He’s back with a vengeance, the one and only Matthew Prince (Prince). First, for the not-so-good news; CloudFlare got spanked by a NY court in a suit filed by the RIAA. The RIAA demanded that CloudFlare shut down the trademark infringing site Grooveshark. The RIAA is music group that includes Atlantic, Sony, Universal, and Warner Bros. CloudFlare lost and must block Grooveshark from using its delivery platform. However, CloudFlare did win in one key area, the PR game.
Prince is an adjunct Professor of Law, thus, we know he has an agenda if fighting this case. First, he can project himself as the liberator of free speech, and second, he pushes the name CloudFlare to top of mind of the news outlets. We need to give credit to Prince, he is a smart man and knows exactly what he’s doing. CloudFlare didn’t get a 1500 Alexa rank by being shy, but by creating PR chaos.
In other news, according to a Bloomberg Business article, Prince stated the following:
- CloudFlare revenue run rate for the year could reach $100M
- Current gross proft margins are 75%
- CloudFlare to go public in 2017, but not in a rush to go public
- Prince expects CloudFlare to be valued at “comparable” value to Workday
- Workday reached $7.8B in its trading debut
Okay, we heard it from the horse’s mouth, and we’ll hold Prince accountable to his word – “$7.8 Billion Dollars” baby. If CloudFlare reaches even $3B in market cap and stays there for a couple of years, it would be the greatest CDN story ever told. But a bit of advice for Prince, once your public, never make outrageous statements, cause Wall Street is ruthless, and they will chew you up and spit you out, as Jack Ma found out.