NASDAQ$FSLY

Fastly Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Revenue exceeded guidance, demonstrating growth and strategic advancements.

Fastly's Q1 2023 earnings report highlights a record first-quarter revenue that exceeded the high end of the quarterly guidance range, growing 15% year-over-year. The company also saw progress in customer mind share through go-to-market simplification, packaging, innovation velocity, and improvements in cost control and financial rigor.

  • Total revenue reached $117.6 million, a 15% increase year-over-year.
  • GAAP gross margin improved to 51.3% from 47.3% in Q1 2022, and non-GAAP gross margin increased to 55.6% from 52.6% in Q1 2022.
  • The total customer count was 3,100, including 540 enterprise customers.
  • Google selected Fastly’s oblivious HTTP relay for its privacy sandbox initiative.

Headline financials

Total Revenue

$118M

Previous: $102M+14.8%
EPS (adj)

-$0.09

Previous: -$0.15+40.0%
Enterprise customer count

540

Previous: 457+18.2%
Capital Expenditures

-$3.49M

Previous: -$2.39M-46.4%
Free Cash Flow

-$48.2M

Previous: -$66.7M+27.7%
Net Income

-$44.7M

Previous: -$64.3M+30.5%
Operating Income

-$47.3M

Previous: -$63M+25.0%
Gross Profit

$60.3M

Previous: $48.5M+24.3%
Cash & Equivalents

$348M

Previous: $246M+41.8%
Total Assets

$1.86B

Previous: $2.13B-12.7%
Stock-Based Comp

$28.2M

Previous: $40M-29.7%

Revenue & EPS history

Fastly · Revenue · Quarterly

$118M

Q1 2023+14.8%vs Q1 2022
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Forward guidance

Fastly provided guidance for Q2 2023 with total revenue expected to be between $117 million and $120 million, and non-GAAP operating loss between ($18.0) million and ($16.0) million. For the full year 2023, total revenue is expected to be between $495 million and $505 million, and non-GAAP operating loss between ($53.0) million and ($47.0) million.

Tailwinds

  • Total Revenue (millions): $117 - $120 (Q2 2023)
  • Total Revenue (millions): $495 - $505 (Full Year 2023)

Headwinds

  • Non-GAAP Operating Loss (millions): ($18.0) - ($16.0) (Q2 2023)
  • Non-GAAP Operating Loss (millions): ($53.0) - ($47.0) (Full Year 2023)
  • Non-GAAP Net Loss per share: ($0.11) - ($0.09) (Q2 2023)
  • Non-GAAP Net Loss per share: ($0.27) - ($0.21) (Full Year 2023)

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-2.8%

Avg return

Earnings day

-2.9%

Avg return

5 days after

+5.4%

Avg return

30 days after

37%

10 / 27 earnings

Positive

+72.3%

Q4 2025

Best reaction

-38.5%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-38.5%-39.8%-42.8%
Q4 2025+72.3%+89.7%+164.0%
Q3 2025+36.0%+48.6%+30.4%
Q1 2025+25.7%+35.5%+27.0%
Q4 2024-20.9%-18.9%-32.0%
Q3 2024+6.5%-6.4%+42.1%
Q2 2024-16.3%-14.9%-19.3%
Q1 2024-30.5%-30.6%-38.0%
Q4 2023-28.6%-31.0%-45.0%
Q3 2023+12.3%+13.0%+23.0%
Q2 2023+12.8%+15.6%+34.3%
Q1 2023-16.5%-12.1%+16.2%
Q4 2022+19.6%+18.4%+14.8%
Q3 2022+2.9%+2.6%+19.6%
Q2 2022-5.9%-2.2%-31.2%
Q1 2022-17.3%-29.7%-25.6%
Q4 2021-34.9%-36.6%-42.1%
Q3 2021+10.3%+6.2%-27.2%
Q2 2021-13.6%-4.7%+1.0%
Q1 2021-28.6%-28.8%-20.2%
Q4 2020-17.7%-21.7%-27.4%
Q3 2020-8.2%-12.6%+13.2%
Q2 2020-22.8%-32.7%-30.3%
Q1 2020+47.7%+50.9%+98.3%
Q4 2019-4.5%-15.2%-26.8%
Q3 2019-3.8%-2.0%+9.1%
Q2 2019-11.7%-18.5%+60.7%
Q1 2019
Q4 2018
Q3 2018
Q2 2018
Q1 2018

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