| This is something that was mentioned a year ago about the sales team ( at investor day ~ May 2023) A year ago, underperformers were let go. Some people had almost no sales versus other peers in sales. There was the first round of layoffs that Cloudflare had. They ( Cloudflare) expected to replace those underperformers with people that were let go of other tech companies. Since, if they could replace underperformers with average sales, profits would greatly increase. Those that were let go, were part of those new hires. Either they were underperforming ( which would be the reason to be acquired to replace in the first place) or something did not go as expected. I expect the former. Read the transcript here, in the section of "Profitability": https://softwarestackinvesting.com/cloudflare-net-q2-2023-ea... I just hope the metric is fair, but I wouldn't expect otherwise from Cloudflare. One of the videos posted here, said she didn't have a single sale and most of the new hires were done ~ 1 year ago... |