Sep 30, 2022

Fastly Q3 2022 Earnings Report

Reported record quarterly revenue, exceeding the high-end of guidance and growing 25% annually, with sequential growth in GAAP and non-GAAP gross margins.

Key Takeaways

Fastly announced record quarterly revenue of $108.5 million, exceeding the high-end of their guidance range and representing 25% year-over-year growth. GAAP gross margin and non-GAAP gross margin also grew sequentially. The company's portfolio expansion strategy is driving new customer acquisition and increased usage.

Total revenue reached $108.5 million, a 6% sequential increase and 25% year-over-year growth.

GAAP gross margin was 48.6%, compared to 52.4% in the third quarter of 2021.

GAAP net loss was $63.4 million, compared to $56.2 million in the third quarter of 2021.

Total customer count reached 2,925, including 482 enterprise customers.

Total Revenue
$109M
Previous year: $86.7M
+25.1%
EPS
-$0.14
Previous year: -$0.11
+27.3%
DBNER
118%
Previous year: 112%
+5.4%
Enterprise Customers
482
Previous year: 430
+12.1%
Average Enterprise Spend
$759K
Gross Profit
$52.7M
Previous year: $45.5M
+15.8%
Cash and Equivalents
$87.9M
Previous year: $282M
-68.8%
Free Cash Flow
-$30.3M
Previous year: -$22.9M
+31.9%
Total Assets
$1.91B
Previous year: $2.14B
-10.9%

Fastly

Fastly

Forward Guidance

Fastly provided guidance for Q4 2022 with revenue between $112 million and $116 million, and for the full year 2022 with revenue between $425 million and $429 million.

Positive Outlook

  • Q4 2022 Total Revenue: $112 - $116 million
  • Full Year 2022 Total Revenue: $425 - $429 million

Challenges Ahead

  • Q4 2022 Non-GAAP Operating Loss: ($18.0) - ($14.0) million
  • Full Year 2022 Non-GAAP Operating Loss: ($82) - ($78) million
  • Q4 2022 Non-GAAP Net Loss per share: ($0.15) - ($0.11)
  • Full Year 2022 Non-GAAP Net Loss per share: ($0.67) - ($0.63)