0001517413false00015174132024-08-072024-08-07

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549 
FORM 8-K
CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 7, 2024 
FASTLY, INC.
(Exact name of Registrant as Specified in Its Charter)
 
Delaware001-3889727-5411834
(State or other jurisdiction of
incorporation or organization)		(Commission File Number)(I.R.S. Employer
Identification Number)

475 Brannan Street, Suite 300
San Francisco, CA 94107
(Address of principal executive offices) (Zip code)
(844) 432-7859
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report) 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading
Symbol(s)		 Name of each exchange
on which registered
Class A Common Stock, $0.00002 par value “FSLY” New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐






Item 2.02                   Results of Operations and Financial Condition.

On August 7, 2024, Fastly, Inc. (the "Company") announced its financial results for the quarter ended June 30, 2024 by issuing a press release. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Attached hereto as Exhibit 99.2 and incorporated by reference herein is the Company’s investor supplement, regarding results of the quarter ended June 30, 2024 (the “Investor Supplement”). The Investor Supplement will be posted to http://investors.fastly.com immediately after the filing of this Form 8-K.

The information furnished on this Form 8-K, including the exhibits attached, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.


Item 9.01                   Financial Statements and Exhibits.
 
(d)Exhibits
 




SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
FASTLY, INC.
Dated:August 7, 2024 By: /s/ Ronald W. Kisling
   Ronald W. Kisling
   Chief Financial Officer



Exhibit 99.1
Fastly Announces Second Quarter 2024 Financial Results

SAN FRANCISCO — August 7, 2024 — Fastly, Inc. (NYSE: FSLY), a leader in global edge cloud platforms, today announced financial results for its second quarter ended June 30, 2024.
“We continued to drive customer acquisition in the second quarter, achieving 4% sequential growth in Enterprise customer count,” said Todd Nightingale, CEO of Fastly. “This, along with the acceleration of our go-to-market motions, contributed to revenue growth above the midpoint of our guidance.”
“However, we are experiencing demand challenges with some of our largest customers, and we are taking measures to align our cost structure accordingly,” continued Nightingale. “This change will enable focused investment in edge cloud innovation and continued go-to-market transformation.”

Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Revenue$132,371 $122,831 $265,891 $240,395 
Gross margin
GAAP gross margin55.1 %52.3 %55.0 %51.8 %
Non-GAAP gross margin58.5 %56.6 %58.6 %56.1 %
Operating loss
GAAP operating loss$(46,734)$(49,827)$(92,994)$(97,102)
Non-GAAP operating loss$(12,673)$(7,785)$(22,337)$(21,859)
Net loss per share
GAAP net loss per common share—basic and diluted$(0.32)$(0.08)$(0.64)$(0.44)
Non-GAAP net loss per common share—basic and diluted$(0.07)$(0.04)$(0.12)$(0.12)
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.
Second Quarter 2024 Financial Summary
•Total revenue of $132.4 million, representing 8% year-over-year growth. Network services revenue of $104.2 million, representing 6% year-over-year growth. Security revenue of $25.4 million, representing 13% year-over-year growth. Network Services include solutions designed to improve performance of websites, apps, APIs, and digital media. Security includes products designed to protect websites, apps, APIs, and users.
•GAAP gross margin of 55.1%, compared to 52.3% in the second quarter of 2023. Non-GAAP gross margin of 58.5%, compared to 56.6% in the second quarter of 2023.
•GAAP net loss of $43.7 million, compared to $10.7 million in the second quarter of 2023. Non-GAAP net loss of $9.3 million, compared to $4.6 million in the second quarter of 2023.
•GAAP net loss per basic and diluted shares of $0.32, compared to $0.08 in the second quarter of 2023. Non-GAAP net loss per basic and diluted shares of $0.07, compared to $0.04 in the second quarter of 2023.
Key Metrics
•Enterprise customer1 count was 601 in the second quarter, up 24 from the first quarter of 2024. Total customer count1 was 3,295 in the second quarter, up 5 from the first quarter of 2024.
•Last 12-month net retention rate (LTM NRR)2 decreased to 110% in the second quarter from 114% in the first quarter of 2024.
•Remaining performance obligations (RPO)3 were $223 million, down 2% from $227 million in the first quarter of 2024.





Second Quarter Business and Product Highlights
•Scott R. Lovett joined Fastly as Chief Revenue Officer, bringing more than 30 years of experience in the network services and cybersecurity industries.
•Fastly recognized as a 2024 Gartner® Peer Insights™ Customers’ Choice for Cloud Web Application and API Protection (WAAP) for the sixth consecutive year – and the only vendor to be recognized for six years running.
•Fastly Security Research Team identified the active exploitation of unauthenticated stored XSS vulnerabilities in WordPress Plugins.
•Fastly named to the U.S. News & World Report's 2024-2025 Best Companies to Work For.
•Product package deals doubled compared to the first quarter of 2024, driven by the successful introduction of Observability packages in addition to Compute, Security, and Delivery.
•New deal registrations grew 33% quarter-over-quarter in the second quarter, and year-to-date revenue contribution more than doubled year-over-year.
•Released beta version of Fastly AI Accelerator, the company’s first AI solution to help developers speed up the performance of their ChatGPT-powered apps and reduce the costs of using OpenAI’s large language model API.
•Redesigned our pricing page to provide clarification around our new self-serve checkout plan (Usage), mix-and-match packages, and our free tier offerings.
•Launched free developer accounts alongside Simplified Compute Service Creation, which allows developers to set up, configure, and sync a new Compute service to their local machine using a single command.
•Enhanced Fastly Managed Security Service offering with Fastly Bot Management, and an industry-leading 30-minute time-to-notify service level agreement (SLA).

Third Quarter and Full Year 2024 Guidance

Q3 2024Full Year 2024
Total Revenue (millions)$130.0 - $134.0$530.0 - $540.0
Non-GAAP Operating Loss (millions)($12.0) - ($8.0)($33.0) - ($27.0)
Non-GAAP Net Loss per share (4)(5)
($0.08) - ($0.03)($0.16) - ($0.11)
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, August 7, 2024.

Date: Wednesday, August 7, 2024
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, August 7 through August 21, 2024 by dialing 800-770-2030 or 647-362-9199 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, Wendy’s, 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 success of our products and product enhancements, the capabilities of Fastly’s AI Accelerator, 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 those more fully described in Fastly’s Annual Report on Form 10-K for the year ended December 31, 2023 and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 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 loss, non-GAAP basic and diluted net 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 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 income (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 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.

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 non-recurring charges related to our long-lived assets. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net 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 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 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 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 Income (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.
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 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 Non-GAAP Net Loss per share is calculated as Non-GAAP Net Loss divided by weighted average basic shares for 2024.
5 Assumes weighted average basic shares outstanding of 139.3 million in Q3 2024 and 137.5 million for the full year 2024.




Condensed Consolidated Statements of Operations
(in thousands, except per share amounts, unaudited)
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Revenue$132,371 $122,831 $265,891 $240,395 
Cost of revenue(1)
59,470 58,617 119,756 115,927 
Gross profit72,901 64,214 146,135 124,468 
Operating expenses:
Research and development(1)
35,106 37,421 73,354 74,852 
Sales and marketing(1)
52,959 47,797 102,566 92,068 
General and administrative(1)
28,433 28,823 60,072 54,650 
Impairment expense3,137 — 3,137 — 
Total operating expenses119,635 114,041 239,129 221,570 
Loss from operations(46,734)(49,827)(92,994)(97,102)
Net gain on extinguishment of debt— 36,760 — 36,760 
Interest income3,937 4,508 7,785 8,694 
Interest expense(464)(1,232)(1,043)(2,445)
Other income (expense), net193 (803)104 (1,053)
Loss before income tax expense(43,068)(10,594)(86,148)(55,146)
Income tax expense661 110 1,008 245 
Net loss$(43,729)$(10,704)$(87,156)$(55,391)
Net loss per share attributable to common stockholders, basic and diluted$(0.32)$(0.08)$(0.64)$(0.44)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted137,444 127,863 136,015 126,648 
__________
(1)Includes stock-based compensation expense as follows:
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Cost of revenue$2,044 $2,837 $4,823 $5,518 
Research and development7,983 12,205 18,306 23,686 
Sales and marketing7,058 9,877 14,901 16,582 
General and administrative9,063 12,073 19,939 19,357 
Total$26,148 $36,992 $57,969 $65,143 







Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, unaudited)
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Gross profit
GAAP gross profit$72,901 $64,214 $146,135 $124,468 
Stock-based compensation2,044 2,837 4,823 5,518 
Amortization of acquired intangible assets2,475 2,475 4,950 4,950 
Non-GAAP gross profit$77,420 $69,526 $155,908 $134,936 
GAAP gross margin55.1 %52.3 %55.0 %51.8 %
Non-GAAP gross margin58.5 %56.6 %58.6 %56.1 %
Research and development
GAAP research and development$35,106 $37,421 $73,354 $74,852 
Stock-based compensation(7,983)(12,205)(18,306)(23,686)
Non-GAAP research and development$27,123 $25,216 $55,048 $51,166 
Sales and marketing
GAAP sales and marketing$52,959 $47,797 $102,566 $92,068 
Stock-based compensation(7,058)(9,877)(14,901)(16,582)
Amortization of acquired intangible assets(2,301)(2,575)(4,601)(5,150)
Non-GAAP sales and marketing$43,600 $35,345 $83,064 $70,336 
General and administrative
GAAP general and administrative$28,433 $28,823 $60,072 $54,650 
Stock-based compensation(9,063)(12,073)(19,939)(19,357)
Non-GAAP general and administrative$19,370 $16,750 $40,133 $35,293 
Operating loss
GAAP operating loss$(46,734)$(49,827)$(92,994)$(97,102)
Stock-based compensation26,148 36,992 57,969 65,143 
Amortization of acquired intangible assets4,776 5,050 9,551 10,100 
Impairment expense3,137 — 3,137 — 
Non-GAAP operating loss$(12,673)$(7,785)$(22,337)$(21,859)
Net loss
GAAP net loss$(43,729)$(10,704)$(87,156)$(55,391)
Stock-based compensation26,148 36,992 57,969 65,143 
Amortization of acquired intangible assets4,776 5,050 9,551 10,100 
Net gain on extinguishment of debt— (36,760)— (36,760)
Impairment expense3,137 — 3,137 — 
Amortization of debt discount and issuance costs349 803 703 1,519 
Non-GAAP net loss$(9,319)$(4,619)$(15,796)$(15,389)
Non-GAAP net loss per common share—basic and diluted$(0.07)$(0.04)$(0.12)$(0.12)
Weighted average basic and diluted common shares137,444 127,863 136,015 126,648 






Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, unaudited) (continued)

Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Adjusted EBITDA
GAAP net loss$(43,729)$(10,704)$(87,156)$(55,391)
Stock-based compensation26,148 36,992 57,969 65,143 
Net gain on extinguishment of debt— (36,760)— (36,760)
Impairment expense3,137 — 3,137 — 
Depreciation and other amortization13,443 13,030 26,843 25,210 
Amortization of acquired intangible assets4,776 5,050 9,551 10,100 
Amortization of debt discount and issuance costs349 803 703 1,519 
Interest income(3,937)(4,508)(7,785)(8,694)
Interest expense115 429 340 926 
Other income (expense), net(193)803 (104)1,053 
Income tax expense661 110 1,008 245 
Adjusted EBITDA$770 $5,245 $4,506 $3,351 




Condensed Consolidated Balance Sheets
(in thousands, unaudited)
As of
June 30, 2024		As of
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents$147,196 $107,921 
Marketable securities, current164,569 214,799 
Accounts receivable, net of allowance for credit losses113,878 120,498 
Prepaid expenses and other current assets25,312 20,455 
Total current assets450,955 463,673 
Property and equipment, net177,058 176,608 
Operating lease right-of-use assets, net52,451 55,212 
Goodwill670,356 670,356 
Intangible assets, net52,676 62,475 
Marketable securities, non-current— 6,088 
Other assets79,176 90,779 
Total assets$1,482,672 $1,525,191 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$5,532 $5,611 
Accrued expenses34,445 61,818 
Finance lease liabilities, current8,178 15,684 
Operating lease liabilities, current25,399 24,042 
Other current liabilities35,748 40,539 
Total current liabilities109,302 147,694 
Long-term debt344,167 343,507 
Finance lease liabilities, non-current— 1,602 
Operating lease liabilities, non-current44,634 48,484 
Other long-term liabilities3,382 4,416 
Total liabilities501,485 545,703 
Stockholders’ equity:
Common stock3 3 
Additional paid-in capital1,903,374 1,815,245 
Accumulated other comprehensive loss(282)(1,008)
Accumulated deficit(921,908)(834,752)
Total stockholders’ equity981,187 979,488 
Total liabilities and stockholders’ equity$1,482,672 $1,525,191 







Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Cash flows from operating activities:
Net loss$(43,729)$(10,704)$(87,156)$(55,391)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation expense13,318 12,920 26,595 24,960 
Amortization of intangible assets4,900 5,175 9,799 10,350 
Non-cash lease expense5,800 5,648 11,356 11,763 
Amortization of debt discount and issuance costs349 803 703 1,519 
Amortization of deferred contract costs4,531 3,746 9,104 7,171 
Stock-based compensation26,148 36,992 57,969 65,143 
Deferred income taxes333 — 561 — 
Provision for credit losses393 567 1,346 1,100 
Loss on disposals of property and equipment45 296 444 547 
Amortization of premiums (discounts) on investments(1,244)298 (2,402)747 
Impairment of operating lease right-of-use assets— 187 — 187 
Impairment expense3,137 — 3,137 — 
Net gain on extinguishment of debt— (36,760)— (36,760)
Other adjustments(178)(85)(437)(328)
Changes in operating assets and liabilities:
Accounts receivable(6,754)6,482 5,274 10,183 
Prepaid expenses and other current assets(2,131)217 (4,831)(417)
Other assets(3,210)(4,771)(5,024)(11,983)
Accounts payable(341)1,119 (240)944 
Accrued expenses1,911 234 (6,849)(6,593)
Operating lease liabilities(4,406)(6,682)(12,012)(12,432)
Other liabilities(3,820)9,308 (1,153)5,419 
Net cash provided by (used in) operating activities(4,948)24,990 6,184 16,129 
Cash flows from investing activities:
Purchases of marketable securities(60,249)— (117,197)— 
Sales of marketable securities— 774 — 774 
Maturities of marketable securities77,597 114,884 176,677 342,095 
Advance payment for purchase of property and equipment(790)— (790)— 
Purchases of property and equipment(1,762)(4,464)(3,365)(7,958)
Proceeds from sale of property and equipment24 14 24 36 
Capitalized internal-use software(6,829)(6,230)(13,674)(10,439)
Net cash provided by investing activities7,991 104,978 41,675 324,508 
Cash flows from financing activities:
Cash paid for debt extinguishment— (196,934)— (196,934)
Repayments of finance lease liabilities(4,236)(6,557)(9,108)(15,202)
Payment of deferred consideration for business acquisitions(3,771)(4,393)(3,771)(4,393)
Proceeds from exercise of vested stock options180 535 291 871 
Proceeds from employee stock purchase plan1,034 2,191 3,915 4,787 
Net cash used in financing activities(6,793)(205,158)(8,673)(210,871)
Effects of exchange rate changes on cash, cash equivalents, and restricted cash(13)469 (61)585 
Net increase (decrease) in cash, cash equivalents, and restricted cash
(3,763)(74,721)39,125 130,351 
Cash, cash equivalents, and restricted cash at beginning of period150,959 348,613 108,071 143,541 
Cash, cash equivalents, and restricted cash at end of period147,196 273,892 147,196 273,892 
Reconciliation of cash, cash equivalents, and restricted cash as shown in the statements of cash flows:
Cash and cash equivalents147,196 273,742 147,196 273,742 
Restricted cash, current— 150 — 150 
Total cash, cash equivalents, and restricted cash$147,196 $273,892 $147,196 $273,892 










Free Cash Flow
(in thousands, unaudited)
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Net cash provided by (used in) operating activities$(4,948)$24,990 $6,184 $16,129 
Capital expenditures(1)
(12,803)(17,237)(26,123)(33,563)
Advance payment for purchase of property and equipment(2)
(790)— (790)— 
Free Cash Flow$(18,541)$7,753 $(20,729)$(17,434)
__________
(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 six months ended June 30, 2024, we received $7.8 million of capital equipment that was prepaid prior to the current quarter, as reflected in the supplemental disclosure of our statement of cash flows.


Contacts
Investor Contact
Vernon Essi, Jr.
ir@fastly.com

Media Contact
Spring Harris
press@fastly.com

Source: Fastly, Inc.

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Second Quarter 2024 Investor Supplement
Product Innovation and Developments
•Released beta version of Fastly AI Accelerator, the company’s first AI solution to help developers speed up the performance of their ChatGPT-powered apps and reduce the costs of using OpenAI’s large language model API.
•Redesigned our pricing page to provide clarification around our new self-serve checkout plan (Usage), mix-and-match packages, and our free tier offerings.
•Launched free developer accounts alongside Simplified Compute Service Creation, which allows developers to set up, configure, and sync a new Compute service to their local machine using a single command.
•Enhanced Fastly Managed Security Service offering with Fastly Bot Management, and an industry-leading 30-minute time-to-notify service level agreement (SLA).
Customer and Partner Highlights
•Product package deals doubled compared to the first quarter of 2024, driven by the successful introduction of Observability packages in addition to Compute, Security, and Delivery.
•New deal registrations grew 33% quarter-over-quarter in the second quarter, and year-to-date revenue contribution more than doubled year-over-year.
•Valve Corporation, a video game developer and digital distribution company, selected Fastly’s Delivery services to support its Steam platform.
•Epicor, a leading enterprise resource planning software developer, selected Fastly’s Network Services, Next-Gen WAF, DDoS Mitigation, Observability, Bot Management and Professional Services.
•Yottaa, a leader in website optimization and performance solutions, became a Fastly managed services provider.


Calculations of Key and Other Selected Metrics – Quarterly (unaudited)
Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024
Customer Metrics:
Enterprise Customer Count(1)
511 533 540 551 547 578 577 601 
Enterprise Customer Revenue %91 %92 %91 %92 %92 %92 %91 %91 %
Total Customer Count(1)
3,039 3,062 3,100 3,072 3,102 3,243 3,290 3,295 
LTM Net Retention Rate (NRR)(2)
118 %119 %116 %116 %114 %113 %114 %110 %
Annual Revenue Retention Rate (ARR)(7)
— %98.9 %— %— %— %99.2 %— %— %
Revenue Metrics (in millions):
Network Services Revenue$87.1$96.8$94.3$98.5$102.5$109.8$106.0$104.2
Security Revenue$19.8$20.7$21.2$22.5$23.3$25.8$24.6$25.4
Other Revenue$1.6$1.8$2.0$1.8$1.9$2.2$2.9$2.8
Remaining Performance Obligation (RPO)3
$173.0$198.3$242.4$230.9$247.6$235.7$227.0$223.1



Exhibit 99.2
Corporate Highlights
•Scott R. Lovett joined Fastly as Chief Revenue Officer, bringing more than 30 years of experience in the network services and cybersecurity industries.
•Fastly recognized as a 2024 Gartner® Peer Insights™ Customers’ Choice for Cloud Web Application and API Protection (WAAP) for the sixth consecutive year – and the only vendor to be recognized for six years running.
•Fastly Security Research Team identified the active exploitation of unauthenticated stored XSS vulnerabilities in WordPress Plugins.
•Fastly named to U.S. News & World Report's 2024-2025 Best Companies to Work For.
Key Metrics Highlights
•Enterprise customer1 count was 601 in the second quarter, up 24 from the first quarter of 2024. Total customer count1 was 3,295 in the second quarter, up 5 from the first quarter of 2024.
•Last 12-month net retention rate (LTM NRR)2 decreased to 110% in the second quarter from 114% in the first quarter of 2024.
•Remaining performance obligations (RPO)3 were $223 million, down 2% from $227 million in the first quarter of 2024.
Third Quarter and Full Year 2024 Guidance
Q3 2024Full Year 2024
Total Revenue (millions)$130.0 - $134.0$530.0 - $540.0
Non-GAAP Operating Loss (millions)(4)
($12.0) - ($8.0)($33.0) - ($27.0)
Non-GAAP Net Loss per share (5)(6)
($0.08) - ($0.03)($0.16) - ($0.11)

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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.For a reconciliation of non-GAAP financial measures to their corresponding GAAP measures, please refer to the reconciliation table at the end of this supplement.
5.Assumes weighted average basic shares outstanding of 139.3 million in Q3 2024 and 137.5 million for the full year 2024.
6.Non-GAAP Net Loss per share is calculated as Non-GAAP Net Loss divided by weighted average basic shares for 2024.
7.Annual revenue retention rate is calculated by subtracting the quotient of the Annual Revenue Churn from all of our Churned Customers divided by our annual revenue of the same calendar year from 100%. Our “Annual Revenue Churn” 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.







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Forward-Looking Statements

This investor supplement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended, about us and our industry that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or Fastly's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates,” “going to,” "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "continue," “would,” or the negative of these words or other similar terms or expressions that concern Fastly's expectations, goals, strategy, priorities, plans, projections, or intentions. Forward-looking statements in this investor supplement include, but are not limited to, statements regarding Fastly’s future financial and operating performance, including its outlook and guidance; the performance of our existing and new products and product enhancements; the capabilities of the Fastly AI Accelerator; the growth and success of Fastly's partner program; and Fastly's strategies, product and business plans. Fastly's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include the possibility that: Fastly is unable to attract and retain customers; Fastly's existing customers and partners do not maintain or increase usage of Fastly's platform; Fastly's platform and product features do not meet expectations, including due to defects, interruptions, security breaches, delays in performance or other similar problems; Fastly is unable to adapt to meet evolving market and customer demands and rapid technological change; Fastly is unable to comply with modified or new industry standards, laws and regulations; Fastly is unable to generate sufficient revenues to achieve or sustain profitability; Fastly’s limited operating history makes it difficult to evaluate its prospects and future operating results; Fastly is unable to effectively manage its growth; and Fastly is unable to compete effectively. The forward-looking statements contained in this investor supplement are also subject to other risks and uncertainties, including those more fully described in Fastly’s Annual Report on Form 10-K for the year ended December 31, 2023 and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024. Additional information will also be set forth in Fastly’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, and other filings and reports that Fastly may file from time to time with the SEC. The forward-looking statements in this investor supplement are based on information available to Fastly as of the date hereof, and Fastly disclaims any obligation to update any forward-looking statements, except as required by law.
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 loss, non-GAAP basic and diluted net 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, acquisition-related expenses, executive transition costs, 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, acquisition-related expenses, executive transition costs, interest income, interest expense, including amortization of debt discount and issuance costs, net gain on extinguishment of debt, impairment expense, other income (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

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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 non-recurring charges related to our long-lived assets. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net 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 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 Income (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.
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.

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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 investor supplement.









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Consolidated Statements of Operations – Quarterly
(unaudited, in thousands, except per share amounts)

Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024
Revenue$108,504 $119,321 $117,564 $122,831 $127,816 $137,777 $133,520 $132,371 
Cost of revenue(1)
55,825 56,738 57,310 58,617 61,730 62,003 60,286 59,470 
Gross profit52,679 62,583 60,254 64,214 66,086 75,774 73,234 72,901 
Operating expenses:
Research and development(1)
38,957 37,197 37,431 37,421 39,068 38,270 38,248 35,106 
Sales and marketing(1)
47,006 44,623 44,271 47,797 51,043 48,662 49,607 52,959 
General and administrative (1)
32,481 29,225 25,827 28,823 30,001 31,426 31,639 28,433 
Impairment expense— — — — 4,316 — — 3,137 
Total operating expenses118,444 111,045 107,529 114,041 124,428 118,358 119,494 119,635 
Loss from operations(65,765)(48,462)(47,275)(49,827)(58,342)(42,584)(46,260)(46,734)
Net gain on extinguishment of debt— — — 36,760 — 15,656 — — 
Interest income1,967 2,894 4,186 4,508 4,908 4,584 3,848 3,937 
Interest expense(1,381)(1,354)(1,213)(1,232)(862)(744)(579)(464)
Other income (expense), net
1,877 46 (250)(803)(16)(763)(89)193 
Loss before income taxes(63,302)(46,876)(44,552)(10,594)(54,312)(23,851)(43,080)(43,068)
Income tax expense (benefit)118 (223)135 110 (1)(465)347 661 
Net loss$(63,420)$(46,653)$(44,687)$(10,704)$(54,311)$(23,386)$(43,427)$(43,729)
Net loss per share attributable to common stockholders, basic and diluted$(0.52)$(0.38)$(0.36)$(0.08)$(0.42)$(0.18)$(0.32)$(0.32)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted122,339 123,587 125,418 127,863 129,873 131,843 134,587 137,444 
__________
(1)Includes stock-based compensation expense as follows:
Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024
Cost of revenue$2,978 $2,938 $2,681 $2,837 $2,860 $3,278 $2,779 $2,044 
Research and development14,488 11,469 11,481 12,205 12,122 12,019 10,323 7,983 
Sales and marketing10,920 7,885 6,705 9,877 9,061 8,060 7,843 7,058 
General and administrative10,992 9,126 7,284 12,073 11,670 12,090 10,876 9,063 
Total$39,378 $31,418 $28,151 $36,992 $35,713 $35,447 $31,821 $26,148 











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Reconciliation of GAAP to Non-GAAP Financial Measures - Quarterly
(unaudited, in thousands, except per share amounts)

Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024
Gross Profit
GAAP gross Profit$52,679 $62,583 $60,254 $64,214 $66,086 $75,774 $73,234 $72,901 
Stock-based compensation2,978 2,938 2,681 2,837 2,860 3,278 2,779 2,044 
Amortization of acquired intangible assets2,475 2,475 2,475 2,475 2,475 2,475 2,475 2,475 
Non-GAAP gross profit58,132 67,996 65,410 69,526 71,421 81,527 78,488 77,420 
GAAP gross margin48.6 %52.4 %51.3 %52.3 %51.7 %55.0 %54.8 %55.1 %
Non-GAAP gross margin53.6 %57.0 %55.6 %56.6 %55.9 %59.2 %58.8 %58.5 %
Research and development
GAAP research and development38,957 37,197 37,431 37,421 39,068 38,270 38,248 35,106 
Stock-based compensation(14,488)(11,469)(11,481)(12,205)(10,426)(11,728)(10,323)(7,983)
Executive transition costs— — — — (2,406)(385)— — 
Non-GAAP research and development24,469 25,728 25,950 25,216 26,236 26,157 27,925 27,123 
Sales and marketing
GAAP sales and marketing47,006 44,623 44,271 47,797 51,043 48,662 49,607 52,959 
Stock-based compensation(10,920)(7,885)(6,705)(9,877)(9,061)(8,060)(7,843)(7,058)
Amortization of acquired intangible assets(2,897)(2,575)(2,575)(2,575)(2,576)(2,300)(2,300)(2,301)
Non-GAAP sales and marketing33,189 34,163 34,991 35,345 39,406 38,302 39,464 43,600 
General and administrative
GAAP general and administrative32,481 29,225 25,827 28,823 30,001 31,426 31,639 28,433 
Stock-based compensation(7,959)(9,126)(7,284)(12,073)(11,670)(12,090)(10,876)(9,063)
Executive transition costs(4,207)— — — — — — — 
Non-GAAP general and administrative20,315 20,099 18,543 16,750 18,331 19,336 20,763 19,370 
Operating loss
GAAP operating loss(65,765)(48,462)(47,275)(49,827)(58,342)(42,584)(46,260)(46,734)
Stock-based compensation36,345 31,418 28,151 36,992 34,017 35,156 31,821 26,148 
Executive transition costs4,207 — — — 2,406 385 — — 
Amortization of acquired intangible assets5,372 5,050 5,050 5,050 5,051 4,775 4,775 4,776 
Impairment expense
— — — — 4,316 — — 3,137 
Non-GAAP operating loss(19,841)(11,994)(14,074)(7,785)(12,552)(2,268)(9,664)(12,673)
Net loss
GAAP net loss(63,420)(46,653)(44,687)(10,704)(54,311)(23,386)(43,427)(43,729)
Stock-based compensation36,345 31,418 28,151 36,992 34,017 35,156 31,821 26,148 
Executive transition costs4,207 — — — 2,406 385 — — 
Amortization of acquired intangible assets5,372 5,050 5,050 5,050 5,051 4,775 4,775 4,776 
Net gain on extinguishment of debt — — — (36,760)— (15,656)— — 
Impairment expense— — — — 4,316 — — 3,137 
Amortization of debt issuance costs714 716 716 803 502 456 354 349 
Non-GAAP net income (loss)
$(16,782)$(9,469)$(10,770)$(4,619)$(8,019)$1,730 $(6,477)$(9,319)
GAAP net loss per common share—basic and diluted$(0.52)$(0.38)$(0.36)$(0.08)$(0.42)$(0.18)$(0.32)$(0.32)
Non-GAAP net income (loss) per common share—basic and diluted
$(0.14)$(0.08)$(0.09)$(0.04)$(0.06)$0.01 $(0.05)$(0.07)
Weighted average basic common shares122,339 123,587 125,418 127,863 129,873 131,843 134,587 137,444 
Weighted average diluted common shares
122,339 123,587 125,418 127,863 129,873 141,162 134,587 137,444 


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Reconciliation of GAAP to Non-GAAP Financial Measures - Quarterly (Continued)
(unaudited, in thousands, except per share amounts)

Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024
Reconciliation of GAAP to Non-GAAP diluted shares:
GAAP diluted shares122,339 123,587 125,418 127,863 129,873 131,843 134,587 137,444 
Other dilutive equity awards— — — — — 9,319 — — 
Non-GAAP diluted shares122,339 123,587 125,418 127,863 129,873 141,162 134,587 137,444 
Non-GAAP diluted net income (loss) per share
(0.14)(0.08)(0.09)(0.04)(0.06)0.01 (0.05)(0.07)

Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024
Adjusted EBITDA
GAAP net loss$(63,420)$(46,653)$(44,687)$(10,704)$(54,311)$(23,386)$(43,427)$(43,729)
Stock-based compensation36,345 31,418 28,151 36,992 34,017 35,156 31,821 26,148 
Depreciation and other amortization10,786 11,903 12,179 13,030 13,202 13,727 13,400 13,443 
Amortization of acquired intangible assets5,372 5,050 5,050 5,050 5,051 4,775 4,775 4,776 
Amortization of debt discount and issuance costs714 716 716 803 502 456 354 349 
Executive transition costs4,207 — — — 2,406 385 — — 
Net gain on extinguishment of debt— — — (36,760)— (15,656)— — 
Impairment expense
— — — — 4,316 — — 3,137 
Interest income(1,967)(2,894)(4,186)(4,508)(4,908)(4,584)(3,848)(3,937)
Interest expense667 638 497 429 360 288 225 115 
Other (income) expense, net(1,877)(46)250 803 16 763 89 (193)
Income tax (benefit) expense118 (223)135 110 (1)(465)347 661 
Adjusted EBITDA$(9,055)$(91)$(1,895)$5,245 $650 $11,459 $3,736 $770 



























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Non-GAAP Consolidated Statements of Operations - Quarterly
(unaudited, in thousands, except per share amounts)
Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024
Revenue$108,504 $119,321 $117,564 $122,831 $127,816 $137,777 $133,520 $132,371 
Cost of revenue (1)(2)
50,372 51,325 52,154 53,305 56,395 56,250 55,032 54,951 
Gross profit (1)(2)
58,132 67,996 65,410 69,526 71,421 81,527 78,488 77,420 
Operating expenses:
Research and development(1)(3)
24,469 25,728 25,950 25,216 26,236 26,157 27,925 27,123 
Sales and marketing(1)(2)
33,189 34,163 34,991 35,345 39,406 38,302 39,464 43,600 
General and administrative (1)(3)
20,315 20,099 18,543 16,750 18,331 19,336 20,763 19,370 
Total operating expenses(1)(2)(3)(4)
77,973 79,990 79,484 77,311 83,973 83,795 88,152 90,093 
Loss from operations(1)(2)(3)(4)
(19,841)(11,994)(14,074)(7,785)(12,552)(2,268)(9,664)(12,673)
Interest income1,967 2,894 4,186 4,508 4,908 4,584 3,848 3,937 
Interest expense(5)
(667)(638)(497)(429)(360)(288)(225)(115)
Other income (expense), net1,877 46 (250)(803)(16)(763)(89)193 
Income (loss) before income tax expense (benefit)(1)(2)(3)(4)(5)(6)
(16,664)(9,692)(10,635)(4,509)(8,020)1,265 (6,130)(8,658)
Income tax expense (benefit)
118 (223)135 110 (1)(465)347 661 
Net income (loss)(1)(2)(3)(4)(5)(6)
$(16,782)$(9,469)$(10,770)$(4,619)$(8,019)$1,730 $(6,477)$(9,319)
Net income (loss) per share attributable to common stockholders, basic and diluted
$(0.14)$(0.08)$(0.09)$(0.04)$(0.06)$0.01 $(0.05)$(0.07)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic122,339123,587125,418127,863129,873131,843134,587137,444
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted122,339123,587125,418127,863129,873141,162134,587137,444
(1) Excludes stock-based compensation. See GAAP to Non-GAAP reconciliations.
(2) Excludes amortization of acquired intangible assets. See GAAP to Non-GAAP reconciliations.
(3) Excludes executive transition costs. See GAAP to Non-GAAP reconciliations.
(4) Excludes impairment expense. See GAAP to Non-GAAP reconciliations.
(5) Excludes amortization of debt discount and issuance costs. See GAAP to Non-GAAP reconciliations.
(6) Excludes net gain on extinguishment of debt. See GAAP to Non-GAAP reconciliations.




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Consolidated Balance Sheets - Quarterly
(unaudited, in thousands)
Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024
Assets
Current assets:
Cash and cash equivalents$87,897 $143,391 $348,463 $273,742 $270,300 $107,921 $150,809 $147,196 
Marketable securities445,048 374,581 198,116 123,605 158,055 214,799 178,677 164,569 
Accounts receivable, net72,914 89,578 85,344 78,295 98,622 120,498 107,517 113,878 
Prepaid expenses and other current assets31,321 28,933 29,717 29,500 24,481 20,455 23,207 25,312 
Total current assets637,180 636,483 661,640 505,142 551,458 463,673 460,210 450,955 
Property and equipment, net179,080 180,378 179,922 179,045 171,914 176,608 177,574 177,058 
Operating lease right-of-use assets, net72,374 68,440 60,615 56,733 52,927 55,212 54,420 52,451 
Goodwill670,158 670,185 670,192 670,356 670,356 670,356 670,356 670,356 
Intangible assets, net88,482 82,900 77,725 72,550 67,375 62,475 57,576 52,676 
Marketable securities, non-current186,066 165,105 117,518 78,042 32,280 6,088 1,743 — 
Other assets73,258 92,622 94,798 95,550 94,353 90,779 84,044 79,176 
Total assets$1,906,598 $1,896,113 $1,862,410 $1,657,418 $1,640,663 $1,525,191 $1,505,923 $1,482,672 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$8,265 $4,786 $4,668 $5,561 $5,723 $5,611 $5,485 $5,532 
Accrued expenses54,186 61,161 42,311 47,001 56,595 61,818 35,555 34,445 
Finance lease liabilities27,807 28,954 24,763 22,233 19,250 15,684 11,974 8,178 
Operating lease liabilities20,919 23,026 20,516 20,575 21,533 24,042 22,580 25,399 
Other current liabilities33,422 34,394 32,942 36,234 40,234 40,539 44,633 35,748 
Total current liabilities144,599 152,321 125,200 131,604 143,335 147,694 120,227 109,302 
Long-term debt, less current portion704,042 704,710 705,378 472,369 472,823 343,507 343,837 344,167 
Finance lease liabilities, noncurrent21,027 15,507 10,858 7,026 3,860 1,602 440 — 
Operating lease liabilities, noncurrent62,750 61,341 56,275 51,448 47,775 48,484 46,857 44,634 
Other long-term liabilities7,201 7,076 6,144 7,217 4,298 4,416 2,756 3,382 
Total liabilities939,619 940,955 903,855 669,664 672,091 545,703 514,117 501,485 
Stockholders’ equity:
Common stock
2 2 2 2 2 3 3 3 
Additional paid-in capital1,634,666 1,666,106 1,710,498 1,747,959 1,781,870 1,815,245 1,870,503 1,903,374 
Accumulated other comprehensive loss(12,678)(9,286)(5,594)(3,152)(1,934)(1,008)(521)(282)
Accumulated deficit(655,011)(701,664)(746,351)(757,055)(811,366)(834,752)(878,179)(921,908)
Total stockholders’ equity966,979 955,158 958,555 987,754 968,572 979,488 991,806 981,187 
Total liabilities and stockholders’ equity$1,906,598 $1,896,113 $1,862,410 $1,657,418 $1,640,663 $1,525,191 $1,505,923 $1,482,672 







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Consolidated Statements of Cash Flows – Quarterly
(unaudited, in thousands)

Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024
Cash flows from operating activities:
Net loss$(63,420)$(46,653)$(44,687)$(10,704)$(54,311)$(23,386)$(43,427)$(43,729)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense10,662 11,371 12,040 12,920 13,055 13,587 13,277 13,318 
Amortization of intangible assets5,496 5,582 5,175 5,175 5,175 4,899 4,899 4,900 
Non-cash lease expense8,133 5,793 6,115 5,648 5,464 5,451 5,556 5,800 
Amortization of debt discount and issuance costs715 715 716 803 501 456 354 349 
Amortization of deferred contract costs2,031 2,896 3,425 3,746 4,082 4,295 4,573 4,531 
Stock-based compensation39,378 31,418 28,151 36,992 35,713 35,447 31,821 26,148 
Deferred income taxes
— — — — — (900)228 333 
Provision for credit losses1,253 624 533 567 211 714 953 393 
(Gain) loss on disposals of property and equipment— — 251 296 (42)— 399 45 
Amortization and accretion of discounts and premiums on investments771 515 449 298 (403)(990)(1,158)(1,244)
Impairment of operating lease right-of-use assets— 2,083 — 187 401 156 — — 
Impairment expense— — — — 4,316 — — 3,137 
Net gain on extinguishment of debt— — — (36,760)— (15,656)— — 
Other adjustments(353)3,980 (243)(85)71 905 (259)(178)
Changes in operating assets and liabilities:— — — — — — — 
Accounts receivable(5,949)(17,288)3,701 6,482 (20,538)(22,590)12,028 (6,754)
Prepaid expenses and other current assets(975)(971)(634)217 5,019 4,107 (2,700)(2,131)
Other assets(13,505)(15,492)(7,212)(4,771)(4,286)(6,868)(1,814)(3,210)
Accounts payable(4,301)(1,267)(175)1,119 314 (876)101 (341)
Accrued expenses3,328 3,799 (6,827)234 340 (1,603)(8,760)1,911 
Operating lease liabilities(7,462)(4,335)(5,750)(6,682)(4,505)(5,137)(7,606)(4,406)
Other liabilities(3,436)5,102 (3,889)9,308 1,033 612 2,667 (3,820)
Net cash provided by (used in) operating activities(27,634)(12,128)(8,861)24,990 (8,390)(7,377)11,132 (4,948)
Cash flows from investing activities:
Purchases of marketable securities— — — — (73,091)(59,142)(56,948)(60,249)
Sales of marketable securities— 65 — 774 1 24,850 — — 
Maturities of marketable securities72,857 94,303 227,211 114,884 86,030 5,642 99,080 77,597 
Business acquisitions, net of cash acquired (1,746)1,843 — — — — — — 
Advance payment for purchase of property and equipment(1,964)(10,923)— — — — — (790)
Purchases of property and equipment
(2,631)(8,529)(3,494)(4,464)(325)(2,693)(1,603)(1,762)
Proceeds from sale of property and equipment125 126 22 14 13 — — 24 
Capitalized internal-use software(5,120)(4,290)(4,209)(6,230)(4,951)(5,902)(6,845)(6,829)
Net cash provided by (used in) investing activities
61,521 72,595 219,530 104,978 7,677 (37,245)33,684 7,991 
Cash flows from financing activities:
Cash paid for debt extinguishment— — — (196,934)— (113,606)— — 
Repayments of finance lease liabilities
(7,076)(4,427)(8,645)(6,557)(6,041)(5,932)(4,872)(4,236)
Cash paid for early sale of restricted shares(3,618)— — — — — — — 
Payment of deferred consideration for business acquisitions— — — (4,393)— — — (3,771)
Proceeds from exercise of vested stock options555 364 336 535 1,137 161 111 180 
Proceeds from employee stock purchase plan1,749 (949)2,596 2,191 2,222 1,550 2,881 1,034 
Net cash used in financing activities
(8,390)(5,012)(5,713)(205,158)(2,682)(117,827)(1,880)(6,793)
Effects of exchange rate changes on cash, cash equivalents, and restricted cash(110)39 116 469 (47)70 (48)(13)
Net increase (decrease) in cash, cash equivalents, and restricted cash25,387 55,494 205,072 (74,721)(3,442)(162,379)42,888 (3,763)
Cash, cash equivalents, and restricted cash at beginning of period62,660 88,047 143,541 348,613 273,892 270,450 108,071 150,959 
Cash, cash equivalents, and restricted cash at end of period$88,047 $143,541 $348,613 $273,892 $270,450 $108,071 $150,959 $147,196 


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Free Cash Flow
(in thousands, unaudited)
Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024
Net cash provided by (used in) operating activities
$(27,634)$(12,128)$(8,861)$24,990 $(8,390)$(7,377)$11,132 $(4,948)
Capital expenditures(1):
Purchases of property and equipment(2,631)(8,529)(3,494)(4,464)(325)(2,693)(1,603)(1,762)
Proceeds from sale of property and equipment125 126 22 14 13 — — 24 
Capitalized internal-use software(5,120)(4,290)(4,209)(6,230)(4,951)(5,902)(6,845)(6,829)
Repayments of finance lease liabilities(7,076)(4,427)(8,645)(6,557)(6,041)(5,932)(4,872)(4,236)
Advance payment for purchase of property and equipment (2)
(1,964)(10,923)— — — — — (790)
Free Cash Flow$(44,300)$(40,171)$(25,187)$7,753 $(19,694)$(21,904)$(2,188)$(18,541)
__________
(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 six months ended June 30, 2024, we received $7.8 million of capital equipment that was prepaid prior to the current quarter, as reflected in the supplemental disclosure of our statement of cash flows.


v3.24.2.u1
Cover Page
Aug. 07, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 07, 2024
Entity Registrant Name FASTLY, INC.
Entity Central Index Key 0001517413
Amendment Flag false
Entity Incorporation, State or Country Code DE
Entity File Number 001-38897
Entity Tax Identification Number 27-5411834
Entity Address, Address Line One 475 Brannan Street, Suite 300
Entity Address, City or Town San Francisco
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94107
City Area Code 844
Local Phone Number 432-7859
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Class A Common Stock, $0.00002 par value
Trading Symbol “FSLY”
Security Exchange Name NYSE
Entity Emerging Growth Company false
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