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Fastly Announces Fourth Quarter and Full Year 2021 Financial Results

February, 16, 2022
  • Fourth quarter revenue of $97.7 million, up 13% quarter-over-quarter
  • Fourth quarter revenue Dollar-Based Net Expansion Rate of 121%
  • Annual ARR of 99.2%, demonstrating world class customer retention and low churn

Fastly, Inc. (NYSE: FSLY), the world’s fastest global edge cloud network provider, today announced financial results for its fourth quarter and full year ended December 31, 2021.

“We finished 2021 on a strong note with fourth quarter revenue of $97.7 million, exceeding the midpoint of our guidance range by 7% and demonstrating momentum after facing setbacks earlier in the year,” said Joshua Bixby, CEO of Fastly.

“Our foundational technology, differentiated by the scale and efficiency of our network, continues to attract and empower enterprise developers in their moments of inspiration. We continue to uniquely unlock programmable ways for our customers to build modern digital experiences for billions of people every day on our technology,” continued Bixby. “Coupled with a strong roadmap of new products, including our recent launch of Fastly’s Next-Gen WAF, the industry’s first and only unified WAF, we are excited about our opportunities in 2022 as we expand our network and capture the future growth potential of our edge cloud network.”

 
Three Months Ended Year Ended
December 31 December 31 December 31 December 31

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Revenue

$

97,717

 

$

82,649

 

$

354,330

 

$

290,874

 

Gross Margin
GAAP gross margin

 

50.9

%

 

59.2

%

 

52.9

%

 

58.7

%

Non-GAAP gross margin

 

55.8

%

 

63.7

%

 

57.7

%

 

60.9

%

Operating loss
GAAP operating loss

$

(56,656

)

$

(57,344

)

$

(219,021

)

$

(107,212

)

Non-GAAP operating loss

$

(11,734

)

$

(8,960

)

$

(55,134

)

$

(16,918

)

Net loss per share
GAAP net loss per common share—basic and diluted

$

(0.49

)

$

(0.40

)

$

(1.92

)

$

(0.93

)

Non-GAAP net loss per common share—basic and diluted

$

(0.10

)

$

(0.09

)

$

(0.48

)

$

(0.18

)

Fourth Quarter 2021 Financial Summary

  • Total revenue of $97.7 million, representing 13% sequential growth and 18% year-over-year growth.
  • GAAP gross margin of50.9%, compared to 59.2% in the fourth quarter of 2020. Non-GAAP gross margin of 55.8%, compared to 63.7% in the fourth quarter of 2020.
  • GAAP net loss of $57.5 million, compared to $45.7 million in the fourth quarter of 2020. Non-GAAP net loss of $11.7 million, compared to $10.5 million in the fourth quarter of 2020.
  • GAAP net loss per basic and diluted shares of $0.49 compared to $0.40 in the fourth quarter of 2020. Non-GAAP net loss per basic and diluted shares of $0.10, compared to $0.09 in the fourth quarter of 2020.

Full Year 2021 Financial Summary

  • Total revenue of $354.3 million, representing 22% growth year-over-year.
  • GAAP gross margin of 52.9%, compared to gross margin of 58.7% in fiscal 2020. Non-GAAP gross margin of 57.7%, compared to gross margin of 60.9% in fiscal 2020.
  • GAAP net loss of $222.7 million, compared to $95.9 million in fiscal 2020. Non-GAAP net loss of $55.9 million, compared to $18.8 million in fiscal 2020.
  • GAAP net loss per basic and diluted shares of $1.92 compared to $0.93 in fiscal 2020. Non-GAAP net loss per basic and diluted shares of $0.48, compared to $0.18 in fiscal 2020.

For a reconciliation of non-GAAP financial measures to their corresponding GAAP measures, please refer to the reconciliation table at the end of this press release.

Key Metrics

  • Trailing 12 month net retention rate (NRR LTM) 1 increased to 118% in the fourth quarter from 114% in the third quarter.
  • Dollar-Based Net Expansion Rate (DBNER) 2 increased to 121% in the fourth quarter from 118% in the third quarter.
  • Annual Revenue Retention (ARR) 3 was 99.2% in 2021 compared to 99.3% in 2020 showcasing world class customer retention and revenue expansion.
  • Total customer count of 2,804 in the fourth quarter, of which 445 were enterprise4 customers.

Recent Business Highlights

  • Launched the edge deployment of our Next-Gen WAF, the industry's first and only unified Web Application Firewall,a key milestone in the integration of Signal Sciences’ industry-leading WAF and fulfilling Fastly’s vision for effective yet performant web app and API protection at the network edge.
  • A new integration with Glitch and Compute@Edge – which saw more than 2,000 enterprise developer sign-ups in the first week of its beta – enables developers of millions of sophisticated Glitch apps to deploy to the edge with 100x faster code execution startup time than other serverless solutions.
  • Welcomed Chief Product Officer Lakshmi Sharma and Chief Marketing Officer Margaret Arakawa who both bring broad experience scaling complex businesses with highly relevant cloud, security and go-to-market expertise from Google and Microsoft, respectively.

First Quarter and Full Year Fiscal 2022 Guidance

Q1 2022 Full Year 2022
Total Revenue (millions) $97 - $100 $400 - $410
Non-GAAP Operating Loss (millions) ($18) - ($15) ($70) - ($60)
Non-GAAP Net Loss Per Share (5)(6) ($0.15) - ($0.13) ($0.60) - ($0.50)

Conference Call Information

Fastly will host an investor conference call to discuss its results at 2:00 p.m. PT / 5:00 p.m. ET on Wednesday, February 16, 2022.

Time:

2:00 p.m. PT / 5:00 p.m. ET

Webcast:

https://investors.fastly.com

Dial-in:

888-330-2022 (US/CA) or 646-960-0690 (Intl.)

Conf. ID#:

7543239

Please dial in at least 10 minutes prior to the 2:00 p.m. PT start time. A live webcast of the call will be available at https://investors.fastly.com where listeners may log on to the event by selecting the webcast link under the “Quarterly Results” section.

A telephone replay of the conference call will be available at approximately 5:00 p.m. PT, February 16 through March 8, 2022 by dialing 800-770-2030 or 647-362-9199 and entering the passcode 7543239.

About Fastly

Fastly is upgrading the internet experience to give people and organizations more control, faster content, and more dynamic applications. By combining the world’s fastest global edge cloud network with powerful software, Fastly helps customers develop, deliver, and secure modern distributed applications and compelling digital experiences. Fastly’s customers include many of the world’s most prominent companies, including Pinterest, The New York Times, and GitHub. For more information on our mission and products, visit https://www.fastly.com/.

Forward Looking Statements

This press release contains “forward-looking” statements that are based on our beliefs and assumptions and on information currently available to us on the date of this press release. Forward-looking statements may involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include, but are not limited to, statements regarding our future financial and operating performance, including our outlook and guidance, the demand for our platform, our ability to expand our network, the success of our Next-Gen WAF, and our ability to deliver on our long-term strategy. Except as required by law, we assume no obligation to update these forward-looking statements publicly or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Important factors that could cause our actual results to differ materially are detailed from time to time in the reports Fastly files with the Securities and Exchange Commission (SEC), including in our Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2021. Additional information will also be set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021. Copies of reports filed with the SEC are posted on Fastly’s website and are available from Fastly without charge.

Use of Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States ("GAAP"), the Company uses the following non-GAAP measures of financial performance: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, non-GAAP basic and diluted net loss per common share, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, free cash flow and adjusted EBITDA. The presentation of this additional financial information is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. These non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. In addition, these non-GAAP financial measures may be different from the non-GAAP financial measures used by other companies. These non-GAAP measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. Management compensates for these limitations by reconciling these non-GAAP financial measures to the most comparable GAAP financial measures within our earnings releases.

Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss and non-GAAP basic and diluted net loss per common share, non-GAAP research and development, non-GAAP sales and marketing, and non-GAAP general and administrative differ from GAAP in that they exclude stock-based compensation expense, amortization of acquired intangible assets, acquisition-related expenses and amortization of debt discount and issuance costs.

Adjusted EBITDA: excludes stock-based compensation expense, depreciation and other amortization expenses, amortization of acquired intangible assets, acquisition-related expenses, interest income, interest expense (including amortization of debt discount and issuance costs) other income (expense), (net), and income taxes.

Acquisition-related Expense: consists of one-time expenses related to the acquisition related activities. Management considers its operating results without the one-time acquisition-related expense when evaluating its ongoing non-GAAP performance and its ongoing adjusted EBITDA performance because these charges are one-time and may not be reflective of our core business, ongoing operating results, or future outlook.

Amortization of Acquired Intangible Assets: consists of non-cash charges that can be affected by the timing and magnitude of asset purchases and acquisitions. Amortization of acquired intangible assets is included in the following cost and expense line items of our GAAP presentation: cost of revenue and sales and marketing. Management considers its operating results without the amortization expense of our acquired intangible assets when evaluating its ongoing non-GAAP performance and its ongoing adjusted EBITDA performance because these charges are non-cash expenses that can be affected by the timing and magnitude of asset purchases and acquisitions and may not be reflective of our core business, ongoing operating results, or future outlook.

Amortization of Debt Discount and Issuance Costs: consists primarily of amortization expense related to our debt obligations. Management considers its adjusted EBITDA results without this activity when evaluating its ongoing performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook. These are included in our total interest expense.

Capital Expenditures: cash used for purchases of property and equipment and capitalized internal-use software, as reflected in our statement of cash flows.

Depreciation and Other Amortization Expense: consists of non-cash charges that can be affected by the timing and magnitude of asset purchases. Depreciation and amortization expense is included in the following cost and expense line items of our GAAP presentation: cost of revenue, research and development, sales and marketing, and general and administrative. Management considers its operating results without the depreciation and other amortization expense when evaluating its ongoing adjusted EBITDA performance because these charges are non-cash expenses that can be affected by the timing and magnitude of asset purchases and may not be reflective of our core business, ongoing operating results, or future outlook.

Free Cash Flow: calculated as net cash used in operating activities less capital expenditures.

Income Taxes: consists primarily of expenses recognized related to state and foreign income taxes. In fiscal 2020, we recognized an income tax benefit from the result of a reduction in the valuation allowance recorded against our net deferred tax assets. In connection with the acquisition of Signal Sciences in 2020, we recorded a net deferred tax liability which provides an additional source of taxable income to support the realization of the pre-existing deferred tax assets. Management considers its adjusted EBITDA results without these charges when evaluating its ongoing performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.

Interest Expense: consists primarily of interest expense related to our debt instruments, including amortization of debt discount and issuance costs. Management considers its operating results without total interest expense when evaluating its ongoing adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.

Interest Income: consists primarily of interest income related to our marketable securities. Management considers its adjusted EBITDA results without this activity when evaluating its ongoing performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.

Non-GAAP Operating Loss: calculated as GAAP revenue less non-GAAP cost of revenue and non-GAAP operating expenses.

Other Income (Expense), Net: consists primarily of foreign currency transaction gains and losses. Management considers its operating results without other expense, net when evaluating its ongoing adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.

Stock-based Compensation Expense: consists of expenses for stock options, restricted stock units, performance awards, restricted stock awards and Employee Stock Purchase Plan ("ESPP") under our equity incentive plans. Stock-based compensation is included in the following cost and expense line items of our GAAP presentation: cost of revenue, research and development, sales and marketing, and general and administrative.

Although stock-based compensation is an expense for the Company and is viewed as a form of compensation, management excludes stock-based compensation from our non-GAAP measures and adjusted EBITDA results for purposes of evaluating our continuing operating performance primarily because it is a non-cash expense not believed by management to be reflective of our core business, ongoing operating results, or future outlook. In addition, the value of some stock-based instruments is determined using formulas that incorporate variables, such as market volatility, that are beyond our control.

Management believes these non-GAAP financial measures and adjusted EBITDA serve as useful metrics for our management and investors because they enable a better understanding of the long-term performance of our core business and facilitate comparisons of our operating results over multiple periods and to those of peer companies, and when taken together with the corresponding GAAP financial measures and our reconciliations, enhance investors' overall understanding of our current financial performance.

Key Metrics

1 We calculate LTM Net Retention Rate by dividing the total customer revenue for the prior twelve-month period (“prior 12-month period”) ending at the beginning of the last twelve-month period (“LTM period”) minus revenue contraction due to billing decreases or customer churn, plus revenue expansion due to billing increases during the LTM period from the same customers by the total prior 12-month period revenue. We believe the LTM Net Retention Rate is supplemental as it removes some of the volatility that is inherent in a usage-based business model.

2 We calculate Dollar-Based Net Expansion Rate by dividing the revenue for a given period from customers who remained customers as of the last day of the given period (the “current” period) by the revenue from the same customers for the same period measured one year prior (the “base” period). The revenue included in the current period excludes revenue from (i) customers that churned after the end of the base period and (ii) new customers that entered into a customer agreement after the end of the base period.

3 Annual revenue retention rate is calculated by multiplying the final full month of revenue from a customer that terminated its contract with us (a Churned Customer) by the number of months remaining in the same calendar year (Annual Revenue Churn). The quotient of the Annual revenue Churn from all of our Churned Customers divided by our annual revenue of the same calendar year is then subtracted from 100% to determine our annual revenue retention rate.

4 Enterprise customers are defined as those spending $100,000 or more in a twelve-month period.

5 Assumes weighted average basic shares outstanding of 119.3 million in Q1 2022 and 121.0 million for the full year 2022.

6 Non-GAAP Net Loss per share calculation is full-year Non-GAAP Net Loss divided by weighted average basic shares for the full year.

Condensed Consolidated Statements of Operations
(in thousands, except per share amounts, unaudited)
 
Three months ended December 31, Year ended December 31,

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Revenue

$

97,717

 

$

82,649

 

$

354,330

 

$

290,874

 

Cost of revenue(1)

 

47,944

 

 

33,753

 

 

167,002

 

 

120,007

 

Gross profit

$

49,773

 

$

48,896

 

$

187,328

 

$

170,867

 

Operating expenses:
Research and development(1)

 

34,997

 

 

25,590

 

 

126,859

 

 

74,814

 

Sales and marketing(1)

 

42,151

 

 

34,765

 

 

152,645

 

 

101,181

 

General and administrative(1)

 

29,281

 

 

45,885

 

 

126,845

 

 

102,084

 

Total operating expenses

 

106,429

 

 

106,240

 

 

406,349

 

 

278,079

 

Loss from operations

 

(56,656

)

 

(57,344

)

 

(219,021

)

 

(107,212

)

Interest income

 

552

 

 

178

 

 

1,282

 

 

1,628

 

Interest expense

 

(1,593

)

 

(452

)

 

(5,245

)

 

(1,549

)

Other income (expense), net

 

201

 

 

(697

)

 

356

 

 

(279

)

Loss before income tax expense (benefit)

 

(57,496

)

 

(58,315

)

 

(222,628

)

 

(107,412

)

Income tax expense (benefit)

 

25

 

 

(12,611

)

 

69

 

 

(11,480

)

Net loss

$

(57,521

)

$

(45,704

)

$

(222,697

)

$

(95,932

)

Net loss per share attributable to common stockholders, basic and diluted

$

(0.49

)

$

(0.40

)

$

(1.92

)

$

(0.93

)

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted

 

118,161

 

 

112,902

 

 

116,053

 

 

103,552

 

 
(1) Includes stock-based compensation expense as follows:
Three months ended December 31, Year ended December 31,

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Cost of revenue

$

2,316

 

$

1,255

 

$

7,227

 

$

3,889

 

Research and development

 

15,675

 

 

7,017

 

 

47,019

 

 

17,112

 

Sales and marketing

 

11,399

 

 

5,275

 

 

31,159

 

 

17,028

 

General and administrative

 

10,198

 

 

16,134

 

 

55,083

 

 

26,404

 

Total

$

39,588

 

$

29,681

 

$

140,488

 

$

64,433

 

Condensed Consolidated Balance Sheets
(in thousands, unaudited)
As of December 31,

 

2021

 

 

2020

 

Assets
Current assets:
Cash and cash equivalents

$

166,068

 

$

62,900

 

Marketable securities

 

361,795

 

 

131,283

 

Accounts receivable, net

 

64,625

 

 

50,258

 

Restricted cash

 

 

 

87

 

Prepaid expenses and other current assets

 

32,160

 

 

16,728

 

Total current assets

$

624,648

 

$

261,256

 

Property and equipment, net

 

160,061

 

 

95,979

 

Operating lease right-of-use assets, net

 

69,631

 

 

60,019

 

Goodwill

 

636,805

 

 

635,590

 

Intangible assets, net

 

102,596

 

 

121,742

 

Marketable securities, non-current

 

528,911

 

 

20,448

 

Other assets

 

29,468

 

 

24,917

 

Total assets

$

2,152,120

 

$

1,219,951

 

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable

$

9,257

 

$

9,150

 

Accrued expenses

 

36,112

 

 

34,334

 

Finance lease liabilities

 

21,125

 

 

11,033

 

Operating lease liabilities, current

 

20,271

 

 

19,895

 

Other current liabilities

 

38,207

 

 

19,677

 

Total current liabilities

 

124,972

 

 

94,089

 

Long-term debt, less current portion

 

933,205

 

 

 

Finance lease liabilities, noncurrent

 

22,293

 

 

14,707

 

Operating lease liabilities, noncurrent

 

55,114

 

 

44,890

 

Other long-term liabilities

 

2,583

 

 

4,400

 

Total liabilities

 

1,138,167

 

 

158,086

 

Stockholders’ equity:
Class A and Class B common stock

 

2

 

 

2

 

Additional paid-in capital

 

1,527,468

 

 

1,350,050

 

Accumulated other comprehensive income (loss)

 

(2,627

)

 

6

 

Accumulated deficit

 

(510,890

)

 

(288,193

)

Total stockholders’ equity

 

1,013,953

 

 

1,061,865

 

Total liabilities and stockholders’ equity

$

2,152,120

 

$

1,219,951

 

Condensed Consolidated Statement of Cash Flows
(in thousands, unaudited)

Year ended December 31,

 

2021

 

 

 

2020

 

Cash flows from operating activities:
Net loss

$

(222,697

)

$

(95,932

)

Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization

 

28,799

 

 

19,979

 

Amortization of acquired intangibles

 

21,238

 

 

5,078

 

Amortization of right-of-use assets and other

 

26,883

 

 

21,765

 

Amortization of debt issuance costs

 

3,185

 

 

219

 

Amortization of deferred contract costs

 

6,294

 

 

3,516

 

Stock-based compensation

 

140,488

 

 

64,433

 

Provision for Credit losses

 

196

 

 

1,719

 

Interest paid on capital leases

 

(1,754

)

 

(688

)

Gain (loss) on disposal of property and equipment

 

(300

)

 

653

 

Tax benefit related to release of valuation allowance

 

 

 

(12,950

)

Other adjustments

 

2,225

 

 

624

 

Changes in operating assets and liabilities:
Accounts receivable

 

(14,563

)

 

(9,264

)

Prepaid expenses and other current assets

 

(4,777

)

 

(5,550

)

Other assets

 

(10,423

)

 

(17,162

)

Accounts payable

 

146

 

 

4,059

 

Accrued expenses

 

4,261

 

 

12,992

 

Operating lease liabilities

 

(26,447

)

 

(18,264

)

Other liabilities

 

8,764

 

 

4,857

 

Net cash used in operating activities

 

(38,482

)

 

(19,916

)

Cash flows from investing activities:
Purchases of marketable securities

 

(928,155

)

 

(269,059

)

Sales of marketable securities

 

66,527

 

 

143,241

 

Maturities of marketable securities

 

118,085

 

 

88,719

 

Acquisition of business, net of cash acquired

 

(1,169

)

 

(200,988

)

Proceeds from sale of property and equipment

 

588

 

 

575

 

Purchases of property and equipment

 

(34,816

)

 

(29,569

)

Capitalized internal-use software

 

(13,479

)

 

(6,131

)

Purchases of intangible assets

 

(2,092

)

 

(1,811

)

Net cash used in investing activities

 

(794,511

)

 

(275,023

)

Cash flows from financing activities:
Proceeds from follow-on public offering, net of underwriting fees

 

 

 

274,896

 

Payments of costs related to follow-on public offering

 

 

 

(675

)

Issuance of convertible note, net of issuance costs

 

930,775

 

 

 

Proceeds from borrowings under notes payable

 

 

 

(20,300

)

Payments of debt issuance costs

 

(1,351

)

 

 

Repayments of finance lease liabilities

 

(13,568

)

 

(5,773

)

Proceeds from Employee Stock Purchase Plan

 

8,069

 

 

9,318

 

Proceeds from exercise of vested stock options

 

12,626

 

 

15,273

 

Net cash provided by financing activities

$

936,551

 

$

272,739

 

Effects of exchange rate changes on cash, cash equivalents, and restricted cash

$

(477

)

$

(149

)

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

103,081

 

 

(22,349

)

Cash, cash equivalents, and restricted cash at beginning of period

 

63,880

 

 

86,229

 

Cash, cash equivalents, and restricted cash at end of period

$

166,961

 

$

63,880

 

Condensed Consolidated Statement of Cash Flows - Continued
(in thousands, unaudited)

Year ended December 31,

 

2021

 

 

 

2020

 

Supplemental disclosure of cash flow information:
Cash paid for interest

$

1,938

$

1,590

Cash paid for income taxes, net of refunds received

$

267

 

$

1,219

 

Property and equipment additions not yet paid in cash

$

193

 

$

3,184

 

Vesting of early-exercised stock options

$

405

 

$

467

 

Cashless exercise of common stock warrants

$

-

 

$

1,557

 

Stock-based compensation capitalized to internal-use software

$

4,446

 

$

2,034

 

Assets obtained in exchange for operating lease obligations

$

32,458

 

$

23,827

 

Assets obtained in exchange for finance lease obligations

$

31,005

 

$

22,541

 

Fair value of common stock issued as consideration for a business combination

$

-

 

$

536,432

 

Receivable for restricted stock award settlement

$

10,654

 

$

-

 

Reconciliation of cash, cash equivalents, and restricted cash as shown in the statements of cash flows
Cash and cash equivalents

$

166,068

 

$

62,900

 

Restricted cash

 

-

 

 

87

 

Restricted cash included in other assets

 

893

 

 

893

 

Total cash, cash equivalents, and restricted cash

$

166,961

 

$

63,880

 

Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, unaudited)
Three months ended Year ended
December 31, December 31,

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Gross Profit
GAAP gross Profit

$

49,773

 

$

48,896

 

$

187,328

 

$

170,867

 

Stock-based compensation—Cost of revenue

 

2,316

 

 

1,255

 

 

7,227

 

 

3,889

 

Amortization of acquired intangible assets

 

2,475

 

 

2,475

 

 

9,900

 

 

2,475

 

Non-GAAP gross profit

$

54,564

 

$

52,626

 

$

204,455

 

$

177,231

 

GAAP gross margin

 

50.9

%

 

59.2

%

 

52.9

%

 

58.7

%

Non-GAAP gross margin

 

55.8

%

 

63.7

%

 

57.7

%

 

60.9

%

 
Research and development
GAAP research and development

$

34,997

 

$

25,590

 

$

126,859

 

$

74,814

 

Stock-based compensation

 

(15,675

)

 

(7,017

)

 

(47,019

)

 

(17,112

)

Non-GAAP research and development

$

19,322

 

$

18,573

 

$

79,840

 

$

57,702

 

 
Sales and marketing
GAAP sales and marketing

$

42,151

 

$

34,765

 

$

152,645

 

$

101,181

 

Stock-based compensation

 

(11,399

)

 

(5,275

)

 

(31,159

)

 

(17,028

)

Amortization of acquired intangible assets

 

(2,710

)

 

(2,603

)

 

(10,944

)

 

(2,603

)

Non-GAAP sales and marketing

$

28,042

 

$

26,887

 

$

110,542

 

$

81,550

 

 
General and administrative
GAAP general and administrative

$

29,281

 

$

45,885

 

$

126,845

 

$

102,084

 

Stock-based compensation

 

(10,198

)

 

(16,134

)

 

(55,083

)

 

(26,404

)

Acquisition-related expenses

 

(149

)

 

(13,625

)

 

(2,555

)

 

(20,783

)

Non-GAAP general and administrative

$

18,934

 

$

16,126

 

$

69,207

 

$

54,897

 

 
Operating loss
GAAP operating loss

$

(56,656

)

$

(57,344

)

$

(219,021

)

$

(107,212

)

Stock-based compensation

 

39,588

 

 

29,681

 

 

140,488

 

 

64,433

 

Amortization of acquired intangible assets

 

5,185

 

 

5,078

 

 

20,844

 

 

5,078

 

Acquisition-related expenses

 

149

 

 

13,625

 

 

2,555

 

 

20,783

 

Non-GAAP operating loss

$

(11,734

)

$

(8,960

)

$

(55,134

)

$

(16,918

)

 
Net loss
GAAP net loss

$

(57,521

)

$

(45,704

)

$

(222,697

)

$

(95,932

)

Stock-based compensation

 

39,588

 

 

29,681

 

 

140,488

 

 

64,433

 

Amortization of acquired intangible assets

 

5,185

 

 

5,078

 

 

20,844

 

 

5,078

 

Acquisition-related expenses

 

149

 

 

13,625

 

 

2,555

 

 

20,783

 

Acquisition-related tax benefit

 

 

 

(13,154

)

 

 

 

(13,154

)

Amortization of debt issuance costs

 

947

 

 

 

 

2,907

 

 

 

Non-GAAP net loss

$

(11,652

)

$

(10,474

)

$

(55,903

)

$

(18,792

)

 
Non-GAAP net loss per common share—basic and diluted

$

(0.10

)

$

(0.09

)

$

(0.48

)

$

(0.18

)

Weighted average basic and diluted common shares

$

118,161

 

$

112,902

 

$

116,053

 

$

103,552

 

 
Adjusted EBITDA
GAAP net loss

$

(57,521

)

$

(45,704

)

$

(222,697

)

$

(95,932

)

Stock-based compensation

 

39,588

 

 

29,681

 

 

140,488

 

 

64,433

 

Depreciation and other amortization

 

8,228

 

 

5,568

 

 

29,208

 

 

19,979

 

Amortization of acquired intangible assets

 

5,185

 

 

5,078

 

 

20,844

 

 

5,078

 

Interest income

 

(552

)

 

(178

)

 

(1,282

)

 

(1,628

)

Interest expense

 

1,593

 

 

452

 

 

5,245

 

 

1,549

 

Other (income) expense, net

 

(201

)

 

697

 

 

(356

)

 

279

 

Income taxes

 

25

 

 

543

 

 

69

 

 

1,674

 

Acquisition-related expenses

 

149

 

 

13,625

 

 

2,555

 

 

20,783

 

Acquisition-related tax benefit

 

 

 

(13,154

)

 

 

 

(13,154

)

Adjusted EBITDA

$

(3,506

)

$

(3,392

)

$

(25,926

)

$

3,061

 

Source: Fastly, Inc.

Investor Contact:
Vernon Essi, Jr.
ir@fastly.com

Media Contact:
press@fastly.com

Source: Fastly, Inc.
Categories: Press Releases