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Jun 30, 2021
Fastly Q2 2021 Earnings Report
Growth was achieved with security acceleration, but faced challenges due to a significant outage and customer delays.
Key Takeaways
Fastly's Q2 2021 earnings report showed a 14% year-over-year revenue increase to $85 million, but was impacted by a global outage and customer delays. The company experienced a GAAP operating loss of $57 million and a net loss per share of $0.51. Despite these challenges, Fastly is focused on security offerings and Compute@Edge capabilities to drive future growth.
Revenue increased by 14% year-over-year to $85 million, including the impact of the Signal Sciences acquisition.
GAAP gross margin decreased to 52.6% from 60.2% in Q2 2020, while non-GAAP gross margin decreased to 57.6% from 61.7% in Q2 2020.
GAAP operating loss was $57 million, compared to a $14 million loss in Q2 2020; non-GAAP operating loss was $18 million, compared to a $2 million income in Q2 2020.
Net loss per share was $0.51, compared to a net loss per share of $0.14 in Q2 2020; non-GAAP net loss per share was $0.15, compared to a net income per share of $0.02 in Q2 2020.
Fastly
Fastly
Forward Guidance
Fastly's Q3 and full-year 2021 outlook reflects revenue impacts from the outage in June, the timing of customer traffic ramping on our platform, and anticipated renewals. The expected operating profile reflects continued investment for future growth, along with the impact of the Signal Sciences acquisition.
Positive Outlook
- Continued investment in network to support future growth.
- Capital expenditures expected to be 12-14% of revenue.
- Long-term capital expenditures expected to approach 10% of revenue.
- Focus on disciplined investment in network and long-term profitability.
- Tremendous opportunity to invest in edge cloud mission.
Challenges Ahead
- Revenue impacts from the outage in June.
- Timing of customer traffic ramping on the platform.
- Anticipated renewals.
- Non-GAAP operating loss expected for Q3 and full year.
- Uncertainty regarding costs and expenses that may be incurred in the future.