Try our mobile app

Published: 2025-05-07 20:08:41 ET
<<<  go to FSLY company page
EX-99.2 3 ex992-investorsupplement33.htm EX-99.2 Document
fastlylogo-redxjpega.jpg                                                  Exhibit 99.2

First Quarter 2025 Investor Supplement
Product Innovation and Developments
•Released Fastly Client-Side Protection to GA, providing real-time monitoring and protection against unauthorized modifications to client-side scripts, and helping businesses secure sensitive customer data and maintain PCI-DSS compliance.
•Updated Fastly Bot Management with Dynamic Challenges, Advanced Client-Side Detection, and Compromised Credential Checking capabilities. These updates give customers the option to stop relying on CAPTCHAs while helping prevent fraud, protect customer accounts, and minimize disruptions to legitimate logins and transactions.
•Released Fastly HTTP Cache API to GA. As a fully integrated API, developers can make changes to the cache properties of an object, adjust headers like Cache-Control, and more, all within an HTTP flow.
•Added Custom and Media Shield dashboards to Observability.
Customer Highlights
•Product package deals in the first quarter more than doubled year-over-year, and new logo packages grew over 80% year-over-year, representing approximately one-third of the total package deals.
•Volaris, a leading ultra-low-cost airline operating in Mexico, the United States, and Central and South America, selected Fastly's Network Services, Security, Enterprise Support, and Implementation Services.
•A leading software company's professional network selected Fastly's Network Services and Enterprise Support offerings.
•A home furnishings manufacturer and retailer selected Fastly’s Network Services, Next-Gen WAF, and Compute offerings.
•A leading news and magazine publisher selected Fastly for its Security offerings.

Calculations of Key and Other Selected Metrics – Quarterly (unaudited)
Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025
Revenue by Product (in millions):
Network Services Revenue$98.5$102.5$109.8$106.0$104.2$107.4$110.1$113.3
Security Revenue$22.5$23.3$25.8$24.6$25.4$26.2$26.9$26.4
Other Revenue$1.8$1.9$2.2$2.9$2.8$3.6$3.6$4.8
Total Revenue$122.8$127.8$137.8$133.5$132.4$137.2$140.6$144.5
Key Metrics:
Enterprise Customer Count(1)
551 547 578 577 601 576 596 595 
Enterprise Customer Revenue %92 %92 %92 %91 %91 %92 %93 %93 %
Total Customer Count(1)
3,072 3,102 3,243 3,290 3,295 3,638 3,061 3,035 
Top Ten Customer Revenue %37 %40 %40 %38 %34 %33 %32 %33 %
LTM Net Retention Rate (NRR)(2)
116 %114 %113 %114 %110 %105 %102 %100 %
Annual Revenue Retention Rate (ARR)(7)
— %— %99.2 %— %— %— %99.0 %— %
Remaining Performance Obligation (RPO)(3)
$230.9$247.6$235.7$227.0$223.1$235.4$244.4$303.0

Corporate Highlights
•Fastly’s Next-Gen WAF was named a Strong Performer in The Forrester Wave™: Web Application Firewall Solutions, Q1 2025.
•Fastly research revealed 93% of organizations are working to reduce CISO liability risk.
Key Financial & Metrics Highlights
•Total revenue of $144.5 million, representing 8% year-over-year growth.
•Generated $8.2 million of positive free cash flow compared to $2.2 million of negative free cash flow in the first quarter of 2024.
•Enterprise customer count1 was 595 in the first quarter, up 18 from the first quarter of 2024. Total customer count1 was 3,035 in the first quarter, down 255 from the first quarter of 2024.
•Fastly's top ten customers accounted for 33% of revenue in the first quarter compared to 38% in the first quarter of 2024. Revenue from the top ten customers declined 6% year-over-year compared to revenue growth of 17% year-over-year from customers outside the top ten.
•Last 12-month net retention rate (LTM NRR)2 decreased to 100% in the first quarter from 102% in the fourth quarter of 2024.
•Remaining Performance Obligations (RPO)3 were $303 million, up 24% from $244 million in the fourth quarter of 2024.
Second Quarter and Full Year 2025 Guidance
Q2 2025Full Year 2025
Total Revenue (millions)$143.0 - $147.0$585.0 - $595.0
Non-GAAP Operating Loss (millions)(4)
($8.0) - ($4.0)($12.0) - ($6.0)
Non-GAAP Net Loss per share(5)(6)
($0.08) - ($0.04)($0.13) - ($0.07)


fastlylogo-redxjpega.jpg
Key Metrics
1.Our number of customers is calculated based on the number of separate identifiable operating entities with which we have a billing relationship in good standing, from which we recognized revenue during the current quarter. Our enterprise customers are defined as those with annualized current quarter revenue in excess of $100,000. This is calculated by taking the revenue for each customer within the quarter and multiplying it by four.
2.We calculate LTM Net Retention Rate by dividing the total customer revenue for the prior twelve-month period (“prior 12-month period”) ending at the beginning of the last twelve-month period (“LTM period”) minus revenue contraction due to billing decreases or customer churn, plus revenue expansion due to billing increases during the LTM period from the same customers by the total prior 12-month period revenue. We believe the LTM Net Retention Rate is supplemental as it removes some of the volatility that is inherent in a usage-based business model.
3.Remaining Performance Obligations include future committed revenue for periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced for which the related performance obligations have not been satisfied.
4.For a reconciliation of non-GAAP financial measures to their corresponding GAAP measures, please refer to the reconciliation table at the end of this supplement.
5.Assumes weighted average basic shares outstanding of 145.8 million in Q2 2025 and 146.7 million for the full year 2025.
6.Non-GAAP Net Loss per share is calculated as Non-GAAP Net Loss divided by weighted average basic shares for 2025.
7.Annual Revenue Retention rate is calculated by subtracting the quotient of the Annual Revenue Churn from all of our Churned Customers divided by our annual revenue of the same calendar year from 100%. Our “Annual Revenue Churn” is calculated by multiplying the final full month of revenue from a customer that terminated its contract with us (a “Churned Customer”) by the number of months remaining in the same calendar year.







fastlylogo-redxjpega.jpg
Forward-Looking Statements

This investor supplement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended, about us and our industry that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or Fastly's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates,” “going to,” "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "continue," “would,” or the negative of these words or other similar terms or expressions that concern Fastly's expectations, goals, strategy, priorities, plans, projections, or intentions. Forward-looking statements in this investor supplement include, but are not limited to, statements regarding Fastly’s future financial and operating performance, including its outlook and guidance; the performance of our existing and new products and product enhancements; the capabilities of Fastly Client-Side Protection, Fastly Bot Management, Fastly HTTP Cache API, Custom and Media Shield Dashboards in Observability, and Fastly Next-Gen WAF; expectations regarding customer experiences with Fastly Client-Side Protection, Fastly Bot Management, and Fastly HTTP Cache API; and Fastly's strategies, product, and business plans. Fastly's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include the possibility that: Fastly is unable to attract and retain customers; Fastly's existing customers and partners do not maintain or increase usage of Fastly's platform; Fastly's platform and product features do not meet expectations, including due to defects, interruptions, security breaches, delays in performance or other similar problems; Fastly is unable to adapt to meet evolving market and customer demands and rapid technological change; Fastly is unable to comply with modified or new industry standards, laws and regulations; Fastly is unable to generate sufficient revenues to achieve or sustain profitability; Fastly’s limited operating history makes it difficult to evaluate its prospects and future operating results; Fastly is unable to effectively manage its growth; and Fastly is unable to compete effectively. The forward-looking statements contained in this investor supplement are also subject to other risks and uncertainties, including those more fully described in Fastly's Annual Report on Form 10-K for the year ended December 31, 2024. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, and other filings and reports that Fastly may file from time to time with the SEC. The forward-looking statements in this investor supplement are based on information available to Fastly as of the date hereof, and Fastly disclaims any obligation to update any forward-looking statements, except as required by law.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States ("GAAP"), the Company uses the following non-GAAP measures of financial performance: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP net income (loss), non-GAAP basic and diluted net income (loss) per common share, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, free cash flow and adjusted EBITDA. The presentation of this additional financial information is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. These non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. In addition, these non-GAAP financial measures may be different from the non-GAAP financial measures used by other companies. These non-GAAP measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. Management compensates for these limitations by reconciling these non-GAAP financial measures to the most comparable GAAP financial measures within our earnings releases.
Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP net income (loss) and non-GAAP basic and diluted net income (loss) per common share, non-GAAP research and development, non-GAAP sales and marketing, and non-GAAP general and administrative differ from GAAP in that they exclude stock-based compensation expense, amortization of capitalized stock-based compensation - cost of revenue, amortization of acquired intangible assets, executive transition costs, net gain on extinguishment of debt, impairment expense, and amortization of debt discount and issuance costs.
Adjusted EBITDA: excludes stock-based compensation expense, depreciation and other amortization expenses, amortization of acquired intangible assets, executive transition costs, interest income, interest expense, including amortization of debt discount and issuance costs, net gain on extinguishment of debt, impairment expense, other income (expense), net, and income taxes.
Amortization of Acquired Intangible Assets: consists of non-cash charges that can be affected by the timing and magnitude of asset purchases and acquisitions. Management considers its operating results without this activity when evaluating its ongoing non-GAAP performance and its adjusted EBITDA performance because these charges are non-cash expenses that can be affected by the timing and magnitude of asset purchases and acquisitions and may not be reflective of our core business, ongoing operating results, or future outlook.

fastlylogo-redxjpega.jpg
Amortization of Debt Discount and Issuance Costs: consists primarily of amortization expense related to our debt obligations. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook. These are included in our total interest expense.
Capital Expenditures: consists of cash used for purchases of property and equipment, net of proceeds from sale of property and equipment, capitalized internal-use software and payments on finance lease obligations, as reflected in our statement of cash flows.
Depreciation and Other Amortization Expense: consists of non-cash charges that can be affected by the timing and magnitude of asset purchases. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because these charges are non-cash expenses that can be affected by the timing and magnitude of asset purchases and may not be reflective of our core business, ongoing operating results, or future outlook.
Executive Transition Costs: consists of one-time cash and non-cash charges recognized with respect to changes in our executive’s employment status. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results, or future outlook.
Free Cash Flow: calculated as net cash used in operating activities less purchases of property and equipment, net of proceeds from sale of property and equipment, principal payments of finance lease liabilities, capitalized internal-use software costs and advance payments made related to capital expenditures. Management specifically identifies adjusting items in the reconciliation of GAAP to non-GAAP financial measures. Management considers non-GAAP free cash flow to be a profitability and liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can possibly be used for investing in Fastly's business and strengthening its balance sheet, but it is not intended to represent the residual cash flow available for discretionary expenditures. The presentation of non-GAAP free cash flow is also not meant to be considered in isolation or as an alternative to cash flows from operating activities as a measure of liquidity.
Impairment Expense: consists of charges related to our long-lived assets. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Income Taxes: consists primarily of expenses recognized related to state and foreign income taxes. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Interest Expense: consists primarily of interest expense related to our debt instruments, including amortization of debt discount and issuance costs. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Interest Income: consists primarily of interest income related to our marketable securities. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Net Gain on Debt Extinguishment: relates to net gain on the partial repurchase of our outstanding convertible debt. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Other Income (Expense), Net: consists primarily of foreign currency transaction gains and losses. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Restructuring Charges: consists primarily of employee-related severance and termination benefits related to management's restructuring plan that resulted in a reduction in our workforce. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.

fastlylogo-redxjpega.jpg
Stock-Based Compensation Expense: consists of expenses for stock options, restricted stock units, performance awards, restricted stock awards and Employee Stock Purchase Plan ("ESPP") under our equity incentive plans. Although stock-based compensation is an expense for the Company and is viewed as a form of compensation, management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance, primarily because it is a non-cash expense not believed by management to be reflective of our core business, ongoing operating results, or future outlook. In addition, the value of some stock-based instruments is determined using formulas that incorporate variables, such as market volatility, that are beyond our control.
Amortization of Capitalized Stock-Based Compensation - Cost of Revenue: in order to reflect the performance of our core business, ongoing operating results, or future outlook, and to be consistent with the way many investors evaluate our performance and compare our operating results to peer companies, similar to stock-based compensation, management considers it appropriate to exclude amortization of capitalized stock-based compensation from our non-GAAP financial measures.
Management believes these non-GAAP financial measures and adjusted EBITDA serve as useful metrics for our management and investors because they enable a better understanding of the long-term performance of our core business and facilitate comparisons of our operating results over multiple periods and to those of peer companies, and when taken together with the corresponding GAAP financial measures and our reconciliations, enhance investors' overall understanding of our current financial performance.
In the financial tables below, the Company provides a reconciliation of the most comparable GAAP financial measure to the historical non-GAAP financial measures used in this investor supplement.


fastlylogo-redxjpega.jpg
Consolidated Statements of Operations – Quarterly
(unaudited, in thousands, except per share amounts)

Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025
Revenue$122,831 $127,816 $137,777 $133,520 $132,371 $137,206 $140,579 $144,474 
Cost of revenue(1)
58,617 61,730 62,003 60,286 59,470 62,466 65,516 67,676 
Gross profit64,214 66,086 75,774 73,234 72,901 74,740 75,063 76,798 
Operating expenses:
Research and development(1)
37,421 39,068 38,270 38,248 35,106 31,884 32,742 37,429 
Sales and marketing(1)
47,797 51,043 48,662 49,607 52,959 45,994 50,050 49,313 
General and administrative (1)
28,823 30,001 31,426 31,639 28,433 27,173 26,154 28,235 
Impairment expense— 4,316 — — 3,137 559 448 — 
Restructuring charges
— — — — — 9,720 — — 
Total operating expenses114,041 124,428 118,358 119,494 119,635 115,330 109,394 114,977 
Loss from operations(49,827)(58,342)(42,584)(46,260)(46,734)(40,590)(34,331)(38,179)
Net gain on extinguishment of debt36,760 — 15,656 — — — 1,365 — 
Interest income4,508 4,908 4,584 3,848 3,937 3,819 3,267 2,975 
Interest expense(1,232)(862)(744)(579)(464)(473)(1,231)(3,173)
Other income (expense), net
(803)(16)(763)(89)193 (317)(815)(80)
Loss before income tax expense (benefit)
(10,594)(54,312)(23,851)(43,080)(43,068)(37,561)(31,745)(38,457)
Income tax expense (benefit)110 (1)(465)347 661 455 1,141 691 
Net loss$(10,704)$(54,311)$(23,386)$(43,427)$(43,729)$(38,016)$(32,886)$(39,148)
Net loss per share attributable to common stockholders, basic and diluted$(0.08)$(0.42)$(0.18)$(0.32)$(0.32)$(0.27)$(0.23)$(0.27)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted127,863 129,873 131,843 134,587 137,444 139,237 141,085 143,284 
__________
(1)Includes stock-based compensation expense as follows:
Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025
Cost of revenue$2,837 $2,860 $3,278 $2,779 $2,044 $1,911 $1,910 $1,939 
Research and development12,205 12,122 12,019 10,323 7,983 7,378 7,922 8,893 
Sales and marketing9,877 9,061 8,060 7,843 7,058 7,113 7,047 6,693 
General and administrative12,073 11,670 12,090 10,876 9,063 8,614 8,066 8,057 
Total$36,992 $35,713 $35,447 $31,821 $26,148 $25,016 $24,945 $25,582 









fastlylogo-redxjpega.jpg
Reconciliation of GAAP to Non-GAAP Financial Measures - Quarterly
(unaudited, in thousands, except per share amounts)

Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025
Gross Profit
GAAP gross Profit$64,214 $66,086 $75,774 $73,234 $72,901 $74,740 $75,063 $76,798 
Stock-based compensation2,837 2,860 3,278 2,779 2,044 1,911 1,910 1,939 
Amortization of capitalized stock-based compensation - Cost of revenue(1)
840 1,013 1,022 1,155 1,184 1,338 1,371 1,641 
Amortization of acquired intangible assets2,475 2,475 2,475 2,475 2,475 2,475 2,475 2,475 
Non-GAAP gross profit70,366 72,434 82,549 79,643 78,604 80,464 80,819 82,853 
GAAP gross margin52.3 %51.7 %55.0 %54.8 %55.1 %54.5 %53.4 %53.2 %
Non-GAAP gross margin57.3 %56.7 %59.9 %59.6 %59.4 %58.6 %57.5 %57.3 %
Research and development
GAAP research and development37,421 39,068 38,270 38,248 35,106 31,884 32,742 37,429 
Stock-based compensation(12,205)(10,426)(11,728)(10,323)(7,983)(7,378)(7,922)(8,893)
Executive transition costs— (2,406)(385)— — — — — 
Non-GAAP research and development25,216 26,236 26,157 27,925 27,123 24,506 24,820 28,536 
Sales and marketing
GAAP sales and marketing47,797 51,043 48,662 49,607 52,959 45,994 50,050 49,313 
Stock-based compensation(9,877)(9,061)(8,060)(7,843)(7,058)(7,113)(7,047)(6,693)
Amortization of acquired intangible assets(2,575)(2,576)(2,300)(2,300)(2,301)(2,300)(2,299)(2,301)
Non-GAAP sales and marketing35,345 39,406 38,302 39,464 43,600 36,581 40,704 40,319 
General and administrative
GAAP general and administrative28,823 30,001 31,426 31,639 28,433 27,173 26,154 28,235 
Stock-based compensation(12,073)(11,670)(12,090)(10,876)(9,063)(8,614)(8,066)(8,057)
Executive transition costs— — — — — — — (335)
Non-GAAP general and administrative16,750 18,331 19,336 20,763 19,370 18,559 18,088 19,843 
Operating loss
GAAP operating loss(49,827)(58,342)(42,584)(46,260)(46,734)(40,590)(34,331)(38,179)
Stock-based compensation36,992 34,017 35,156 31,821 26,148 25,016 24,945 25,582 
Amortization of capitalized stock-based compensation - Cost of revenue(1)
840 1,013 1,022 1,155 1,184 1,338 1,371 1,641 
Restructuring charges
— — — — — 9,720 — — 
Executive transition costs— 2,406 385 — — — — 335 
Amortization of acquired intangible assets5,050 5,051 4,775 4,775 4,776 4,775 4,774 4,776 
Impairment expense
— 4,316 — — 3,137 559 448 — 
Non-GAAP operating income (loss)
(6,945)(11,539)(1,246)(8,509)(11,489)818 (2,793)(5,845)
Net loss
GAAP net loss(10,704)(54,311)(23,386)(43,427)(43,729)(38,016)(32,886)(39,148)
Stock-based compensation36,992 34,017 35,156 31,821 26,148 25,016 24,945 25,582 
Amortization of capitalized stock-based compensation - Cost of revenue(1)
840 1,013 1,022 1,155 1,184 1,338 1,371 1,641 
Restructuring charges
— — — — — 9,720 — — 
Executive transition costs— 2,406 385 — — — — 335 
Amortization of acquired intangible assets5,050 5,051 4,775 4,775 4,776 4,775 4,774 4,776 
Net gain on extinguishment of debt (36,760)— (15,656)— — — (1,365)— 
Impairment expense— 4,316 — — 3,137 559 448 — 
Amortization of debt issuance costs803 502 456 354 349 358 318 217 
Non-GAAP net income (loss)
$(3,779)$(7,006)$2,752 $(5,322)$(8,135)$3,750 $(2,395)$(6,597)
GAAP net loss per common share — basic and diluted
$(0.08)$(0.42)$(0.18)$(0.32)$(0.32)$(0.27)$(0.23)$(0.27)
Non-GAAP net income (loss) per common share — basic and diluted
$(0.03)$(0.05)$0.02 $(0.04)$(0.06)$0.03 $(0.02)$(0.05)
Weighted average basic common shares127,863 129,873 131,843 134,587 137,444 139,237 141,085 143,284 
Weighted average diluted common shares
127,863 129,873 141,162 134,587 137,444 143,415 141,085 143,284 

fastlylogo-redxjpega.jpg
(1)Similar to stock-based compensation, we believe it is also appropriate to exclude amortization of capitalized stock-based compensation from our non-GAAP financial measures in order to reflect the performance of our core business and to be consistent with the way many investors evaluate our performance and compare our operating results to peer companies. However, we have not historically done so. In order to continue to improve the usefulness of our non-GAAP financial measures to the investors, starting with the quarter ended March 31, 2025, we are excluding amortization of capitalized stock-based compensation from our non-GAAP financial measures and we have accordingly recast the presentation for all prior periods presented to reflect this change. Refer to Non-GAAP Financial Measures definition for further details.

Reconciliation of GAAP to Non-GAAP Financial Measures - Quarterly (Continued)
(unaudited, in thousands, except per share amounts)

Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025
Reconciliation of GAAP to Non-GAAP diluted shares:
GAAP diluted shares127,863 129,873 131,843 134,587 137,444 139,237 141,085 143,284 
Other dilutive equity awards— — 9,319 — — 4,178 — — 
Non-GAAP diluted shares127,863 129,873 141,162 134,587 137,444 143,415 141,085 143,284 
Non-GAAP diluted net income (loss) per share
(0.03)(0.05)0.02 (0.04)(0.06)0.03 (0.02)(0.05)

Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025
Adjusted EBITDA
GAAP net loss$(10,704)$(54,311)$(23,386)$(43,427)$(43,729)$(38,016)$(32,886)$(39,148)
Stock-based compensation36,992 34,017 35,156 31,821 26,148 25,016 24,945 25,582 
Amortization of capitalized stock-based compensation - Cost of revenue(1)
840 1,013 1,022 1,155 1,184 1,338 1,371 1,641 
Executive transition costs— 2,406 385 — — — — 335 
Depreciation and other amortization13,030 13,202 13,727 13,400 13,443 13,781 13,911 13,650 
Amortization of acquired intangible assets5,050 5,051 4,775 4,775 4,776 4,775 4,774 4,776 
Amortization of debt discount and issuance costs803 502 456 354 349 358 318 217 
Restructuring charges
— — — — — 9,720 — — 
Net gain on extinguishment of debt(36,760)— (15,656)— — — (1,365)— 
Impairment expense
— 4,316 — — 3,137 559 448 — 
Interest income(4,508)(4,908)(4,584)(3,848)(3,937)(3,819)(3,267)(2,975)
Interest expense429 360 288 225 115 115 913 2,956 
Other (income) expense, net803 16 763 89 (193)317 815 80 
Income tax (benefit) expense110 (1)(465)347 661 455 1,141 691 
Adjusted EBITDA$6,085 $1,663 $12,481 $4,891 $1,954 $14,599 $11,118 $7,805 
(1)Similar to stock-based compensation, we believe it is also appropriate to exclude amortization of capitalized stock-based compensation from our non-GAAP financial measures in order to reflect the performance of our core business and to be consistent with the way many investors evaluate our performance and compare our operating results to peer companies. However, we have not historically done so. In order to continue to improve the usefulness of our non-GAAP financial measures to the investors, starting with the quarter ended March 31, 2025, we are excluding amortization of capitalized stock-based compensation from our non-GAAP financial measures and we have accordingly recast the presentation for all prior periods presented to reflect this change. Refer to Non-GAAP Financial Measures definition for further details.









fastlylogo-redxjpega.jpg


Non-GAAP Consolidated Statements of Operations - Quarterly
(unaudited, in thousands, except per share amounts)
Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025
Revenue$122,831 $127,816 $137,777 $133,520 $132,371 $137,206 $140,579 $144,474 
Cost of revenue(1)(2)(3)
52,465 55,382 55,228 53,877 53,767 56,742 59,760 61,621 
Gross profit(1)(2)
70,366 72,434 82,549 79,643 78,604 80,464 80,819 82,853 
Operating expenses:
Research and development(1)(4)
25,216 26,236 26,157 27,925 27,123 24,506 24,820 28,536 
Sales and marketing(1)(3)
35,345 39,406 38,302 39,464 43,600 36,581 40,704 40,319 
General and administrative (1)
16,750 18,331 19,336 20,763 19,370 18,559 18,088 19,843 
Total operating expenses(1)(2)(3)(4)(5)(6)
77,311 83,973 83,795 88,152 90,093 79,646 83,612 88,698 
Income (loss) from operations(1)(2)(3)(4)(5)
(6,945)(11,539)(1,246)(8,509)(11,489)818 (2,793)(5,845)
Interest income4,508 4,908 4,584 3,848 3,937 3,819 3,267 2,975 
Interest expense(7)
(429)(360)(288)(225)(115)(115)(913)(2,956)
Other income (expense), net(803)(16)(763)(89)193 (317)(815)(80)
Income (loss) before income tax expense (benefit)(1)(2)(3)(4)(5)(6)(7)(8)
(3,669)(7,007)2,287 (4,975)(7,474)4,205 (1,254)(5,906)
Income tax expense (benefit)
110 (1)(465)347 661 455 1,141 691 
Net income (loss)(1)(2)(3)(4)(5)(6)(7)(8)
$(3,779)$(7,006)$2,752 $(5,322)$(8,135)$3,750 $(2,395)$(6,597)
Net income (loss) per share attributable to common stockholders, basic and diluted
$(0.03)$(0.05)$0.02 $(0.04)$(0.06)$0.03 $(0.02)$(0.05)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic127,863129,873131,843134,587137,444139,237141,085143,284
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted127,863129,873141,162134,587137,444143,415141,085143,284

(1)Excludes stock-based compensation. See GAAP to Non-GAAP reconciliations.
(2)Excludes amortization of capitalized stock-based compensation - cost of revenue. See GAAP to Non-GAAP reconciliations.
(3)Excludes amortization of acquired intangible assets. See GAAP to Non-GAAP reconciliations.
(4)Excludes executive transition costs. See GAAP to Non-GAAP reconciliations.
(5)Excludes impairment expense. See GAAP to Non-GAAP reconciliations.
(6)Excludes restructuring charges. See GAAP to Non-GAAP reconciliations.
(7)Excludes amortization of debt discount and issuance costs. See GAAP to Non-GAAP reconciliations.
(8)Excludes net gain on extinguishment of debt. See GAAP to Non-GAAP reconciliations.



fastlylogo-redxjpega.jpg
Consolidated Balance Sheets - Quarterly
(unaudited, in thousands)
Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025
Assets
Current assets:
Cash and cash equivalents$273,742 $270,300 $107,921 $150,809 $147,196 $217,514 $286,175 $125,484 
Marketable securities123,605 158,055 214,799 178,677 164,569 90,733 9,707 181,808 
Accounts receivable, net78,295 98,622 120,498 107,517 113,878 116,800 115,988 119,035 
Prepaid expenses and other current assets29,500 24,481 20,455 23,207 25,312 28,011 28,325 26,243 
Total current assets505,142 551,458 463,673 460,210 450,955 453,058 440,195 452,570 
Property and equipment, net179,045 171,914 176,608 177,574 177,058 180,288 179,097 177,876 
Operating lease right-of-use assets, net56,733 52,927 55,212 54,420 52,451 47,700 50,433 48,802 
Goodwill670,356 670,356 670,356 670,356 670,356 670,356 670,356 670,356 
Intangible assets, net72,550 67,375 62,475 57,576 52,676 47,776 42,876 37,976 
Marketable securities, non-current78,042 32,280 6,088 1,743 — — — — 
Other assets95,550 94,353 90,779 84,044 79,176 72,576 68,402 61,665 
Total assets$1,657,418 $1,640,663 $1,525,191 $1,505,923 $1,482,672 $1,471,754 $1,451,359 $1,449,245 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$5,561 $5,723 $5,611 $5,485 $5,532 $11,354 $6,044 $9,802 
Accrued expenses47,001 56,595 61,818 35,555 34,445 40,854 41,622 37,165 
Current debt— — — — — — — 187,871 
Finance lease liabilities22,233 19,250 15,684 11,974 8,178 4,882 2,328 617 
Operating lease liabilities20,575 21,533 24,042 22,580 25,399 23,857 25,155 26,988 
Other current liabilities36,234 40,234 40,539 44,633 35,748 33,261 29,307 38,442 
Total current liabilities131,604 143,335 147,694 120,227 109,302 114,208 104,456 300,885 
Long-term debt
472,369 472,823 343,507 343,837 344,167 344,498 337,614 149,874 
Finance lease liabilities, noncurrent7,026 3,860 1,602 440 — — — — 
Operating lease liabilities, noncurrent51,448 47,775 48,484 46,857 44,634 40,565 39,561 36,615 
Other long-term liabilities7,217 4,298 4,416 2,756 3,382 3,029 4,478 4,848 
Total liabilities669,664 672,091 545,703 514,117 501,485 502,300 486,109 492,222 
Stockholders’ equity:
Common stock
2 2 3 3 3 3 3 3 
Additional paid-in capital1,747,959 1,781,870 1,815,245 1,870,503 1,903,374 1,929,397 1,958,157 1,989,108 
Accumulated other comprehensive loss(3,152)(1,934)(1,008)(521)(282)(22)(100)(130)
Accumulated deficit(757,055)(811,366)(834,752)(878,179)(921,908)(959,924)(992,810)(1,031,958)
Total stockholders’ equity987,754 968,572 979,488 991,806 981,187 969,454 965,250 957,023 
Total liabilities and stockholders’ equity$1,657,418 $1,640,663 $1,525,191 $1,505,923 $1,482,672 $1,471,754 $1,451,359 $1,449,245 







fastlylogo-redxjpega.jpg
Consolidated Statements of Cash Flows – Quarterly
(unaudited, in thousands)

Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025
Cash flows from operating activities:
Net loss$(10,704)$(54,311)$(23,386)$(43,427)$(43,729)$(38,016)$(32,886)$(39,148)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense12,920 13,055 13,587 13,277 13,318 13,656 13,786 15,167 
Amortization of intangible assets5,175 5,175 4,899 4,899 4,900 4,900 4,900 4,900 
Non-cash lease expense5,648 5,464 5,451 5,556 5,800 5,463 5,655 5,655 
Amortization of debt discount and issuance costs803 501 456 354 349 358 316 217 
Amortization of deferred contract costs3,746 4,082 4,295 4,573 4,531 4,773 4,746 4,850 
Stock-based compensation36,992 35,713 35,447 31,821 26,148 25,016 24,945 25,582 
Deferred income taxes
— — (900)228 333 339 893 422 
Provision for credit losses567 211 714 953 393 1,054 1,434 946 
(Gain) loss on disposals of property and equipment296 (42)— 399 45 — 96 — 
Amortization of premiums (discounts) on investments
298 (403)(990)(1,158)(1,244)(1,064)(507)(626)
Impairment of operating lease right-of-use assets187 401 156 — — 371 — — 
Impairment expense— 4,316 — — 3,137 559 448 — 
Net gain on extinguishment of debt(36,760)— (15,656)— — — (1,365)— 
Other adjustments(85)71 905 (259)(178)520 (897)376 
Changes in operating assets and liabilities:
Accounts receivable6,482 (20,538)(22,590)12,028 (6,754)(3,976)(622)(3,993)
Prepaid expenses and other current assets217 5,019 4,107 (2,700)(2,131)(2,589)(207)2,216 
Other assets(4,771)(4,286)(6,868)(1,814)(3,210)(2,705)(4,140)(2,095)
Accounts payable1,119 314 (876)101 (341)4,754 (3,903)2,575 
Accrued expenses234 340 (1,603)(8,760)1,911 2,707 1,220 (3,383)
Operating lease liabilities(6,682)(4,505)(5,137)(7,606)(4,406)(7,329)(7,200)(5,556)
Other liabilities9,308 1,033 612 2,667 (3,820)(3,789)(1,492)9,183 
Net cash provided by (used in) operating activities24,990 (8,390)(7,377)11,132 (4,948)5,002 5,220 17,288 
Cash flows from investing activities:
Purchases of marketable securities— (73,091)(59,142)(56,948)(60,249)(37,902)— (179,486)
Sales of marketable securities774 1 24,850 — — — — — 
Maturities of marketable securities114,884 86,030 5,642 99,080 77,597 113,032 81,480 7,969 
Advance payment for purchase of property and equipment— — — — (790)— — — 
Purchases of property and equipment
(4,464)(325)(2,693)(1,603)(1,762)(1,996)(4,969)(2,605)
Proceeds from sale of property and equipment14 13 — — 24 — — — 
Capitalized internal-use software(6,230)(4,951)(5,902)(6,845)(6,829)(6,818)(5,602)(4,763)
Net cash provided by (used in) investing activities
104,978 7,677 (37,245)33,684 7,991 66,316 70,909 (178,885)
Cash flows from financing activities:
Payments of debt issuance costs— — — — — — (5,729)— 
Cash paid for debt extinguishment(196,934)— (113,606)— — — — — 
Repayments of finance lease liabilities
(6,557)(6,041)(5,932)(4,872)(4,236)(3,296)(2,554)(1,711)
Payment of deferred consideration for business acquisitions(4,393)— — — (3,771)— — — 
Proceeds from exercise of vested stock options535 1,137 161 111 180 19 805 408 
Proceeds from employee stock purchase plan2,191 2,222 1,550 2,881 1,034 2,168 161 2,131 
Net cash provided by (used in) financing activities
(205,158)(2,682)(117,827)(1,880)(6,793)(1,109)(7,317)828 
Effects of exchange rate changes on cash, cash equivalents, and restricted cash469 (47)70 (48)(13)109 (151)78 
Net increase (decrease) in cash, cash equivalents, and restricted cash(74,721)(3,442)(162,379)42,888 (3,763)70,318 68,661 (160,691)
Cash, cash equivalents, and restricted cash at beginning of period348,613 273,892 270,450 108,071 150,959 147,196 217,514 286,175 
Cash, cash equivalents, and restricted cash at end of period$273,892 $270,450 $108,071 $150,959 $147,196 $217,514 $286,175 $125,484 


fastlylogo-redxjpega.jpg
Free Cash Flow
(in thousands, unaudited)
Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025
Net cash provided by (used in) operating activities
$24,990 $(8,390)$(7,377)$11,132 $(4,948)$5,002 $5,220 $17,288 
Capital expenditures(1):
Purchases of property and equipment(4,464)(325)(2,693)(1,603)(1,762)(1,996)(4,969)(2,605)
Proceeds from sale of property and equipment14 13 — — 24 — — — 
Capitalized internal-use software(6,230)(4,951)(5,902)(6,845)(6,829)(6,818)(5,602)(4,763)
Repayments of finance lease liabilities(6,557)(6,041)(5,932)(4,872)(4,236)(3,296)(2,554)(1,711)
Advance payment for purchase of property and equipment(2)
— — — — (790)— — — 
Free Cash Flow$7,753 $(19,694)$(21,904)$(2,188)$(18,541)$(7,108)$(7,905)$8,209 
__________
(1)Capital expenditures are defined as cash used for purchases of property and equipment, net of proceeds from sale of property and equipment, capitalized internal-use software and payments on finance lease obligations, as reflected in our statement of cash flows.
(2)In the three months ended March 31, 2025, we received $3.5 million of capital equipment that was prepaid prior to the current quarter, as reflected in the supplemental disclosure of our statement of cash flows.