NASDAQ$FSLY

Fastly Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported record revenue and positive adjusted EBITDA in Q3 2023.

Fastly announced record third-quarter revenue of $127.8 million, representing an 18% year-over-year growth. The company is focused on customer acquisition and industry vertical expansion.

  • Total revenue reached $127.8 million, an 18% increase year-over-year and a 4% sequential increase.
  • GAAP gross margin was 51.7%, compared to 48.6% in the third quarter of 2022.
  • GAAP net loss was $54.3 million, compared to $63.4 million in the third quarter of 2022.
  • LTM Net Retention Rate decreased to 114% in the third quarter from 116% in the second quarter.

Headline financials

Total Revenue

$128M

Previous: $109M+17.8%
EPS (adj)

-$0.06

Previous: -$0.14+57.1%
Enterprise customer count

547

Previous: 482+13.5%
Capital Expenditures

-$8.28M

Previous: -$11.4M+27.6%
Free Cash Flow

-$62.6M

Previous: -$74.9M+16.4%
Net Income

-$54.3M

Previous: -$63.4M+14.4%
Operating Income

-$58.3M

Previous: -$65.8M+11.3%
Gross Profit

$66.1M

Previous: $52.7M+25.5%
Cash & Equivalents

$270M

Previous: $87.9M+207.5%
Total Assets

$1.64B

Previous: $1.91B-13.9%
R&D Expense

$39.1M

No prior period
Stock-Based Comp

$35.7M

Previous: $39.4M-9.3%

Revenue & EPS history

Fastly · Revenue · Quarterly

$128M

Q3 2023+17.8%vs Q3 2022
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Forward guidance

Fastly provided guidance for Q4 2023 with revenue between $137 million and $141 million, and for the full year 2023 with revenue between $505 million and $509 million.

Tailwinds

  • Q4 2023 Total Revenue: $137 - $141 million
  • Full Year 2023 Total Revenue: $505 - $509 million
  • Q4 2023 Non-GAAP Operating Loss: ($10.0) - ($6.0) million
  • Full Year 2023 Non-GAAP Operating Loss: ($44.0) - ($40.0) million
  • Q4 2023 Non-GAAP Net Loss per share: ($0.05) - ($0.01)

Headwinds

  • Q4 2023 Non-GAAP Operating Loss: ($10.0) - ($6.0) million
  • Full Year 2023 Non-GAAP Operating Loss: ($44.0) - ($40.0) million
  • Q4 2023 Non-GAAP Net Loss per share: ($0.05) - ($0.01)
  • Full Year 2023 Non-GAAP Net Loss per share: ($0.23) - ($0.19)
  • A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses

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 2023

Historical avgQ3 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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