Fastly’s (FSLY) shares have plunged 27.4% year to date, underperforming the broader Zacks Computer & Technology sector’s decline of 8% and the Zacks Internet - Software industry’s fall of 2.8%.FSLY shares have outperformed its industry peers like Digital Turbine (APPS) , Inseego (INSG) and Atlassian (TEAM) .Year to date, shares of Digital Turbine have soared 98.3%, while Inseego and Atlassian have fallen 5.4% and 10.2%, respectively.The FSLY stock’s price decline can be attributed to sluggish revenue growth ...

Core Insights - Fastly (FSLY) reported revenue of $140.58 million for the quarter ended December 2024, marking a year-over-year increase of 2% [1] - The company recorded an EPS of -$0.03 for the same period, compared to an EPS of $0.01 a year ago [1] Financial Performance - Revenue for the quarter was $140.58 million, reflecting a slight growth of 2% year-over-year [1] - The earnings per share (EPS) decreased to -$0.03 from $0.01 in the previous year [1]

Financial Performance - Fastly's Last-Twelve Months Net Retention Rate (LTM NRR) metrics measure revenue growth from existing customers due to increased platform usage and additional product purchases[31]. - As of December 31, 2024, the company had cash, cash equivalents, and marketable securities totaling $295.9 million[100]. - Research and development expenses for the year ended December 31, 2024, were $138.0 million[88]. - The company employed 1,100 employees worldwide, with 240 located outside the United States as of December 31, 2024[80]. - The research and development team consisted of 389 employees as of December 31, 2024[88]. - A hypothetical 10% change in interest rates would not have had a material impact on the company's consolidated financial statements[100]. - A hypothetical 10% change in foreign exchange rates would not have had a material impact on the consolidated financial statements[460]. Product and Service Offerings - Fastly's Points of Presence (POPs) are architected with robust customized servers, yielding colocation cost savings compared to traditional architectures[35]. - The company has built a fully programmable platform using Varnish Configuration Language (VCL) and flexible APIs, allowing customers to control content caching and end-user request responses[35]. - Fastly Compute enables app developers to build high-performance, personalized applications without managing underlying infrastructure, enhancing scalability and security[56]. - The Instant Purge feature allows customers to clear cached content globally in milliseconds, improving performance for dynamic content delivery[43]. - Fastly's DDoS Protection offers zero attack fee billing, ensuring customers are not charged for attack traffic while providing robust application layer protection[52]. - Fastly's Origin Shield reduces costs and improves performance by collapsing multiple content requests into a single request during high traffic events[43]. - The Advanced Rate Limiting feature helps customers manage high-volume web requests, ensuring legitimate traffic is prioritized while blocking malicious requests[50]. - Fastly's observability offerings provide real-time insights for continuous performance improvements and faster debugging during development[40]. - Fastly's Compute platform offers features like TLS termination, serverless execution, and data access at the edge, enhancing performance and reducing latency for users[57][58][59]. - Fastly's Managed CDN provides maximum control and flexibility, allowing deployment on dedicated POPs within a customer's private network[63]. - Fastly's professional services include real-time logging and actionable insights to optimize performance and user experience for customers[62]. Strategic Initiatives - The acquisition of Glitch, Inc. in May 2022 expanded Fastly's developer community to over 3.1 million registered developers, supporting learning initiatives and code samples[59]. - The company plans to simplify customer onboarding and service usage, with a focus on a unified platform for managing all Fastly services[65]. - Fastly's growth strategy includes expanding into additional vertical markets and increasing wallet-share from existing customers through new products and features[68]. - The company has established partnerships with major cloud providers like Google Cloud and AWS to enhance service offerings and minimize egress fees[71]. - The Fast Forward program supports eligible open source projects by providing free Fastly products, promoting a free and open internet[60]. Compliance and Security - The company supports compliance with regulations such as HIPAA and GDPR, enhancing data privacy and security for customers[55]. - Fastly's Next-Gen WAF launched in Q1 2022 aims to enhance application security across various environments, with ongoing investments in this area[66]. Workforce and Culture - The company focuses on building a global, healthy, and safe workforce with an inclusive culture[79]. - The company has a unique support model designed for developers, with first-line support employees typically having an engineering background[83]. Currency and Financial Exposure - The functional currency of the foreign subsidiaries is the U.S. dollar, exposing the company to foreign exchange rate fluctuations[460]. - Foreign subsidiaries remeasure monetary assets and liabilities at period-end exchange rates, while non-monetary items are remeasured at historical rates[460]. - Revenue and expense accounts are remeasured at the average exchange rate during the period[460]. - The company does not currently engage in hedging activities to reduce potential exposure to currency fluctuations[460].

Especially amid a sky-high stock market that is dancing nervously around all-time highs, there is a lot of merit in chasing after “buy the dip” plays, as these stocks may rebound for reasons unrelated to the broader market risks. However, buying falling knives requires very carefulWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping th ...

Fastly (FSLY -20.35%) stock is sinking rapidly in Thursday's trading. The edge-computing specialist's share price was down 22.1% as of noon ET despite the S&P 500 index being up 0.5% and the Nasdaq Composite being up 0.8% at the same time. The stock had been down as much as 25.9% earlier in the session.Fastly reported its fourth-quarter results yesterday, posting sales that beat the market's expectations and earnings that fell short of Wall Street's target. But while the company posted a revenue beat in Q4, ...

Fastly, Inc. (NYSE:FSLY) Q4 2024 Earnings Conference Call February 12, 2025 4:30 PM ET Company Participants Vernon Essi - Investor Relations Todd Nightingale - Chief Executive Officer Ronald Kisling - Chief Financial Officer Conference Call Participants Frank Louthan - Raymond James & Associates, Inc. Rudy Kessinger - D.A. Davidson & Co. Sanjit Singh - Morgan Stanley Madeline Brooks - Bank of America Merrill Lynch Jeff Van Rhee - Craig-Hallum Capital Group Christopher Fountain - RBC Capital Markets LLC Quin ...

Revenue Projections - Total revenue for Q1 2025 is projected to be between $136.0 million and $140.0 million, with full-year 2025 guidance set at $575.0 million to $585.0 million[5] - Revenue for Q1 2024 was $133,520 thousand, a decrease of 3.1% from Q4 2023's $137,777 thousand[34] - The company expects revenue for Q2 2024 to be in the range of $132,371 thousand to $137,206 thousand, indicating a cautious outlook[34] - Revenue for Q4 2023 was $137,777, showing a 7.5% increase from Q3 2023's $127,816[37] - The company expects revenue growth to continue, projecting Q1 2024 revenue to be around $133,520[37] Financial Performance - Non-GAAP operating loss for Q1 2025 is expected to be between ($11.0) million and ($7.0) million, while the full-year 2025 loss is projected to be between ($15.0) million and ($9.0) million[5] - The net loss for Q1 2024 was $43,427 thousand, compared to a net loss of $23,386 thousand in Q4 2023, indicating a worsening financial position[34] - The company reported a non-GAAP net loss of $6,477 thousand for Q1 2024, compared to a non-GAAP net income of $1,730 thousand in Q4 2023[35] - The net loss for Q4 2023 was $2,268, a significant improvement compared to the loss of $12,552 in Q3 2023[37] - Adjusted EBITDA for Q4 2023 was $11,459, compared to $650 in Q3 2023, indicating strong operational performance[36] Customer Metrics - The enterprise customer count increased to 596 in Q4 2024, up from 576 in Q3 2024, representing a growth of 3.5%[8] - Customer packages grew over 60% year-over-year, with new logo packages growing 70% year-over-year[8] - The last 12-month net retention rate (LTM NRR) decreased to 102% in Q4 2024 from 105% in Q3 2024[8] - Fastly's top ten customers accounted for 32% of revenue in Q4 2024, down from 40% in Q4 2023[8] - Annual revenue retention rate (ARR) was 99.0% in 2024, a slight decrease from 99.2% in 2023[8] Operational Insights - Remaining performance obligations (RPO) were $244 million in Q4 2024, up 4% from $235 million in Q3 2024[8] - Fastly launched several new products, including Fastly DDoS Protection and Fastly AI Accelerator, expanding its service offerings[7] - The company identified an immaterial error in the historical calculation of total customer count, affecting revenue by less than $0.1 million for Q4 2024[1] - The Last Twelve Months (LTM) Net Retention Rate is calculated by adjusting for revenue contraction and expansion, providing a clearer view of customer revenue stability[2] - The Annual Revenue Retention (ARR) rate is 99.0%, down 0.2% year-over-year, indicating slight revenue loss from churned customers[4] Share and Equity Information - The company assumes a weighted average of 143.4 million basic shares outstanding in Q1 2025 and 147.1 million for the full year 2025[6] - The weighted average shares used in computing net loss per share for Q1 2024 were 134,587 thousand, an increase from 131,843 thousand in Q4 2023[35] - The weighted-average diluted shares increased from 129,873 in Q3 2023 to 141,162 in Q4 2023, indicating potential dilution effects[36] - Total stockholders' equity increased from $958,555 in Q1 2023 to $965,250 in Q4 2024, a growth of approximately 0.7%[39] Cash Flow and Expenses - Free Cash Flow is calculated as net cash used in operating activities minus capital expenditures, providing insight into cash generation capabilities[23] - The company experienced a net cash provided by operating activities of $11,132 thousand in Q1 2024, showing a recovery from prior losses[41] - The company reported a net cash used in financing activities of $(2,682) thousand in Q3 2023, reflecting ongoing debt management efforts[40] - The company’s stock-based compensation expense was $35,713 thousand in Q3 2023, reflecting ongoing employee incentive programs[40] - Capital expenditures in Q3 2023 included purchases of property and equipment totaling $(325) thousand, with capitalized internal-use software costs of $(4,951) thousand[41] Asset and Liability Overview - Total current assets decreased from $661,640 in Q1 2023 to $440,195 in Q4 2024, representing a decline of approximately 33.4%[39] - Cash and cash equivalents dropped significantly from $348,463 in Q1 2023 to $286,175 in Q4 2024, a decrease of about 17.9%[39] - Total liabilities decreased from $903,855 in Q1 2023 to $486,109 in Q4 2024, reflecting a reduction of approximately 46.3%[39] - Long-term debt, less current portion, decreased from $705,378 in Q1 2023 to $337,614 in Q4 2024, a decline of about 52.1%[39] - Total assets decreased from $1,862,410 in Q1 2023 to $1,451,359 in Q4 2024, a decline of about 22.0%[39]

Shares of Fastly (FSLY) are down 2% at $9.85 at last check, trading at multi-week lows ahead of its fourth-quarter earnings release. Due out after the close today, Feb. 12, analysts are anticipating a breakeven result. FSLY is sitting just above its year-to-date breakeven level and struggling longer term, down 57% in the past 12 months. The equity has pulled back to a historically bullish signal, however, per historic data from Schaeffer’s Quantitative Analyst Rocky White.Per White, FSLY has recently come w ...

Company Performance and Growth Drivers - Strong performance driven by expanding channel partner network, product innovation, advancements in security solutions, and a growing customer base [1] - Shares gained 29.6% over the trailing three months, outperforming the broader Zacks Computer & Technology sector (2.8%) and the Zacks Internet - Software industry (4.2%) [8] - Revenues from customers outside the top 10 grew 20% year over year, reflecting successful efforts to broaden the customer base [3] Product Innovations and Enhancements - Updated Bot Management with a new bot analysis feature, offering better visibility and control over bot management costs [2] - Expanded security offerings, including adaptive DDoS protection, providing automatic defense against sophisticated attacks [5] - Rolled out enhancements to its KV Store, enabling more powerful edge applications through high-performance key-value storage [6] - Launched a beta version of its AI accelerator to boost performance and cut costs for large language model applications, with added support for Google Gemini and OpenAI [9] - Upgraded Next-Gen WAF with faster activation, improved threat detection, and added context through Country and IP Corp/Site lists [9] Strategic Partnerships and Customer Base - Cineverse chose Fastly's Media Video Delivery solution to enhance its digital cinema, streaming, and content distribution capabilities [3] - Channel Partner Program offers benefits such as flexible pricing, added discounts, deal registration, and dedicated support to drive partners' growth and profitability [10] Financial Estimates and Market Position - Zacks Consensus Estimate for first-quarter 2025 revenues is $138.01 million, indicating year-over-year growth of 3.36% [7] - Consensus mark for the bottom line is a loss of 3 cents per share, unchanged over the past 30 days, indicating a year-over-year increase of 40% [7] - Zacks Consensus Estimate for 2025 revenues is $579.97 million, implying growth of 7.03% from 2023 actual [11] - Consensus mark for 2025 earnings is 3 cents per share, indicating a year-over-year upsurge of 124.29% [11] - Earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 81.1% [11]

Company Performance and Outlook - Fastly (NYSE: FSLY) has been a significant disappointment in 2024, struggling with profitability [2] - The company could potentially have a strong year in 2025 if it continues to scale its customer footprint [2] Investment Strategy and Portfolio - The analyst focuses on high-risk, high-reward opportunities, primarily in the technology sector [2] - The analyst's portfolio is concentrated on companies with asymmetric long-term upside potential, including Bitcoin, Tesla, Google, Amazon, and Nvidia [2] Analyst Position and Disclosure - The analyst holds a beneficial long position in Fastly (FSLY) through stock ownership, options, or other derivatives [3]