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Dec 31, 2020
Fastly Q4 2020 Earnings Report
Fastly's Q4 2020 earnings showcased strong growth and strategic advancements.
Key Takeaways
Fastly reported a strong Q4 2020 with revenue up 40% year-over-year, driven by demand for its edge platform. The company saw growth in enterprise customer spend and a strong DBNER. Gross margin improved, but operating and net losses persisted, though non-GAAP metrics showed some improvement.
Revenue increased by 40% year-over-year, reaching nearly $83 million, driven by strong demand for Fastly's edge platform.
GAAP gross margin improved to 59.2%, with non-GAAP gross margin reaching 63.7%.
The company continued to capture additional business from existing customers, evidenced by a growing average enterprise customer spend and a strong DBNER of 143%.
Integration efforts for the unified product offering of Fastly and Signal Sciences are underway, with cross-selling and upselling exceeding expectations.
Forward Guidance
Fastly's 2021 outlook reflects its ability to deliver strong top-line growth, ongoing commitment to annual gross margin expansion, and continued investments in cloud computing and security.
Positive Outlook
- Continued ability to deliver strong top-line growth
- Ongoing commitment to annual gross margin expansion
- Ongoing investments in cloud computing
- Ongoing investments in security
- Expansion of the Edge Cloud Platform
Challenges Ahead
- Expense of expanded team from the Signal Sciences acquisition
- Uncertainties related to the usage-based business model
- Gross margin reflects scale
- Gross margin reflects the recent acquisition of Signal Sciences
- Gross margin reflects timing of personnel and infrastructure investments
Historical Earnings Impact
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Avg. Return Before/After Earnings
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