Fastly(US:FSLY)2025-11-05 21:11Revenue and Growth - Total revenue for Q3 2025 was $158.2 million, representing a 15% year-over-year growth, with security revenue growing 30% year-over-year and accounting for 21% of total revenue[7] - Q4 2025 total revenue guidance is projected between $159.0 million and $163.0 million, with full year 2025 guidance between $610.0 million and $614.0 million[4] - Revenue is projected to grow to $158.2 million by Q3 2025, indicating a positive trend in sales[37] Customer Metrics - The enterprise customer count increased to 627 in Q3 2025, up 51 from Q3 2024, while total customer count decreased to 3,223, down 415 from Q3 2024[7] - Last 12-month net retention rate (LTM NRR) improved to 106% in Q3 2025 from 104% in Q2 2025[7] Financial Performance - Positive free cash flow of $18.1 million was generated in Q3 2025, compared to $7.1 million of negative free cash flow in Q3 2024[7] - Non-GAAP net income per share for Q4 2025 is expected to be between $0.04 and $0.08, with full year 2025 guidance between $0.03 and $0.07[4] - GAAP net loss per common share is projected to decrease to $0.20 in Q3 2025 from $0.32 in Q2 2024, showing improvement in financial performance[34] Operating Expenses - Operating expenses for Q4 2023 totaled $118,358,000, leading to a loss from operations of $42,584,000[33] - Operating expenses are expected to stabilize around $87.7 million by Q3 2025, showing a focus on cost management[37] Cash Flow and Investments - Free Cash Flow for Q4 2023 was $(21,904) thousand, improving to $18,091 thousand by Q3 2025[42] - Cash flows from operating activities showed a net cash provided of $5,220 thousand in Q4 2024, increasing to $28,924 thousand by Q3 2025[41] - Net cash used in investing activities was $(37,245) thousand in Q4 2023, with a recovery to $70,909 thousand by Q4 2024[41] Product Development and Innovation - The company launched several new products, including API Discovery and DDoS Precise Defense, enhancing security and operational efficiency[6] - Non-GAAP research and development expenses for Q1 2025 are estimated at $30,466, a rise from $27,123 in Q2 2024, indicating increased investment in innovation[34] Stock and Equity - Total stock-based compensation expense for Q4 2023 was $35,447,000, impacting overall operating results[33] - Stock-based compensation decreased from $35,447 thousand in Q4 2023 to $33,129 thousand in Q3 2025[41] - The weighted average diluted common shares are expected to increase to 161,229 by Q3 2025, up from 145,780 in Q1 2025, reflecting potential equity financing or stock option exercises[34] Sustainability and Corporate Responsibility - Fastly's Sustainability Dashboard was introduced, providing customers visibility into the environmental impact of their usage[7] Debt and Liabilities - The company reported a net gain on extinguishment of debt of $15,656,000 in Q4 2023[33] - The company experienced a significant cash outflow of $(113,606) thousand for debt extinguishment in Q4 2023[41] - Long-term debt remained stable, with only a slight decrease from $343,507 in Q4 2023 to $337,614 in Q4 2024[40]