Growth and Market Expansion Strategy
GAAP to
Non-GAAP
Reconciliation
(Annual)
CLOUDFLARE © Copyright Cloudflare, Inc.
2018
2019
2020
GAAP Cost of Revenue
$43,537
$63,423
$101,055
Less: Stock-based Compensation Expense & Related Payroll Taxes
-$119
Less: Amortization of Acquired Intangible Assets
Non-GAAP Cost of Revenue
-$517
$42,901
GAAP Gross Profit
Add: Stock-based Compensation & Related Payroll Taxes
Add: Amortization of Acquired Intangible Assets
$149,137
$119
$517
-$716
-$125
$62,582
$223,599
$716
-$1,466
-$3,081
$96,508
$330,004
$1,466
$125
Non-GAAP Gross Profit
GAAP Gross Margin
Non-GAAP Gross Margin:
GAAP Sales and Marketing
$149,773
$224,440
$3,081
$334,551
77%
78%
78%
78%
77%
78%
$94,394
Less: Stock-based Compensation & Related Payroll Taxes
-$979
Non-GAAP Sales and Marketing
$93,415
$159,298
-$8,709
$150,589
$217,875
-$17,678
$200,197
GAAP S&M Expense as a % of Revenue
49%
Non-GAAP S&M Expense as a % of Revenue
48%
56%
52%
51%
46%
GAAP Research and Development
$54,463
Less: Stock-based Compensation & Related Payroll Taxes
-$1,532
$90,669
-$13,037
Less: Acquisition-related and other expenses
$127,144
-$30,497
-$5,725
Non-GAAP Research and Development
$52,931
$77,632
$90,922
GAAP R&D Expense as a % of Revenue
28%
Non-GAAP R&D Expense as a % of Revenue
27%
32%
27%
29%
21%
GAAP General and Administrative
$85,179
$81,578
Less: Stock-based Compensation & Related Payroll Taxes
-$24,717
-$14,165
Less: Acquisition-related and other expenses
$91,753
-$13,875
-$554
Non-GAAP General and Administrative Expense
$60,462
$67,413
$77,324
GAAP G&A Expense as a % of Revenue
44%
Non-GAAP G&A Expense as a % of Revenue
GAAP Loss from Operations
31%
28%
23%
21%
18%
-$84,899
Add: Stock-based Compensation & Related Payroll Taxes
Add: Amortization of Acquired Intangible Assets
Add: Acquisition-related and other expenses
$27,347
$517
-$107,946
$36,627
$125
-$106,768
$63,516
$3,081
$6,279
Non-GAAP Loss from Operations
-$57,035
-$71,194
GAAP Operating Margin
-44%
-38%
-$33,892
-25%
Non-GAAP Operating Margin
-30%
-25%
-8%View entire presentation