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Cloudflare Announces Second Quarter 2021 Financial Results Second quarter total revenue totaled $ 152.4 million , representing an increase of 53 % year - over - year Record dollar - based net retention of 124 % , representing an increase of 900 basis points year - over - year CLOUDFLARE San Francisco , CA , August 5 , 2021 — Cloudflare , Inc. ( NYSE : NET ) , the security , performance , and reliability company helping to build a better Internet , today announced financial results for its second quarter ended June 30 , 2021 . Strong large customer growth , with a record addition of roughly 140 large customers in quarter , bringing the total number of large customers to 1,088 " We had our strongest quarter ever as a public company , and our revenue growth continued to accelerate , growing 53 % year - over - year . We also added a record number of large customers , signing the equivalent of more than two six - figure customers every single business day in Q2 . " said Matthew Prince , co - founder & CEO of Cloudflare . " Whether we're offering Zero Trust security solutions to the world's most sophisticated organizations , or enabling the next billion dollar business with Cloudflare Workers , we remain focused on delivering secure , programmable network solutions that our customers rely on . " ● Second Quarter Fiscal 2021 Financial Highlights Revenue : Total revenue of $ 152.4 million , representing an increase of 53 % year - over - year . Gross Profit : GAAP gross profit was $ 117.4 million , or 77.0 % gross margin , compared to $ 75.6 million , or 75.8 % , in the second quarter of 2020. Non - GAAP gross profit was $ 118.9 million , or 78.0 % gross margin , compared to $ 76.6 million , or 76.8 % , in the second quarter of 2020 . ● Operating Loss : GAAP loss from operations was $ 28.9 million , or 18.9 % of total revenue , compared to $ 24.7 million , or 24.8 % of total revenue , in the second quarter of 2020. Non - GAAP loss from operations was $ 4.0 million , or 2.6 % of total revenue , compared to $ 9.5 million , or 9.5 % of total revenue , in the second quarter of 2020 . Net Loss : GAAP net loss was $ 35.5 million , compared to $ 26.1 million in the second quarter of 2020. Non - GAAP net loss was $ 7.3 million , compared to $ 9.6 million in the second quarter of 2020. GAAP net loss per share was $ 0.12 , compared to $ 0.09 in the second quarter of 2020. Non - GAAP net loss per share was $ 0.02 , compared to $ 0.03 in the second quarter of 2020 . Cash Flow : Net cash flow from operating activities was $ 7.5 million , compared to $ 4.0 million for the second quarter of 2020. Free cash flow was negative $ 9.8 million , or 6 % of total revenue , compared to negative $ 20.2 million , or 20 % of total revenue , in the second quarter of 2020 . Cash , cash equivalents , and available - for - sale securities were $ 1,033.5 million as of June 30 , 2021 . The section titled " Non - GAAP Financial Information " below describes our usage of non - GAAP financial measures . Reconciliations between historical GAAP and non - GAAP information are contained at the end of this press release following the accompanying financial data . Financial Outlook The following forward - looking statements regarding our financial outlook are subject to substantial uncertainty as a result of the ongoing COVID - 19 pandemic , reflect our estimates as of August 5 , 2021 regarding the impact of the pandemic on our operations , and are highly dependent on numerous factors that we may not be able to predict or control , including , among others : the duration , spread , and severity of the pandemic ; actions taken by governments and businesses in response to the pandemic and the resulting impact on our customers , vendors , and partners ; the timing of administering COVID - 19 vaccines around the world and the long - term efficiency of these vaccines ; the impact of the pandemic on global and regional economies and economic activity generally ; our ability to continue operating in impacted areas ; and customer demand and spending patterns .