Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Cloudflare (NET): Must-Have, Not a Nice-to-Have! – 5 Powerful Levers Boosting Their Long-Term Operating Model!
Cloudflare’s Q2 2024 results showcased its strategic resilience with $401 million in revenue, up 30% year-over-year, outpacing expectations by $6.51 million. Large enterprise customers now represent 67% of total sales, underscoring the company’s growing traction among high-value clients. The rapid expansion of Cloudflare Workers and AI capabilities, along with multi-product contracts, signals Cloudflare’s potential to dominate the developer and AI markets. Strong cash flow of $38.3 million and improving margins, with operating income reaching 14.2%, reflect financial discipline, positioning Cloudflare for long-term growth. However, macroeconomic headwinds, reflected in a dip in net retention to 112% and prolonged sales cycles, may challenge its growth trajectory. Yet, Cloudflare’s focus on enhancing its go-to-market execution, expanding sales force, and deepening customer relationships—especially in the public sector—provides significant upside. The company’s diversified product portfolio and innovative edge in security and performance further bolster its competitive positioning. With continued sales efficiency improvements and a clear roadmap for AI and developer services, Cloudflare is poised for outperformance. Can Cloudflare sustain its momentum and deliver on its promise to become an indispensable part of the modern digital infrastructure? We delve into Major Drivers, Our perspective/thesis & follow up to our Initiation of Coverage :Earnings Review F2Q24, Forecasts,DCF, Valuation, Peer Analysis, ESG & Risks
