Cloudflare enhances developer tools with Outerbase acquisition

SAN FRANCISCO - Cloudflare, Inc. (NYSE: NET), a $33.48 billion market cap company currently trading at $97.08, has announced the acquisition of developer database company Outerbase, aiming to streamline the creation of database-backed applications on its global network. According to InvestingPro analysis, the company appears to be trading above its Fair Value, despite impressive revenue growth of 28.76% over the last twelve months. This move is expected to make the development of full-stack, AI-enabled applications more accessible to a broader range of developers through the Cloudflare Developer Platform.

Databases are essential for modern application development, and with AI’s growth, the demand for database integration is increasing. Cloudflare’s acquisition of Outerbase is intended to simplify database management for developers, particularly those without extensive SQL knowledge. The company’s strong financial position, with a current ratio of 2.86 and impressive gross profit margins of 77.32%, suggests it has the resources to support this strategic expansion. Outerbase’s technology will be integrated into Cloudflare Workers, Durable Objects, D1, and the Cloudflare Agents SDK, offering user-friendly interfaces and frameworks.

Matthew Prince, co-founder and CEO of Cloudflare, expressed the company’s commitment to democratizing data access and facilitating the development of scalable database-backed applications for developers of varying expertise levels. Outerbase’s co-founder and CEO, Brandon Strittmatter, echoed this sentiment, highlighting the synergies between the two companies and the potential for growth at scale.

The integration of Outerbase’s technology into Cloudflare’s platform is a strategic step towards enhancing the developer experience and accelerating the deployment of AI applications. Cloudflare’s extensive network and security capabilities, combined with Outerbase’s database solutions, are expected to provide a robust environment for developers.

Cloudflare, known for its connectivity cloud services, offers a unified platform of cloud-native products and developer tools. The company’s network blocks billions of online threats daily and serves a diverse customer base, including enterprises, small businesses, nonprofits, and government organizations.

This acquisition is subject to customary closing conditions, and Cloudflare has not disclosed the financial terms. The company’s forward-looking statements indicate plans for the integration of Outerbase’s products and technology into Cloudflare’s Developer Platform.

The information for this article is based on a press release statement from Cloudflare, Inc.

In other recent news, Cloudflare has made notable advancements, particularly in its AI and security offerings. The company introduced new products aimed at facilitating the development of AI agents, including the industry’s first remote Model Context Protocol server and expanded access to Durable Objects. Additionally, Cloudflare launched a suite of security tools under "Cloudflare for AI" to protect AI applications against threats like data leakage and misuse.

Cloudflare has also strengthened its board with the addition of three new members: Stacey Cunningham, John Graham-Cumming, and Dr. Karim Lakhani, bringing expertise in finance, technology, and AI-driven business transformation. Meanwhile, Goldman Sachs reiterated its Buy rating for Cloudflare, maintaining a price target of $161, citing growth opportunities in AI inference.

JMP analysts also maintained a Market Outperform rating with a $180 price target, following Cloudflare’s Investor Day, which highlighted the company’s innovative strategies in AI and developer tools. The company reported significant traction with its Cloudflare Workers platform, attracting over 3 million developers and securing large contracts. Cloudflare’s strategic initiatives, including the addition of GPU cards to servers, aim to capitalize on the growing demand for AI solutions.

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