If you take the last Cloudflare earnings of 193.6 million, add to them 21.5 million (a tiny bit more than the increase from Q3 to Q4 2021, which was 21.25 million), you obtain 215.1 million for Q1 2022.
Compared to Q1 2021, it represents a 55.8% YoY increase, for a mere 11.1% sequential increase.
I know the above number is conjecture, but it is a likely one, given the revenue increase regularity (see paragraph below). The YoY growth will be even better than 55.8% if the QoQ growth holds at 12%: it will then be 57%.
I know that these growth numbers are not as exciting as those of Datadog or Monday, but they are exceptionally regular. Compared to Datadog, for example, Cloudflare’s revenue growth has been virtually un-impacted by Covid. YoY revenue growth went from 49% in 2019 to 50% in 2020 to 52% in 2021, with no quarterly dip whatsoever. Boring, maybe, but stable.
I also think that Cloudflare’s platform is incredibly sticky, as it enhances the Internet presence of a company across the board, including speed, uptime and security at its core. Once you’ve opted into it, I doubt you dare getting out given the above advantages, especially in these times.
I however confess my ignorance as to what the hyperscalers (most notably Amazon, Google) are up to in terms of providing business networking solutions. Could it be easy for them to replicate Cloudflare’s network and software solutions to create a “better Internet” for companies? Probably, as they have the data centers and fiber links, but their focus is really on selling stuff and ads, as well as collecting user’s data for the same purposes; I don’t know if the two are compatible.
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