Cloudflare reported third-quarter revenue of $782.5 million on November 5, 2026, up 39% from $562.0 million a year earlier, according to the company's results release. It was the fastest growth the San Francisco network company has posted in nearly four years, according to co-founder and chief executive Matthew Prince, and it took quarterly revenue past a $3 billion annualized pace for the first time. On the same day, Cloudflare said Christian Smith, the former chief revenue officer of Splunk, had become its President of Revenue, effective November 2, and it told investors it had recorded its first revenue from what it calls Act 4 products: tools that sit between AI agents and the websites they visit, and that charge for or meter that traffic.

The headline growth came with a widening loss on a GAAP basis. Cloudflare's loss from operations rose to $67.9 million from $37.5 million, and its net loss reached $34.1 million, against $1.3 million a year earlier. Stock-based compensation, restructuring costs from the May layoffs and a $10.7 million legal reserve, among other items, account for the gap between those figures and the $137.1 million of non-GAAP operating income the company highlights. Even so, chief financial officer Thomas Seifert said Cloudflare now expects to reach GAAP profitability in the fourth quarter of 2026, well ahead of the "at the latest by 2028" target set at this year's Investor Day.

For the advertising and publishing industry, the more consequential part of the call was not the arithmetic. Prince described a future in which AI agents pay for access to websites through micropayments, in which publishers could let some agents in free in exchange for information that "opens up all kinds of opportunities for advertising," and in which Cloudflare acts as the referee. "Cloudflare is the company that's going to define what that looks like," he said.

In Short

Cloudflare, a company that sits in front of about a fifth of the world's websites to make them faster and safer, sold 39% more in the three months to September 2026 than a year before. It matters to publishers and marketers because Cloudflare is building a system where AI bots pay websites to read them, and it has now earned its first money from that idea. The company also hired a new sales boss, Christian Smith, to push revenue from about $3 billion a year toward $5 billion.

The quarter in numbers

Total revenue for the three months to September 30, 2026 was $782.5 million, according to the release. For the first nine months of the year, revenue reached $2.12 billion, up 36% from $1.55 billion, according to the company's quarterly report on Form 10-Q, filed the same day. Second-quarter revenue had been $696.1 million, according to Cloudflare's August 6 release, which means revenue rose about 12% between the second and third quarters, by PPC Land's calculation.

Prince put the result in blunt terms. "There is no other way to say this. By nearly every metric, we had our best quarter ever," he said on the call, which began at 2:00 p.m. Pacific time on November 5. Multiplying the quarter's revenue by four gives about $3.13 billion, by PPC Land's calculation, which is the basis for the company's claim to have "crossed $3 billion in annualized revenue."

Margins under pressure at the gross line

Growth did not come free. Cost of revenue rose 54% to $225.3 million, well ahead of revenue, and GAAP gross margin fell to 71.2% from 74.0%. On a non-GAAP basis, gross margin was 72.4%, down 70 basis points from the second quarter and 290 basis points from a year earlier, according to Seifert. The 10-Q attributes the cost increase mainly to a $43.0 million rise in third-party technology services costs, a $19.4 million increase in co-location, network and bandwidth costs, and $10.1 million of additional depreciation from server deployments.

Seifert tied part of the squeeze to the mix of business. The Workers Developer Platform, Cloudflare's serverless platform for running code on its network, carries "slightly lower gross margins, but significantly lower cost to book," he said, which shows up further down the income statement.

Operating leverage below the gross line

Below gross profit, the picture changes. Non-GAAP operating income rose 60% to $137.1 million, and the non-GAAP operating margin reached 17.5%, a record for the company, up from 15.3% a year earlier and 370 basis points higher than in the second quarter. Non-GAAP sales and marketing fell to 35% of revenue from 36%, research and development to 13% from 15%, and general and administrative expenses to 7% from 10%, according to Seifert.

The GAAP statements tell a different story. Stock-based compensation and related payroll taxes reached $174.1 million in the quarter, up 45% from $119.7 million. That is about 22% of revenue, against about 21% a year earlier, by PPC Land's calculation. The quarter also carried $11.0 million of restructuring and other charges, $9.2 million of amortization of acquired intangible assets and a $10.7 million legal reserve and settlements charge.

The filings do not identify the matter behind the legal reserve, and the 10-Q says Cloudflare is not party to any legal proceeding it believes is likely to have a material impact.

Non-GAAP net income was $143.7 million, or $0.38 per diluted share, up from $102.6 million, or $0.27. The gap between that figure and the GAAP net loss of $34.1 million is about $177.8 million, by PPC Land's calculation.

Cash, convertible notes and capital spending

Cloudflare generated $215.4 million of operating cash flow in the quarter, up from $167.1 million. Its free cash flow, which the company defines as operating cash flow less purchases of property and equipment and capitalized internal-use software, was $82.1 million, or 10% of revenue, compared with $75.0 million, or 13%, a year earlier. Purchases of property and equipment rose 44% to $121.8 million, by PPC Land's calculation from the cash flow reconciliation, and network capital expenditure was 15% of revenue. Seifert kept the full-year expectation for network capex at 14% to 15% of revenue.

The balance sheet was reshaped in August. Cloudflare issued $2.5 billion of 0% convertible senior notes due August 15, 2031, priced on August 10, with an initial conversion price of about $496.94 per share, according to the 10-Q. Net proceeds were $2.46 billion. On August 15, it repaid $1.29 billion of notes that matured in 2026. Cash, cash equivalents and available-for-sale securities stood at $5.13 billion on September 30, against $4.16 billion at the end of June, according to the investor presentation.

Commitments are rising, too. In October 2026, Cloudflare entered into "several large compute and co-location agreements" with estimated total future payments of $461.1 million over 3 to 10 years, according to the 10-Q. The same filing warns of "significant component shortages" in memory, solid state drives, CPUs and hard drives, driven partly by demand from AI infrastructure, and says gross margins could compress if the costs cannot be passed on.

Where the revenue came from

Regions and channels

The United States generated $407.9 million, or 52% of revenue, up 44% year over year, according to the 10-Q. Europe, the Middle East and Africa contributed $202.2 million, up 32%, and Asia Pacific $111.7 million, also up 32%. Revenue from outside the United States was 48% of the total, according to the investor presentation.

Channel partners are taking a larger share. Revenue through channel partners rose 65% to $247.4 million, or 32% of the total, up from 27% a year earlier, while revenue from direct customers grew about 30% to $535.1 million, by PPC Land's calculation from the 10-Q. That shift is visible in the expense lines: sales and marketing costs included an $18.1 million increase in revenue share payments.

The same expense line holds a detail of interest to marketers. Cloudflare spent $9.7 million more in the quarter than a year earlier on "marketing programs, investments in brand awareness advertising, third-party industry events, and digital performance marketing," according to the 10-Q. Across nine months, that increase came to $24.4 million.

Large customers and retention

Cloudflare ended the quarter with 5,006 customers paying more than $100,000 in annualized revenue, up 25% from 4,009 a year earlier. It added 308 such customers in the quarter and 997 over 12 months, both company records, according to Seifert. Those customers produced 75% of revenue, up from 73%. "Of particular note, we added almost as many $5 million plus customers in the first three quarters of 2026 as we had $5 million plus customers in total at the end of just last year," Seifert said, without disclosing either count.

Dollar-based net retention, which compares annualized revenue from the same set of customers a year apart, rose to 122% from 120% in the second quarter and 119% a year earlier. That is the highest level in the company's eight-quarter table, which starts at 111% in the fourth quarter of 2024. Seifert said the company has "higher ambitions" for the figure and pointed to pool of funds contracts, in which customers commit to a spending amount and draw it down across Cloudflare's products. Customers were "burning through their pool of funds commitments faster, and therefore have to renew earlier," he said, describing this variable revenue as "the primary contributor to the upside."

Contracted revenue not yet recognized, known as remaining performance obligations, reached $2.877 billion on September 30, up 34% year over year and 5% from the second quarter, according to Seifert. Cloudflare expects to recognize 65% of it within 12 months, according to the 10-Q, and that current portion grew 37%.

A metric that left the filing but stayed on the call

Prince said Cloudflare added more than 158,000 paying customers in the quarter, a 110% year-over-year increase and nearly double the more than 80,000 added in the second quarter. Seifert referred to "160,000 net new customers" later in the call. The total paying-customer count itself does not appear in the 10-Q. The filing says that paying customers were a key business metric before 2026 and that the company stopped reporting it because the measure "has become significantly less important to us over time." Prince said many of the new paying customers are developers, some of whom "might pay $5 a month or something like that."

Developers

Active developers on the Cloudflare platform passed 10 million in October 2026, according to the investor presentation, up from 7.4 million in June, 5.5 million in March and 4.5 million in December 2025. The company defines the figure as the unique count of users with activity on its developer platform products in the last year. "We went from 7 million to 10 million in just a quarter," Prince said.

The company has been buying developer tooling. On June 1, 2026 it acquired VoidZero, which develops high-performance toolchain technology, for $164.2 million in shares and cash, recording $142.7 million of goodwill, according to the 10-Q. On October 8, after the quarter closed, it bought Deno Land, which develops an open-source JavaScript and TypeScript runtime, for about $26.5 million in cash.

The deals Cloudflare chose to name

Prince walked through seven contracts without naming the customers. A "rapidly growing AI company" signed a one-year, $11 million pool of funds contract for the Workers Developer Platform, and in particular its Dynamic Workers, which Prince said start applications in milliseconds so the customer "pays only for the compute they actually use." A Fortune 100 cloud infrastructure provider signed a 13-month, $15.5 million contract for Magic Transit, Cloudflare's network-level DDoS protection, replacing hardware appliances. A cabinet-level US federal department signed a five-year, $10.3 million contract for Cloudflare's SASE security portfolio to replace a VPN at end of life.

Further deals included a neobank pool of funds agreement worth more than $3 million a year, a 39-month, $9.5 million contract with a technology company and a three-year contract worth more than $7 million with a global consulting firm.

The seventh deal matters most to publishers. A "leading European media company" signed a five-year, $8.1 million contract for application services and the developer platform, replacing a 17-year deployment with a legacy CDN vendor, according to Prince. The customer chose Cloudflare because its Bot Management "reliably identifies modern AI crawlers," he said, "giving this customer the control they need to protect their intellectual property, but also creating a direct on-ramp for Pay Per Crawl and pay-per-use monetization."

Prince also claimed a sharp increase in Cloudflare's footprint. Between July 1 and the day of the call, Cloudflare added "approximately 5% of the entire web," based on third-party data, he said, adding that the gain exceeded the combined market of all Cloudflare's reverse proxy competitors. He did not name the data source. The rate of growth, he said, inflected in October 2025 and accelerated again in July 2026 and at the start of October 2026.

Act 4: charging for the agentic internet

First revenue, and an open timeline

Cloudflare organizes its business into "acts." The investor presentation frames the newest one as "Act I + Act III = Act IV": the security and networking business plus the developer platform, applied to what it calls the agentic internet. "I'm proud to announce that we recorded in Q3 our first revenue for what we've called Act 4 products, those where we're helping invent the new business model of the internet," Prince said. Neither the release nor the 10-Q quantifies that revenue.

Asked by Goldman Sachs analyst Gabriela Borges when Act 4 would reach "real dollar amounts," Prince described two mechanisms. The first, where he said Cloudflare is "already recognizing revenue, and recognizing significant amounts of revenue," involves making crawling more efficient. He referred to the arrangement under which Cloudflare sends OpenAI signals about when pages change, so that OpenAI's crawlers do not repeatedly fetch unchanged content. "OpenAI is paying for that," he said. When the two companies announced the research pilot on July 8, 2026, no pricing or compensation terms were disclosed, and the November 5 call did not add any.

The second mechanism is micropayments: "small payments get made when an agent comes," Prince said. He suggested sites might charge an agent less, or nothing, the more it discloses about why it is visiting. In his example, an agent visiting a travel site on behalf of a family of four looking for a holiday in Hawaii might be let in free, because the context it brings "opens up all kinds of opportunities for advertising." He did not set a timetable. "I don't know exactly how long it will be before it turns into major sources of revenue," he said, though he expects that, a decade out, "this becomes the largest part of Cloudflare's business."

The market Cloudflare says it is building

The investor presentation lays out the economics in a slide titled "Every Agent Request Can Become A Metered Event." It runs from building and discovery through recommendation, action and verification to settlement, with revenue lines for access fees, verification, gateway routing and payment facilitation. The stated strategic shift is "from protecting websites from bots to monetizing trusted automated demand."

Another slide sets 900 million daily transactions on an unnamed "largest payment network" against "30+ trillion" on Cloudflare's. The comparison is not like for like: the footnote defines a Cloudflare transaction as any HTTP request, DNS query, Workers call or DDoS check, not a settled payment.

The traffic figures behind the pitch are large. Half of the traffic on Cloudflare's network is now non-human, according to the presentation, and daily AI agent requests rose by more than 1,700% between June 1, 2025 and May 31, 2026. Cloudflare says 20% of the internet and 37% of the top 10,000 websites run on its network, along with 78% of the top 50 generative AI web products in an a16z ranking from March 2026.

Prince has put numbers on the trajectory before. In a podcast interview, he forecast that bot traffic would reach about 1,000 times human traffic within five years. On the call he shortened that view. "A quarter later, I'll take the under on the timing of that bet," he said. Later in the call he added: "It can't be a free ride for all the agents that are out there."

A referee with its own interests

Prince described Cloudflare as a mediator between AI companies and the sites their agents visit. In answer to a question from RBC Capital Markets analyst Matt Hedberg about consumer agents such as Meta's Muse, he said "Meta's a customer" and that Cloudflare is helping it scale the product. He added that there had been cases, "in the case of Meta, in the case of Google," where what the AI companies were doing did not align with what publishers and other site owners wanted. In the process of mediating, he said, "we're getting to set the rules of the road for what the agentic internet is going to look like."

That dual role is visible in recent data. Muse, which launched in the United States on September 8, 2026, accounted for a third of agentic browser requests measured by DataDome in September, and 99.3% of a Muse sample came from Cloudflare and Fastly infrastructure. Cloudflare thus earns from the agent's operator while also selling the tools that websites use to decide whether that agent gets in.

With Google, the posture has shifted. In January, Cloudflare published data showing Googlebot crawled far more of the web than rival AI crawlers. It later planned to block Googlebot for sites that refuse AI training, then dropped that plan in September in favour of a "Disallow AI Training" robots.txt setting.

Isolates, containers and the hyperscalers

Prince framed Cloudflare's developer business as structurally different from the large hyperscalers and the newer GPU clouds. Those providers, he said, "were built around container technology," while Cloudflare runs code in isolates, a lighter sandboxing method in which many tasks share one process. He described the company as "the first agentic cloud," rejecting the description of it as the fourth public cloud. In the AI company deal, he said the incumbents "would charge this customer for massive amounts of idle compute."

Asked by Barclays analyst Saket Kalia about a possible slowdown in data center construction, Prince was dismissive of capacity deals elsewhere. "We are an engineering company. We are not a financial engineering company," he said. "We have watched a bunch of really dumb deals get done."

Why this matters for marketers and publishers

Cloudflare's results are a rare financial window on the infrastructure that decides which AI systems can read, and pay for, publisher content. PPC Land has tracked the company's attempts to build that market since it launched Pay Per Crawl in private beta on July 1, 2025, with Cloudflare acting as merchant of record. A year later, Cloudflare shifted its emphasis toward paying publishers when their content appears in an AI answer. Prebid's recent field guide described Pay Per Crawl as a closed beta with a minimum price of $0.001 per fetch, and noted that Cloudflare does not publish its share.

The November 5 disclosures leave the central questions for publishers unanswered. Cloudflare has not said how much Act 4 revenue it booked, how much of it reached website owners, or which AI companies besides OpenAI are paying. Prince's remark that crawl-efficiency revenue is already "significant" refers to money paid to Cloudflare for helping crawlers work more efficiently, not to money passed on to publishers.

Cloudflare's own filing also names a risk that bears directly on publishers. Among the factors that could hurt its business, the 10-Q lists "the increasing reduction in traffic to websites as a result of consumers' increasing reliance on AI chatbots for information in lieu of visiting websites," and the resulting decline in website operators' need for Cloudflare products. That is the same zero-click search problem PPC Land's readers face from the publisher side. Fewer visits mean fewer ad impressions, and Cloudflare's pitch is that agent payments and agent-aware advertising could replace some of that value. Who collects those payments, and how much reaches the site owner?

Prince also sketched a version of search optimization for agents. For customers that want more agent traffic, Cloudflare is helping with what he called "the new version of SEO," tuning sites to attract and serve as many agents as possible. For those that do not, Cloudflare blocks the agents and does not charge for that traffic. He distanced the company from bandwidth-based billing: "We've never been a CDN," he said, adding that Cloudflare has "really never been focused on charging for CDN traffic in any meaningful way."

Bot volumes give the debate weight. Cloudflare Radar data from early June showed bots accounting for 57.4% of HTML web traffic, with training-related crawlers making up 50.6%. Cloudflare has since started building trust scores for Verified bots that ignore robots.txt or rate-limit signals, and its AI Search product, generally available since October 1, moved to paid billing from November 1, with ingestion at $0.75 per million tokens.

Security as a demand driver

Prince named a second force behind the growth: a wave of software vulnerabilities found with AI tools. "Just last week and the week before, we had six of the worst internet security bugs of all time announced over the course of fewer than 14 days," he said. Cloudflare receives early disclosures through a trusted reporter process with "nearly every major frontier AI lab and security company," and puts protections in place for customers "whether they pay us or not," he said.

PPC Land reported in October that Cloudflare deployed rules against the php2shell exploits on October 21, at 3:02 UTC, including on free plans, while OpenAI said its GPT-5.6 Sol model helped find one of the PHP flaws before attackers did. Prince said Cloudflare is now going back through its logs looking for evidence the PHP flaws were exploited earlier. His outlook was bleak: "It's coming, and it's going to be bad, and it's going to be bad for, I think, two years."

He linked the threat environment to new business. Large institutions such as banks are not settling for the free tier, in his telling. "They're signing major contracts, and they're relying on Cloudflare to be that trusted party that gets information before everyone else," he said.

Six months after the layoffs

On May 7, 2026, Cloudflare announced a plan to "further accelerate its evolution to an agentic AI-first operating model" that reduced its workforce by about 20%, according to the 10-Q. The company estimates total charges of up to $165 million: $125 million in cash for severance and benefits, $35 million in stock-based compensation and $5 million in other costs. Through September 30, it had recorded $161.7 million, paid out $123.0 million in cash, and considered the plan substantially complete.

Headcount stood at about 4,700 at the end of the quarter. The 10-Q shows the cuts fell unevenly: headcount in general and administrative functions was 14% lower than a year earlier, while sales and marketing headcount was 2% higher.

Citi analyst Fatima Boolani asked what had changed since the restructuring. Prince described three groups, people who build, sell and measure things, drawing on Peter Drucker, and said AI had most affected the measurers. "We're not trying to cut headcount. We actually are just shifting headcount to more builders," he said. He cited an investor relations employee whose agent now assembles quarterly investor materials for "less than a couple hundred bucks in token costs." He repeated a forecast from May that headcount would be larger by the end of 2026 than before the layoffs. If the cut was the roughly 1,100 roles PPC Land has reported, the pre-layoff workforce was about 5,500, so Cloudflare would need to add about 800 people in the fourth quarter to pass it, by PPC Land's rough estimate.

The 10-Q sets out the risks of that approach in plain terms. The workforce reduction "may have resulted in the loss of institutional knowledge and expertise," it says, and greater reliance on AI tools in legal, compliance and risk functions "may limit our capacity and introduce additional oversight risks."

A new head of revenue

Christian Smith started as President of Revenue on November 2, 2026, according to Cloudflare's Form 8-K, and joined the earnings call three days later. He leads Cloudflare's worldwide go-to-market organization, including global sales and revenue operations. The release frames his task as taking the company to $5 billion in annual recurring revenue and beyond, about 60% above the current $3.13 billion annualized revenue pace, by PPC Land's calculation. The two measures are not identical: Cloudflare's annualized revenue multiplies a quarter's revenue by four and includes usage charges.

Smith was most recently an operating partner at Technology Crossover Ventures (TCV). He was senior vice president and chief revenue officer at Splunk, where, according to Cloudflare, he led the shift from on-premises perpetual licences to cloud and recurring revenue and scaled annual recurring revenue to more than $4 billion. After Cisco's acquisition of Splunk, he was responsible for Splunk's commercial business worldwide at Cisco. He has also been chief revenue officer at Nintex and sits on the boards of Atlassian and Feedzai.

"The market opportunity for Cloudflare is massive," Smith said in the release. On the call, he said his "immediate priorities are to double down on go-to-market execution, further accelerate our enterprise momentum, and ensure our customers get even more rapid compounding time to value from our platform."

Prince said Smith had "consistently proven he can lead global go-to-market organizations through periods of rapid expansion with discipline, operational rigor, and a steadfast focus on customers." Asked by Jefferies analyst Joseph Gallo what might change, Prince listed open questions rather than decisions: how many forward deployed engineers to place with large customers, the ratio of solutions engineers to account executives, and how much product knowledge individual sellers need.

Smith succeeds Mark Anderson, who joined Cloudflare's board in 2019 and became President of Revenue in 2024. The release says Anderson will remain "in an advisory role through the end of December." On the call, Prince said Anderson "has agreed to stay on as an advisor for at least the next year." Cloudflare did not reconcile the two statements.

Guidance and the long-term model

For the fourth quarter, Cloudflare expects revenue of $845.0 million to $846.0 million, up 38%, non-GAAP operating income of $156.0 million to $157.0 million and non-GAAP earnings of $0.43 per share on about 379 million shares. For the full year, it guides to revenue of $2.963 billion to $2.964 billion, up 37% from $2.168 billion in 2025, non-GAAP operating income of $462.0 million to $463.0 million and non-GAAP earnings of $1.35 per share. "We always guide to what we see," Seifert said.

The commitment to GAAP profitability in the fourth quarter stands out against the 10-Q's own language. The liquidity section of the same filing says: "We expect to continue to incur operating losses and cash flow that may fluctuate between positive and negative for the foreseeable future." Cloudflare's GAAP loss from operations for the first nine months of 2026 was $335.6 million, of which $161.7 million came from restructuring. The company did not specify whether its GAAP profitability target refers to operating income or net income.

The investor presentation carries an updated long-term operating model, compared with a prior version:

  • Operating margin target: 30% or more, up from 20% or more
  • Free cash flow margin: 30% to 35% or more, up from about 25%
  • Sales and marketing: 23% to 25% of revenue, down from 27% to 29%
  • Research and development: 15% to 17%, down from 18% to 20%
  • General and administrative: 3% to 5%, down from 8% to 10%
  • Gross margin: 70% to 77%, with the floor lowered from 75%

A further slide describes a "Rule of" north star: 40% since the IPO, 50% in 2027 and above 50% from 2028. The Rule of 40 adds a company's growth rate to a profit margin. Seifert said Cloudflare had set out to exit 2026 "moving to a Rule of 50%" and added: "We are far ahead of that currently." Cloudflare does not specify which margin it uses. Adding third-quarter revenue growth of 39% to the 17.5% non-GAAP operating margin gives about 56.5; adding the free cash flow margin of about 10.5% gives about 49.5, by PPC Land's calculation.

Cloudflare will next appear before investors at RBC Capital Markets' technology conference on November 18 and at Barclays' on December 9. The fourth-quarter report will show whether the GAAP profit target holds, and whether Act 4 revenue grows large enough for the company to start disclosing it.

Timeline

Summary

Who: Cloudflare, Inc. (NYSE: NET), its chief executive Matthew Prince, chief financial officer Thomas Seifert, new President of Revenue Christian Smith and his predecessor Mark Anderson, plus the publishers, AI companies and advertisers whose traffic runs through Cloudflare's network.

What: Cloudflare reported third-quarter revenue of $782.5 million, up 39%, with a record 17.5% non-GAAP operating margin, a GAAP net loss of $34.1 million, 5,006 large customers and dollar-based net retention of 122%. It reported its first revenue from Act 4 products that monetize AI agent traffic, said OpenAI pays for crawl-efficiency signals, appointed former Splunk revenue chief Christian Smith and guided to GAAP profitability in the fourth quarter.

When: The results, the 10-Q, the 8-K and Smith's appointment were all published on November 5, 2026, covering the quarter ended September 30, 2026. Smith's appointment took effect on November 2.

Where: Cloudflare is based in San Francisco. The United States generated 52% of revenue, EMEA 26% and Asia Pacific 14%, and the network spans more than 340 cities in over 130 countries.

Why: The results matter to marketers and publishers because Cloudflare controls access for a large share of websites and is building the payment and verification layer through which AI agents may pay for content. Its own filing names AI chatbots reducing website visits as a business risk, and the first Act 4 revenue is the earliest financial evidence that the company can charge on both sides of that exchange. How much of that money reaches publishers remains undisclosed.