Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Cloudflare reported a strong second quarter in 2026 with total revenue reaching $696.1 million, representing a 36% increase year-over-year.</li><li>The growth was driven by significant customer expansion, notably adding 80,000 paying customers in the quarter—a number matching the total customers at the company’s public debut in 2019—and increasing the count of customers spending more than $100,000 annually to 4,698, up 27% year-over-year.</li><li>This cohort exhibited record net additions across every tier, contributing 73% of total revenue and resulting in a dollar-based net retention rate of 120%, demonstrating solid expansion within its existing large customer base.</li></ul>

Cloudflare reported a strong second quarter in 2026 with total revenue reaching $696.1 million, representing a 36% increase year-over-year.The growth was driven by significant customer expansion, notably adding 80,000 paying customers in the quarter—a number matching the total customers at the company’s public debut in 2019—and increasing the count of customers spending more than $100,000 annually to 4,698, up 27% year-over-year.This cohort exhibited record net additions across every tier, contributing 73% of total revenue and resulting in a dollar-based net retention rate of 120%, demonstrating solid expansion within its existing large customer base.

Cloudflare’s 80,000-Customer Surge: Is AI Creating Its Next Big Growth Engine?

Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<ul>
  <li>
<a href="https://smartkarma.com/entities/cloudflare-inc">Cloudflare</a> is a dominant force in the web infrastructure and security market, leveraging its massive global network to provide an integrated suite of performance and security services. Its strategic position at the edge of the internet creates a significant competitive advantage.</li>
  <li>The company is experiencing rapid growth, driven by the expansion of its large customer base and successful upselling of higher-value services, including its Zero Trust security solutions and the innovative <a href="https://smartkarma.com/entities/cloudflare-inc">Cloudflare</a> Workers developer platform.</li>
  <li>While top-line growth is impressive and the company is generating positive free cash flow, it faces margin pressure from new initiatives and a highly competitive landscape. The stock's premium valuation reflects high growth expectations, posing a significant risk if execution falters.</li>
</ul><p><em>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.</em></p>


  
Cloudflare is a dominant force in the web infrastructure and security market, leveraging its massive global network to provide an integrated suite of performance and security services. Its strategic position at the edge of the internet creates a significant competitive advantage.
  The company is experiencing rapid growth, driven by the expansion of its large customer base and successful upselling of higher-value services, including its Zero Trust security solutions and the innovative Cloudflare Workers developer platform.
  While top-line growth is impressive and the company is generating positive free cash flow, it faces margin pressure from new initiatives and a highly competitive landscape. The stock's premium valuation reflects high growth expectations, posing a significant risk if execution falters.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/quantinuum-inc" target="_blank" data-smartkarma-citation="entities:49399:1" rel="noopener">Quantinuum (QNT US)</a> will be added to the BlueStar Machine Learning and Quantum Computing Index after the close on 18 September.</li>
<li>Estimated one-way turnover is 9.1% resulting in a round-trip trade of US$1bn. There are a few stocks with decent ADV to trade.</li>
<li>There are inflows for <a href="https://www.smartkarma.com/entities/honeywell-aerospace-inc" target="_blank" data-smartkarma-citation="entities:50307:1" rel="noopener">Honeywell Aerospace</a>, <a href="https://www.smartkarma.com/entities/honeywell-international-inc" target="_blank" data-smartkarma-citation="entities:16765:1" rel="noopener">Honeywell International</a> and <a href="https://www.smartkarma.com/entities/on-semiconductor-corp" target="_blank" data-smartkarma-citation="entities:2729:1" rel="noopener">On Semiconductor</a> and outflows for <a href="https://www.smartkarma.com/entities/arqit-quantum-inc" target="_blank" data-smartkarma-citation="entities:35381:1" rel="noopener">Arqit Quantum</a>, <a href="https://www.smartkarma.com/entities/horizon-quantum-holdings-ltd" target="_blank" data-smartkarma-citation="entities:36891:1" rel="noopener">Horizon Quantum Holdings</a> and <a href="https://www.smartkarma.com/entities/global-unichip-corp" target="_blank" data-smartkarma-citation="entities:10305:1" rel="noopener">Global Unichip</a>.</li>
</ul>



Quantinuum (QNT US) will be added to the BlueStar Machine Learning and Quantum Computing Index after the close on 18 September.
Estimated one-way turnover is 9.1% resulting in a round-trip trade of US$1bn. There are a few stocks with decent ADV to trade.
There are inflows for Honeywell Aerospace, Honeywell International and On Semiconductor and outflows for Arqit Quantum, Horizon Quantum Holdings and Global Unichip.


BlueStar Machine Learning and Quantum Computing Index: 1 Add & US$1bn Trade

<ul><li>Cloudflare has moved further into the developer infrastructure race with its acquisition of VoidZero, the open source-first company behind Vite, Vitest, Rolldown, and Oxc.</li><li>The deal brings Vite creator Evan You and VoidZero’s core team into Cloudflare’s Emerging Technology and Incubation organization, while Cloudflare has committed $1 million to an independent Vite ecosystem fund to support open source maintainers.</li><li>The timing is notable because Cloudflare is already reshaping itself around agentic AI, following a strong Q1 2026 in which revenue rose 34% year-over-year to $639.8 million, large-customer momentum accelerated, and the Workers developer platform added one million developers in a single quarter.</li></ul>

Cloudflare has moved further into the developer infrastructure race with its acquisition of VoidZero, the open source-first company behind Vite, Vitest, Rolldown, and Oxc.The deal brings Vite creator Evan You and VoidZero’s core team into Cloudflare’s Emerging Technology and Incubation organization, while Cloudflare has committed $1 million to an independent Vite ecosystem fund to support open source maintainers.The timing is notable because Cloudflare is already reshaping itself around agentic AI, following a strong Q1 2026 in which revenue rose 34% year-over-year to $639.8 million, large-customer momentum accelerated, and the Workers developer platform added one million developers in a single quarter.

Cloudflare Takeover Of VoidZero Signals A Bigger Developer Platform War!

<ul><li>Cloudflare Inc. reported a solid first quarter for 2026, with total revenue reaching $639.8 million, reflecting a 34% increase year-over-year.</li><li>The company continues to expand its customer base, particularly among large accounts, adding approximately 4,416 customers paying over $100,000 annually—up 25% from the previous year.</li><li>Revenue from these customers accounted for 72% of the total, up from 69% the prior year, while dollar-based net retention stood at 118%, representing a 7% increase year-over-year but a slight decline of 2% sequentially.</li></ul>

Cloudflare Inc. reported a solid first quarter for 2026, with total revenue reaching $639.8 million, reflecting a 34% increase year-over-year.The company continues to expand its customer base, particularly among large accounts, adding approximately 4,416 customers paying over $100,000 annually—up 25% from the previous year.Revenue from these customers accounted for 72% of the total, up from 69% the prior year, while dollar-based net retention stood at 118%, representing a 7% increase year-over-year but a slight decline of 2% sequentially.

Cloudflare’s Margin Puzzle: Developer Growth, Paid Traffic & AI Demand Drive Debate!

United States

Cloudflare, Inc. designs and develops software solutions. The Company offers platform for load balancing, video streaming, security, analysis, and domain registration. Cloudflare serves customers worldwide.

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Cloudflare (NET US)

Cloudflare’s 80,000-Customer Surge: Is AI Creating Its Next Big Growth Engine?

Cloudflare reported a strong second quarter in 2026 with total revenue reaching $696.1 million, representing a 36% increase year-over-year. The...

Baptista Research

Primer: Cloudflare (NET US) - Aug 2026

Cloudflare is a dominant force in the web infrastructure and security market, leveraging its massive global network to provide an integrated...

αSK Primers

BlueStar Machine Learning and Quantum Computing Index: 1 Add & US$1bn Trade

There is 1 add for BQTUM in Sep. Estimated one-way turnover is 9.1% resulting in a round-trip trade of US$1bn. There are a few stocks with multiple...

Brian Freitas

Cloudflare Takeover Of VoidZero Signals A Bigger Developer Platform War!

Cloudflare has moved further into the developer infrastructure race with its acquisition of VoidZero, the open source-first company behind Vite,...

Baptista Research

Cloudflare’s Margin Puzzle: Developer Growth, Paid Traffic & AI Demand Drive Debate!

Cloudflare Inc. reported a solid first quarter for 2026, with total revenue reaching $639.8 million, reflecting a 34% increase year-over-year. The...

Baptista Research

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