NEWSLETTER
If you want to be a winner, you must think big.
The legendary coach of the Dallas Cowboys, Tom Landry, said that a winner never stops trying, and the journalist and author Damon Runyon said he can only be a winner “if he is willing to walk to the limit.”
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The people of Cloudflare (NET) Understand that message in large block letters. The San Francisco cyber security company has been strong, since it assumes some of the most important names in the technological sector.
Last month, Matthew Prince, co -founder and executive director of Cloudflare, told analysts that the revenue of the quarter quarter had increased by 27% compared to the previous year.
“During the quarter, we add a record number of new large customers, those who pay us more than $ 100,000 per year, and now have 3,497 large clients, also 27% year after year,” he said during the Profit call. The income contribution of these customers grew to 69% from 66% from the previous year, he said.
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The cloudflare CEO sees encouraging signs
Prince said that since the beginning of 2024, customers have been disciplined with their budgets, “analyzing the agreements carefully and ensuring that every spent dollar delivered a clear and immediate value.”
“That trend continued until Q4,” he said. “However, as the quarter advanced, we saw encouraging signs that trust is beginning to return, particularly in safety, ai, modernization and efficiency of the United States form the word 'cloud' that we hear more frequently in these conversations.”
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“These issues play directly with Cloudflare's force,” Prince added.
Bank of America analysts Securities such as what is happening with Cloudflare, which has seen the price of its shares almost 35% over the previous year.
On March 25, the investment firm took the unusual step of cloudflare of double increase to buy low yield, while more than double its target price at $ 160 from $ 60.
B of a stable cloudflare strength in the A-As A service, which provides access to ai technologies and tools through a cloud-based platform, so that companies can use ai capacities without investing in infrastructure or experience,
The ai-A-Service market was valued at approximately $ 14 billion last year and is expected to reach $ 72.13 billion by 2030. The investment company imposes a “high probability” that Cloudflare becomes the leader in the service of ai-AAAA.
“We believe that Cloudflare is ready to be one of the true 'winners of ai' in the software,” B of A said in an investor note. “It stands out offering customers an alternative to develop their own capacity, an expensive and inefficient task.”
Analyst: Cloudflare Capture Share, add experience
B of A Its survey show ai is the product product leader that Cloudflare customers are looking to adopt in the next 12 months, with an average forecast of expenses to increase more than 8% to $ 100,000 per customer, or 15% of the total customer expenditure.
The firm identified two catalysts that support Cloudflare's growth acceleration: a differentiated approach to ai and the company gaining impulse in network safety, particularly the safe access service. This last structure offers wide network and safety controls through the cloud directly to the connection source instead of a data center.
B De A said that customers are increasing (AMZN) AWS, Oracle (ORCRE) and Microsoft's (MSFT) Azure platform based on ease of use, scalability and use benefits.
“The security offers in the Cloudflare network show a strong impulse and capture the market share of competitors,” said the firm.
“According to our survey, network security products are currently penetrating 33%, with more than 50% of the new expenses in the next 12 months that are expected to be security products, replacing rivals such as the control point (Lathe) and cisco, (CSCO) As customers seek to modernize network safety with software solutions. “
Related: Analyst restores the target price for the ai software stock
Earlier this month, Morgan Stanley analyst Keith Weiss assumed Cloudflare coverage with an overweight rating and an objective price of $ 154.
Historically, the company has offered an innovation of products consisting of multiple domains, although it has lacked a coincident market engine to completely monetize its large installed base of more than 200,000 customers, said Weiss.
But Cloudflare recently added Mark Anderson's Director: the old Networks of Palo Alto (Panw) Sales Chief, whom Prince called “'one of the best market leaders in the industry”, and the head of Products CJ Desii, former director of Operations of Servicenow (NOW) .
As a result, Cloudflare “has reached a turning point on multiple fronts,” the analyst tells investors.
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