Artisan Mid Cap Fund on Cloudflare, Inc.
Thesis
Cloudflare operates a global cloud network combining security, performance and developer products. Revenue growth accelerated to 36%, with continued strength among large customers. Adoption of Cloudflare Workers, its serverless developer platform, appears to stimulate cross-selling of cybersecurity services and reinforce the network platform’s benefits. The manager expects growing cybersecurity and AI application demand to extend the profit opportunity.
“We expect the company to benefit from growing demand for cybersecurity and AI-enabled applications.”
Key risks
- The thesis relies on sustained strong growth among large enterprise customers.
- Cross-selling from Cloudflare Workers into security services may be less effective than anticipated.
- The expansion opportunity depends on ongoing cybersecurity and AI-enabled application spending.