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Sep 30, 2021
Fastly Q3 2021 Earnings Report
Continued growth and security acceleration.
Key Takeaways
Fastly's Q3 2021 earnings report showed a 23% year-over-year revenue increase to $87 million, driven by the Signal Sciences acquisition and adoption of their edge platform, but also included a GAAP operating loss of $55 million and a non-GAAP operating loss of $13 million.
Top-line growth of 23% year-over-year with revenue of $87 million, net of a $0.9 million deferred revenue write-down related to purchase accounting adjustments from the Signal Sciences acquisition
GAAP gross margin of 52.4%, compared to 58.5% in Q3 2020; non-GAAP gross margin of 57.5%, compared to 59.8% in Q3 2020
Enterprise customer count increased to 430 from 408 in Q2 2021
Net Retention Rate (NRR) of 112%, compared to 93% in Q2 2021
Fastly
Fastly
Forward Guidance
Fastly provided Q4 2021 revenue guidance of $90 - $93 million, non-GAAP operating loss of ($18) - ($15) million, and non-GAAP net loss per share of ($0.19) - ($0.16). Full year 2021 revenue is expected to be $347 - $350 million, with a non-GAAP operating loss of ($63) - ($60) million and non-GAAP net loss per share of ($0.58) - ($0.55).
Positive Outlook
- Expected revenue between $90 million and $93 million.
- Focus on execution, bringing lasting growth to business.
- Delivering value to shareholders.
- Successfully winning developers onto the platform.
- Driving enterprise adoption and enhancing security offerings.
Challenges Ahead
- Non-GAAP Operating Loss between ($18) million and ($15) million.
- Non-GAAP Net Loss Per Share between ($0.19) and ($0.16).
- Gross margin to remain relatively flat to down slightly in the short to medium term.
- Capital expenditures as a percentage of revenue to be at the high end of previously announced range of 12% to 14% of revenue.
- Customer traffic ramping on platform is uncertain.