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Cloudflare Announces Third Quarter 2021 Financial Results Third quarter total revenue totaled $ 172.3 million , representing an increase of 51 % year - over - year Strong large customer growth , with a record addition of roughly 170 large customers in the quarter , bringing the total number of large customers to 1,260 CLOUDFLARE San Francisco , CA , November 4 , 2021 Cloudflare , Inc. ( NYSE : NET ) , the security , performance , and reliability company helping to build a better Internet , today announced financial results for its third quarter ended September 30 , 2021 . Delivered GAAP net loss of $ 107.3 million and non - GAAP net income of $ 1.4 million , with non - GAAP net income achieving milestone of break - even " We had a landmark third quarter , with revenue growth up 51 % year - over - year , and large customer growth up 71 % year over - year . Our strong growth and efficiency also propelled us to reach profitability this quarter , achieving that milestone a year ahead of our original timeline , " said Matthew Prince , co - founder & CEO of Cloudflare . " We're laser focused on investing profits back into our business , continuing to fuel our innovation machine , and supporting even more global organizations as they plug into our network platform . We want to give them one less thing to worry about so they can focus on running their businesses . " ● Third Quarter Fiscal 2021 Financial Highlights Revenue : Total revenue of $ 172.3 million , representing an increase of 51 % year - over - year . Gross Profit : GAAP gross profit was $ 134.8 million , or 78.2 % gross margin , compared to $ 87.2 million , or 76.3 % , in the third quarter of 2020. Non - GAAP gross profit was $ 136.6 million , or 79.2 % gross margin , compared to $ 88.2 million , or 77.3 % , in the third quarter of 2020 . ● Operating Income ( Loss ) : GAAP loss from operations was $ 26.5 million , or 15.4 % of total revenue , compared to $ 21.3 million , or 18.6 % of total revenue , in the third quarter of 2020. Non - GAAP income from operations was $ 2.2 million , or 1.3 % of total revenue , compared to a loss from operations of $ 4.5 million , or 4.0 % of total revenue , in the third quarter of 2020 . Net Income ( Loss ) : GAAP net loss was $ 107.3 million , compared to $ 26.5 million in the third quarter of 2020 . GAAP net loss per basic and diluted share was $ 0.34 , compared to $ 0.09 in the third quarter of 2020. Non - GAAP net income was $ 1.4 million , compared to non - GAAP net loss of $ 5.8 million in the third quarter of 2020. Non GAAP net income per diluted share was $ 0.00 , compared to non - GAAP net loss per share of $ 0.02 in the third quarter of 2020 . Cash Flow : Net cash flow from operating activities was negative $ 6.9 million , compared to $ 2.0 million for the third quarter of 2020. Free cash flow was negative $ 39.7 million , or 23 % of total revenue , compared to negative $ 17.9 million , or 16 % of total revenue , in the third quarter of 2020 . Cash , cash equivalents , and available - for - sale securities were $ 1,813.9 million as of September 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 November 4 , 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