# Cloudflare, Inc. (NET) FY2024 Q2 Statement of Cash Flows

- Company: Cloudflare, Inc. (NET)
- Period: 2024-04-01 to 2024-06-30
- Filing: Q2 FY2024 10-Q, filed 2024-08-01, accession number 0001477333-24-000070
- Page: https://plicit.ai/financials/net/fy2024-q2-cash-flow
- Chart image: https://plicit.ai/charts/net-fy2024-q2-cash-flow-sankey.png

## Chart details

Cash flows for Apr 1, 2024 through Jun 30, 2024. Cash basis: Cash, cash equivalents, and restricted cash. Beginning cash: Mar 31, 2024. Ending cash: Jun 30, 2024. Beginning and ending cash are dated balances. Positive cash flows add cash; negative cash flows reduce it.

- **Beginning cash on Mar 31, 2024**: 261,774,000 US dollars. Beginning cash: Cash, cash equivalents, and restricted cash
- **Operating activities**: 74,815,000 US dollars. Net cash provided.
- **Net loss**: negative 15,078,000 US dollars
- **Operating lease liabilities**: negative 10,353,000 US dollars
- **Provision for bad debt**: 1,547,000 US dollars
- **Deferred contract acquisition costs**: negative 25,687,000 US dollars
- **Deferred revenue**: 20,659,000 US dollars
- **Non-cash operating lease costs**: 11,261,000 US dollars
- **Stock-based compensation expense**: 85,991,000 US dollars
- **Contract assets**: negative 1,328,000 US dollars
- **Depreciation and amortization expense**: 29,655,000 US dollars
- **Other**: 185,000 US dollars
- **Accounts payable**: 12,923,000 US dollars
- **Prepaid expenses and other current assets**: negative 1,704,000 US dollars
- **Net accretion of discounts and amortization of premiums on available-for-sale securities**: negative 11,315,000 US dollars
- **Deferred income taxes**: negative 1,034,000 US dollars
- **Amortization of deferred contract acquisition costs**: 18,884,000 US dollars
- **Amortization of debt issuance costs**: 990,000 US dollars
- **Other noncurrent liabilities**: 199,000 US dollars
- **Accounts receivable, net**: negative 38,577,000 US dollars
- **Other noncurrent assets**: 1,181,000 US dollars
- **Accrued expenses and other current liabilities**: negative 3,584,000 US dollars
- **Loss on extinguishment of debt**: 0 US dollars
- **Investing activities**: negative 183,742,000 US dollars. Net cash used.
- **Purchases of property and equipment**: negative 29,625,000 US dollars
- **Other investing activities**: 4,000 US dollars
- **Asset acquisitions and business combinations, net of cash acquired**: negative 13,977,000 US dollars
- **Maturities of available-for-sale securities**: 358,451,000 US dollars
- **Purchases of available-for-sale securities**: negative 491,680,000 US dollars
- **Sales of available-for-sale securities**: 0 US dollars
- **Capitalized internal-use software**: negative 6,915,000 US dollars
- **Financing activities**: 7,143,000 US dollars. Net cash provided.
- **Cash paid for issuance costs on revolving credit facility**: negative 2,148,000 US dollars
- **Proceeds from the early exercise of stock options**: 6,000 US dollars
- **Payment of indemnity holdback**: 0 US dollars
- **Proceeds from the exercise of stock options**: 3,192,000 US dollars
- **Payment of tax withholding obligation on RSU settlement**: negative 4,362,000 US dollars
- **Proceeds from the issuance of common stock for employee stock purchase plan**: 10,455,000 US dollars
- **Repayments of convertible senior notes**: 0 US dollars
- **Repurchases of unvested common stock**: 0 US dollars
- **Operating adjustment reconciliation**: 183,475,000 US dollars. Intermediate calculation joining the operating reconciliation branches. Its gross amount includes any portion of net income routed through this junction. It is not an additional cash source or use.
- **financing gross reconciliation**: 13,653,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
- **investing gross reconciliation**: 542,197,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
- **Exchange-rate effect**: 0 US dollars
- **Ending cash on Jun 30, 2024**: 159,990,000 US dollars. Ending cash: Cash, cash equivalents, and restricted cash
- **Cash sources and uses**: 343,732,000 US dollars. Opening cash plus net sources, equal to net uses plus ending cash.
- **Net cash change**: negative 101,784,000 US dollars. Ending cash minus beginning cash.
- **Cash flow / Net income**: Not meaningful. Operating cash flow divided by reconciliation net income for the same period. The ratio is not meaningful when net income is zero or negative.
- **Operating cash flow**: 74,815,000 US dollars. Operating cash flow used in the free cash flow calculation.
- **Cash purchases of property, plant and equipment**: 29,625,000 US dollars. These cash purchases are already included in investing activities above.
- **Free cash flow**: 45,190,000 US dollars. A supplemental measure; finance-lease payments are excluded from this definition.

### Chart connections

- Beginning cash plus operating, investing and financing cash flows plus the exchange-rate effect equals ending cash. Negative amounts reduce cash.
- Financing contributions meet at a reconciliation junction before connecting to the net cash total.
- Investing contributions meet at a reconciliation junction before connecting to the net cash total.
- Operating reconciliation adjustments are not all independent cash receipts.
- Net loss −$15.08M + net operating adjustments $89.89M = operating cash +$74.82M. The loss reduces the earnings basis of the reconciliation; it is not a cash payment. The signed loss remains a deduction at the operating reconciliation junction.
- Each activity has one net cash bar connected to the shared cash pool. Positive activity totals enter the pool; negative activity totals leave the pool to fund that activity's net payments. The central pool does not assign a particular funding source to a particular payment.
- The intermediate calculation bars include both sides of the displayed activity breakdowns; they are not additional cash flows.
- Operating cash flow minus cash purchases of property, plant and equipment equals free cash flow: 74,815,000 US dollars minus 29,625,000 US dollars equals 45,190,000 US dollars.