Cloudflare (NET) reported significant growth in its AI initiatives, with a 4,000% year-over-year increase in Workers AI inference requests and a 1,200% rise in AI Gateway requests in Q1 of fiscal 2025. The company launched the Model Context Protocol server to streamline AI deployment and expects to enhance customer acquisition, contributing to an increase in paying customers, which reached 250,819—a 27% year-over-year growth. Key clients including Asana, Atlassian, and PayPal are utilizing Cloudflare’s AI solutions.
For fiscal year 2025, Cloudflare anticipates revenues between $2.09 billion and $2.094 billion, reflecting a projected year-over-year increase of 25.38%. The Zacks Consensus Estimate aligns with this forecast. As of Q1 2025, Cloudflare also added 30 new customers contributing over $100,000 in annual revenue, bringing the total to 3,527 for such accounts.
Cloudflare faces competition from Amazon Web Services and Alphabet’s Google Cloud in the AI and serverless computing sectors. Despite this, Cloudflare’s AI advancements position it well to capture market share and enhance its revenue streams.
