AUG 2024
~$80 — 52w low
The pre-inflection setup
Stock was punished through 2024 on (a) the broader software de-rating after the 2023 ZIRP-era multiples collapsed, (b) collapsing sales productivity — Morningstar called it the "sales reps were not as productive as the firm would've liked" period, and (c) DBNR slipping from peak 125% to 110% trough in Q3'24. The market had concluded Cloudflare was a slowing-growth, overvalued story.
NOV 7, 2024 ①
$85 → $103 (+20%)
Q3'24 print — the GTM inflection
Q3'24 revenue $430M, +28%, beat. The watershed moment was Matthew Prince explicitly calling out "a key inflection point in the transformation of our go-to-market organization". Cloudflare had replaced under-performing sales reps, reorganized into verticals, and net-new ACV growth turned. The market re-rated growth durability.
FEB 6, 2025 ②
$155 → $170 (+10% premkt)
Q4'24 print — beat, raise, $1M+ customers explode
Revenue $459.9M (+27%), beat by $8M. The number that mattered: $1M+ customers grew 47% YoY to 173, with more than half the 55 net adds in Q4 alone. Stock broke out to 3-year highs. Sentiment shift: this is no longer a "growth deceleration" story; it's a "growth durability + enterprise penetration" story.
MAY 8, 2025 ③
$115 → $135 (post-print run)
The $130M Workers deal — Workers re-rates from toy to platform
Q1'25 revenue $479M, +27%. The disclosure that re-rated the entire developer-services thesis: a 5-year, $130M contract — the largest in Cloudflare's history — primarily for Workers, won from a "leading technology company that switched from a traditional hyperscaler". This was the validation moment: Workers can scale to nine-figure deals. Stock doubled over the next 60 days.
JUL 31, 2025
~$200
Q2'25 — revenue re-accelerates, $2B annualized crossed
Revenue $512M, +28% (re-accel from 27%). DBNR climbed to 114% from 111% in Q1'25. Pool-of-funds deal structure went from <3% of new ACV (Q3'24) to low-double-digit revenue share. The buy-side narrative crystallized: "deceleration story is dead, this is a re-acceleration".
OCT 30, 2025 ④
~$215 → $230
Q3'25 — revenue accelerates to 31%, $3B run-rate target
Revenue $562M, +31% YoY — second consecutive quarter of acceleration. RPO grew 43%. Management implied a $3B revenue run-rate exiting 2026. Needham raised PT to $285 from $240, KeyBanc to $300 from $235. This was the print where sell-side capitulated bearish.
FEB 4, 2026 ⑤
$170 → $185
BTIG upgrade Neutral → Buy; trough buying
January saw a broader cybersecurity sector sell-off (China policy headlines, software-stack consolidation fears). NET pulled back to $170. BTIG upgraded to Buy citing valuation reset, and Q4'25 beat (announced Feb 12) with 34% revenue growth ($614.5M). Stock rallied 50% over next 3 months.
MAY 7, 2026 ⑥
$256.79 ATH
All-time high at 28x EV/NTM sales
Going into Q1'26 print, the stock was priced for perfection. Options market was pricing an 11.3% straddle implied move. Multiple at 28x EV/Sales (peer mean ~3.7x).
MAY 8, 2026 ⑦
$256 → $194 (-24%)
The 20% layoff reaction
Q1'26 print was operationally excellent: revenue $639.8M, +34% YoY (3rd consecutive quarter of acceleration), beat by $17M. BUT — simultaneously announced 20% workforce reduction (1,100 FTEs), $140-150M restructuring charges, gross margin compression to 72.8% (-430bps YoY). Market panic-sold the layoff regardless of the print quality. Down ~24% in two days.