Pinterest And Snap Show V-Shaped Recovery; Cloudflare Guns For Zero-Trust

Large customers, those that spend over a hundred thousand dollars per year with us, continue to be our strongest growth area adding 92 new customers in Q4 and bringing our total large customer account to 828. Revenue from these large customers increased sequentially to 49%, up from 47% in Q3 as our sales team continues to close larger and larger enterprise accounts.” 

Cloudflare announced that their Dollar-based net retention of 119% improved 3% sequentially, driven by continued strength from large enterprise customers. Management attributes the growth in large enterprise customers to the company’s expanded product portfolio.

The company has launched a number of products and features that are important to customers, including its zero-trust network security solution, Cloudflare 1, and Magic Transit. CEO Matthew Prince believes Cloudflare’s zero trust solution is the best in the industry, noting that Cloudflare “is the only company with a zero-trust solution that really understands and is built for the needs of developers”.Cloudflare’s mission is to provide value for developers in a way that other companies do not. 

Cloudflare management highlighted a few significant customers wins in Q4.They attributed these customer wins to the platform’s ease of use, technical innovation, and the way multiple products fit together into a unified solution. CEO Matthew Prince believes his company is on the path to more significant customer wins in the future: “Developers are the future of IT and having won their trust we expect will help us win, retain and expand more and more customers over time.”  

Looking ahead, Cloudflare management believes the strong business momentum they observed in Q4 will continue into Q1 and throughout 2021.The company raised its outlook on both these numbers.Management noted that in 2020 companies were simply trying to survive. 

In 2021, management believes there will be a big shift from a traditional hardware-based security approach to a much more modern zero trust approach.The company is confident that Cloudflare will be one of the leaders in enabling companies to make that transition. 

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