Mar 31, 2023

Fastly Q1 2023 Earnings Report

Revenue exceeded guidance, demonstrating growth and strategic advancements.

Key Takeaways

Fastly's Q1 2023 earnings report highlights a record first-quarter revenue that exceeded the high end of the quarterly guidance range, growing 15% year-over-year. The company also saw progress in customer mind share through go-to-market simplification, packaging, innovation velocity, and improvements in cost control and financial rigor.

Total revenue reached $117.6 million, a 15% increase year-over-year.

GAAP gross margin improved to 51.3% from 47.3% in Q1 2022, and non-GAAP gross margin increased to 55.6% from 52.6% in Q1 2022.

The total customer count was 3,100, including 540 enterprise customers.

Google selected Fastly’s oblivious HTTP relay for its privacy sandbox initiative.

Total Revenue
$118M
Previous year: $102M
+14.8%
EPS
-$0.09
Previous year: -$0.15
-40.0%
DBNER
116%
Previous year: 115%
+0.9%
Enterprise Customers
540
Previous year: 457
+18.2%
Average Enterprise Spend
$795K
Gross Profit
$60.3M
Previous year: $48.5M
+24.3%
Cash and Equivalents
$348M
Previous year: $246M
+41.8%
Free Cash Flow
-$12.4M
Previous year: -$15.6M
-20.7%
Total Assets
$1.86B
Previous year: $2.13B
-12.7%

Fastly

Fastly

Forward Guidance

Fastly provided guidance for Q2 2023 with total revenue expected to be between $117 million and $120 million, and non-GAAP operating loss between ($18.0) million and ($16.0) million. For the full year 2023, total revenue is expected to be between $495 million and $505 million, and non-GAAP operating loss between ($53.0) million and ($47.0) million.

Positive Outlook

  • Total Revenue (millions): $117 - $120 (Q2 2023)
  • Total Revenue (millions): $495 - $505 (Full Year 2023)

Challenges Ahead

  • Non-GAAP Operating Loss (millions): ($18.0) - ($16.0) (Q2 2023)
  • Non-GAAP Operating Loss (millions): ($53.0) - ($47.0) (Full Year 2023)
  • Non-GAAP Net Loss per share: ($0.11) - ($0.09) (Q2 2023)
  • Non-GAAP Net Loss per share: ($0.27) - ($0.21) (Full Year 2023)