Q3 2024 Fastly Inc Earnings Call Transcript
Key Points
- Fastly Inc (FSLY) reported third-quarter revenue of $137.2 million, exceeding the high end of their guidance range.
- The company achieved a net profit of $2.4 million and a positive adjusted EBITDA of $13.3 million, both record levels.
- Revenue from customers outside of the top 10 grew 20% year over year, indicating successful diversification efforts.
- Fastly Inc (FSLY) has seen strong growth in its security revenue, which increased by 12% year over year.
- The company has successfully reduced its operating expenses by 5% year over year and 12% sequentially, contributing to improved financial performance.
- Fastly Inc (FSLY) experienced a decline in its trailing 12-month net retention rate, dropping to 105% from 110% in the prior quarter.
- The enterprise customer count decreased by 4% quarter over quarter, indicating challenges in maintaining or growing this segment.
- Gross margins are expected to decrease by approximately 150 basis points in the fourth quarter due to increased bandwidth and colocation costs.
- The company anticipates flat to modest sequential growth in Q4 revenues, reflecting ongoing challenges with some of its largest customers.
- Free cash flow for the year is projected to be negative, with guidance indicating a range of negative $40 to $30 million.
Good afternoon. My name is Tamika and I will be your conference operator today. At this time. I would like to welcome everyone to the Fastly third-quarter, 2024 earnings conference call. (Operator Instructions)
I will now hand today's call over to Vernon Essi, Investor Relations at Fastly. Please go ahead, sir.
Thank you and welcome everyone to our third quarter, 2024 earnings conference call. We have fast food, CEO, Todd, Nightingale and CFO Ron Kisling with us today.
The webcast of this call can be accessed through our website fer dotcom and will be archived for one year. Also, a replay will be available by dialing 807 702,030 and referencing conference ID number 754 3,239. Shortly after the conclusion of today's call, a copy of today's earnings press release related financial tables and investor supplement, all of which are furnished in our A K filing today can be found in the investor relations portion of fast foods website.
During this call, we will make forward-looking statements
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
