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Jun 30, 2020
Fastly Q2 2020 Earnings Report
Record growth achieved through strong execution, with revenue up 62% year-over-year and guidance raised.
Key Takeaways
Fastly's Q2 2020 saw significant growth, driven by the increasing need for digital transformation. The company reported a 62% year-over-year increase in revenue, reaching $75 million, and expanded its customer base to 1,951. Profitability also improved, with the first positive adjusted EBITDA quarter.
Revenue increased by 62% year-over-year, reaching $75 million.
Net Retention Rate (NRR) increased to 138%, up from 130% in Q1 2020.
Total customer count grew to 1,951, marking the largest quarterly growth since IPO.
GAAP gross margin increased to 60.2%, up from 55.0% in Q2 2019.
Fastly
Fastly
Forward Guidance
Fastly raised its full-year 2020 guidance, expressing optimism about the demand for its services and the continued momentum of its business.
Positive Outlook
- Strong fundamentals driving customer expansion.
- Elevated traffic levels across the internet due to people staying home.
- Confidence in the demand for mission-critical services.
- Underlying growth of the business expected to continue into Q3 and future periods.
- Ability to deliver incremental annual gross margin expansion.
Challenges Ahead
- Global economic uncertainty.
- Gross margin will be affected by the timing of personnel and infrastructure investments.
- Gross margin will be affected by seasonal fluctuations of platform usage by customers.
- Uncertain economic environment.
- Annual capital expenditures as a percentage of revenue to be approximately 13% to 14% of revenue.