Fastly(US:FSLY)2025-11-07 22:19Revenue Performance - For the three months ended September 30, 2025, revenue was $158.2 million, a 15% increase from $137.2 million in the same period of 2024[164]. - For the nine months ended September 30, 2025, revenue was $451.4 million, reflecting a 12% increase from $403.1 million in the same period of 2024[164]. - Revenue for the three months ended September 30, 2025, was $158.2 million, up from $137.2 million in 2024, marking an increase of approximately 15.3%[208]. - Total revenue for the nine months ended September 30, 2025, was $451.4 million, a 12% increase from $403.1 million in the same period of 2024[210]. - Network Services revenue increased by 11% to $118.8 million for the three months ended September 30, 2025, compared to $107.4 million in 2024[214]. - Security revenue grew by 30% to $34.0 million for the three months ended September 30, 2025, driven by an increase in Next-Gen WAF revenue[214]. - U.S. revenue for the three months ended September 30, 2025, was $114.2 million, accounting for 72% of total revenue, compared to 76% in the same period of 2024[216]. - International revenue increased by 35% to $44.1 million for the three months ended September 30, 2025, up from $32.8 million in 2024[216]. Net Loss and Financial Health - The net loss for the three months ended September 30, 2025, was $29.5 million, an improvement from a net loss of $38.0 million in the same period of 2024[164]. - The net loss for the nine months ended September 30, 2025, was $106.2 million, compared to a net loss of $125.2 million in the same period of 2024[164]. - Net loss attributable to common stockholders for the three months ended September 30, 2025, was $29.5 million, compared to a loss of $38.0 million in 2024, showing an improvement of approximately 22.1%[208]. - Net loss attributable to common stockholders was (19)% for the three months ended September 30, 2025, an improvement from (27)% in 2024[209]. - The company expects to continue incurring operating losses due to investments and strategic initiatives aimed at business growth[242]. Customer Metrics - The company's 10 largest customers accounted for 32% of revenue in the trailing 12 months ended September 30, 2025, down from 35% in the previous year[165]. - Total customer count decreased from 3,638 in 2024 to 3,223 in 2025, representing a decline of approximately 11.4%[184]. - Enterprise customer count increased from 576 in 2024 to 627 in 2025, indicating a growth of about 8.8%[187]. - Last-twelve months net retention rate improved from 105.3% in 2024 to 105.8% in 2025, reflecting a positive trend in customer retention[189]. Research and Development - Research and development expenses as a percentage of revenue were 26% for the three months ended September 30, 2025, compared to 23% in the same period of 2024[180]. - Research and development expenses for the three months ended September 30, 2025, were $41.4 million, up from $31.9 million in 2024, an increase of approximately 29.5%[208]. - Research and development expenses rose by 30% to $41.4 million for the three months ended September 30, 2025, primarily due to increased stock-based compensation[223]. Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $121.1 million, compared to $115.3 million in 2024, reflecting an increase of about 5.9%[208]. - Operating expenses totaled $121.1 million for the three months ended September 30, 2025, a 5% increase from $115.3 million in 2024[222]. - General and administrative costs for Q3 2025 were $29.7 million, an increase of $2.5 million, or 9%, compared to Q3 2024[227]. - For the nine months ended September 30, 2025, general and administrative costs decreased to $82.3 million, a reduction of $4.9 million, or 6%, from $87.2 million in the same period of 2024[228]. Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2025, was $72.0 million, primarily due to adjustments for non-cash items[251]. - Cash used in investing activities for the nine months ended September 30, 2025, was $249.2 million, primarily due to $352.1 million in purchases of marketable securities[253]. - Cash provided by financing activities for the nine months ended September 30, 2025, was $3.9 million, primarily from $5.5 million in proceeds from the employee stock purchase plan[255]. - The company recognized an impairment expense of $0.4 million during the nine months ended September 30, 2025, related to non-recurring write-off charges[229]. - As of September 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $342.9 million[240]. - The company has not drawn down any amounts on its Senior Secured Credit Facilities Agreement during the nine months ended September 30, 2025[244]. Strategic Initiatives - The company plans to continue investing in its platform and network infrastructure to support revenue growth and customer adoption of its edge cloud delivery and security products[180]. - The company aims to expand its customer base across diverse industry verticals by enhancing product experience and leveraging its partner ecosystem[168]. - The company is focused on international expansion, increasing its presence in select international markets to attract customers outside the United States[175]. - The company emphasizes retaining customers and expanding their usage of its platform, with a focus on additional offerings beyond content delivery and security[172]. Financial Reporting and Compliance - The company prepares its financial statements in accordance with GAAP, requiring estimates and judgments that could significantly affect reported amounts[258]. - There have been no material changes in the company's contractual obligations and commitments from the most recent Annual Report[257]. - The company does not currently engage in hedging activities to reduce potential exposure to currency fluctuations, although it may consider this in the future[262]. - The primary objective of the company's investment activities is to preserve principal while generating income without significantly increasing risk[261].