NASDAQ$FSLY

Fastly Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Continued growth and security acceleration.

Fastly's Q3 2021 earnings report showed a 23% year-over-year revenue increase to $87 million, driven by the Signal Sciences acquisition and adoption of their edge platform, but also included a GAAP operating loss of $55 million and a non-GAAP operating loss of $13 million.

  • Top-line growth of 23% year-over-year with revenue of $87 million, net of a $0.9 million deferred revenue write-down related to purchase accounting adjustments from the Signal Sciences acquisition
  • GAAP gross margin of 52.4%, compared to 58.5% in Q3 2020; non-GAAP gross margin of 57.5%, compared to 59.8% in Q3 2020
  • Enterprise customer count increased to 430 from 408 in Q2 2021
  • Net Retention Rate (NRR) of 112%, compared to 93% in Q2 2021

Headline financials

Total Revenue

$86.7M

Previous: $70.6M+22.8%
EPS (adj)

-$0.11

Previous: -$0.04-175.0%
Enterprise customer count

430

Previous: 313+37.4%
Capital Expenditures

-$31.3M

Previous: -$24.4M-27.9%
Free Cash Flow

-$87.5M

Previous: -$48.2M-81.4%
Net Income

-$56.2M

Previous: -$23.8M-136.3%
Operating Income

-$54.9M

Previous: -$23.5M-134.2%
Gross Profit

$45.5M

Previous: $41.3M+10.0%
Cash & Equivalents

$282M

Previous: $310M-9.0%
Total Assets

$2.14B

Previous: $632M+238.7%
Stock-Based Comp

$36.6M

Previous: $12.1M+201.7%

Revenue & EPS history

Fastly · Revenue · Quarterly

$86.7M

Q3 2021+22.8%vs Q3 2020
Beat estimate in 7 of 13 quarters(54%)
ActualEstimate

Forward guidance

Fastly provided Q4 2021 revenue guidance of $90 - $93 million, non-GAAP operating loss of ($18) - ($15) million, and non-GAAP net loss per share of ($0.19) - ($0.16). Full year 2021 revenue is expected to be $347 - $350 million, with a non-GAAP operating loss of ($63) - ($60) million and non-GAAP net loss per share of ($0.58) - ($0.55).

Tailwinds

  • Expected revenue between $90 million and $93 million.
  • Focus on execution, bringing lasting growth to business.
  • Delivering value to shareholders.
  • Successfully winning developers onto the platform.
  • Driving enterprise adoption and enhancing security offerings.

Headwinds

  • Non-GAAP Operating Loss between ($18) million and ($15) million.
  • Non-GAAP Net Loss Per Share between ($0.19) and ($0.16).
  • Gross margin to remain relatively flat to down slightly in the short to medium term.
  • Capital expenditures as a percentage of revenue to be at the high end of previously announced range of 12% to 14% of revenue.
  • Customer traffic ramping on platform is uncertain.

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 2021

Historical avgQ3 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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