community Lead :))   💬 98   
   on Mar 24, 2022

Overview is a website dedicated to helping you get stock ideas with serious investors. It has a lot of free stock research tools to help you succeed.

A few tools worthwhile mentioning that I use on a regular basis is as follows:

  • Ticker research tool
  • Stock screener
  • Technical pattern scanner
  • Growth stock price signals
  • Wordcloud

I'll briefly walk you through how I use those tools and why are they important for finding companies that I want to invest in.

Ticker research tool

This tool gives you a quick summary of what each company does. Take this page for example:

This company is called Cloudflare (Nasdaq:NET) and is a fast growing company in the software-as-a-service space. Their goal is build a better internet for everyone.

When you go to the page you'll see metrics like Customers with ARR > 100k or Paying Customers. Usually a company would have a few key business metrics they report every quarter and some of those metrics can give you a good idea about where the company is heading. Here we can see their number of paying customers are increasing very quickly, and more people are paying them $100,000 a year for their service. This might be a sign that a company is heading in the right direction and have some sort of product market fit that people just cannot get enough of their services.

Headcount is also something worthwhile paying attention to. It's the number of people working in the company. In order for companies to grow and reach its business goals it's important to scale up your talent relentlessly. So if you see a company is ramping up the hiring there's a chance they are onto some real problem that they need to solve.

Financials statements

You can also find financial statements on the website, too. The following image is the income statement for Airbnb. We can see the company grew their revenue 50% yoy last year despite Covid. And if you take a look at Airbnb's gross margin you will see that Airbnb's gross margin is very high. It is constantly somewhere around 75-85%. This means for every 1 dollar they make as revenue they can sort of take home 80 cents. This is really impressive. And's a sign that the product is selling themselves.

Also, if they manage to grow their revenue at the same speed for the next 10 years and then you would be seeing their revenue going up 1.5^10= ~57.66 time in 10 years. Of course, this is a very rough estimate and is unlikely to happen for a company in the consumer cyclical space but it might give you a rough idea about how companies can scale up and make money in the long run.

Insiders trading

Sometime if you see insiders buying their stocks it is usually a good sign that the insider might be seeing something good. The following chart from Elon Musk's insider trading activities. He bought a lot of stocks in 2018 and since then the stock price has went up 10-20x. This does not guarantee to work but sometimes it does work pretty well.

In this case we know Elon Musk bought a lot of shares in 2018 dip and at 2019 we know company is turning into profitability, and then this is the time for short sellers to cover so it turns out that's a once in a life time opportunity to buy Tesla stocks.

Cash and cashflow analysis

You can visualize the level of cash for the company. If you see the company has a lot of cash and low in debt and that's usually a good sign that the financials of the company are ok. On the other hand if you see a company's cash is dropping and their debts go up and that's usually a sign that company isn't doing really well.

This image is Apple's cashflow chart. It's impressive that a company this big can still generate 30% more free and operating cashflow every year. Operating cash flow is a measure of the amount of cash generated by a company's normal business operations So if you see improvements in the cashflows that's usually a sign that the company is doing really well.

Expense analysis:

This chart tells you how companies spend their money. Sometimes it's a good thing that companies are starting to spend money on marketing because that means they're seeing good ROI on their marketing spends. On the other hand you might see companies are spending a lot on ads but the stock price are going down. That could be a sign that there's nothing else the company can do and might be a sign the product is reaching the end of the growth trajectory.

CaPex and other charts

We also added charts such as capital expenditure, inventory turnover and many other metrics. The following is an example CapEx chart for Amazon. Capital expenditures (CapEx) are funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment. And Amazon is using CapEx to growth it's operations really well. So growing CapEx might be a good sign for companies.


Our screener gives you an idea what stocks or sectors are moving in the past while. You can also create your customized search using filters like profit margins, stock prices, dividend yields, headcount... etc to find companies you want to invest in.

Normally you want to avoid companies that's low in headcount, losing a lot of money, way too expensive or way too cheap. Low or dropping in headcount means their employee are leaving them. If their stock price is cheap that's usually self-explanatory. A lot of times things are cheap for a reason and the biggest reason is the company is bad.

Technical Patterns

Technical analysis could be a useful tool to determine how crowd psychology affects the stock price over time. A few key technical patterns to look for reversal patterns is like dragonfly doji, gravestone doji or morning stars.


Wordcloud is a widget that shows how popular a company is being talked about on the website. In this picture, we can see that people are talking about cannabis recently. And there are lots of news on cannabis legalization this week and that's also why people are researching them.

People are also talking about Apple, Nvidia and Tesla because we all know we need Apple and we need compute for A.I. or EV or many other things. And chances are people love them as well and those are good drivers for long term prospect of a company.

Retail clients are very smart and generally speaking they know where a company is heading. By looking at what company or sector is trending in the market you might have a good idea about where the market is heading in the short to medium term.


Investing is hard. There's not a deterministic way to succeed in the stock market. But at times you will see traces that a company might be very successful or red flags that hint they will fail miserably, and a majority of those are public info that you will find easily almost on any website.

Investing is also quite intuitive sometimes. The metrics I mentioned above like headcount or cashflows are also like a self-fulfilling story. And when a company is doing good it gives them more access to better opportunities and to be even more successful in the long run. And if you look at FAANG you will also see the metrics are usually improving in a good direction in the past 20 years. Once you know a company is good and then making money would be the byproduct of it, hopefully.

Good luck with the tools and tips here. Hopefully, it will give you more insights into how you can find companies to invest in and have huge success in the stock market. Cheers.

Cloudflare Announces API Gateway; Increases Security for Billions of Devices and Systems with Robust Machine Learning Engine
By: ssmlee04 Community Lead :))   💬 98   
   on Mar 24, 2022

 Cloudflare, Inc. (NYSE: NET), the security, performance, and reliability company helping to build a better Internet, today announced the Cloudflare API Gateway, providing businesses a simple, fast, and effective way to protect and control all of their APIs (application programming interfaces). 

API Gateway is useful for giving you insights about how people reach and interact with you API. With API Gateway, workers, CDN, R2, Durable Objects, Worker EV you can build a globally distributed system much easier than before with everything on Cloudflare. This is amazing.


Cloudflare and CrowdStrike Expand Partnership to Bring Integrated Zero Trust Security to Devices, Applications and Networks
By: ssmlee04 Community Lead :))   💬 98   
   on Mar 19, 2022

Cloudflare, Inc., the security, performance, and reliability company helping to build a better Internet, today announced it is expanding its partnership with CrowdStrike Holdings, Inc., a leader in cloud-delivered protection of endpoints, cloud workloads, identity and data. Cloudflare is integrating its Zero Trust platform with CrowdStrike Falcon Zero Trust Assessment (ZTA) to give joint customers simple and powerful controls to ensure employees have secure access to applications wherever they are working. 

long $NET $CRWD

Inside the Log4j2 vulnerability (CVE-2021-44228)
By: ssmlee04 Community Lead :))   💬 98   
   on Dec 14, 2021

This is Cloudflare explaining how does CVE-2021-44228 work.


Cloudflare blocks an almost 2 Tbps multi-vector DDoS attack
By: ssmlee04 Community Lead :))   💬 98   
   on Nov 21, 2021


Earlier this week, Cloudflare automatically detected and mitigated a DDoS attack that peaked just below 2 Tbps — the largest we’ve seen to date. This was a multi-vector attack combining DNS amplification attacks and UDP floods. The entire attack lasted just one minute. The attack was launched from approximately 15,000 bots running a variant of the original Mirai code on IoT devices and unpatched GitLab instances.


Cloudflare Collaborates with Microsoft and Major Search Engines to Help Improve Websites’ Search Results
By: ssmlee04 Community Lead :))   💬 98   
   on Oct 19, 2021


This could be the AWS 2.0
By: ssmlee04 Community Lead :))   💬 98   
   on Oct 13, 2021

This gets a downgrade but only becaues it's too expensive. It's a funny downgrade. $net

Cloudflare uses the randomness of lava lamps to provide less hackable encryption to 10% of internet traffic
By: ssmlee04 Community Lead :))   💬 98   
   on Oct 07, 2021

It's an old article but this shows how they're willing to take cyber security to the next level.


Cloudflare Takes On Email Security
By: ssmlee04 Community Lead :))   💬 98   
   on Oct 06, 2021

SAN FRANCISCO--(BUSINESS WIRE)-- Cloudflare, Inc. (NYSE: NET), the security, performance, and reliability company helping to build a better Internet, today announced its entry into email security with new offerings to help solve email challenges in an easy-to-use way that gives customers more control. Now, users will be able to create custom email addresses, manage incoming email routing, and prevent email spoofing and phishing on outgoing emails—all for free. Cloudflare also announced that customers can sign up for early access to its Advanced Email Security Suite, tightly integrated with all of Cloudflare’s Zero Trust solutions, for a more holistic way to keep businesses and their employees secure and productive.

There was another news saying they're doing R2 which takes on AWS S3. It seems they're onto something much bigger.


Fastly down
By: ssmlee04 Community Lead :))   💬 98   
   on Jun 08, 2021

The internet was brought to its knees Tuesday, with 503 errors showing up across the news outlets and websites. A fix came just over an hour later.

It turns out Fastly have some really good accounts that people are not aware of previously. Amazon, Reddit, Spotify, Ebay, Twitch, Pinterest, Paypal, The New York Times, Deliveroo, Twitch, Hulu, HBO, Weight Watchers, Vimeo, Kickstarter, Imgur, Github, Quora, Squarespace..

On the other hand this event probably also moved other CDN providers stock up. Cloudflare stock was up around 6% at a point as well.

Fastly ended up +10.82% for the day.


Cloudflare Partners with NVIDIA to Bring AI to its Global Edge Network
By: ssmlee04 Community Lead :))   💬 98   
   on Apr 14, 2021

Nvidia broke out yesterday. So there is a chance this would retest all-time-high again too. Chart has said so.

$nvda $net

Tech crash continued
By: ssmlee04 Community Lead :))   💬 98   
   on Mar 09, 2021

It feels like tech stock has nowhere else to go but down and a market crash for tech is imminent. A lot of great tech companies are retracing 20-40% from the top already. A lot of stocks have really bearish charts like this. And it does not feel like this is going to end well.

But if you look back at the past couple of years things are getting out of control. Take Tesla for example, it rallies around 20x in 2 years. And even with the 35-40% drop from all time-high it is still up 12 times from the dip 2 years ago. But when you look at the fundamentals you'll see there's not a lot changed in the past 2 years. The number of deliveries in 2019 is around 360,000 and around 500,000 in 2020. Also, the revenue is around 50-100% higher in 2021 than 2019. And it's way less than the increase in the stock price multiples.

SaaS stocks are also like that. Many good SaaS names like $okta, $net, $ayx, $crwd, $docu, $zm, $hubs are also up 5x - 10x from where it was 3 years ago. And they're not even close to profitability. And even with the 20-40% drop from all-time high they're still trading at p/s multiples of over 20-40.

A p/s ratio of 40 means if you assume the current revenue run rate can last, and if 100% of the revenue is paid back to you in earnings it would still take 40 years for this investment to break even. So, arguably, even with the 20-40% drop in the stock price lots of the SaaS companies still would not be considered cheap.

So maybe this crash in tech is just things going back to the norm. During year 2000 it took the Nasdaq index almost 2 years to drop 80% and run the course before another bull market starts. And if this one follows a similar pattern that would potentially mean we still have about 23 months to go before we can safely get back to investing in tech stocks again. But of course it would also be entirely different than the tech bubble case in 2000.

So what happens next in the stock market would potentially be the make or break moment for tech in the next couple of years. Finger crossed. $tsla ^IXIC

Twilio delivers surprise adjusted profit as revenue growth accelerates, stock up 10%
By: ssmlee04 Community Lead :))   💬 98   
   on Feb 18, 2021

In my opinion the reason why it is up is very simple: the valuation of Twilio when compared to $ddog or $crwd or $net or $okta is simply way cheaper. Take Datadog for example both of them growth their revenue in the 60% yoy area but dog has p/s ratio of 60 while Twilio is 43. That means Twilio is easily 30-40% cheaper for the same level of growth. Same thing for $okta, it is growing around 40% yoy and it has a p/s ratio of 48, which again means Okta is easily 20-30% more expensive than Twilio for the same level of growth.

Market is honestly not very efficient these days. There are just a lot of hidden jewels for you to pick up. Twilio has been cheaper in that sense compare to those companies since Marh 2020 dip and maybe that's why Twilio is up 6x while datadog is only up 3.5x since and Okta is only up 3x since. But whether or not you can hold it thru the rally is another story.

Cloudflare Q4 2020 earnings
By: ssmlee04 Community Lead :))   💬 98   
   on Feb 13, 2021

Some summaries in the earnings call

  • Revenue: Total revenue of $125.9 million, representing an increase of 50% year-over-year.
  • Gross Profit: GAAP gross profit was $96.9 million, or 76.9% gross margin.
  • Cash Flow: Free cash flow was negative $23.5 million, or 19% of total revenue, compared to negative $23.5 million, or 28% of total revenue, in the fourth quarter of 2019.
  • Q1 2020 revenue guidance is $130 to $131 million.
  • Dollar-based net retention of 119%
  • In Q4 more than 50,000 new developers wrote and deployed their first Cloudflare worker.

They're able to grow 50% consistently in the past few quarters. They're able to retain their users and upsell more services to them. Also they developed something called Cloudflare workers that is adopted by 50,000 new developers. Those are really great stories for the company.

The only thing that's slightly concerning is they're guiding only 5% qoq revenue growth. That could be why their stock price is under pressure today. 5% qoq would mean 20% yoy and for a company with p/s ratio of 70 this is not a great news for the stock.


2020 SaaS review
By: ssmlee04 Community Lead :))   💬 98   
   on Jan 03, 2021

2020 is an interesting year for SaaS companies. Some of them went public and gained huge success in the stock market. Some of them continued their rally from 2016-2019 and have another great year. Some of them have greater success than the others because of their business models in the work-from-home environment. And there's a common thing for those SaaS companies, that is: those companies probably developed something people want.

The following is a list of the top 15 SaaS performers in our database in the last 250 days as of December 31, 2020.

Some of the companies here are getting a lot of attention this year. Terminologies like Zoom Fatigue even appeared in the second quarter. It seems everyone was talking about Zoom at some point. And that's reasonable because Zoom is the clear winner in this video conferencing space. They keep your company operational by providing you a smooth video call user experience for your employees and your clients. There are literally companies built on top of Zoom calls that provide you remote journey experiences, and they do great because of Zoom and Covid.

Cybersecurity is also something to worry about for companies in 2020. Intuitively, when companies are working remotely it would be harder for companies to safeguard their infrastructure. That's when companies like CrowdStrike or Zscalar or Okta come into play. Okta help companies manage their employees' access identities. Zscalar and CrowdStrike protect your web infrastructure using technologies to derive insights from your data and protect your infrastructure in real-time or near real-time.

Also when a lot of people are working remotely you'd expect Internet usage to go up. Cloudflare is a CDN company that help websites serve their requests fast. Fastly is also doing similar things in the video CDN space and helps companies like TikTok serve their videos. And as more people spend more time on their mobile devices those companies also do well. And to support those web requests you need companies like Twilio to send you SMS messages or phone calls, without Twilio you might not even able to login to your apps.

Also when people are staying at home people have more time to get creative. So maybe people start selling stuff on Shopify or Etsy or Pinterest or create websites on Wix. And at the same time, you have marketing companies like Facebook or TradeDesk or Digital Turbine to help you advertise your stuff on mobile devices. The success stories for those SaaS companies are inter-connected.

There are many other interesting SaaS companies that are not mentioned above. They are not in the top 15 maybe because they're not directly related to the stay-at-home trend, but that doesn't mean they're less interesting. As a software engineer, I have to use application monitoring services, database services, image compression and processing services, mailing services... and many others. This is what makes a modern software company functional. And as long as your company is growing you would continue to add and look for the best services for your company. And when more companies are becoming software companies I can imagine those SaaS companies to have a great future ahead.

A few things in common here for the companies on the list:

  • They grow REALLY fast. A lot of the companies on the list are growing 40-80% a year.
  • They all have really high gross profit margins.
  • They're traded at a very high valuation. A lot of them have a p/s ratio of 40-60.
  • The majority of them are losing money.
  • They don't pay dividends.

A possible explanation is that there are no clear winners in the space they're operating in, so they're doing whatever it takes to make sure they win in the long run. And of course that means they cannot afford to pay dividends. Also they're all traded at astronomical levels of valuations maybe because they have high profit margins, and the future for those companies are expected to be good.

Take DocuSign for example. They're one of the pioneers in e-signature. But e-signature is some sort of niche market. You may come up with another e-signature solution with a small team but by the time you have the solution in place you might already be spending millions achieving zero revenue while DocuSign might grow revenue another 40%. In the end there's just not enough market share for you to survive. So it would not be a good idea to copy DocuSign business model, this makes DocuSign (and all the SaaS companies) unique in a way.

If you look back at Amazon anytime in the past 20 years you'll see it's always traded at high multiples. It is still traded at high multiples today but would anyone complain that Amazon is too expensive? Probably not. Because now we know Amazon is dominating in any spaces they're operating in, we just couldn't see it 20 years ago. So maybe there's a correction between winning and being expensive and that's why all the cloud stocks are expensive because there's a chance all of them are dominating in their space in the next 5-10 years.

But, of course, being expensive does not mean the company would be successful eventually. But if you want to look for something good in the next 5-10 years there's a chance it's on the list but you just don't know it yet.


Top 15 SaaS stocks with market cap over 1b today
By: ssmlee04 Community Lead :))   💬 98   
   on Dec 05, 2020

$PD calls you when your server crashes. $Sumo does logging for your code. $ESTC does search for your logs and other stuff. $NET does CDN, $DDOG does application monitoring.

They and other similar services are all required for a modern software company to run.