Cloudflare NET has been expanding its portfolio through acquisitions, causing its stock value to surge. Shares in the internet security and content delivery network jumped 9.2% this morning, in part also thanks to the news of the company announcing the appointment of Chirantan “CJ” Desai as President of Product & Engineering. This is part of efforts to prepare for Cloudfare’s next growth phase, which includes achieving an annual recurring revenue of $5B.
Chirantan Desai is a well-known name in the tech world. Most recently, he served as President and Chief Operating Officer at ServiceNow (NOW). Desai helped scale the company from $1.5 billion to more than $10 billion in annualized revenue, and now he is coming to accomplish the same at Cloudflare. The move drove optimism among investors, with NET shares moving positively.
In a blog post, Desai wrote about joining Cloudflare and what the future holds for the company. “The world is in a very interesting moment for technological innovation: the AI landscape is uncharted and developing at an exponential rate; the urgency for enterprises to reduce tech debt and reliance on legacy applications is at an all-time high; multi-cloud deployments are becoming a reality for optimal performance and global scale; and high-performance connectivity is table stakes. Cloudflare finds itself in a compelling position at the intersection of these key themes.”
CloudFlare Acquires Kivera: Stocks Surge Further
Furthermore, NET recently acquired Kivera Incorporated in a buyout. Kivera is a system software that will help enhance preventive cloud security through Cloudflare’s One platform. The acquisition will enable Cloudflare to offer its customers more robust and proactive controls. In addition, Kivera’s integration will provide Cloudflare customers with compliance automation, preventing costly regulatory violations.
Cloudflare has been expanding its portfolio for some time now, launching innovative products for users. The company has expanded its product capabilities through partnerships with CrowdStrike CRWD; Microsoft MSFT; and Kyndryl KD. The platform’s growth over the past year has resulted in promising gains for NET holders. In the last 24 hours, shares are up nearly 10%. Since October 2023, Cloudflare stock has also been up 47%, with positive earnings reports each quarter.