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Cloudflare's Path to Profitability Is Becoming Clearer

On this clip from Motley Fool Live, recorded on Feb. 13, Fool.com contributor Brian Withers and Motley Fool analyst Tim Beyers discuss how the cloud infrastructure–as–a–service player Cloudflare (NYSE: NET) is making the transition and when it expects to get there. Brian Withers: This is something that I think is a super highlight. What that means is year over year, this operating margin improves and these costs allow them to get more dollars below the bottom line and takes them more toward their long-term model where they have a non-GAAP operating margin at 20%, but still spending 18-20% on R&D. You can see this is the biggest lever, sales and marketing going from 46% to sub-30%.