NASDAQ$FSLY
Fastly Inc · Q3 2020 earnings
Q3 2020 earnings · · Investor relations
Briefing
Fastly's platform experienced continued demand driven by strong business fundamentals.
Fastly's Q3 2020 results were impacted by customer-specific factors, but despite these challenges, the company generated 42% year-over-year top-line growth. The company's underlying business remains strong, supported by demand from customers and expansion of customer relationships.
- Revenue of $71 million, up 42% year-over-year.
- Dollar-Based Net Expansion Rate (DBNER) of 147%, up from 137% in Q2 2020.
- Net Retention Rate (NRR) of 122%.
- Total customer count increased to 2,047 up from 1,951 in Q2 2020.
Headline financials
Revenue & EPS history
Fastly · Revenue · Quarterly
$70.6M
Forward guidance
Fastly expects an impact in Q4 from regulatory uncertainty and existing customer timing issues, but remains optimistic about the demand for its services and the underlying growth of its business.
Tailwinds
- The Q4 and FY2020 guidance includes the revenue contribution from Signal Sciences, which we expect to be approximately $8 million.
- Gross margin will continue to be affected by the timing of personnel and infrastructure investments, along with the seasonal fluctuations of platform usage by our customers.
- We remain confident in our ability to deliver incremental annual gross margin expansion as we continue to scale and deliver innovative security and edge computing solutions.
- We continue to expect annual capital expenditures as a percentage of revenue to be approximately 13% to 14% of revenue ⏤ similar to full-year 2018.
- Long-term, we expect capital expenditures to approach 10% of revenue on a calendar year basis.
Headwinds
- Our previously disclosed largest customer’s traffic on our network has been reduced.
- Due to the ongoing fluidity and regulatory uncertainty related to this customer, we only assumed revenue from this customer that we expect to bill in October 2020 in the low end of Q4 and FY2020 guidance ranges.
- For those few customers that have brought on additional traffic to our network since the third quarter, we only assumed the currently observed traffic levels at the low end of our guidance.
- Non-GAAP Operating Loss and Non-GAAP Loss Per Share reflect the impacts of the customer-specific factors previously outlined, as well as, former Signal Sciences and current Fastly hiring plans.
- Regulatory Uncertainty: As discussed at the outset of our shareholder letter, our previously disclosed largest customer’s traffic on our network has been reduced.
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 Q3 2020
-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
| Quarter | Report date | Reaction (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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