Fastly Announces Fourth Quarter and Full Year 2022 Financial Results
Fastly reported record fourth quarter revenue of $119.3 million, marking a 22% year-over-year growth, exceeding guidance. Full year revenue reached $432.7 million, also a 22% increase year-over-year. GAAP gross margin improved to 52.4%, up from 50.9% in Q4 2021. Despite a GAAP net loss of $46.7 million, it was an improvement from $57.5 million in the same quarter last year. Fastly's trailing 12-month net retention rate rose to 119% from 118%. Guidance for Q1 2023 projects revenue between $114 million and $117 million.
- Record Q4 revenue of $119.3 million, 22% growth YoY
- Full-year revenue of $432.7 million, also 22% growth YoY
- GAAP gross margin increased to 52.4%, up from 50.9% YoY
- Trailing 12-month net retention rate improved to 119%
- GAAP net loss of $46.7 million, though improved from $57.5 million YoY
- Full-year GAAP gross margin down to 48.5% from 52.9% in 2021
- Non-GAAP operating loss guidance for Q1 2023 ranges from $18 million to $16 million
-
Record quarterly revenue exceeded high-end of quarterly guidance range and grew
22% year-over-year -
Record annual revenue of
$432.7 million 22% growth year-over-year - GAAP gross margin grew 380 bps sequentially; non-GAAP gross margin grew 340 basis points sequentially
-
Trailing 12 month net retention rate (LTM NRR)1 increased to
119% in the fourth quarter from118% in the third quarter 2022
“We are excited to close out 2022 with another record quarter, exceeding the top end of our guidance range while demonstrating a significant improvement to gross margin,” said
“I've been incredibly impressed with the speed of innovation at Fastly and the focus our teams have demonstrated as we move to a higher velocity go-to-market motion,” continued Nightingale. “Our customers are passionate about our ability to elevate digital experiences at scale and we look forward to continued momentum in 2023.”
Three months ended
|
|
Year ended
|
||||||||||||||
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
||
| Revenue | $ |
119,321 |
|
$ |
97,717 |
|
$ |
432,725 |
|
$ |
354,330 |
|
||||
| Gross Margin | ||||||||||||||||
| GAAP gross margin |
|
52.4 |
% |
|
50.9 |
% |
|
48.5 |
% |
|
52.9 |
% |
||||
| Non-GAAP gross margin |
|
57.0 |
% |
|
55.8 |
% |
|
53.6 |
% |
|
57.7 |
% |
||||
| Operating loss | ||||||||||||||||
| GAAP operating loss | $ |
(48,462 |
) |
$ |
(56,656 |
) |
$ |
(246,199 |
) |
$ |
(219,021 |
) |
||||
| Non-GAAP operating loss | $ |
(11,994 |
) |
$ |
(11,734 |
) |
$ |
(76,468 |
) |
$ |
(55,134 |
) |
||||
| Net loss per share | ||||||||||||||||
| GAAP net loss per common share—basic and diluted | $ |
(0.38 |
) |
$ |
(0.49 |
) |
$ |
(1.57 |
) |
$ |
(1.92 |
) |
||||
| Non-GAAP net loss per common share—basic and diluted | $ |
(0.08 |
) |
$ |
(0.10 |
) |
$ |
(0.59 |
) |
$ |
(0.48 |
) |
||||
Fourth Quarter 2022 Financial Summary
-
Total revenue of
$119.3 million 22% year-over-year growth and10% sequential growth. -
GAAP gross margin of
52.4% , compared to50.9% in the fourth quarter of 2021. Non-GAAP gross margin of57.0% , compared to55.8% in the fourth quarter of 2021. -
GAAP net loss of
$46.7 million $57.5 million $9.5 million $11.7 million -
GAAP net loss per basic and diluted shares of
$0.38 $0.49 $0.08 $0.10
Full Year 2022 Financial Summary
-
Total revenue of
$432.7 million 22% growth year-over-year. -
GAAP gross margin of
48.5% , compared to52.9% in fiscal 2021. Non-GAAP gross margin of53.6% , compared to57.7% in fiscal 2021. -
GAAP net loss of
$190.8 million $222.7 million $72.3 million $55.9 million -
GAAP net loss per basic and diluted shares of
$1.57 $1.92 $0.59 $0.48
Key Metrics
-
Annual revenue retention rate (ARR)6 was
99.2% in 2022, flat to the99.2% level in fiscal 2021. -
Trailing 12 month net retention rate (LTM NRR)1 increased to
119% in the fourth quarter from118% in the third quarter 2022. -
Dollar-Based Net Expansion Rate (DBNER)2 increased to
123% in the fourth quarter from122% in the third quarter 2022. - Total customer count was 2,958 in the fourth quarter, up 33 from the third quarter; 493 were enterprise customers3 in the fourth quarter, up 11 from the third quarter.
-
Average enterprise customer spend7 of
$782 thousand 3% quarter-over-quarter.
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.
Fourth Quarter Business and Product Highlights
-
Puja Jaspal joined Fastly asChief People Officer , bringing her experience from Cisco as SVP of People & Communities, where she drove HR strategy, workplace, and talent development. -
Hosted Altitude, our annual user conference in
New York featuring almost 400 attendees and 15 keynotes from Fastly’s leadership team and customer partners. - Relaunched our industry-leading Open Source and Nonprofit Program as “Fast Forward,” with a renewed focus on building community among the builders and maintainers of a faster, safer, and more inclusive internet.
-
With the acquisition of Glitch in
May 2022 , we’ve extended Fastly’s opportunity to potentially convert the ideas of over 2 million developers into globally performant, secure, and reliable applications at scale. - Fastly Next-Gen WAF now supports automated provisioning and management via Terraform for our cloud-based deployment option.
- Achieved Payment Card Industry Data Security Standard (PCI DSS) compliance as a Level 1 Service Provider.
- Expanded our Next-Gen WAFs advanced rate limiting rules to customers of our Professional security package.
- Released into GA our Javascript SDK for Compute@Edge, offering unmatched initialization performance of startup times.
First Quarter and Full Year 2023 Guidance
Q1 2023 |
|
Full Year 2023 |
||
| Total Revenue (millions) |
|
|
|
|
| Non-GAAP Operating Loss (millions) |
( |
|
( |
|
| Non-GAAP Net Loss per share (4)(5) |
( |
|
( |
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 that may be incurred in the future and cannot be reasonably determined or predicted at this time, although it is important to note that these factors could be material to Fastly’s future GAAP financial results.
Conference Call Information
Fastly will host an investor conference call to discuss its results at
Date:
Time:
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
A telephone replay of the conference call will be available at approximately
About Fastly
Fastly’s powerful and programmable edge cloud platform helps the world’s top brands deliver the fastest online experiences possible, while improving site performance, enhancing security, and empowering innovation at global scale. With world-class support that achieves
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 go-to-market efforts 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
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
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, executive transition costs, net gain on extinguishment of debt 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, executive transition costs, interest income, interest expense, including amortization of debt discount and issuance costs, net gain on extinguishment of debt, other income (expense), net, and income taxes.
Acquisition-related Expenses: consists of acquisition-related charges that are not related to ongoing operations. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net loss performance and its adjusted EBITDA performance because these charges 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. Management considers its operating results without this activity when evaluating its ongoing non-GAAP performance and its 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 operating results without this activity when evaluating its ongoing non-GAAP net loss performance and its adjusted EBITDA 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: consists of cash used for purchases of property and equipment, net of proceeds from sale of property and equipment, capitalized internal-use software and payments on finance lease obligations, 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. Management considers its operating results without this activity 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.
Executive Transition costs: consists of one-time cash and non-cash charges recognized with respect to changes in our executive’s employment status. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net loss performance and its adjusted EBITDA performance because it is not believed by management to 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, including any advance payments made related to capital expenditures.
Income Taxes: consists primarily of expenses recognized related to state and foreign income taxes. Management considers its operating results without this activity 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 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 this activity when evaluating its ongoing non-GAAP net loss performance and its 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 operating results without this activity when evaluating its ongoing non-GAAP net loss performance and adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Other Income (Expense), Net: consists primarily of foreign currency transaction gains and losses. Management considers its operating results without this activity 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. Although stock-based compensation is an expense for the Company and is viewed as a form of compensation, management considers its operating results without this activity when evaluating its ongoing non-GAAP net loss performance and its adjusted EBITDA 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.
In the financial tables below, the Company provides a reconciliation of the most comparable GAAP financial measure to the historical non-GAAP financial measures used in this press release.
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 Enterprise customers are defined as those spending
4 Assumes weighted average basic shares outstanding of 125.8 million in Q1 2023 and 129.5 million for the full year 2023.
5 Non-GAAP Net Loss per share is calculated as Non-GAAP Net Loss divided by weighted average basic shares for 2023.
6 Annual revenue retention rate is calculated by subtracting the quotient of the Annual Revenue Churn from all of our Churned Customers divided by our annual revenue of the same calendar year from
7 Average enterprise customer spend is calculated by taking the sum of the trailing 12-month revenue contributed by enterprise customers existing as of the current period, and dividing that by the number of enterprise customers as of the current period.
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (in thousands, except per share amounts, unaudited) | ||||||||||||||||
Three months ended
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Year ended
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||||||||||||||
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
||
| Revenue | $ |
119,321 |
|
$ |
97,717 |
|
$ |
432,725 |
|
$ |
354,330 |
|
||||
| Cost of revenue(1) |
|
56,738 |
|
|
47,944 |
|
|
222,944 |
|
|
167,002 |
|
||||
| Gross profit |
|
62,583 |
|
|
49,773 |
|
|
209,781 |
|
|
187,328 |
|
||||
| Operating expenses: | ||||||||||||||||
| Research and development(1) |
|
37,197 |
|
|
34,997 |
|
|
155,308 |
|
|
126,859 |
|
||||
| Sales and marketing(1) |
|
44,623 |
|
|
42,151 |
|
|
179,869 |
|
|
152,645 |
|
||||
| General and administrative(1) |
|
29,225 |
|
|
29,281 |
|
|
120,803 |
|
|
126,845 |
|
||||
| Total operating expenses |
|
111,045 |
|
|
106,429 |
|
|
455,980 |
|
|
406,349 |
|
||||
| Loss from operations |
|
(48,462 |
) |
|
(56,656 |
) |
|
(246,199 |
) |
|
(219,021 |
) |
||||
| Net gain on extinguishment of debt |
|
— |
|
|
— |
|
|
54,391 |
|
|
— |
|
||||
| Interest income |
|
2,894 |
|
|
552 |
|
|
7,044 |
|
|
1,282 |
|
||||
| Interest expense |
|
(1,354 |
) |
|
(1,593 |
) |
|
(5,887 |
) |
|
(5,245 |
) |
||||
| Other income (expense) |
|
46 |
|
|
201 |
|
|
(29 |
) |
|
356 |
|
||||
| Loss before income taxes |
|
(46,876 |
) |
|
(57,496 |
) |
|
(190,680 |
) |
|
(222,628 |
) |
||||
| Income tax expense |
|
(223 |
) |
|
25 |
|
|
94 |
|
|
69 |
|
||||
| Net loss | $ |
(46,653 |
) |
$ |
(57,521 |
) |
$ |
(190,774 |
) |
$ |
(222,697 |
) |
||||
| Net income (loss) per share attributable to common stockholders, basic and diluted | $ |
(0.38 |
) |
$ |
(0.49 |
) |
$ |
(1.57 |
) |
$ |
(1.92 |
) |
||||
| Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic and diluted |
|
123,587 |
|
|
118,161 |
|
|
121,723 |
|
|
116,053 |
|
||||
| __________ | ||||||||||||||||
| (1) Includes stock-based compensation expense as follows: | ||||||||||||||||
Three months ended
|
|
Year ended
|
||||||||||||||
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
||
| Cost of revenue | $ |
2,938 |
|
$ |
2,316 |
|
$ |
12,050 |
|
$ |
7,227 |
|
||||
| Research and development |
|
11,469 |
|
|
15,675 |
|
|
58,435 |
|
|
47,019 |
|
||||
| Sales and marketing |
|
7,885 |
|
|
11,399 |
|
|
39,083 |
|
|
31,159 |
|
||||
| General and administrative |
|
9,126 |
|
|
10,198 |
|
|
36,228 |
|
|
55,083 |
|
||||
| Total | $ |
31,418 |
|
$ |
39,588 |
|
$ |
145,796 |
|
$ |
140,488 |
|
||||
| Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||||||
| (in thousands, unaudited) | ||||||||||||||||
Three months ended
|
|
Year ended
|
||||||||||||||
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
||
| Gross Profit | ||||||||||||||||
| GAAP gross profit | $ |
62,583 |
|
$ |
49,773 |
|
$ |
209,781 |
|
$ |
187,328 |
|
||||
| Stock-based compensation |
|
2,938 |
|
|
2,316 |
|
|
12,050 |
|
|
7,227 |
|
||||
| Amortization of acquired intangible assets |
|
2,475 |
|
|
2,475 |
|
|
9,900 |
|
|
9,900 |
|
||||
| Non-GAAP gross profit | $ |
67,996 |
|
$ |
54,564 |
|
$ |
231,731 |
|
$ |
204,455 |
|
||||
| GAAP gross margin |
|
52.4 |
% |
|
50.9 |
% |
|
48.5 |
% |
|
52.9 |
% |
||||
| Non-GAAP gross margin |
|
57.0 |
% |
|
55.8 |
% |
|
53.6 |
% |
|
57.7 |
% |
||||
| Research and development | ||||||||||||||||
| GAAP research and development | $ |
37,197 |
|
$ |
34,997 |
|
$ |
155,308 |
|
$ |
126,859 |
|
||||
| Stock-based compensation |
|
(11,469 |
) |
|
(15,675 |
) |
|
(58,435 |
) |
|
(47,019 |
) |
||||
| Non-GAAP research and development | $ |
25,728 |
|
$ |
19,322 |
|
$ |
96,873 |
|
$ |
79,840 |
|
||||
| Sales and marketing | ||||||||||||||||
| GAAP sales and marketing | $ |
44,623 |
|
$ |
42,151 |
|
$ |
179,869 |
|
$ |
152,645 |
|
||||
| Stock-based compensation |
|
(7,885 |
) |
|
(11,399 |
) |
|
(39,083 |
) |
|
(31,159 |
) |
||||
| Amortization of acquired intangible assets |
|
(2,575 |
) |
|
(2,710 |
) |
|
(10,891 |
) |
|
(10,944 |
) |
||||
| Non-GAAP sales and marketing | $ |
34,163 |
|
$ |
28,042 |
|
$ |
129,895 |
|
$ |
110,542 |
|
||||
| General and administrative | ||||||||||||||||
| GAAP general and administrative | $ |
29,225 |
|
$ |
29,281 |
|
$ |
120,803 |
|
$ |
126,845 |
|
||||
| Stock-based compensation |
|
(9,126 |
) |
|
(10,198 |
) |
|
(33,195 |
) |
|
(55,083 |
) |
||||
| Executive transition costs |
|
— |
|
|
— |
|
|
(4,207 |
) |
|
— |
|
||||
| Acquisition-related expenses |
|
— |
|
|
(149 |
) |
|
(1,970 |
) |
|
(2,555 |
) |
||||
| Non-GAAP general and administrative | $ |
20,099 |
|
$ |
18,934 |
|
$ |
81,431 |
|
$ |
69,207 |
|
||||
| Operating loss | ||||||||||||||||
| GAAP operating loss | $ |
(48,462 |
) |
$ |
(56,656 |
) |
$ |
(246,199 |
) |
$ |
(219,021 |
) |
||||
| Stock-based compensation |
|
31,418 |
|
|
39,588 |
|
|
142,763 |
|
|
140,488 |
|
||||
| Executive transition costs |
|
— |
|
|
— |
|
|
4,207 |
|
|
— |
|
||||
| Amortization of acquired intangible assets |
|
5,050 |
|
|
5,185 |
|
|
20,791 |
|
|
20,844 |
|
||||
| Acquisition-related expenses |
|
— |
|
|
149 |
|
|
1,970 |
|
|
2,555 |
|
||||
| Non-GAAP operating loss | $ |
(11,994 |
) |
$ |
(11,734 |
) |
$ |
(76,468 |
) |
$ |
(55,134 |
) |
||||
| Net loss | ||||||||||||||||
| GAAP net loss | $ |
(46,653 |
) |
$ |
(57,521 |
) |
$ |
(190,774 |
) |
$ |
(222,697 |
) |
||||
| Stock-based compensation |
|
31,418 |
|
|
39,588 |
|
|
142,763 |
|
|
140,488 |
|
||||
| Executive transition costs |
|
— |
|
|
— |
|
|
4,207 |
|
|
— |
|
||||
| Amortization of acquired intangible assets |
|
5,050 |
|
|
5,185 |
|
|
20,791 |
|
|
20,844 |
|
||||
| Acquisition-related expenses |
|
— |
|
|
149 |
|
|
1,970 |
|
|
2,555 |
|
||||
| Net gain on extinguishment of debt |
|
— |
|
|
— |
|
|
(54,391 |
) |
|
— |
|
||||
| Amortization of debt discount and issuance costs |
|
716 |
|
|
947 |
|
|
3,169 |
|
|
2,907 |
|
||||
| Non-GAAP loss | $ |
(9,469 |
) |
$ |
(11,652 |
) |
$ |
(72,265 |
) |
$ |
(55,903 |
) |
||||
| Non-GAAP net loss per common share—basic and diluted | $ |
(0.08 |
) |
$ |
(0.10 |
) |
$ |
(0.59 |
) |
$ |
(0.48 |
) |
||||
| Weighted average basic and diluted common shares |
|
123,587 |
|
|
118,161 |
|
|
121,723 |
|
|
116,053 |
|
||||
Three months ended
|
|
Year ended
|
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|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
||
| Adjusted EBITDA | ||||||||||||||||
| GAAP net loss | $ |
(46,653 |
) |
$ |
(57,521 |
) |
$ |
(190,774 |
) |
$ |
(222,697 |
) |
||||
| Stock-based compensation |
|
31,418 |
|
|
39,588 |
|
|
142,763 |
|
|
140,488 |
|
||||
| Executive transition costs |
|
— |
|
|
— |
|
|
4,207 |
|
|
— |
|
||||
| Depreciation and other amortization |
|
11,903 |
|
|
8,228 |
|
|
43,524 |
|
|
29,208 |
|
||||
| Amortization of acquired intangible assets |
|
5,050 |
|
|
5,185 |
|
|
20,791 |
|
|
20,844 |
|
||||
| Acquisition-related expenses |
|
— |
|
|
149 |
|
|
1,970 |
|
|
2,555 |
|
||||
| Interest income |
|
(2,894 |
) |
|
(552 |
) |
|
(7,044 |
) |
|
(1,282 |
) |
||||
| Interest expense |
|
638 |
|
|
1,593 |
|
|
2,718 |
|
|
5,245 |
|
||||
| Amortization of debt discount and issuance costs |
|
716 |
|
|
947 |
|
|
3,169 |
|
|
2,907 |
|
||||
| Net gain on extinguishment of debt |
|
— |
|
|
— |
|
|
(54,391 |
) |
|
— |
|
||||
| Other expense (income) |
|
(46 |
) |
|
(201 |
) |
|
29 |
|
|
(356 |
) |
||||
| Income tax expense (benefit) |
|
(223 |
) |
|
25 |
|
|
94 |
|
|
69 |
|
||||
| Adjusted EBITDA | $ |
(91 |
) |
$ |
(2,559 |
) |
$ |
(32,944 |
) |
$ |
(23,019 |
) |
||||
| Condensed Consolidated Balance Sheets | ||||||||
| (in thousands) | ||||||||
As of
|
|
As of
|
||||||
(unaudited) |
|
(audited) |
||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ |
143,391 |
|
$ |
166,068 |
|
||
| Marketable securities, current |
|
374,581 |
|
|
361,795 |
|
||
| Accounts receivable, net of allowance for credit losses |
|
89,578 |
|
|
64,625 |
|
||
| Prepaid expenses and other current assets |
|
28,933 |
|
|
32,160 |
|
||
| Total current assets |
|
636,483 |
|
|
624,648 |
|
||
| Property and equipment, net |
|
180,378 |
|
|
166,961 |
|
||
| Operating lease right-of-use assets, net |
|
68,440 |
|
|
69,631 |
|
||
|
670,185 |
|
|
636,805 |
|
|||
| Intangible assets, net |
|
82,900 |
|
|
102,596 |
|
||
| Marketable securities, non-current |
|
165,105 |
|
|
528,911 |
|
||
| Other assets |
|
92,622 |
|
|
29,468 |
|
||
| Total assets | $ |
1,896,113 |
|
$ |
2,159,020 |
|
||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ |
4,786 |
|
$ |
9,257 |
|
||
| Accrued expenses |
|
61,161 |
|
|
36,112 |
|
||
| Finance lease liabilities, current |
|
28,954 |
|
|
21,125 |
|
||
| Operating lease liabilities, current |
|
23,026 |
|
|
20,271 |
|
||
| Other current liabilities |
|
34,394 |
|
|
45,107 |
|
||
| Total current liabilities |
|
152,321 |
|
|
131,872 |
|
||
| Long-term debt |
|
704,710 |
|
|
933,205 |
|
||
| Finance lease liabilities, non-current |
|
15,507 |
|
|
22,293 |
|
||
| Operating lease liabilities, non-current |
|
61,341 |
|
|
55,114 |
|
||
| Other long-term liabilities |
|
7,076 |
|
|
2,583 |
|
||
| Total liabilities |
|
940,955 |
|
|
1,145,067 |
|
||
| Stockholders’ equity: | ||||||||
| Class A common stock |
|
2 |
|
|
2 |
|
||
| Additional paid-in capital |
|
1,666,106 |
|
|
1,527,468 |
|
||
| Accumulated other comprehensive loss |
|
(9,286 |
) |
|
(2,627 |
) |
||
| Accumulated deficit |
|
(701,664 |
) |
|
(510,890 |
) |
||
| Total stockholders’ equity |
|
955,158 |
|
|
1,013,953 |
|
||
| Total liabilities and stockholders’ equity | $ |
1,896,113 |
|
$ |
2,159,020 |
|
||
| Condensed Consolidated Statements of Cash Flows | ||||||||||||||||
| (in thousands, unaudited) | ||||||||||||||||
Three months ended
|
|
Year ended
|
||||||||||||||
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
||
| Cash flows from operating activities: | ||||||||||||||||
| Net loss | $ |
(46,653 |
) |
$ |
(57,521 |
) |
$ |
(190,774 |
) |
$ |
(222,697 |
) |
||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
| Depreciation expense |
|
11,371 |
|
|
8,089 |
|
|
42,619 |
|
|
28,799 |
|
||||
| Amortization of intangible assets |
|
5,582 |
|
|
5,309 |
|
|
21,696 |
|
|
21,238 |
|
||||
| Non-cash lease expense |
|
7,835 |
|
|
7,065 |
|
|
29,714 |
|
|
26,883 |
|
||||
| Amortization of debt discount and issuance costs |
|
715 |
|
|
950 |
|
|
3,169 |
|
|
3,185 |
|
||||
| Amortization of deferred contract costs |
|
2,896 |
|
|
1,727 |
|
|
8,916 |
|
|
6,294 |
|
||||
| Stock-based compensation |
|
31,418 |
|
|
39,588 |
|
|
145,796 |
|
|
140,488 |
|
||||
| Provision for credit losses |
|
624 |
|
|
155 |
|
|
2,406 |
|
|
196 |
|
||||
| Interest paid for finance lease |
|
(538 |
) |
|
(495 |
) |
|
(2,381 |
) |
|
(1,754 |
) |
||||
| (Gain) loss on disposals of property and equipment |
|
— |
|
|
(123 |
) |
|
854 |
|
|
(300 |
) |
||||
| Amortization and accretion of discounts and premiums on investments |
|
515 |
|
|
987 |
|
|
3,137 |
|
|
2,221 |
|
||||
| Impairment of operating ROU assets |
|
2,083 |
|
|
— |
|
|
2,083 |
|
|
— |
|
||||
| Net gain on extinguishment of debt |
|
— |
|
|
— |
|
|
(54,391 |
) |
|
— |
|
||||
| Other adjustments |
|
3,980 |
|
|
(258 |
) |
|
3,688 |
|
|
4 |
|
||||
| Changes in operating assets and liabilities: | ||||||||||||||||
| Accounts receivable |
|
(17,288 |
) |
|
(10,546 |
) |
|
(27,359 |
) |
|
(14,563 |
) |
||||
| Prepaid expenses and other current assets |
|
(971 |
) |
|
725 |
|
|
(6,758 |
) |
|
(4,777 |
) |
||||
| Other assets |
|
(15,492 |
) |
|
(3,103 |
) |
|
(35,396 |
) |
|
(10,423 |
) |
||||
| Accounts payable |
|
(1,267 |
) |
|
1,799 |
|
|
(4,724 |
) |
|
146 |
|
||||
| Accrued expenses |
|
3,799 |
|
|
1,548 |
|
|
8,289 |
|
|
4,261 |
|
||||
| Operating lease liabilities |
|
(6,377 |
) |
|
(6,712 |
) |
|
(27,044 |
) |
|
(26,447 |
) |
||||
| Other liabilities |
|
5,640 |
|
|
2,908 |
|
|
6,828 |
|
|
8,764 |
|
||||
| Net cash used in operating activities |
|
(12,128 |
) |
|
(7,908 |
) |
|
(69,632 |
) |
|
(38,482 |
) |
||||
| Cash flows from investing activities: | ||||||||||||||||
| Purchases of marketable securities |
|
— |
|
|
(150,586 |
) |
|
(355,479 |
) |
|
(928,155 |
) |
||||
| Sales of marketable securities |
|
65 |
|
|
2,291 |
|
|
161,918 |
|
|
66,527 |
|
||||
| Maturities of marketable securities |
|
94,303 |
|
|
45,232 |
|
|
535,040 |
|
|
118,085 |
|
||||
| Business acquisitions, net of cash acquired |
|
1,843 |
|
|
(1,169 |
) |
|
(25,902 |
) |
|
(1,169 |
) |
||||
| Advance payment for purchase of property and equipment |
|
(10,923 |
) |
|
— |
|
|
(42,197 |
) |
|
— |
|
||||
| Purchases of property and equipment |
|
(8,529 |
) |
|
(3,549 |
) |
|
(19,975 |
) |
|
(34,816 |
) |
||||
| Proceeds from sale of property and equipment |
|
126 |
|
|
297 |
|
|
492 |
|
|
588 |
|
||||
| Capitalized internal-use software |
|
(4,290 |
) |
|
(3,180 |
) |
|
(18,146 |
) |
|
(13,479 |
) |
||||
| Purchases of intangible assets |
|
— |
|
|
— |
|
|
— |
|
|
(2,092 |
) |
||||
| Net cash (used in) provided by investing activities |
|
72,595 |
|
|
(110,664 |
) |
|
235,751 |
|
|
(794,511 |
) |
||||
| Cash flows from financing activities: | ||||||||||||||||
| Issuance of convertible note, net of issuance costs |
|
— |
|
|
— |
|
|
— |
|
|
930,775 |
|
||||
| Payments of debt issuance costs |
|
— |
|
|
— |
|
|
— |
|
|
(1,351 |
) |
||||
| Repayments of notes payable |
|
— |
|
|
— |
|
|
(177,082 |
) |
|
— |
|
||||
| Repayments of finance lease liabilities |
|
(4,427 |
) |
|
(3,004 |
) |
|
(22,532 |
) |
|
(13,568 |
) |
||||
| Cash received for restricted stock sold in advance of vesting conditions |
|
— |
|
|
— |
|
|
10,655 |
|
|
— |
|
||||
| Cash paid for early sale of restricted shares |
|
— |
|
|
— |
|
|
(10,655 |
) |
|
— |
|
||||
| Proceeds from employee stock purchase plan |
|
(949 |
) |
|
2,075 |
|
|
4,777 |
|
|
8,069 |
|
||||
| Proceeds from exercise of vested stock options |
|
364 |
|
|
3,532 |
|
|
5,688 |
|
|
12,626 |
|
||||
| Net cash (used in) provided by financing activities |
|
(5,012 |
) |
|
2,603 |
|
|
(189,149 |
) |
|
936,551 |
|
||||
| Effects of exchange rate changes on cash, cash equivalents, and restricted cash |
|
39 |
|
|
(94 |
) |
|
(390 |
) |
|
(477 |
) |
||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
55,494 |
|
|
(116,063 |
) |
|
(23,420 |
) |
|
103,081 |
|
||||
| Cash, cash equivalents, and restricted cash at beginning of period |
|
88,047 |
|
|
283,024 |
|
|
166,961 |
|
|
63,880 |
|
||||
| Cash, cash equivalents, and restricted cash at end of period |
|
143,541 |
|
|
166,961 |
|
|
143,541 |
|
|
166,961 |
|
||||
| Reconciliation of cash, cash equivalents, and restricted cash as shown in the statements of cash flows: | ||||||||||||||||
| Cash and cash equivalents |
|
143,391 |
|
|
166,068 |
|
|
143,391 |
|
|
166,068 |
|
||||
| Restricted cash, current |
|
150 |
|
|
— |
|
|
150 |
|
|
— |
|
||||
| Restricted cash, non-current |
|
— |
|
|
893 |
|
|
— |
|
|
893 |
|
||||
| Total cash, cash equivalents, and restricted cash | $ |
143,541 |
|
$ |
166,961 |
|
$ |
143,541 |
|
$ |
166,961 |
|
||||
| Free Cash Flow | ||||||||||||||||
| (in thousands, unaudited) | ||||||||||||||||
Three months ended
|
|
Year ended
|
||||||||||||||
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
||
| Cash flow used in operations | $ |
(12,128 |
) |
$ |
(7,908 |
) |
$ |
(69,632 |
) |
$ |
(38,482 |
) |
||||
| Capital expenditures(1) |
|
(17,120 |
) |
|
(9,436 |
) |
|
(60,161 |
) |
|
(61,275 |
) |
||||
| Advance payment for purchase of property and equipment(2) |
|
(10,923 |
) |
|
— |
|
|
(42,197 |
) |
|
— |
|
||||
| Free Cash Flow | $ |
(40,171 |
) |
$ |
(17,344 |
) |
$ |
(171,990 |
) |
$ |
(99,757 |
) |
||||
| __________ | ||||||||||
(1) |
Capital expenditures are defined as cash used for purchases of property and equipment, net of proceeds from sale of property and equipment, and capitalized internal-use software and payments on finance lease obligations, as reflected in our statement of cash flows. | |||||||||
(2) |
Advance payments for purchase of property and equipment relate to prepayments made for our capital expenditures in advance of receiving the asset, as reflected in our statement of cash flows. | |||||||||
Source:
View source version on businesswire.com: https://www.businesswire.com/news/home/20230215005605/en/
Investor Contact:
ir@fastly.com
Media Contact:
press@fastly.com
Source:
FAQ
What were Fastly's Q4 2022 revenue results?
What is Fastly's guidance for Q1 2023?
How did Fastly's net loss change in Q4 2022 compared to Q4 2021?
What was Fastly's trailing 12-month net retention rate for Q4 2022?
How much did Fastly's gross margin improve in Q4 2022?
