Cloudflare’s data shows surging developer traction and platform engagement ahead of earnings, hinting at accelerating AI-driven growth, but lofty expectations leave no margin for error
The NPM download data is really compeling here. That 4x YoY surge is the kind of leading indicator that typically shows up in revenue a couple quarters later. What I find particularly interesting is the timing coinciding with the Workers AI push becuase that suggests developers are actually testing and integrating the platform at scale, not just kicking tires. The dashboard traffic data backing that up at 36 percent YoY makes it feel less like a one time spike and more like sustained adoptio. But you're right about the valuation risk at 143x FCF. At that multiple they basically need to print north of 560 million AND deliver strong guidance to avoid a selloff.
The NPM download data is really compeling here. That 4x YoY surge is the kind of leading indicator that typically shows up in revenue a couple quarters later. What I find particularly interesting is the timing coinciding with the Workers AI push becuase that suggests developers are actually testing and integrating the platform at scale, not just kicking tires. The dashboard traffic data backing that up at 36 percent YoY makes it feel less like a one time spike and more like sustained adoptio. But you're right about the valuation risk at 143x FCF. At that multiple they basically need to print north of 560 million AND deliver strong guidance to avoid a selloff.