NASDAQ$FSLY

Fastly Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Growth was achieved with security acceleration, but faced challenges due to a significant outage and customer delays.

Fastly's Q2 2021 earnings report showed a 14% year-over-year revenue increase to $85 million, but was impacted by a global outage and customer delays. The company experienced a GAAP operating loss of $57 million and a net loss per share of $0.51. Despite these challenges, Fastly is focused on security offerings and Compute@Edge capabilities to drive future growth.

  • Revenue increased by 14% year-over-year to $85 million, including the impact of the Signal Sciences acquisition.
  • GAAP gross margin decreased to 52.6% from 60.2% in Q2 2020, while non-GAAP gross margin decreased to 57.6% from 61.7% in Q2 2020.
  • GAAP operating loss was $57 million, compared to a $14 million loss in Q2 2020; non-GAAP operating loss was $18 million, compared to a $2 million income in Q2 2020.
  • Net loss per share was $0.51, compared to a net loss per share of $0.14 in Q2 2020; non-GAAP net loss per share was $0.15, compared to a net income per share of $0.02 in Q2 2020.

Headline financials

Total Revenue

$85M

Previous: $74.7M+13.9%
EPS (adj)

-$0.15

Previous: $0.02-850.0%
Enterprise customer count

408

Previous: 304+34.2%
Capital Expenditures

-$11M

Previous: -$12.6M+12.2%
Free Cash Flow

-$69.3M

Previous: -$27M-156.6%
Net Income

-$58.3M

Previous: -$14.5M-303.1%
Operating Income

-$57.5M

Previous: -$14.4M-298.0%
Gross Profit

$44.7M

Previous: $45M-0.6%
Cash & Equivalents

$688M

Previous: $257M+167.3%
Total Assets

$2.14B

Previous: $608M+251.5%
Stock-Based Comp

$33.4M

Previous: $16.3M+105.3%

Revenue & EPS history

Fastly · Revenue · Quarterly

$85M

Q2 2021+13.9%vs Q2 2020
Beat estimate in 6 of 12 quarters(50%)
ActualEstimate

Forward guidance

Fastly's Q3 and full-year 2021 outlook reflects revenue impacts from the outage in June, the timing of customer traffic ramping on our platform, and anticipated renewals. The expected operating profile reflects continued investment for future growth, along with the impact of the Signal Sciences acquisition.

Tailwinds

  • Continued investment in network to support future growth.
  • Capital expenditures expected to be 12-14% of revenue.
  • Long-term capital expenditures expected to approach 10% of revenue.
  • Focus on disciplined investment in network and long-term profitability.
  • Tremendous opportunity to invest in edge cloud mission.

Headwinds

  • Revenue impacts from the outage in June.
  • Timing of customer traffic ramping on the platform.
  • Anticipated renewals.
  • Non-GAAP operating loss expected for Q3 and full year.
  • Uncertainty regarding costs and expenses that may be incurred in the future.

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 Q2 2021

Historical avgQ2 2021

-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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