Mar 31, 2024

Fastly Q1 2024 Earnings Report

Fastly's first quarter results for 2024 showed revenue growth and positive operating cash flow, but the company expressed dissatisfaction with its revenue growth outlook.

Key Takeaways

Fastly reported a 14% year-over-year revenue increase to $133.5 million and positive operating cash flow of $11.1 million. The company released its Bot Management Solution and saw increased deal registrations and product package deals.

Total revenue reached $133.5 million, a 14% increase year-over-year.

GAAP gross margin improved to 54.8% from 51.3% in the first quarter of 2023.

The company's LTM Net Retention Rate increased to 114% in the first quarter.

Fastly released its Bot Management Solution to combat automated bot attacks.

Total Revenue
$134M
Previous year: $118M
+13.6%
EPS
-$0.05
Previous year: -$0.09
-44.4%
DBNER
114%
Previous year: 116%
-1.7%
Enterprise Customers
577
Previous year: 540
+6.9%
Total Customer Count
3.29K
Previous year: 3.1K
+6.1%
Gross Profit
$73.2M
Previous year: $60.3M
+21.5%
Cash and Equivalents
$151M
Previous year: $348M
-56.7%
Free Cash Flow
$17.1M
Previous year: -$12.4M
-238.7%
Total Assets
$1.51B
Previous year: $1.86B
-19.1%

Fastly

Fastly

Forward Guidance

Fastly anticipates Q2 2024 revenue between $130.0 and $134.0 million, with a non-GAAP operating loss between $16.0 and $12.0 million. Full year 2024 revenue is projected to be between $555.0 and $565.0 million, with a non-GAAP operating loss between $28.0 and $22.0 million.

Positive Outlook

  • Revenue between $130.0 - $134.0 million for Q2 2024
  • Full year Revenue between $555.0 - $565.0 million for 2024
  • Q2 2024 Non-GAAP Net Loss per share between -$0.10 and -$0.06
  • Full year 2024 Non-GAAP Net Loss per share between -$0.12 and -$0.06
  • Q2 2024 Non-GAAP operating loss between $(16.0) - $(12.0) million

Challenges Ahead

  • Full year 2024 Non-GAAP operating loss between $(28.0) - $(22.0) million
  • Uncertainty of expenses that may be incurred in the future
  • Reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort
  • Factors could be material to Fastly’s future GAAP financial results
  • Not satisfied with our revenue growth outlook