Cloudflare (NET) is positioned to benefit from rising AI-related traffic and new deals that may help it outperform conservative revenue guidance, Oppenheimer said Friday in a report.

Cloudflare's 30% revenue growth outlook does not include potential gains from new customer usage agreements expected later in the year or from rising AI-driven automated traffic, which the company can charge for as it grows, the report said.

Oppenheimer said that Cloudflare has cut about 20% of its staff as AI tools take over more internal work, helping lift margins even as the company continues to invest in its platform.

Oppenheimer reiterated its outperform rating on Cloudflare stock and its $300 price target.

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