Sep 30, 2023

Fastly Q3 2023 Earnings Report

Reported record revenue and positive adjusted EBITDA in Q3 2023.

Key Takeaways

Fastly announced record third-quarter revenue of $127.8 million, representing an 18% year-over-year growth. The company is focused on customer acquisition and industry vertical expansion.

Total revenue reached $127.8 million, an 18% increase year-over-year and a 4% sequential increase.

GAAP gross margin was 51.7%, compared to 48.6% in the third quarter of 2022.

GAAP net loss was $54.3 million, compared to $63.4 million in the third quarter of 2022.

LTM Net Retention Rate decreased to 114% in the third quarter from 116% in the second quarter.

Total Revenue
$128M
Previous year: $109M
+17.8%
EPS
-$0.06
Previous year: -$0.14
-57.1%
DBNER
114%
Previous year: 118%
-3.4%
Enterprise Customers
547
Previous year: 482
+13.5%
Average Enterprise Spend
$858K
Previous year: $759K
+13.0%
Gross Profit
$66.1M
Previous year: $52.7M
+25.5%
Cash and Equivalents
$270M
Previous year: $87.9M
+207.5%
Free Cash Flow
$18.7M
Previous year: -$30.3M
-161.7%
Total Assets
$1.64B
Previous year: $1.91B
-13.9%

Fastly

Fastly

Forward Guidance

Fastly provided guidance for Q4 2023 with revenue between $137 million and $141 million, and for the full year 2023 with revenue between $505 million and $509 million.

Positive Outlook

  • Q4 2023 Total Revenue: $137 - $141 million
  • Full Year 2023 Total Revenue: $505 - $509 million
  • Q4 2023 Non-GAAP Operating Loss: ($10.0) - ($6.0) million
  • Full Year 2023 Non-GAAP Operating Loss: ($44.0) - ($40.0) million
  • Q4 2023 Non-GAAP Net Loss per share: ($0.05) - ($0.01)

Challenges Ahead

  • Q4 2023 Non-GAAP Operating Loss: ($10.0) - ($6.0) million
  • Full Year 2023 Non-GAAP Operating Loss: ($44.0) - ($40.0) million
  • Q4 2023 Non-GAAP Net Loss per share: ($0.05) - ($0.01)
  • Full Year 2023 Non-GAAP Net Loss per share: ($0.23) - ($0.19)
  • A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses