Company reports record fourth quarter revenue
of $140.6 million
Fastly, Inc. (NYSE: FSLY), a leader in global edge cloud
platforms, today announced financial results for its fourth quarter
and full year ended December 31, 2024.
“We are pleased to report record fourth quarter revenue,
exceeding the high-end of our guidance range,” said Todd
Nightingale, CEO of Fastly.
“Our platform strategy is delivering an accelerated innovation
velocity and faster time to value for anyone building web
experiences,” continued Nightingale. "We enter 2025 with a
strengthened balance sheet, a motivated go-to-market team, and
intense focus on efficient customer acquisition and long-term
revenue growth.”
Three months ended
December 31,
Year ended December
31,
2024
2023
2024
2023
Revenue
$
140,579
$
137,777
$
543,676
$
505,988
Gross margin
GAAP gross margin
53.4
%
55.0
%
54.4
%
52.6
%
Non-GAAP gross margin
56.5
%
59.2
%
57.8
%
56.9
%
Operating loss
GAAP operating loss
$
(34,331
)
$
(42,584
)
$
(167,915
)
$
(198,028
)
Non-GAAP operating loss
$
(4,164
)
$
(2,268
)
$
(27,021
)
$
(36,679
)
Net income (loss) per share
GAAP net loss per common share — basic and
diluted
$
(0.23
)
$
(0.18
)
$
(1.14
)
$
(1.03
)
Non-GAAP net income (loss) per common
share — basic and diluted
$
(0.03
)
$
0.01
$
(0.12
)
$
(0.17
)
For a reconciliation of non-GAAP financial measures to their
corresponding GAAP measures, please refer to the reconciliation
table at the end of this press release.
Fourth Quarter 2024 Financial Summary
- Total revenue of $140.6 million, representing 2% year-over-year
growth. Network services revenue of $110.1 million, representing
flat year-over-year growth. Security revenue of $26.9 million,
representing 4% year-over-year growth. Other revenue of $3.6
million, representing 63% year-over-year growth. Network services
revenue includes solutions designed to improve performance of
websites, apps, APIs, and digital media. Security revenue includes
products designed to protect websites, apps, APIs, and users. Other
revenue includes Compute and Observability solutions.
- GAAP gross margin of 53.4%, compared to 55.0% in the fourth
quarter of 2023. Non-GAAP gross margin of 56.5%, compared to 59.2%
in the fourth quarter of 2023.
- GAAP net loss of $32.9 million, compared to $23.4 million in
the fourth quarter of 2023. Non-GAAP net loss of $3.8 million,
compared to non-GAAP net income of $1.7 million in the fourth
quarter of 2023.
- GAAP net loss per basic and diluted share of $0.23, compared to
$0.18 in the fourth quarter of 2023. Non-GAAP net loss per diluted
share of $0.03, compared to non-GAAP net income per diluted share
of $0.01 in the fourth quarter of 2023.
Full Year 2024 Financial Summary
- Total revenue of $543.7 million, representing 7% year-over-year
growth. Network services revenue of $427.7 million, representing 6%
year-over-year growth. Security revenue of $103.0 million,
representing 11% year-over-year growth. Other revenue of $12.9
million, representing 61% year-over-year growth. Network services
revenue includes solutions designed to improve performance of
websites, apps, APIs, and digital media. Security revenue includes
products designed to protect websites, apps, APIs, and users. Other
revenue includes Compute and Observability solutions.
- GAAP gross margin of 54.4%, compared to 52.6% in fiscal 2023.
Non-GAAP gross margin of 57.8%, compared to 56.9% in fiscal
2023.
- GAAP net loss of $158.1 million, compared to $133.1 million in
fiscal 2023. Non-GAAP net loss of $17.2 million, compared to $21.7
million in fiscal 2023.
- GAAP net loss per basic and diluted share of $1.14, compared to
$1.03 in fiscal 2023. Non-GAAP net loss per basic and diluted share
of $0.12, compared to $0.17 in fiscal 2023.
Key Metrics
- Enterprise customer1 count was 596 in the fourth quarter, up 20
from the third quarter of 2024.
- Fastly's top ten customers accounted for 32% of revenue in the
fourth quarter compared to 40% in the fourth quarter of 2023.
Revenue from the top ten customers declined 18% year-over-year
compared to revenue growth of 16% year-over-year from customers
outside the top ten.
- Last 12-month net retention rate (LTM NRR)2 decreased to 102%
in the fourth quarter from 105% in the third quarter of 2024.
- Remaining performance obligations (RPO)3 were $244 million, up
4% from $235 million in the third quarter of 2024.
- Annual revenue retention rate (ARR)4 was 99.0% in 2024,
decreasing from 99.2% in 2023.
Fourth Quarter Business and Product Highlights
- Refinanced a portion of our outstanding convertible debt,
raising $150 million of 7.75% convertible senior notes with a 100%
conversion premium due in 2028 and repurchased $158 million in
principal amount of our existing 0% convertible notes due in 2026
for approximately $0.95 on the dollar.
- Fastly named a Leader in the IDC MarketScape: Worldwide Edge
Delivery Services 2024 Vendor Assessment (November 2024). This is
the second time Fastly has been named a Leader in an IDC
MarketScape report.
- Fastly named to the 2025 Newsweek Excellence Index, a list of
the top 1000 companies that have demonstrated best practices in
stakeholder ratings, social responsibility, and financial
responsibility.
- Fastly Bot Management won a 2025 DEVIES Award for the Best
Innovation in AppSecOps.
- Customer packages grew over 60% year-over-year and those
involving new logos grew 70% year-over-year. In 2024, customer
packages grew over 150%.
- Launched Fastly DDoS Protection to automatically detect and
mitigate disruptive and distributed attacks against applications
and APIs.
- Released Fastly AI Accelerator to GA and expanded compatibility
to leading LLMs, including OpenAI ChatGPT and Google Gemini.
- Launched Fastly Object Storage, an S3-compatible large object
storage solution with zero egress fees, allowing users to store and
access large files with a familiar footprint.
- Added Log Explorer & Insights to Fastly Observability
packages to help users unlock valuable insights within log
data.
- Made it easier for customers to purchase Fastly products with
in-app purchases for Fastly DDoS Protection, Object Storage, and AI
Accelerator.
First Quarter and Full Year 2025 Guidance
Q1 2025
Full Year 2025
Total Revenue (millions)
$136.0 - $140.0
$575.0 - $585.0
Non-GAAP Operating Loss
(millions)
($11.0) - ($7.0)
($15.0) - ($9.0)
Non-GAAP Net Loss per share
(5)(6)
($0.09) - ($0.05)
($0.15) - ($0.09)
A reconciliation of non-GAAP guidance measures to corresponding
GAAP measures is not available on a forward-looking basis without
unreasonable effort due to the uncertainty of expenses that may be
incurred in the future and cannot be reasonably determined or
predicted at this time, although it is important to note that these
factors could be material to Fastly’s future GAAP financial
results.
Conference Call Information
Fastly will host an investor conference call to discuss its
results at 1:30 p.m. PT / 4:30 p.m. ET on Wednesday, February 12,
2025.
Date:
Wednesday, February 12, 2025
Time:
1:30 p.m. PT / 4:30 p.m. ET
Webcast:
https://investors.fastly.com
Dial-in:
888-330-2022 (US/CA) or 646-960-0690
(Intl.)
Conf. ID#:
7543239
Please dial in at least 10 minutes prior to the 1:30 p.m. PT
start time. A live webcast of the call will be available at
https://investors.fastly.com where listeners may log on to the
event by selecting the webcast link under the “Quarterly Results”
section.
A telephone replay of the conference call will be available at
approximately 5:00 p.m. PT, February 12 through February 19, 2025
by dialing 800-770-2030 or 609-800-9909 and entering the passcode
7543239.
About Fastly, Inc.
Fastly’s powerful and programmable edge cloud platform helps the
world’s top brands deliver online experiences that are fast, safe,
and engaging through edge compute, delivery, security, and
observability offerings that improve site performance, enhance
security, and empower innovation at global scale. Compared to other
providers, Fastly’s powerful, high-performance, and modern platform
architecture empowers developers to deliver secure websites and
apps with rapid time-to-market and demonstrated, industry-leading
cost savings. Organizations around the world trust Fastly to help
them upgrade the internet experience, including Reddit, Neiman
Marcus, Universal Music Group, and SeatGeek. Learn more about
Fastly at https://www.fastly.com, and follow us @fastly.
Forward-Looking Statements
This press release contains “forward-looking” statements that
are based on our beliefs and assumptions and on information
currently available to us on the date of this press release.
Forward-looking statements may involve known and unknown risks,
uncertainties, and other factors that may cause our actual results,
performance, or achievements to be materially different from those
expressed or implied by the forward-looking statements. These
statements include, but are not limited to, statements regarding
our future financial and operating performance, including our
outlook and guidance; our operating performance; our ability to
innovate; the velocity and success of our products and product
enhancements; the capabilities of Fastly Bot Management, Fastly
DDoS Protection, Fastly AI Accelerator, Fastly Object Storage, and
Log Explorer & Insights; expectations regarding customer
experiences with Fastly's in-app purchases; our customer
acquisition and go-to-market efforts; our ability to monetize; and
our ability to deliver on our long-term strategy. Except as
required by law, we assume no obligation to update these
forward-looking statements publicly or to update the reasons actual
results could differ materially from those anticipated in the
forward-looking statements, even if new information becomes
available in the future. Important factors that could cause our
actual results to differ materially are detailed from time to time
in the reports Fastly files with the Securities and Exchange
Commission (“SEC”), including in our Quarterly Report on Form 10-Q
for the fiscal quarter ended September 30, 2024. Additional
information will also be set forth in our Annual Report on Form
10-K for the fiscal year ended December 31, 2024. Copies of reports
filed with the SEC are posted on Fastly’s website and are available
from Fastly without charge.
Use of Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements,
which are prepared and presented in accordance with accounting
principles generally accepted in the United States (“GAAP”), the
Company uses the following non-GAAP measures of financial
performance: non-GAAP gross profit, non-GAAP gross margin, non-GAAP
operating loss, non-GAAP net income (loss), non-GAAP basic and
diluted net income (loss) per common share, non-GAAP research and
development, non-GAAP sales and marketing, non-GAAP general and
administrative, free cash flow and adjusted EBITDA. The
presentation of this additional financial information is not
intended to be considered in isolation from, as a substitute for,
or superior to, the financial information prepared and presented in
accordance with GAAP. These non-GAAP measures have limitations in
that they do not reflect all of the amounts associated with our
results of operations as determined in accordance with GAAP. In
addition, these non-GAAP financial measures may be different from
the non-GAAP financial measures used by other companies. These
non-GAAP measures should only be used to evaluate our results of
operations in conjunction with the corresponding GAAP measures.
Management compensates for these limitations by reconciling these
non-GAAP financial measures to the most comparable GAAP financial
measures within our earnings releases.
Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating
loss, non-GAAP net income (loss) and non-GAAP basic and diluted net
loss per common share, non-GAAP research and development, non-GAAP
sales and marketing, and non-GAAP general and administrative differ
from GAAP in that they exclude stock-based compensation expense,
amortization of acquired intangible assets, net gain on
extinguishment of debt, impairment expense and amortization of debt
discount and issuance costs.
Adjusted EBITDA: excludes stock-based compensation
expense, depreciation and other amortization expenses, amortization
of acquired intangible assets, executive transition costs, interest
income, interest expense, including amortization of debt discount
and issuance costs, net gain on extinguishment of debt, impairment
expense, other expense, net, and income taxes.
Amortization of Acquired Intangible Assets: consists of
non-cash charges that can be affected by the timing and magnitude
of asset purchases and acquisitions. Management considers its
operating results without this activity when evaluating its ongoing
non-GAAP performance and its adjusted EBITDA performance because
these charges are non-cash expenses that can be affected by the
timing and magnitude of asset purchases and acquisitions and may
not be reflective of our core business, ongoing operating results,
or future outlook.
Amortization of Debt Discount and Issuance Costs:
consists primarily of amortization expense related to our debt
obligations. Management considers its operating results without
this activity when evaluating its ongoing non-GAAP net income
(loss) performance and its adjusted EBITDA performance because it
is not believed by management to be reflective of our core
business, ongoing operating results or future outlook. These are
included in our total interest expense.
Capital Expenditures: consists of cash used for purchases
of property and equipment, net of proceeds from sale of property
and equipment, capitalized internal-use software and payments on
finance lease obligations, as reflected in our statement of cash
flows.
Depreciation and Other Amortization Expense: consists of
non-cash charges that can be affected by the timing and magnitude
of asset purchases. Management considers its operating results
without this activity when evaluating its ongoing adjusted EBITDA
performance because these charges are non-cash expenses that can be
affected by the timing and magnitude of asset purchases and may not
be reflective of our core business, ongoing operating results, or
future outlook.
Executive Transition Costs: consists of one-time cash and
non-cash charges recognized with respect to changes in our
executive’s employment status. Management considers its operating
results without this activity when evaluating its ongoing non-GAAP
net income (loss) performance and its adjusted EBITDA performance
because it is not believed by management to be reflective of our
core business, ongoing operating results or future outlook.
Free Cash Flow: calculated as net cash used in operating
activities less purchases of property and equipment, net of
proceeds from sale of property and equipment, principal payments of
finance lease liabilities, capitalized internal-use software costs
and advance payments made related to capital expenditures.
Management specifically identifies adjusting items in the
reconciliation of GAAP to non-GAAP financial measures. Management
considers non-GAAP free cash flow to be a profitability and
liquidity measure that provides useful information to management
and investors about the amount of cash generated by the business
that can possibly be used for investing in Fastly's business and
strengthening its balance sheet, but it is not intended to
represent the residual cash flow available for discretionary
expenditures. The presentation of non-GAAP free cash flow is also
not meant to be considered in isolation or as an alternative to
cash flows from operating activities as a measure of liquidity.
Impairment Expense: consists of charges related to our
long-lived assets. Management considers its operating results
without this activity when evaluating its ongoing non-GAAP net
income (loss) performance and its adjusted EBITDA performance
because it is not believed by management to be reflective of our
core business, ongoing operating results or future outlook.
Income Taxes: consists primarily of expenses recognized
related to state and foreign income taxes. Management considers its
operating results without this activity when evaluating its ongoing
adjusted EBITDA performance because it is not believed by
management to be reflective of our core business, ongoing operating
results or future outlook.
Interest Expense: consists primarily of interest expense
related to our debt instruments, including amortization of debt
discount and issuance costs. Management considers its operating
results without this activity when evaluating its ongoing non-GAAP
net income (loss) performance and its adjusted EBITDA performance
because it is not believed by management to be reflective of our
core business, ongoing operating results or future outlook.
Interest Income: consists primarily of interest income
related to our marketable securities. Management considers its
operating results without this activity when evaluating its ongoing
non-GAAP net income (loss) performance and its adjusted EBITDA
performance because it is not believed by management to be
reflective of our core business, ongoing operating results or
future outlook.
Net Gain on Debt Extinguishment: relates to net gain on
the partial repurchase of our outstanding convertible debt.
Management considers its operating results without this activity
when evaluating its ongoing non-GAAP net income (loss) performance
and its adjusted EBITDA performance because it is not believed by
management to be reflective of our core business, ongoing operating
results or future outlook.
Other Expense, Net: consists primarily of foreign
currency transaction gains and losses. Management considers its
operating results without this activity when evaluating its ongoing
adjusted EBITDA performance because it is not believed by
management to be reflective of our core business, ongoing operating
results or future outlook.
Restructuring Charges: consists primarily of
employee-related severance and termination benefits related to
management's restructuring plan that resulted in a reduction in our
workforce. Management considers its operating results without this
activity when evaluating its ongoing non-GAAP net income (loss)
performance and its adjusted EBITDA performance because it is not
believed by management to be reflective of our core business,
ongoing operating results or future outlook.
Stock-Based Compensation Expense: consists of expenses
for stock options, restricted stock units, performance awards,
restricted stock awards and Employee Stock Purchase Plan ("ESPP")
under our equity incentive plans. Although stock-based compensation
is an expense for the Company and is viewed as a form of
compensation, management considers its operating results without
this activity when evaluating its ongoing non-GAAP net income
(loss) performance and its adjusted EBITDA performance, primarily
because it is a non-cash expense not believed by management to be
reflective of our core business, ongoing operating results, or
future outlook. In addition, the value of some stock-based
instruments is determined using formulas that incorporate
variables, such as market volatility, that are beyond our
control.
Management believes these non-GAAP financial measures and
adjusted EBITDA serve as useful metrics for our management and
investors because they enable a better understanding of the
long-term performance of our core business and facilitate
comparisons of our operating results over multiple periods and to
those of peer companies, and when taken together with the
corresponding GAAP financial measures and our reconciliations,
enhance investors' overall understanding of our current financial
performance.
In the financial tables below, the Company provides a
reconciliation of the most comparable GAAP financial measure to the
historical non-GAAP financial measures used in this press
release.
Key Metrics
1 Our number of customers is calculated based on the
number of separate identifiable operating entities with which we
have a billing relationship in good standing, from which we
recognized revenue during the current quarter. Our enterprise
customers are defined as those with annualized current quarter
revenue in excess of $100,000. This is calculated by taking the
revenue for each customer within the quarter and multiplying it by
four.
2 We calculate LTM Net Retention Rate by dividing the total
customer revenue for the prior twelve-month period (“prior 12-month
period”) ending at the beginning of the last twelve-month period
(“LTM period”) minus revenue contraction due to billing decreases
or customer churn, plus revenue expansion due to billing increases
during the LTM period from the same customers by the total prior
12-month period revenue. We believe the LTM Net Retention Rate is
supplemental as it removes some of the volatility that is inherent
in a usage-based business model.
3 Remaining performance obligations include future committed
revenue for periods within current contracts with customers, as
well as deferred revenue arising from consideration invoiced for
which the related performance obligations have not been
satisfied.
4 Annual Revenue Retention rate is calculated by first
calculating "Annual Revenue Churn", which is calculated by
multiplying the final full month of revenue from a customer that
terminated its contract with us, (a "Churned Customer") by the
number of months remaining in the same calendar year. Our ARR rate
is calculated by subtracting the quotient of the Annual Revenue
Churn from all of our Churned Customers from which we recognized
revenue during the last quarter of the prior year divided by our
annual revenue of the same calendar year from 100%. Our ARR was
99.0%, down 0.2% year-over-year.
5 Non-GAAP Net Loss per share is calculated as Non-GAAP Net Loss
divided by weighted average basic shares for 2025.
6 Assumes weighted average basic shares outstanding of 143.4
million in Q1 2025 and 147.1 million for the full year 2025.
Condensed Consolidated Statements of
Operations
(in thousands, except per share
amounts, unaudited)
Three months ended
December 31,
Year ended December
31,
2024
2023
2024
2023
Revenue
$
140,579
$
137,777
$
543,676
$
505,988
Cost of revenue(1)
65,516
62,003
247,738
239,660
Gross profit
75,063
75,774
295,938
266,328
Operating expenses:
Research and development(1)
32,742
38,270
137,980
152,190
Sales and marketing(1)
50,050
48,662
198,610
191,773
General and administrative(1)
26,154
31,426
113,399
116,077
Impairment expense
448
—
4,144
4,316
Restructuring charges
—
—
9,720
—
Total operating expenses
109,394
118,358
463,853
464,356
Loss from operations
(34,331
)
(42,584
)
(167,915
)
(198,028
)
Net gain on extinguishment of debt
1,365
15,656
1,365
52,416
Interest income
3,267
4,584
14,871
18,186
Interest expense
(1,231
)
(744
)
(2,747
)
(4,051
)
Other expense, net
(815
)
(763
)
(1,028
)
(1,832
)
Loss before income tax expense
(benefit)
(31,745
)
(23,851
)
(155,454
)
(133,309
)
Income tax expense (benefit)
1,141
(465
)
2,604
(221
)
Net loss
$
(32,886
)
$
(23,386
)
$
(158,058
)
$
(133,088
)
Net loss per share attributable to
common stockholders, basic and diluted
$
(0.23
)
$
(0.18
)
$
(1.14
)
$
(1.03
)
Weighted-average shares used in
computing net loss per share attributable to common stockholders,
basic and diluted
141,085
131,843
138,099
128,770
__________
(1)
Includes stock-based compensation expense
as follows:
Three months ended
December 31,
Year ended December
31,
2024
2023
2024
2023
Cost of revenue
$
1,910
$
3,278
$
8,644
$
11,656
Research and development
7,922
12,019
33,606
47,827
Sales and marketing
7,047
8,060
29,061
33,703
General and administrative
8,066
12,090
36,619
43,117
Total
$
24,945
$
31,418
$
107,930
$
136,303
Reconciliation of GAAP to Non-GAAP
Financial Measures
(in thousands, unaudited)
Three months ended
December 31,
Year ended December
31,
2024
2023
2024
2023
Gross profit
GAAP gross profit
$
75,063
$
75,774
$
295,938
$
266,328
Stock-based compensation
1,910
3,278
8,644
11,656
Amortization of acquired intangible
assets
2,475
2,475
9,900
9,900
Non-GAAP gross profit
$
79,448
$
81,527
$
314,482
$
287,884
GAAP gross margin
53.4
%
55.0
%
54.4
%
52.6
%
Non-GAAP gross margin
56.5
%
59.2
%
57.8
%
56.9
%
Research and development
GAAP research and development
$
32,742
$
38,270
$
137,980
$
152,190
Stock-based compensation
(7,922
)
(11,728
)
(33,606
)
(45,840
)
Executive transition costs
—
(385
)
—
(2,791
)
Non-GAAP research and
development
$
24,820
$
26,157
$
104,374
$
103,559
Sales and marketing
GAAP sales and marketing
$
50,050
$
48,662
$
198,610
$
191,773
Stock-based compensation
(7,047
)
(8,060
)
(29,061
)
(33,703
)
Amortization of acquired intangible
assets
(2,299
)
(2,300
)
(9,200
)
(10,026
)
Non-GAAP sales and marketing
$
40,704
$
38,302
$
160,349
$
148,044
General and administrative
GAAP general and administrative
$
26,154
$
31,426
$
113,399
$
116,077
Stock-based compensation
(8,066
)
(12,090
)
(36,619
)
(43,117
)
Non-GAAP general and
administrative
$
18,088
$
19,336
$
76,780
$
72,960
Operating loss
GAAP operating loss
$
(34,331
)
$
(42,584
)
$
(167,915
)
$
(198,028
)
Stock-based compensation
24,945
35,156
107,930
134,316
Restructuring charges
—
—
9,720
—
Executive transition costs
—
385
—
2,791
Amortization of acquired intangible
assets
4,774
4,775
19,100
19,926
Impairment expense
448
—
4,144
4,316
Non-GAAP operating loss
$
(4,164
)
$
(2,268
)
$
(27,021
)
$
(36,679
)
Net loss
GAAP net loss
$
(32,886
)
$
(23,386
)
$
(158,058
)
$
(133,088
)
Stock-based compensation
24,945
35,156
107,930
134,316
Restructuring charges
—
—
9,720
—
Executive transition costs
—
385
—
2,791
Amortization of acquired intangible
assets
4,774
4,775
19,100
19,926
Net gain on extinguishment of debt
(1,365
)
(15,656
)
(1,365
)
(52,416
)
Impairment expense
448
—
4,144
4,316
Amortization of debt discount and issuance
costs
318
456
1,379
2,477
Non-GAAP net income (loss)
$
(3,766
)
$
1,730
$
(17,150
)
$
(21,678
)
Non-GAAP net income (loss) per common
share — basic and diluted
$
(0.03
)
$
0.01
$
(0.12
)
$
(0.17
)
Weighted average basic common
shares
141,085
131,843
138,099
128,770
Weighted average diluted common
shares
141,085
141,162
138,099
128,770
Reconciliation of GAAP to Non-GAAP
Financial Measures
(in thousands, unaudited)
(continued)
Three months ended
December 31,
Year ended December
31,
2024
2023
2024
2023
Reconciliation of GAAP to Non-GAAP
diluted shares
GAAP diluted shares
141,085
131,843
138,099
128,770
Other dilutive equity awards
—
9,319
—
—
Non-GAAP diluted shares
141,085
141,162
138,099
128,770
Non-GAAP diluted net income (loss) per
share
(0.03
)
0.01
(0.12
)
(0.17
)
Three months ended
December 31,
Year ended December
31,
2024
2023
2024
2023
Adjusted EBITDA
GAAP net loss
$
(32,886
)
$
(23,386
)
$
(158,058
)
$
(133,088
)
Stock-based compensation
24,945
35,156
107,930
134,316
Restructuring charges
—
—
9,720
—
Executive transition costs
—
385
—
2,791
Net gain on extinguishment of debt
(1,365
)
(15,656
)
(1,365
)
(52,416
)
Impairment expense
448
—
4,144
4,316
Depreciation and other amortization
13,911
13,727
54,535
52,139
Amortization of acquired intangible
assets
4,774
4,775
19,100
19,926
Amortization of debt discount and issuance
costs
318
456
1,379
2,477
Interest income
(3,267
)
(4,584
)
(14,871
)
(18,186
)
Interest expense
913
288
1,368
1,574
Other expense, net
815
763
1,028
1,832
Income tax expense (benefit)
1,141
(465
)
2,604
(221
)
Adjusted EBITDA
$
9,747
$
11,459
$
27,514
$
15,460
Condensed Consolidated Balance
Sheets
(in thousands, unaudited)
As of December 31,
2024
As of December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
286,175
$
107,921
Marketable securities, current
9,707
214,799
Accounts receivable, net of allowance for
credit losses
115,988
120,498
Prepaid expenses and other current
assets
28,325
20,455
Total current assets
440,195
463,673
Property and equipment, net
179,097
176,608
Operating lease right-of-use assets,
net
50,433
55,212
Goodwill
670,356
670,356
Intangible assets, net
42,876
62,475
Marketable securities, non-current
—
6,088
Other assets
68,402
90,779
Total assets
$
1,451,359
$
1,525,191
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
6,044
$
5,611
Accrued expenses
41,622
61,818
Finance lease liabilities, current
2,328
15,684
Operating lease liabilities, current
25,155
24,042
Other current liabilities
29,307
40,539
Total current liabilities
104,456
147,694
Long-term debt
337,614
343,507
Finance lease liabilities, non-current
—
1,602
Operating lease liabilities,
non-current
39,561
48,484
Other long-term liabilities
4,478
4,416
Total liabilities
486,109
545,703
Stockholders’ equity:
Common stock
3
3
Additional paid-in capital
1,958,157
1,815,245
Accumulated other comprehensive loss
(100
)
(1,008
)
Accumulated deficit
(992,810
)
(834,752
)
Total stockholders’ equity
965,250
979,488
Total liabilities and stockholders’
equity
$
1,451,359
$
1,525,191
Condensed Consolidated Statements of
Cash Flows
(in thousands, unaudited)
Three months ended
December 31,
Year ended December
31,
2024
2023
2024
2023
Cash flows from operating
activities:
Net loss
$
(32,886
)
$
(23,386
)
$
(158,058
)
$
(133,088
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation expense
13,786
13,587
54,037
51,602
Amortization of intangible assets
4,900
4,899
19,599
20,424
Non-cash lease expense
5,655
5,451
22,474
22,678
Amortization of debt discount and issuance
costs
316
456
1,377
2,476
Amortization of deferred contract
costs
4,746
4,295
18,623
15,548
Stock-based compensation
24,945
35,447
107,930
136,303
Deferred income taxes
893
(900
)
1,793
(900
)
Provision for credit losses
1,434
714
3,834
2,025
Loss on disposals of property and
equipment
96
—
540
505
Amortization of discounts on
investments
(507
)
(990
)
(3,973
)
(646
)
Impairment of operating lease right-of-use
assets
—
156
371
744
Impairment expense
448
—
4,144
4,316
Net gain on extinguishment of debt
(1,365
)
(15,656
)
(1,365
)
(52,416
)
Other adjustments
(897
)
905
(814
)
648
Changes in operating assets and
liabilities:
Accounts receivable
(622
)
(22,590
)
676
(32,945
)
Prepaid expenses and other current
assets
(207
)
4,107
(7,627
)
8,709
Other assets
(4,140
)
(6,868
)
(11,869
)
(23,137
)
Accounts payable
(3,903
)
(876
)
611
382
Accrued expenses
1,220
(1,603
)
(2,922
)
(7,856
)
Operating lease liabilities
(7,200
)
(5,137
)
(26,541
)
(22,074
)
Other liabilities
(1,492
)
612
(6,434
)
7,064
Net cash provided by (used in)
operating activities
5,220
(7,377
)
16,406
362
Cash flows from investing
activities:
Purchases of marketable securities
—
(59,142
)
(155,099
)
(132,233
)
Sales of marketable securities
—
24,850
—
25,625
Maturities of marketable securities
81,480
5,642
371,189
433,767
Advance payment for purchase of property
and equipment
—
—
(790
)
—
Purchases of property and equipment
(4,969
)
(2,693
)
(10,330
)
(10,976
)
Proceeds from sale of property and
equipment
—
—
24
49
Capitalized internal-use software
(5,602
)
(5,902
)
(26,094
)
(21,292
)
Net cash provided by (used in)
investing activities
70,909
(37,245
)
178,900
294,940
Cash flows from financing
activities:
Payments of debt issuance costs
(5,729
)
—
(5,729
)
—
Cash paid for debt extinguishment
—
(113,606
)
—
(310,540
)
Repayments of finance lease
liabilities
(2,554
)
(5,932
)
(14,958
)
(27,175
)
Payment of deferred consideration for
business acquisitions
—
—
(3,771
)
(4,393
)
Proceeds from exercise of vested stock
options
805
161
1,115
2,169
Proceeds from employee stock purchase
plan
161
1,550
6,244
8,559
Net cash used in financing
activities
(7,317
)
(117,827
)
(17,099
)
(331,380
)
Effects of exchange rate changes on cash,
cash equivalents, and restricted cash
(151
)
70
(103
)
608
Net increase (decrease) in cash, cash
equivalents, and restricted cash
68,661
(162,379
)
178,104
(35,470
)
Cash, cash equivalents, and restricted
cash at beginning of period
217,514
270,450
108,071
143,541
Cash, cash equivalents, and restricted
cash at end of period
286,175
108,071
286,175
108,071
Reconciliation of cash, cash
equivalents, and restricted cash as shown in the statements of cash
flows:
Cash and cash equivalents
286,175
107,921
286,175
107,921
Restricted cash, current
—
150
—
150
Total cash, cash equivalents, and
restricted cash
$
286,175
$
108,071
$
286,175
$
108,071
Free Cash Flow
(in thousands, unaudited)
Three months ended
December 31,
Year ended December
31,
2024
2023
2024
2023
Net cash provided by (used in) operating
activities
$
5,220
$
(7,377
)
$
16,406
$
362
Capital expenditures(1)
(13,125
)
(14,527
)
(51,358
)
(59,394
)
Advance payment for purchase of property
and equipment(2)
—
—
(790
)
—
Free Cash Flow
$
(7,905
)
$
(21,904
)
$
(35,742
)
$
(59,032
)
__________
(1)
Capital expenditures are defined as cash
used for purchases of property and equipment, net of proceeds from
sale of property and equipment, capitalized internal-use software
and payments on finance lease obligations, as reflected in our
statement of cash flows.
(2)
In the year ended December 31, 2024, we
received $14.6 million of capital equipment that was prepaid prior
to the current year, as reflected in the supplemental disclosure of
our statement of cash flows.
Source: Fastly, Inc.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250212210800/en/
Investor Contact Vernon Essi, Jr. ir@fastly.com
Media Contact Spring Harris press@fastly.com
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