#1CLOUDFLARE Investor Presentation Q3 2020 CLOUDFLARE Copyright Cloudflare, Inc.#2Safe Harbor This presentation and the accompanying oral commentary contain "forward-looking" statements within the meaning of the federal securities laws, and these statements involve substantial risks and uncertainties. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, expectations of future operating results or financial performance, the impact of the COVID-19 pandemic on our and our customers', vendors', and partners' businesses and economic conditions generally, market size and growth opportunities, the calculation of certain of our key financial and operating metrics, capital expenditures, plans for future operations, competitive position, technological capabilities, and strategic relationships, as well as assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "predict," "intend," "potential," "would," "continue," "ongoing" or the negative of these terms or other comparable terminology. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are subject to significant risks, uncertainties and assumptions. Actual results could differ materially from our current expectations as a result of many factors, including those identified in the "Risk Factors" section of our filings made with the Securities and Exchange Commission ("SEC"), including our Form 10-Q for the quarter ended September 30, 2020, as well as other filings that we may make from time to time with the SEC. You can locate these reports on our investor relations website (https://cloudflare.NET) or on the SEC website (www.sec.gov). If the risks or uncertainties ever materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements. Except as required by law, we assume no obligation and do not intend to update these forward-looking statements or to conform these statements to actual results or to changes in our expectations. In addition to our results determined in accordance with generally accepted accounting principles ("GAAP"), this presentation includes certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not as a substitute for or superior to measures of financial performance prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. See the appendix for a reconciliation of those measures to the most directly comparable GAAP measures. This presentation contains statistical data, estimates and forecasts that are based on independent industry publications or other publicly available information, as well as other information based on our internal sources. This information involves many assumptions and limitations, and you are cautioned not to give undue weight to these estimates. We have not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly available information. Accordingly, we make no representations as to the accuracy or completeness of that data nor do we undertake to update such data after the date of this presentation. By attending or receiving this presentation you acknowledge that you will be solely responsible for your own assessment of the market and our market position and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of our business. The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the platform and products of Cloudflare. CLOUDFLARE Copyright Cloudflare, Inc. 2#3Key Metrics as of Q3 2020 2010 Launched 3.2M+ Free & Paying Customers 200+ Cities in Network ~16% Of Fortune 1,000 are Paying Customers 1,697 Employees 76% GAAP Gross Margin CLOUDFLARE Copyright Cloudflare, Inc. Cloudflare at a Glance Annual Total Revenue ($M) Large Customers > $100,000 Annualized Revenue 50% CAGR $287 +50% $203 $193 $135 $85 $305 2016 2017 2018 2019 YTD Q3 YTD Q3 2019 2020 261 Q3 2018 68% CAGR Note: Q3 2020 data as of September 30, 2020. GAAP Gross Margin is for the quarter ended September 30, 2020. See Appendix for Large Customers definition. 451 736 Q3 Q3 2019 2020 3#4Cloudflare's mission is to Help build a better Internet CLOUDFLARE Copyright Cloudflare, Inc. 4#5The Internet was not built for what it has become. POP-11 CLOUDFLARE Copyright Cloudflare, Inc. ARPANET LOGICAL MAP, MARCH 1977 POP-10 CDC 7600 POP-11 PDP-11 POP-10 PLI CDC 6 600 MOFFETT LBL UTAH ILLINOIS PDP-10 PDP-10 DATA- COMPUTER PDP-10 POP-11 DEC-2050 PLURIBUS POP-10 WPAFB MIT 6 CCA RCC5 RCC PDP-11 PDP-11 360/67 PDP-11 POP-10 LLL HAWAN AMESIS AMES 16 PDP-10 PDP-11 SRI 2 SRI 51 PDP-11 DEC-1090 SPS-41 PDP-11 PDP-11 PDP-11 PDP-11 POP-10 H6180 50 PDP-11 H68/80 PDP-11 SPS-41 PDP-11 MIT 44 POP-10 PDP-11 POP-10 PDP-10 XEROX MAXC PDP-10 PDP-11 ANL PDP-10 PDP-10 CMU RCC 49 ECLIPSE DEC-1080 H316 DCU-50 BBN 40 LINCOLN PDP-10 NOVA-BOO PARC-MAXC2 BBN 300 CDC6600 PDP-11 RADC H-6180 370/168 CDC7600 C.mmp SUMEX TYMSHARE STANFORD, POP-10 VARIAN 73 370/195 SCOTT H-6160 PDP-11 SPS-41 DEC CDC6600 DEC-1090 PDP-11 POP-10 HARVARD PDP-11 FNWC POP-1 PDP-10 SPS-41 PDP-11 POP-11 CDC6500 CDC3200 OGWC POP-11 NYU POP-11 PDP-10 UNIVAC 1108] SCAL MP32 Сросв PDP-10 TRUTGERS BELVOIR UNIVAC-1108 PDP-11 POP-11 H716 VPDP 11 PDP-11 360/44 PLI POP-11 DCEC POP ABERDEEN SDAC NORSAR UCLA Usc 360/91 360/40 umma360/40 POP-IN NSA NUC PDP-11 POP-10 360/40 360/40 ARPA NELC POP-11 PLURIBUS NBS LONDON MITRE FPS AP-1208 PDP-11 PDP-10 370-150 RAND POP POP-15 POP-11 PDP-10 PDP-11 POP-9 PDP-11 DEC-2040 POP-10 POP-10 PDP-11 XGP 8-4700 PDP-11 XGP POP-10 ISI 52 POP-10 ISI 22 AFWL ◇ IMP □ TIP A PLURIBUS IMP SATELLITE CIRCUIT POP-1 TEXAS GUNTER EGLIN PDP-11 CDC6600 ✓ PDP-11 85500 EGLIN POP-11 PENTAGON ☑POP-9 360/195 GEC 4080 ICL 470 CDC6400 CDC6600 CDC 7600 (PLEASE NOTE THAT WHILE THIS MAP SHOWS THE HOST POPULATION OF THE NETWORK ACCORDING TO THE BEST INFORMATION OBTAINABLE, NO CLAIM CAN BE MADE FOR ITS ACCURACY) NAMES SHOWN ARE IMP NAMES. NOT INECESSARILY HOST NAMES 5#6From Endless Hardware to a Global Cloud Platform • • BAND-AID BOXES • Costly and complex Web of dependencies Specialized hardware On-premise only • Point solutions BETTER INTERNET Easy-to-use, flexible, and scalable Unified control plane Serverless cloud architecture ⚫ Cloud, hybrid, on-premise, and SaaS Broad, integrated product platform CLOUDFLARE Copyright Cloudflare, Inc. CLOUDFLARE Global Cloud Platform 6#7Evolution of Enterprise Stack Hardware/Software (Buy) Yesterday … CISCO. f5 Check Point SOFTWARE TECHNOLOGIES LTD. Juniper NETWORKS NETWORK Services/Cloud (Rent) Tomorrow CLOUDFLARE® riverbed paloalto FIREEYE workday. SAP Microsoft ORACLE APPLICATION NETSUITE hp EMC² CLOUDFLARE Copyright Cloudflare, Inc. Lenovo DELL Sun microsystems zendesk A Adobe ------ salesforce servicenow Dropbox box shopify Alibaba Cloud Microsoft Azure STORE/COMPUTE COMPAQ Google Cloud aws 7#8An Integrated Global Cloud Platform SECURITY PERFORMANCE RELIABILITY IOT Firewall IoT Security Bot Management SSL/TLS Cache Mobile Optimization Load Balancing Domain Name System (DNS) N DDoS Protection Secure Origin Connection Intelligent Routing Image Optimization Anycast Network DNS Resolver Infrastructure Protection Rate Limiting TEAMS Zero Trust Security Gateway ☑ = Content Optimization Mobile SDK Virtual Backbone Always Online PLATFORM CLOUDFLARE Copyright Cloudflare, Inc. APPS Serverless Compute Cloudflare Apps Analytics 8#9We operate at a massive scale. 76B 3.2M+ ~16% Cyber threats blocked per day Total Customers Of the Fortune 1,000 are Paying Customers 48% Of revenue from outside of the U.S. CLOUDFLARE Copyright Cloudflare, Inc. Note: Cyber threats blocked per day is approximate average over the three months ended September 30, 2020. All figures as of the three months ended September 30, 2020. See Appendix for Paying Customers definition. 9#10CLOUDFLARE Our Flexible, Scalable, & Efficient Serverless Architecture Every server, in every city, can run every Cloudflare service Abstracts underlying infrastructure Dynamically optimizes and leverages capacity across network ⚫ Single unified code base Deployment on commodity hardware CLOUDFLARE Copyright Cloudflare, Inc. 10#11A Global Network Powering Our Platform 200+ Cities Cloudflare city CLOUDFLARE Copyright Cloudflare, Inc. Note: Figures as of September 30, 2020, with the exception of interconnects, which is as of October 15, 2020. 100+ Countries 9,100+ Interconnects 99% Of the Internet-connected developed world population is located within 100 milliseconds of our network 11#12Our Product & Network Flywheels Drive Our Business Better Products CLOUDFLARE Copyright Cloudflare, Inc. Γ ך Serve Everyone CLOUDFLARE L L Increased Efficiency Helping Build a Better Internet Global Scale Network Product Serverless Architecture ON OFF Ease of use 12#13Data Intelligence & Quality Assurance at Scale Global sensor network with paying customers in 175 countries. Machine learning systems improve products with every customer's request. Immune system for the Internet blocking an average of 76 billion cyber threats each day. Rapid development cycles and QA through free users volunteering to test new products. CLOUDFLARE Copyright Cloudflare, Inc. Note: Data as of the three months ended September 30, 2020. 13 3#14Our Competitive Advantages 101010101 10010 110 1010 1010 0 SHARED INTELLIGENCE NETWORK SCALE EASE OF USE CLOUDFLARE Copyright Cloudflare, Inc. 1010 0101 10010 10 1101 1010 0101 010 NO TRADE OFFS Security + Performance 14#15Our Favorable Competitive Position Limitations On-Premise Point Solutions Public Cloud CLOUDFLARE Copyright Cloudflare, Inc. f5 FIREEYE™ paloalto networks. 11.11. CISCO. Check Point SOFTWARE TECHNOLOGIES LTD. impervą riverbed BROADCOM JUNIPer NETWORKS Akamai CISCO Cisco Umbrella fastly Limelight verizon NETWORKS edgecast Zscaler Menlo Security • • Dyn aws -Alibaba Cloud • Google Cloud Microsoft Azure . Complex and expensive Not suited to address cloud-based and hybrid deployments Architected to deliver single point / more narrow product portfolio Customers are increasingly looking for an integrated platform offering security, performance, and reliability through a single vendor Inability to serve as a unified control plane across on-premise, cloud, hybrid, and SaaS infrastructure Customer lock-in and competition concerns 15#16Disrupting Large, Well Established Legacy Markets Performance & Reliability Application Delivery Controls Content Delivery Networks Wide Area Network Technology 1010 10010 101 0101 010 Security 2018 2022 $47B $32B VPN Internal and External Firewalls Web Security Distributed Denial of Service Prevention Intrusion Detection and Prevention Advanced Threat Prevention CLOUDFLARE Copyright Cloudflare, Inc. Note: Total addressable market represents 2018 spend and 2022 projections from our analysis based on latest IDC data available as of May 2019. Areas for Incremental Growth Serverless Internet of Things 5G Cellular Remote Work 16#17Traditional Go-To-Market Model Inverted We don't build ahead of the curve. Sources of Leverage • • Self service adoption for customers of all sizes ⚫ Natural expansion Pulled into new geographies CLOUDFLARE Model Get customers Add sales reps to service new customer segments • Pulled up market CLOUDFLARE Copyright Cloudflare, Inc. Spend marketing budget 17 17#18Our Strategy for Growth Develop new products Extend our serverless platform strategy Acquire new customers Expand relationships with existing customers Upgrading to premium plans Increased usage Adding products High product velocity Set pace for innovation in market Expand into new markets to expand TAM Enable a new class of applications Power store and compute workloads Increase stickiness Opens new market opportunity Grow awareness Field sales International coverage Expand channel partnerships CLOUDFLARE Copyright Cloudflare, Inc. 18#19Financial Overview CLOUDFLARE Copyright Cloudflare, Inc. 19#20$32B Large Addressable Market Key Financial Highlights 50% CAGR High Revenue Growth 76% Attractive GAAP Gross Margin $$ Efficient Business Model CLOUDFLARE Copyright Cloudflare, Inc. Note: Total addressable market represents 2018 spend and 2022 projections from our analysis based on latest IDC data available as of May 2019. Revenue growth is from 2016-2019 and gross margin data is for the three months ended September 30, 2020. 20 20#21Total Revenue ($M) Strong Revenue Growth +59% +43% +49% $85 $135 $193 $287 +54% $114 $74 2016 2017 2018 2019 Q3 2019 Q3 2020 CLOUDFLARE Copyright Cloudflare, Inc. Subscription-based revenue model 48% outside of the United States Dollar-Based Net Retention consistently at or above 115% for last 10 quarters¹ Growing Large Customer contribution Multiple independent growth vectors Note: Revenue outside the United States is for the three months ended September 30, 2020. See Appendix for the definitions of Dollar-Based Net Retention and Large Customers. 1 See our earnings release and related supplemental materials dated November 5, 2020 for a discussion of how we changed the methodology by which we calculate Dollar-Based Net Retention. 21 21#22Rapid Customer Growth Total Paying Customers 22% CAGR 67,643 80,986 100,968 Large Customers >$100,000 Annualized Revenue 68% CAGR Q3 2018 CLOUDFLARE Copyright Cloudflare, Inc. Q3 2019 Q3 2020 261 451 736 Q3 Q3 2018 2019 Q3 2020 Note: See Appendix for Paying Customer and Large Customer definitions. See our earnings release and related supplemental materials dated November 5, 2020 for a discussion of how we changed the methodology by which we calculate Paying Customers and Large Customers. 22 22#23GAAP Gross Margin 79% 78% 78% 77% 76% 76% Attractive & Consistent Gross Margin Serverless architecture deployed on commodity hardware Single software stack across the network Symbiotic relationship with ISPS Leverage idle capacity across network 2017 2018 2019 Q1 2020 Q2 2020 Q3 2020 CLOUDFLARE Copyright Cloudflare, Inc. 23#24Leverage of Our Platform Operating Loss and Margin (30)% (25)% (25)% $(71.2) $(57.0) Operating Expense as a % of Revenue 21% 27% 27% 27% 16% 31% 23% 21% $(18.1) (4)% 55% 52% $(4.5) 48% 45% 2018 2019 Q3 2019 Q3 2020 CLOUDFLARE Copyright Cloudflare, Inc. Note: $ in millions. Metrics shown are Non-GAAP. See Appendix for GAAP financial measures and reconciliation. 2018 2019 Q3 2019 Q3 2020 S&M G&A R&D 24 24#25CLOUDFLARE Long-Term Model (Non-GAAP) 2018 2019 Q3 2020 Long-Term Model Gross Margin 78% 78% 76% 75% - 77% Sales & Marketing 48 % 52% 45% 27% -29% (% of revenue) Research & Development 27% 27% 21 % 18%-20% (% of revenue) General & Administrative 31 % 23 % 16% 8% - 10% (% of revenue) Operating Margin (30)% (25)% (4)% 20% + Copyright Cloudflare, Inc. Note: Metrics shown are Non-GAAP. See Appendix for GAAP financial measures and reconciliation. 25#26Cash, Cash Equiv, & AFS ($ in millions) Strong Cash Position Raised $565 million, net of fees and expenses, in our IPO that priced on September 12th, 2019 Raised $562 million, net of fees and expenses, in our Convertible Note that priced on May 13th, 2020 $1,200 $1,000 Cash Balance $800 $645 $637 $588 $600 $400 $200 $1,069 $1,041 $0 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 CLOUDFLARE Copyright Cloudflare, Inc. Operating Cash Flow ($ millions) $0.0 Operating Cash Flow & Margin ($6.0) ($8.6) ($12.0) -10:2% ($14.3) ($17.8) ($18.0) -15.6% 10.0% $4.0 $2.0 4.0% 1.7% 2.0% -6.0% -14.0% ($24.0) -22.0% -24.1% ($30.0) -30.0% Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 26#27A Our Business Model Disrupting a large and growing total addressable market Widely distributed Global Cloud Platform; every service on every server Expansive product portfolio; open to developer innovation $ Highly efficient business model and low fundamental cost structure CLOUDFLARE Copyright Cloudflare, Inc. High-growth subscription revenue model with attractive gross margin 27#28Appendix CLOUDFLARE Copyright Cloudflare, Inc. 28#29GAAP to Non-GAAP Reconciliation CLOUDFLARE Copyright Cloudflare, Inc. 2016 2017 GAAP Cost of Revenue $23,962 $28,788 2018 $43,537 2019 Q3 2019 Q3 2020 $63,423 $16,033 $27,005 Less: Stock-based Compensation Expense -$64 -$47 -$119 -$716 -$397 -$354 Less: Amortization of Acquired Intangible Assets -$38 -$462 -$517 -$125 -$31 -$700 Non-GAAP Cost of Revenue $23,860 $28,279 $42,901 $62,582 $15,605 $25,951 GAAP Gross Profit $60,829 $106,127 $149,137 $223,599 $57,908 $87,157 Add: Stock-based Compensation & Related Payroll Taxes $64 $47 $119 $716 $397 $354 Add: Amortization of Acquired Intangible Assets $38 Non-GAAP Gross Profit $60,931 $462 $106,636 GAAP Gross Margin 72% Non-GAAP Gross Margin 72% 79% 79% $517 $149,773 77% 78% $125 $31 $700 $224,440 $58,336 $88,211 78% 78% 76% 78% 79% 77% GAAP Sales and Marketing $40,122 $61,899 $94,394 $159,298 $45,538 $55,982 Less: Stock-based Compensation & Related Payroll Taxes -$381 Non-GAAP Sales and Marketing $39,741 -$488 $61,411 -$979 $93,415 -$8,709 $150,589 -$4,880 -$4,761 $40,658 $51,221 GAAP S&M Expense as a % of Revenue 47% 46% 49% 56% 62% 49% Non-GAAP S&M Expense as a % of Revenue 47% 46% 48% 52% 55% 45% GAAP Research and Development $23,663 $33,650 $54,463 $90,669 $27,863 $30,902 Less: Stock-based Compensation & Related Payroll Taxes -$1,043 -$969 -$1,532 -$13,037 -$7,801 -$7,373 Non-GAAP Research and Development $22,620 $32,681 $52,931 $77,632 $20,062 $23,529 GAAP R&D Expense as a % of Revenue 28% 25% 28% 32% 38% 27% Non-GAAP R&D Expense as a % of Revenue 27% 24% 27% 27% 27% 21% GAAP General and Administrative $14,073 $20,308 $85,179 $81,578 $25,593 $21,525 Less: Stock-based Compensation & Related Payroll Taxes -$4,212 -$1,251 -$24,717 -$14,165 -$9,833 -$3,518 Non-GAAP General and Administrative Expense $9,861 $19,057 $60,462 $67,413 $15,760 $18,007 GAAP G&A Expense as a % of Revenue 17% 15% 44% 28% 35% 19% Non-GAAP G&A Expense as a % of Revenue 12% 14% 31% 23% 21% 16% GAAP Loss from Operations -$17,029 -$9,730 Add: Stock-based Compensation & Related Payroll Taxes $5,700 Add: Amortization of Acquired Intangible Assets $38 $2,755 $462 Non-GAAP Loss from Operations -$11,291 -$6,513 -$84,899 $27,347 $517 -$57,035 GAAP Operating Margin Non-GAAP Operating Margin -20% -7% -44% -$107,946 $36,627 $125 -$71,194 -38% -$41,086 $22,911 -$21,252 $16,006 $31 $700 -$18,144 -$4,546 -56% -19% -13% -5% -30% -25% -25% -4% 29 Note: $ in thousands. 29#30Definitions Paying Customers. We believe our ability to grow the number of paying customers on our platform provides a key indicator of growth of our business and our future business opportunities. We define a paying customer as a person or entity who has generated revenue during the quarter, excluding (i) customers that were not acquired through ordinary sales channels, (ii) customers using only our registrar product, and (iii) customers using our consumer applications, such as 1.1.1.1 and Warp, which agreements and customers together represent an insignificant amount of our revenue. An entity is defined as a company, a government institution, a non-profit organization, or a distinct business unit of a large company that has an active contract with us or one of our partners. Paying Customers (> $100,000 Annualized Revenue). While we continue to grow customers across all sizes, over time, our large customers have contributed an increasing share of our revenue. We view the number of customers with Annualized Revenue greater than $100,000 as indicative of our penetration within large enterprise accounts. To measure Annualized Revenue, we take the sum of revenue for each customer in the quarter and multiply that amount by four. For example, if we signed a new customer that generated $600 of revenue in the quarter, that customer would account for $2,400 of Annualized Revenue for that year. Our Annualized Revenue calculation excludes (i) agreements that were not entered into through our ordinary sales channels, (ii) revenue generated from customers using only our registrar product, and (iii) customers using our consumer applications, such as 1.1.1.1 and Warp, which agreements and customers together represent an insignificant amount of our revenue. Our Annualized Revenue metric also includes any usage charges by a customer during a period, which represents a small portion of our total revenue and may not be recurring. As a result, Annualized Revenue may be higher than actual revenue over the course of the year. Dollar-Based Net Retention Rate. Our ability to maintain long-term revenue growth and achieve profitability is dependent on our ability to retain and grow revenue generated from our existing paying customers. We believe that we will achieve these objectives by continuing to focus on customer loyalty and adding additional products and functionality to our platform. Our dollar-based net retention rate is a key way we measure our performance in these areas. Dollar-based net retention measures our ability to retain and expand recurring revenue from existing customers. To calculate dollar-based net retention for a period, we compare the Annualized Revenue from paying customers four quarters prior to the Annualized Revenue from the same set of customers in the most recent quarter. Our dollar-based net retention includes expansion and is net of contraction and attrition, but excludes Annualized Revenue from new customers in the current period. Our dollar-based net retention excludes the benefit of free customers that upgrade to a paid subscription between the prior and current periods, even though this is an important source of incremental growth. We believe this provides a more meaningful representation of our ability to add incremental business from existing paying customers as they renew and expand their contracts. CLOUDFLARE Copyright Cloudflare, Inc. 30