Overview
- Cloudflare reported Thursday second-quarter revenue of $696.1 million and adjusted EPS of $0.29, both above Wall Street estimates, and raised full-year revenue guidance to about $2.86–$2.87 billion.
- CEO Matthew Prince said non-human traffic driven by AI agents has crossed the 50 percent threshold, a shift the company links to higher usage of its edge network, security tools, and the usage-based Workers developer platform.
- The company framed a May reduction of roughly 20 percent of staff as an AI-first restructuring that produced one-time charges in GAAP results while improving adjusted profitability and operating efficiency.
- Investors reacted with a roughly 16–18 percent post-earnings share jump, a wave of analyst price-target increases, notable ARK Invest purchases, and scrutiny of insider 10b5-1 sales by the CFO and a co-founder.
- Cloudflare is exploring new products, including reported programmable stablecoin wallets for agent micropayments in work reported with Coinbase, but that initiative remains unconfirmed as a revenue driver and execution and valuation risks remain key watch points.