Jun 30, 2023

Fastly Q2 2023 Earnings Report

Reported record revenue, expanded market reach with new packaging and pricing, and repurchased convertible debt, reflecting a discount to par.

Key Takeaways

Fastly announced strong Q2 2023 financial results, exceeding the high end of their guidance range with a record revenue of $122.8 million, representing a 20% year-over-year growth. The company also expanded its market reach with new packaging and pricing and repurchased $236.4 million in convertible debt for $195.7 million, resulting in a $36.8 million net gain.

Total revenue reached $122.8 million, a 20% increase year-over-year and a 4% sequential increase.

GAAP gross margin was 52.3%, up from 44.9% in Q2 2022; non-GAAP gross margin was 56.6%, compared to 50.4% in Q2 2022.

GAAP net loss improved to $10.7 million, compared to $16.4 million in Q2 2022; non-GAAP net loss was $4.6 million, compared to $28.0 million in Q2 2022.

DBNER increased to 123% in the second quarter from 121% in the first quarter.

Total Revenue
$123M
Previous year: $103M
+19.8%
EPS
-$0.04
Previous year: -$0.23
-82.6%
DBNER
116%
Previous year: 117%
-0.9%
Enterprise Customers
551
Previous year: 471
+17.0%
Average Enterprise Spend
$818K
Gross Profit
$64.2M
Previous year: $46.1M
+39.4%
Cash and Equivalents
$274M
Previous year: $62.5M
+337.9%
Free Cash Flow
$20.5M
Previous year: -$23.1M
-188.8%
Total Assets
$1.66B
Previous year: $1.93B
-14.2%

Fastly

Fastly

Forward Guidance

Fastly provided guidance for Q3 2023 and full year 2023. They expect Q3 revenue between $125 million and $128 million and full year revenue between $500 million and $510 million. Non-GAAP operating loss is expected to be between ($15.0) million and ($13.0) million for Q3 and between ($49.0) million and ($43.0) million for the full year. Non-GAAP net loss per share is expected to be between ($0.09) and ($0.07) for Q3 and between ($0.27) and ($0.21) for the full year.