Community banks are navigating a mixed operating backdrop marked by still-elevated funding costs, competitive deposit pricing and the need to balance loan growth with disciplined credit risk management. In this environment, United Bancorp, Inc. (UBCP) and Ohio Valley Banc Corp. (OVBC) stand out as two regional institutions with similar core banking foundations but distinct operating footprints and business levers. UBCP operates through Unified Bank with 18 banking centers across multiple Ohio counties and p ...

Core Viewpoint - Fastly (FSLY) is expected to report its second-quarter 2025 results on August 6, with anticipated revenue growth and a narrower non-GAAP loss compared to the previous year [1][2][9]. Revenue Expectations - FSLY expects revenues in the range of $143 million to $147 million, representing a 10% year-over-year increase at the midpoint [1][9]. - The Zacks Consensus Estimate for revenues is $145.1 million, indicating a 9.6% increase from the same quarter last year [1]. Loss Forecast - The company anticipates a non-GAAP loss between 4 and 8 cents per share, with the consensus mark for loss at 5 cents per share, which is an improvement from the 7 cents loss reported in the previous year [2][9]. Key Growth Drivers - Fastly's content delivery and edge computing platform is expected to benefit from go-to-market transformation efforts and packaging improvements, aiding in deal acquisition and steady revenue growth [3]. - Enterprise demand for advanced digital experiences and security solutions is likely to support top-line growth, with the Security segment benefiting from ongoing portfolio enhancements [4]. Market Dynamics - Adoption of edge computing solutions, particularly for dynamic content and AI-driven workloads, has been a significant catalyst for growth [4]. - Traditional content delivery remains the primary revenue driver, while security and compute offerings are helping to diversify the revenue mix [4]. Challenges - Competitive industry pricing may constrain gross margin expansion, and profitability is closely tied to operating discipline [6]. - Macroeconomic uncertainty and regulatory factors related to specific customer relationships are expected to negatively impact second-quarter results [6]. Earnings Outlook - According to the Zacks model, FSLY has an Earnings ESP of -53.13% and a Zacks Rank of 3, indicating lower odds of an earnings beat [7].

Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $299 million, a slight increase from $295 million in Q1 2024, marking the highest first-quarter revenue in its history [22] - Non-GAAP operating income for Q1 2025 was $51 million, resulting in a non-GAAP adjusted operating margin of 19%, up from $45 million and 16.6% in the prior year [23] - Non-GAAP adjusted EBITDA increased to $64 million, representing 23.7% of revenue, compared to $58 million or 21.5% in the prior year [23] - Non-GAAP EPS rose to $1.14, a 13% increase from $1.01 in the prior year [24] - Non-GAAP adjusted free cash flow was $7 million, a significant improvement from a negative $34 million in Q1 2024, marking the strongest Q1 performance in seven years [25] Business Line Data and Key Metrics Changes - The company diversified its revenue, with 33% of Q1 revenue coming from faster-growing industry verticals outside of cable and telecom, up from 30% in the same quarter last year [6] - The annual revenue from top customers, Charter and Comcast, grew by approximately $76 million from 2017 to 2024, representing a 2.6% compound annual growth rate [7] Market Data and Key Metrics Changes - The company noted that the global macroeconomic uncertainty continues to affect customer decision-making, leading to some belt-tightening across various industry verticals [35] - The company is experiencing a shift towards more SaaS solutions, which are less service-heavy and offer lower costs, indicating a strategic pivot in the telecom market [66] Company Strategy and Development Direction - The company aims for 2% to 6% organic revenue growth and to diversify revenue from faster-growing verticals to over 35% of total revenue by 2026 [9] - The management is focused on becoming a more asset-light SaaS company, aiming for non-GAAP adjusted operating margins in the range of 18% to 20% by 2026 [17] - The company is committed to disciplined M&A activity, seeking to acquire companies that enhance its capabilities in integrated customer engagement and monetization [54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving improved profitability metrics and strong double-digit free cash flow growth in 2025 and 2026 [18] - The company anticipates that macroeconomic uncertainties will continue to influence customer behavior, but it remains optimistic about long-term growth opportunities [35][66] Other Important Information - The company announced a 7% annual dividend increase for the twelfth consecutive year and repurchased $22 million worth of shares in Q1 [8] - The company has a strong balance sheet with $610 million in liquidity and a net debt leverage ratio of 1.6 times adjusted EBITDA [26] Q&A Session Summary Question: Insights on customer feedback towards the end of the quarter - Management noted that there was nothing unique in Q1, but global macroeconomic uncertainty continues to influence customer decision-making, leading to cautious spending [34][35] Question: Discussion on margin optimization - Management emphasized the importance of operational discipline and continuous improvement in cost management, alongside innovation to drive margin expansion [37][39] Question: Revenue trends with major customers - Management explained that fluctuations in revenue from Charter and Comcast are influenced by contract terms and new solutions, with a long-term growth outlook remaining positive [43][45] Question: M&A strategy and ideal candidates - Management indicated a disciplined approach to M&A, focusing on acquiring companies that enhance integrated solutions and have strong growth potential [52][54] Question: Dynamics in the telecom vertical - Management acknowledged ongoing transformations in the telecom sector, with a focus on SaaS solutions and cost reduction strategies to remain competitive [64][66]