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Fastly(FSLY) - 2024 Q4 - Annual Results
FSLYFastly(FSLY)2025-02-12 21:06

Revenue Projections - Total revenue for Q1 2025 is projected to be between 136.0millionand136.0 million and 140.0 million, with full-year 2025 guidance set at 575.0millionto575.0 million to 585.0 million[5] - Revenue for Q1 2024 was 133,520thousand,adecreaseof3.1133,520 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 132,371thousandto132,371 thousand to 137,206 thousand, indicating a cautious outlook[34] - Revenue for Q4 2023 was 137,777,showinga7.5137,777, 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]FinancialPerformance−Non−GAAPoperatinglossforQ12025isexpectedtobebetween(133,520[37] Financial Performance - Non-GAAP operating loss for Q1 2025 is expected to be between (11.0) million and (7.0)million,whilethefull−year2025lossisprojectedtobebetween(7.0) million, while the full-year 2025 loss is projected to be between (15.0) million and (9.0)million[5]−ThenetlossforQ12024was9.0) million[5] - The net loss for Q1 2024 was 43,427 thousand, compared to a net loss of 23,386thousandinQ42023,indicatingaworseningfinancialposition[34]−Thecompanyreportedanon−GAAPnetlossof23,386 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 1,730thousandinQ42023[35]−ThenetlossforQ42023was1,730 thousand in Q4 2023[35] - The net loss for Q4 2023 was 2,268, a significant improvement compared to the loss of 12,552inQ32023[37]−AdjustedEBITDAforQ42023was12,552 in Q3 2023[37] - Adjusted EBITDA for Q4 2023 was 11,459, compared to 650inQ32023,indicatingstrongoperationalperformance[36]CustomerMetrics−Theenterprisecustomercountincreasedto596inQ42024,upfrom576inQ32024,representingagrowthof3.5650 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 235millioninQ32024[8]−Fastlylaunchedseveralnewproducts,includingFastlyDDoSProtectionandFastlyAIAccelerator,expandingitsserviceofferings[7]−Thecompanyidentifiedanimmaterialerrorinthehistoricalcalculationoftotalcustomercount,affectingrevenuebylessthan235 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 958,555inQ12023to958,555 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 11,132thousandinQ12024,showingarecoveryfrompriorlosses[41]−Thecompanyreportedanetcashusedinfinancingactivitiesof11,132 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 35,713thousandinQ32023,reflectingongoingemployeeincentiveprograms[40]−CapitalexpendituresinQ32023includedpurchasesofpropertyandequipmenttotaling35,713 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]AssetandLiabilityOverview−Totalcurrentassetsdecreasedfrom(4,951) thousand[41] Asset and Liability Overview - Total current assets decreased from 661,640 in Q1 2023 to 440,195inQ42024,representingadeclineofapproximately33.4440,195 in Q4 2024, representing a decline of approximately 33.4%[39] - Cash and cash equivalents dropped significantly from 348,463 in Q1 2023 to 286,175inQ42024,adecreaseofabout17.9286,175 in Q4 2024, a decrease of about 17.9%[39] - Total liabilities decreased from 903,855 in Q1 2023 to 486,109inQ42024,reflectingareductionofapproximately46.3486,109 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 337,614inQ42024,adeclineofabout52.1337,614 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]