Fastly(US:FSLY)2025-02-12 21:06Revenue 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]