01:48:42 路 Farza Majeed, Matthew Prince
[01:48:42] S6: It's you know, I [01:48:43] S13: think it's it's interesting. It's been actually kind of puzzling for us. So all of this stems back. So so for those who don't know, in in both Italy and in Spain, there there's been pretty aggressive tactics to come after either me personally or or Cloudflare. And it's all been driven largely by the football leagues, the the soccer league in those in those places. And what they're concerned about is is piracy. The the thing that's been ironic about it is, like, we don't like piracy on our network either. We don't make any money off of it. It's it takes bandwidth. It steals resources. So we have a whole team that's working all the time to shut shut the pirates down. And and yet, you know, the pirates are clever. They find ways to to use our our system because, you know, huge percentage of the Internet sits behind Cloudflare. You know, there's gonna be stuff from time to time that we don't we don't capture. It takes us some time to catch. With leagues everywhere else in the world, so the NBA and NFL and and MLB and and the Premier League in in The UK and and others, we work really closely with them to if they identify a pirate stream for us to, you know, pull that down. Because, again, it costs us money. We don't like it. But for whatever reason, La Liga in in in in Spain and and and the the league in Italy have have decided that instead of instead of partnering with us to take this down, they they would sue us instead. And so so again, yes, it it it does cramp some of my summer plans.
01:50:10 路 John Coogan, Jordi Hays, Matthew Prince
[01:50:10] S1: I wanna talk about IPOs, life as a public company. There's a few entrepreneurs that are trying to go public this year. You had a very successful IPO. The stock is up more than a 100,000 basis points since you went public. Fantastic run. But advice for [01:50:29] S0: We're putting everything in [01:50:33] S1: even better. I mean, this stock's up a thousand percent. It's fantastic. But a 100,000 basis points sounds even better. [01:50:38] S13: Basis points a [01:50:39] S1: lot. 100 more 110,000 basis points. Who's counting? But anyway, what was the what was your process like? We were talking about the level of float lockups. Like what were the hard decisions? Were there things that we're talking about now with these big IPOs that weren't even on the top 10 of your to do list? What is important to a successful IPO and then running a public company?
01:50:39 路 John Coogan, Matthew Prince
[01:50:39] S1: lot. 100 more 110,000 basis points. Who's counting? But anyway, what was the what was your process like? We were talking about the level of float lockups. Like what were the hard decisions? Were there things that we're talking about now with these big IPOs that weren't even on the top 10 of your to do list? What is important to a successful IPO and then running a public company? [01:51:06] S13: Yeah. I think, you know, there are handful of things that that that that are, you interesting lessons for us. So first of all, like, I love being a public company. It's, you know, I I think that it's interesting. You know, the the the in in jurisdictions where, yeah, you don't have no fault divorce, spousal homicides are much higher, which is I think kind of an analogy to the difference between private market investors and public market investors. It's really hard to fire your VC. It's hard for your VCs to fire you. And so as a result, like, actually, it's kind of dysfunctional. Whereas public market, like, I love our investors because if I do something stupid, they call me up and they say, that was stupid. I sold your stock. And then we and we have a conversation, and sometimes they say, oh, actually, that makes sense now, and I bought it back. Right? But I think you can have actually a much more honest, much more real And that's felt actually just a lot healthier than what you see in the third Yeah.
01:51:06 路 Matthew Prince, Jordi Hays
[01:51:06] S13: Yeah. I think, you know, there are handful of things that that that that are, you interesting lessons for us. So first of all, like, I love being a public company. It's, you know, I I think that it's interesting. You know, the the the in in jurisdictions where, yeah, you don't have no fault divorce, spousal homicides are much higher, which is I think kind of an analogy to the difference between private market investors and public market investors. It's really hard to fire your VC. It's hard for your VCs to fire you. And so as a result, like, actually, it's kind of dysfunctional. Whereas public market, like, I love our investors because if I do something stupid, they call me up and they say, that was stupid. I sold your stock. And then we and we have a conversation, and sometimes they say, oh, actually, that makes sense now, and I bought it back. Right? But I think you can have actually a much more honest, much more real And that's felt actually just a lot healthier than what you see in the third Yeah. [01:52:09] S0: It's so true. I mean, every every everybody that's angel invested in any number of meaningful companies is gonna have portfolio companies where you've fully given up on the company and you just try to be try to be nice and yeah, help if but you at some point, you're just totally disassociated with the investment and you're just like and and that's that's that's the reality. But yeah. So it's it's very healthy to be like, yep. I'm disassociated, like, moving on. Moving on. And and and
01:52:09 路 Jordi Hays, Matthew Prince, Jeremy Strong
[01:52:09] S0: It's so true. I mean, every every everybody that's angel invested in any number of meaningful companies is gonna have portfolio companies where you've fully given up on the company and you just try to be try to be nice and yeah, help if but you at some point, you're just totally disassociated with the investment and you're just like and and that's that's that's the reality. But yeah. So it's it's very healthy to be like, yep. I'm disassociated, like, moving on. Moving on. And and and [01:52:39] S13: in both directions. Right? I mean, it's just a better it's a it's a better relationship. And and and so I I, like, I loved the process of going public. I think the thing that we did, like, it was a it was an opportunity for us to really kind of retell our story. Like, you don't get to reinvent yourself very often, but the process of writing the s one was incredibly just an opportunity to sit down and and really do it. And and we, you know, really dug in and and told the story in a in a way that to this day, we still refer to parts of that that that document to sort of explain what is Cloudflare and and how do we work. I think that the most clever thing that we that we did, and this was advice that I got from from Ryan Smith from Qualtrics, was he said, you know, he's like, what are you doing about friends and family? [01:53:24] S4: And I'm like, we're not gonna
01:53:24 路 Jeremy Strong, Matthew Prince, Sridhar Ramaswamy, Jordi Hays
[01:53:24] S4: And I'm like, we're not gonna [01:53:25] S13: do it. They because you can take 5% of a of a IPO and allocate it to friends and family. And I didn't wanna, like, get my aunt, like, over if it if it if the stock went down or something, I didn't wanna have explain that over Thanksgiving Yeah. Thanksgiving dinner. He said, no. No. No. You're thinking about it wrong. Think about the people who if they, you know, if you they owed you a favor, that they could make a meaningful difference in the future of of Cloudflare and then offer them to the ability to invest in in the IPO. [01:53:55] S8: Yeah. And I was like, is [01:53:56] S13: that, like, is that legal? He's like, check with your lawyers, check with the bankers, but the answer is yes. And I was like, some people are gonna have, like, conflicts. He said, it doesn't matter. Like, even if just the fact you offered it, even if they can't do it will will mean that, you know, that that that that they'll they'll always remember that super fondly. And it was incredibly good advice. And we made this crazy list of all of these, you know, people who, you know, who were like, you know, at some point, that might be an important relationship for us. And, like, 75% of them said yes, and and they all made, you know, a ton of money as a as a result of it. And it was it was it was one of those kind of Now [01:54:35] S0: your aunt doesn't talk to you anymore. [01:54:38] S13: No. My well, yeah, my aunt doesn't talk [01:54:39] S8: to me.