So moving from an S3 to an R2 is a substantial savings. And we’re seeing that even with some nontraditional partners. So someone like Palantir we announced a partnership with, they were driving a lot of their customers to their cloud solution. They saw how much money was wasted in some of the public clouds and so built a tool to help people understand what their cloud spend was. And they came to the conclusion that oftentimes, if customers could move more of their workloads to Cloudflare workers, that was a real money saving for them. And again, that’s been — it’s early days but we think that that’s definitely saving money, consolidating vendors. Those are all going to be trends throughout 2023, and we’re very well positioned to be able to help partners as they work with their customers to take advantage of those trends.
Andrew Nowinski: Okay. Thank you, guys. Congrats, Phil.
Operator: Alex Henderson, Needham is up next.
Alex Henderson: Thanks for the great print and welcome to have you on board, Phil. I was hoping you could talk a little bit about the word at the end of the year here about how many coders are currently working on your platform and give us an update on that? I think that is the major positive strategic advantage that you have going to an earlier question.
Matthew Prince: Yes, I think that we announced at the end of last year that we were — that we crossed through 1 million developers that were building on Cloudflare workers. I don’t know what the latest numbers are on that, but the growth rates have continued to drive more and more developers to that. And again, partnerships with companies like Shopify that have their own developer ecosystem just further accelerate the number of people who are using Cloudflare workers. And we’re doing more and more. I think one of the exciting things that we announced yesterday was a very small team on our side, wanted to see if they could get Mastodon which is sort of the open source Federated, Twitter client to run on Cloudflare. And that’s a fairly sophisticated application.
And they built not only a way for them to deploy that for any developer to be able to deploy that on Cloudflare workers, but then it scales just beautifully where if you wanted to build kind of the next generation Twitter that just scales and scales and scales, they have proven that that can be done on top of Cloudflare workers. And so I think we are starting to see more and more sophisticated applications like that get built on workers, and that’s an exciting development for us.
Alex Henderson: The second question I wanted to address was your strategy around pricing. I know back in November, you raised prices for the first time and it was at a decade, which is amazing in and of itself. But can you talk about the magnitude of the pricing lever as we look at the full year for ’23 and whether that is broader than just the low end entry fees?
Matthew Prince: Yes. I think that we were very hesitant and a little bit nervous about raising pricing. Cloudflare is fundamentally infrastructure for our clients, and we want to be reliable and predictable for them. And so we thought about this a lot. The primary goal of the price increase which was really only for our pay-as-you-go business, which is well less than 20% of Cloudflare revenue. But the primary goal was to shift that business from what was mostly a monthly payment business to one that was paid upfront and annually. So if you pay us upfront annually, you can keep the same price that we’ve had historically. And we were — we obviously did all the work talking to users, figuring out what the tolerance was, but you have to sort of hold your breath and see what happens.
