Fastly(US:FSLY)2024-05-01 21:16Revenue Performance - Revenue for the three months ended March 31, 2024, was $133.5 million, representing a 14% increase from $117.6 million in the same period of 2023[137]. - Total revenue for the three months ended March 31, 2024, was $133.5 million, a 14% increase from $117.6 million in the same period of 2023[180]. - U.S. revenue for Q1 2024 was $98.5 million, a 15% increase from $85.4 million in Q1 2023, representing 74% of total revenue[184]. - International revenue for Q1 2024 was $35.0 million, a 9% increase from $32.2 million in Q1 2023, representing 26% of total revenue[184]. - Network Services revenue grew by 12% to $106.0 million, while Security revenue increased by 16% to $24.6 million[182][183]. Customer Metrics - The top 10 customers contributed 38% of total revenue for the trailing 12 months ended March 31, 2024, compared to 35% in 2023[137]. - Total Customer Count increased to 3,290 as of March 31, 2024, up from 3,100 in 2023, representing a growth of 6.1%[157]. - Enterprise Customer Count rose to 577, compared to 540 in the previous year, maintaining 91% of total annualized current quarter revenue[160]. - Last-Twelve Months Net Retention Rate (LTM NRR) metric reflects revenue growth from existing customers due to increased usage of the platform[138]. - Last-Twelve Months Net Retention Rate (LTM NRR) decreased to 114.0% from 116.2% year-over-year[157]. Financial Performance - The company incurred a net loss of $43.4 million for the three months ended March 31, 2024, slightly improved from a loss of $44.7 million in the same period of 2023[137]. - Net loss attributable to common stockholders was $43.4 million for the three months ended March 31, 2024, compared to a loss of $44.7 million in 2023[177]. - Gross profit margin improved to 55% for the three months ended March 31, 2024, compared to 51% in 2023[179]. - Total operating expenses increased to $119.5 million, up from $107.5 million year-over-year[177]. - Interest income for Q1 2024 was $3.8 million, an 8% decrease from $4.2 million in Q1 2023[191]. Expenses Overview - Research and development expenses as a percentage of revenue were 29% for the three months ended March 31, 2024, down from 32% in 2023[153]. - Research and development expenses were $38.2 million, representing 29% of total revenue, down from 32% in the previous year[179]. - Sales and marketing expenses increased to $49.6 million, accounting for 37% of total revenue, slightly down from 38% in 2023[179]. - General and administrative costs for Q1 2024 were $31.6 million, a 23% increase from $25.8 million in Q1 2023[190]. - Research and development expenses for Q1 2024 were $38.2 million, a 2% increase from $37.4 million in Q1 2023[188]. - Sales and marketing expenses for Q1 2024 were $49.6 million, a 12% increase from $44.3 million in Q1 2023[189]. Cash Flow and Liquidity - Net cash provided by operating activities for Q1 2024 was $11.1 million, compared to a cash used of $8.9 million in Q1 2023[207]. - As of March 31, 2024, the company had cash, cash equivalents, and marketable securities totaling $331.2 million[196]. - Cash provided by investing activities for the three months ended March 31, 2024, was $33.7 million, primarily from $99.1 million in maturities and sales of marketable securities[210]. - Cash used in financing activities for the three months ended March 31, 2024, was $1.9 million, primarily due to $4.9 million in finance lease payments[212]. - The company experienced a net increase in accounts receivable of $3.7 million due to business growth and timing of cash receipts[209]. Strategic Initiatives - The company aims to expand its customer base across diverse verticals by enhancing product experience and leveraging its partner ecosystem[139]. - The company plans to continue investing in its platform and network infrastructure to support revenue growth and customer adoption of its edge cloud services[153]. - The company is focused on international expansion, increasing its presence in select international markets to attract new customers[147]. - The company has acquired Glitch, a software company, to enhance its product offerings and support developer project management[153]. Risk Management - The company is monitoring geopolitical events that could impact its operations, particularly concerning customers with ties to regions affected by conflict[149]. - The company does not engage in hedging activities to reduce exposure to currency fluctuations, which may be considered in the future[221]. - A hypothetical 10% change in interest rates would not have had a material impact on the company's consolidated financial statements[220].