Jun 30, 2024

Fastly Q2 2024 Earnings Report

Fastly's Q2 2024 financial results were announced, showcasing revenue growth and customer acquisition, but also highlighting demand challenges with larger customers and cost structure adjustments.

Key Takeaways

Fastly reported Q2 2024 revenue of $132.4 million, representing an 8% year-over-year increase. The company's enterprise customer count grew by 4% sequentially. However, Fastly is facing demand challenges with some large customers and is adjusting its cost structure accordingly.

Total revenue reached $132.4 million, an 8% increase year-over-year.

Enterprise customer count increased by 4% sequentially, reaching 601.

GAAP gross margin improved to 55.1% compared to 52.3% in Q2 2023.

Fastly AI Accelerator released in beta to speed up performance of ChatGPT-powered apps.

Total Revenue
$132M
Previous year: $123M
+7.8%
EPS
-$0.07
Previous year: -$0.04
+75.0%
DBNER
110%
Previous year: 116%
-5.2%
Enterprise Customers
601
Previous year: 551
+9.1%
Total Customer Count
3.3K
Previous year: 3.07K
+7.3%
Gross Profit
$72.9M
Previous year: $64.2M
+13.5%
Cash and Equivalents
$147M
Previous year: $274M
-46.2%
Free Cash Flow
$11.4M
Previous year: $20.5M
-44.7%
Total Assets
$1.48B
Previous year: $1.66B
-10.5%

Fastly

Fastly

Forward Guidance

Fastly anticipates revenue between $130.0 and $134.0 million for Q3 2024 and between $530.0 and $540.0 million for the full year 2024. Non-GAAP operating loss is expected to be between ($12.0) and ($8.0) million for Q3 2024 and between ($33.0) and ($27.0) million for the full year 2024. Non-GAAP net loss per share is projected to be between ($0.08) and ($0.03) for Q3 2024 and between ($0.16) and ($0.11) for the full year 2024.

Positive Outlook

  • Q3 2024 Total Revenue: $130.0 - $134.0 million
  • Full Year 2024 Total Revenue: $530.0 - $540.0 million
  • Q3 2024 Non-GAAP Operating Loss: ($12.0) - ($8.0) million
  • Full Year 2024 Non-GAAP Operating Loss: ($33.0) - ($27.0) million
  • Q3 2024 Non-GAAP Net Loss per share: ($0.08) - ($0.03)

Challenges Ahead

  • Full Year 2024 Non-GAAP Net Loss per share: ($0.16) - ($0.11)
  • Uncertainty of expenses that may be incurred in the future
  • Expenses cannot be reasonably determined or predicted at this time
  • Factors could be material to Fastly’s future GAAP financial results
  • Demand challenges with some of our largest customers