Fastly Inc (FSLY, Financial), a leading edge cloud platform, announced its financial results for the third quarter ended September 30, 2023, on November 1, 2023. The company reported a record revenue of $127.8 million, representing an 18% year-over-year growth and a 4% sequential increase. The GAAP gross margin improved to 51.7% compared to 48.6% in the third quarter of 2022. The GAAP net loss per share decreased to $0.42 from $0.52 in the third quarter of 2022.
Financial Highlights
Fastly's GAAP operating loss was $58.342 million, a decrease from $65.765 million in Q3 2022. The non-GAAP operating loss was $12.552 million, down from $19.841 million in the same period last year. The GAAP net loss was $54.3 million, compared to $63.4 million in Q3 2022. The non-GAAP net loss was $8.0 million, a decrease from $16.8 million in Q3 2022.
The company's total customer count increased to 3,102 in Q3 2023, up by 30 from Q2 2023. However, the number of enterprise customers decreased by 4 to 547 in Q3 2023. The average enterprise customer spend increased by 5% quarter-over-quarter to $858 thousand.
Business and Product Highlights
Fastly made significant strides in its strategic initiatives, including packaging, channel development, and platform unification. The company expanded its domain API capabilities with the acquisition of Domainr, enhancing simplification and security. Fastly's channel partner deal registration tripled in 2023 year-to-date compared to all of 2022, with almost 90% growth in partner engagement and channel revenue growth of more than 50%.
Outlook
For Q4 2023, Fastly expects total revenue to be between $137 million and $141 million. The non-GAAP operating loss is projected to be between $10.0 million and $6.0 million. The non-GAAP net loss per share is expected to be between $0.05 and $0.01. For the full year 2023, the company anticipates total revenue to be between $505 million and $509 million, with a non-GAAP operating loss between $44.0 million and $40.0 million, and a non-GAAP net loss per share between $0.23 and $0.19.
Explore the complete 8-K earnings release (here) from Fastly Inc for further details.
