NASDAQ$FSLY

Fastly Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Fastly's Q2 2024 financial results were announced, showcasing revenue growth and customer acquisition, but also highlighting demand challenges with larger customers and cost structure adjustments.

Fastly reported Q2 2024 revenue of $132.4 million, representing an 8% year-over-year increase. The company's enterprise customer count grew by 4% sequentially. However, Fastly is facing demand challenges with some large customers and is adjusting its cost structure accordingly.

  • Total revenue reached $132.4 million, an 8% increase year-over-year.
  • Enterprise customer count increased by 4% sequentially, reaching 601.
  • GAAP gross margin improved to 55.1% compared to 52.3% in Q2 2023.
  • Fastly AI Accelerator released in beta to speed up performance of ChatGPT-powered apps.

Headline financials

Total Revenue

$132M

Previous: $123M+7.8%
EPS

-$0.32

Previous: -$0.04-700.0%
Enterprise customer count

601

Previous: 551+9.1%
Top ten customer revenue percentage

34.0%

No prior period
Remaining Performance Obligations

$223M

No prior period
Capital Expenditures

-$3.37M

Previous: -$7.96M+57.7%
Free Cash Flow

-$47.1M

Previous: -$18.7M-152.4%
Net Income

-$43.7M

Previous: -$10.7M-308.5%
Operating Income

-$46.7M

Previous: -$49.8M+6.2%
Gross Profit

$72.9M

Previous: $64.2M+13.5%
Cash & Equivalents

$147M

Previous: $274M-46.2%
Total Assets

$1.48B

Previous: $1.66B-10.5%
R&D Expense

$35.1M

No prior period
Stock-Based Comp

$26.1M

Previous: $37M-29.3%

Revenue & EPS history

Fastly · Revenue · Quarterly

$132M

Q2 2024+7.8%vs Q2 2023
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Forward guidance

Fastly anticipates revenue between $130.0 and $134.0 million for Q3 2024 and between $530.0 and $540.0 million for the full year 2024. Non-GAAP operating loss is expected to be between ($12.0) and ($8.0) million for Q3 2024 and between ($33.0) and ($27.0) million for the full year 2024. Non-GAAP net loss per share is projected to be between ($0.08) and ($0.03) for Q3 2024 and between ($0.16) and ($0.11) for the full year 2024.

Tailwinds

  • Q3 2024 Total Revenue: $130.0 - $134.0 million
  • Full Year 2024 Total Revenue: $530.0 - $540.0 million
  • Q3 2024 Non-GAAP Operating Loss: ($12.0) - ($8.0) million
  • Full Year 2024 Non-GAAP Operating Loss: ($33.0) - ($27.0) million
  • Q3 2024 Non-GAAP Net Loss per share: ($0.08) - ($0.03)

Headwinds

  • Full Year 2024 Non-GAAP Net Loss per share: ($0.16) - ($0.11)
  • Uncertainty of expenses that may be incurred in the future
  • Expenses cannot be reasonably determined or predicted at this time
  • Factors could be material to Fastly’s future GAAP financial results
  • Demand challenges with some of our largest customers

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 2024

Historical avgQ2 2024

-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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