Businesses tend to choose them because they're cheaper than alternatives.

They are in a great position to generate a lot of value without rising prices, they haven't realized it yet because what they have to do is pretty boring.

I think about investing in Cloudflare but that P/E ratio scares me off every time.

Their revenue is growing 30% yoy, so investors are speculating it to pay off in the end.

The more they grow the harder it is to follow such rates.

They don't have a PE ratio. They have never made a profit.

PE ratio too high!

Sir, that is price/revenue ratio

(jawdrop)

NaN is scary

I use Cloudflare for a lot of my side projects. It's a pleasure to use, and I manage to stay under the free tier. It does feel like they should be bigger in the cloud space, but I imagine the major players get a lot of revenue from VMs, which is a space Cloudflare has avoided.

Revenue is not profit. They "capture" much less than $7m/day.

Oh less than Atlassian. Suprised.

Atlassian has a moat of features despite being expensive. You see nibbles by stuff like Monday.com but never big chunks.

CloudFlare is honestly still iterating to find a moat other than 'really cheap'.

High P/E means a good moat.

(Too high and everyone is looking for a start-up to eradicate your product segment of course).

high P/E means good income growth prospects. a good moat is one way to achieve that, but not the only way.