Fastly Announces Third Quarter 2022 Financial Results
Fastly, Inc. (NYSE: FSLY) reported a record quarterly revenue of $108.5 million for Q3 2022, surpassing guidance with 25% annual growth. The GAAP gross margin decreased to 48.6% from 52.4% year-over-year. The company experienced a net loss of $63.4 million, translating to a loss per share of $0.52. Key metrics included a net retention rate increase to 118% and average enterprise customer spend rising 4% to $759K. Fastly anticipates Q4 revenue between $112-$116 million, maintaining a focus on expanding its cross-selling strategy.
- Total revenue of $108.5 million, up 25% year-over-year.
- Trailing 12-month net retention rate increased to 118%.
- Dollar-based net expansion rate improved to 122%.
- GAAP gross margin decreased to 48.6% from 52.4% year-over-year.
- Net loss of $63.4 million compared to $56.2 million in Q3 2021.
-
Record quarterly revenue exceeded high-end of quarterly guidance range and grew
25% annually compared to prior quarter - GAAP gross margin grew 370 bps sequentially; non-GAAP gross margin grew 320 basis points sequentially
-
Average enterprise customer spend grew
4% sequentially
“We are pleased to announce another record quarter, continuing our revenue momentum into 2022 and exceeding the top end of our guidance range while improving our gross margin significantly,” said
“I’m excited that Fastly’s platform and differentiated products are driving both amazing new customer acquisition and increased existing customer usage,” continued Nightingale. “Our portfolio expansion strategy is working and we will be focusing our efforts on accelerating our cross-selling motion to drive growth into 2023.”
| Results Summary | ||||||||||||||||
Three months ended
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||||||||||||||
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
||
| Revenue | $ |
108,504 |
|
$ |
86,735 |
|
$ |
313,404 |
|
$ |
256,613 |
|
||||
| Gross Margin | ||||||||||||||||
| GAAP gross margin |
|
48.6 |
% |
|
52.4 |
% |
|
47.0 |
% |
|
53.6 |
% |
||||
| Non-GAAP gross margin |
|
53.6 |
% |
|
57.5 |
% |
|
52.2 |
% |
|
58.4 |
% |
||||
| Operating loss | ||||||||||||||||
| GAAP operating loss | $ |
(65,765 |
) |
$ |
(54,934 |
) |
$ |
(197,737 |
) |
$ |
(162,365 |
) |
||||
| Non-GAAP operating loss | $ |
(19,841 |
) |
$ |
(12,935 |
) |
$ |
(64,474 |
) |
$ |
(43,400 |
) |
||||
| Net loss per share | ||||||||||||||||
| GAAP net loss per common share—basic and diluted | $ |
(0.52 |
) |
$ |
(0.48 |
) |
$ |
(1.19 |
) |
$ |
(1.43 |
) |
||||
| Non-GAAP net loss per common share—basic and diluted | $ |
(0.14 |
) |
$ |
(0.11 |
) |
$ |
(0.52 |
) |
$ |
(0.38 |
) |
||||
Third Quarter 2022 Financial Summary
-
Total revenue of
$108.5 million 6% sequential growth and25% year-over-year growth. -
GAAP gross margin of
48.6% , compared to52.4% in the third quarter of 2021. Non-GAAP gross margin of53.6% , compared to57.5% in the third quarter of 2021. -
GAAP net loss of
$63.4 million $56.2 million $16.8 million $13.2 million -
GAAP net loss per basic and diluted shares of
$0.52 $0.48 $0.14 $0.11
Key Metrics
-
Trailing 12-month net retention rate (NRR LTM)1 increased to
118% in the third quarter from117% in the second quarter 2022. -
Dollar-Based Net Expansion Rate (DBNER)2 increased to
122% in the third quarter from120% in the second quarter 2022. - Total customer count of 2,925 in the third quarter, of which 482 were enterprise3 customers.
-
Average enterprise customer spend of
$759 K4% 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.
Third Quarter Business Highlights
-
Todd Nightingale joined Fastly as CEO, bringing his experience from Cisco where he led business strategy and development efforts for its multi-billion dollar networking portfolio as Executive VP andGM of Enterprise Networking and Cloud. - Named a Challenger in Gartner® Magic Quadrant™ for Web Application and API Protection (WAAP). Along with our recent recognition as the Customers’ Choice for Web Application and API Protection for a fourth consecutive year, this validates Fastly’s first and only unified solution that protects Internet scale in any environment.
- Introduced the AWS Lambda agent for the Fastly Next-Gen WAF, further enhancing the ability to deploy Fastly’s Next-Gen WAF in more places and to support serverless and FaaS initiatives with one of the most popular serverless solutions on the market.
- Released general availability of a frictionless security solution, GraphQL inspection with Next-Gen WAF, supporting popular GraphQL APIs with GraphQL visibility and protection available right out of the box. Several customers in media streaming, financial services, and ecommerce achieve threat protection on their GraphQL with our turnkey solution.
- Selected by AWS as VIP Marketing Accelerate Partner to expand sales and distribution of Fastly Next-Gen WAF.
Fourth Quarter and Full Year 2022 Guidance
| Q4 2022 | Full Year 2022 | |||
| 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: |
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Time: |
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Webcast: |
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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, 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 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 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.
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 123.6 million in Q4 2022 and 121.6 million for the full year 2022.
5 Non-GAAP Net Loss per share is calculated as Non-GAAP Net Loss divided by weighted average basic shares for 2022.
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (in thousands, except per share amounts, unaudited) | ||||||||||||||||
Three months ended
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||||||||||||||
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
||
| Revenue | $ |
108,504 |
|
$ |
86,735 |
|
$ |
313,404 |
|
$ |
256,613 |
|
||||
| Cost of revenue(1) |
|
55,825 |
|
|
41,244 |
|
|
166,206 |
|
|
119,058 |
|
||||
| Gross profit |
|
52,679 |
|
|
45,491 |
|
|
147,198 |
|
|
137,555 |
|
||||
| Operating expenses: | ||||||||||||||||
| Research and development(1) |
|
38,957 |
|
|
32,528 |
|
|
118,111 |
|
|
91,862 |
|
||||
| Sales and marketing(1) |
|
47,006 |
|
|
39,288 |
|
|
135,246 |
|
|
110,494 |
|
||||
| General and administrative(1) |
|
32,481 |
|
|
28,609 |
|
|
91,578 |
|
|
97,564 |
|
||||
| Total operating expenses |
|
118,444 |
|
|
100,425 |
|
|
344,935 |
|
|
299,920 |
|
||||
| Loss from operations |
|
(65,765 |
) |
|
(54,934 |
) |
|
(197,737 |
) |
|
(162,365 |
) |
||||
| Net gain on extinguishment of debt |
|
— |
|
|
— |
|
|
54,391 |
|
|
— |
|
||||
| Interest income |
|
1,967 |
|
|
280 |
|
|
4,150 |
|
|
730 |
|
||||
| Interest expense |
|
(1,381 |
) |
|
(1,555 |
) |
|
(4,533 |
) |
|
(3,652 |
) |
||||
| Other income (expense) |
|
1,877 |
|
|
41 |
|
|
(75 |
) |
|
155 |
|
||||
| Loss before income taxes |
|
(63,302 |
) |
|
(56,168 |
) |
|
(143,804 |
) |
|
(165,132 |
) |
||||
| Income tax expense |
|
118 |
|
|
30 |
|
|
317 |
|
|
44 |
|
||||
| Net loss | $ |
(63,420 |
) |
$ |
(56,198 |
) |
$ |
(144,121 |
) |
$ |
(165,176 |
) |
||||
| Net income (loss) per share attributable to common stockholders, basic and diluted | $ |
(0.52 |
) |
$ |
(0.48 |
) |
$ |
(1.19 |
) |
$ |
(1.43 |
) |
||||
| Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic and diluted |
|
122,339 |
|
|
116,475 |
|
|
121,094 |
|
|
115,320 |
|
||||
| __________ | ||||||||||||||||
| (1)Includes stock-based compensation expense as follows: | ||||||||||||||||
Three months ended
|
|
Nine months ended
|
||||||||||||||
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
||
| Cost of revenue | $ |
2,978 |
|
$ |
1,897 |
|
$ |
9,112 |
|
$ |
4,911 |
|
||||
| Research and development |
|
14,488 |
|
|
14,752 |
|
|
46,966 |
|
|
31,344 |
|
||||
| Sales and marketing |
|
10,920 |
|
|
9,121 |
|
|
31,198 |
|
|
19,760 |
|
||||
| General and administrative |
|
10,992 |
|
|
10,866 |
|
|
27,102 |
|
|
44,885 |
|
||||
| Total | $ |
39,378 |
|
$ |
36,636 |
|
$ |
114,378 |
|
$ |
100,900 |
|
||||
| Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||||||
| (in thousands, unaudited) | ||||||||||||||||
Three months ended
|
|
Nine months ended
|
||||||||||||||
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
||
| Gross Profit | ||||||||||||||||
| GAAP gross profit | $ |
52,679 |
|
$ |
45,491 |
|
$ |
147,198 |
|
$ |
137,555 |
|
||||
| Stock-based compensation |
|
2,978 |
|
|
1,897 |
|
|
9,112 |
|
|
4,911 |
|
||||
| Amortization of acquired intangible assets |
|
2,475 |
|
|
2,475 |
|
|
7,425 |
|
|
7,425 |
|
||||
| Non-GAAP gross profit | $ |
58,132 |
|
$ |
49,863 |
|
$ |
163,735 |
|
$ |
149,891 |
|
||||
| GAAP gross margin |
|
48.6 |
% |
|
52.4 |
% |
|
47.0 |
% |
|
53.6 |
% |
||||
| Non-GAAP gross margin |
|
53.6 |
% |
|
57.5 |
% |
|
52.2 |
% |
|
58.4 |
% |
||||
| Research and development | ||||||||||||||||
| GAAP research and development | $ |
38,957 |
|
$ |
32,528 |
|
$ |
118,111 |
|
$ |
91,862 |
|
||||
| Stock-based compensation |
|
(14,488 |
) |
|
(14,752 |
) |
|
(46,966 |
) |
|
(31,344 |
) |
||||
| Non-GAAP research and development | $ |
24,469 |
|
$ |
17,776 |
|
$ |
71,145 |
|
$ |
60,518 |
|
||||
| Sales and marketing | ||||||||||||||||
| GAAP sales and marketing | $ |
47,006 |
|
$ |
39,288 |
|
$ |
135,246 |
|
$ |
110,494 |
|
||||
| Stock-based compensation |
|
(10,920 |
) |
|
(9,121 |
) |
|
(31,198 |
) |
|
(19,760 |
) |
||||
| Amortization of acquired intangible assets |
|
(2,897 |
) |
|
(2,709 |
) |
|
(8,316 |
) |
|
(8,234 |
) |
||||
| Non-GAAP sales and marketing | $ |
33,189 |
|
$ |
27,458 |
|
$ |
95,732 |
|
$ |
82,500 |
|
||||
| General and administrative | ||||||||||||||||
| GAAP general and administrative | $ |
32,481 |
|
$ |
28,609 |
|
$ |
91,578 |
|
$ |
97,564 |
|
||||
| Stock-based compensation |
|
(7,959 |
) |
|
(10,866 |
) |
|
(24,069 |
) |
|
(44,885 |
) |
||||
| Executive transition costs |
|
(4,207 |
) |
|
— |
|
|
(4,207 |
) |
|
— |
|
||||
| Acquisition-related expenses |
|
— |
|
|
(179 |
) |
|
(1,970 |
) |
|
(2,406 |
) |
||||
| Non-GAAP general and administrative | $ |
20,315 |
|
$ |
17,564 |
|
$ |
61,332 |
|
$ |
50,273 |
|
||||
| Operating loss | ||||||||||||||||
| GAAP operating loss | $ |
(65,765 |
) |
$ |
(54,934 |
) |
$ |
(197,737 |
) |
$ |
(162,365 |
) |
||||
| Stock-based compensation |
|
36,345 |
|
|
36,636 |
|
|
111,345 |
|
|
100,900 |
|
||||
| Executive transition costs |
|
4,207 |
|
|
— |
|
|
4,207 |
|
|
— |
|
||||
| Amortization of acquired intangible assets |
|
5,372 |
|
|
5,184 |
|
|
15,741 |
|
|
15,659 |
|
||||
| Acquisition-related expenses |
|
— |
|
|
179 |
|
|
1,970 |
|
|
2,406 |
|
||||
| Non-GAAP operating loss | $ |
(19,841 |
) |
$ |
(12,935 |
) |
$ |
(64,474 |
) |
$ |
(43,400 |
) |
||||
| Net loss | ||||||||||||||||
| GAAP net loss | $ |
(63,420 |
) |
$ |
(56,198 |
) |
$ |
(144,121 |
) |
$ |
(165,176 |
) |
||||
| Stock-based compensation |
|
36,345 |
|
|
36,636 |
|
|
111,345 |
|
|
100,900 |
|
||||
| Executive transition costs |
|
4,207 |
|
|
— |
|
|
4,207 |
|
|
— |
|
||||
| Amortization of acquired intangible assets |
|
5,372 |
|
|
5,184 |
|
|
15,741 |
|
|
15,659 |
|
||||
| Acquisition-related expenses |
|
— |
|
|
179 |
|
|
1,970 |
|
|
2,406 |
|
||||
| Net gain on extinguishment of debt |
|
— |
|
|
— |
|
|
(54,391 |
) |
|
— |
|
||||
| Amortization of debt discount and issuance costs |
|
714 |
|
|
967 |
|
|
2,453 |
|
|
1,960 |
|
||||
| Non-GAAP loss | $ |
(16,782 |
) |
$ |
(13,232 |
) |
$ |
(62,796 |
) |
$ |
(44,251 |
) |
||||
| Non-GAAP net loss per common share—basic and diluted | $ |
(0.14 |
) |
$ |
(0.11 |
) |
$ |
(0.52 |
) |
$ |
(0.38 |
) |
||||
| Weighted average basic and diluted common shares |
|
122,339 |
|
|
116,475 |
|
|
121,094 |
|
|
115,320 |
|
||||
Three months ended
|
|
Nine months ended
|
||||||||||||||
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
||
| Adjusted EBITDA | ||||||||||||||||
| GAAP net loss | $ |
(63,420 |
) |
$ |
(56,198 |
) |
$ |
(144,121 |
) |
$ |
(165,176 |
) |
||||
| Stock-based compensation |
|
36,345 |
|
|
36,636 |
|
|
111,345 |
|
|
100,900 |
|
||||
| Executive transition costs |
|
4,207 |
|
|
— |
|
|
4,207 |
|
|
— |
|
||||
| Depreciation and other amortization |
|
10,786 |
|
|
7,489 |
|
|
31,621 |
|
|
20,980 |
|
||||
| Amortization of acquired intangible assets |
|
5,372 |
|
|
5,184 |
|
|
15,741 |
|
|
15,659 |
|
||||
| Acquisition-related expenses |
|
— |
|
|
179 |
|
|
1,970 |
|
|
2,406 |
|
||||
| Interest income |
|
(1,967 |
) |
|
(280 |
) |
|
(4,150 |
) |
|
(730 |
) |
||||
| Interest expense |
|
667 |
|
|
588 |
|
|
2,080 |
|
|
1,692 |
|
||||
| Amortization of debt discount and issuance costs |
|
714 |
|
|
967 |
|
|
2,453 |
|
|
1,960 |
|
||||
| Net gain on extinguishment of debt |
|
— |
|
|
— |
|
|
(54,391 |
) |
|
— |
|
||||
| Other expense (income) |
|
(1,877 |
) |
|
(41 |
) |
|
75 |
|
|
(155 |
) |
||||
| Income tax expense (benefit) |
|
118 |
|
|
30 |
|
|
317 |
|
|
44 |
|
||||
| Adjusted EBITDA | $ |
(9,055 |
) |
$ |
(5,446 |
) |
$ |
(32,853 |
) |
$ |
(22,420 |
) |
||||
| Condensed Consolidated Balance Sheets | ||||||||
| (in thousands) | ||||||||
| As of |
As of |
|||||||
| (unaudited) | (audited) | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ |
87,897 |
|
$ |
166,068 |
|
||
| Marketable securities, current |
|
445,048 |
|
|
361,795 |
|
||
| Accounts receivable, net of allowance for credit losses |
|
72,914 |
|
|
64,625 |
|
||
| Prepaid expenses and other current assets |
|
31,321 |
|
|
32,160 |
|
||
| Total current assets |
|
637,180 |
|
|
624,648 |
|
||
| Property and equipment, net |
|
179,080 |
|
|
166,961 |
|
||
| Operating lease right-of-use assets, net |
|
72,374 |
|
|
69,631 |
|
||
|
670,158 |
|
|
636,805 |
|
|||
| Intangible assets, net |
|
88,482 |
|
|
102,596 |
|
||
| Marketable securities, non-current |
|
186,066 |
|
|
528,911 |
|
||
| Other assets |
|
73,258 |
|
|
29,468 |
|
||
| Total assets | $ |
1,906,598 |
|
$ |
2,159,020 |
|
||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ |
8,265 |
|
$ |
9,257 |
|
||
| Accrued expenses |
|
54,186 |
|
|
36,112 |
|
||
| Finance lease liabilities, current |
|
27,807 |
|
|
21,125 |
|
||
| Operating lease liabilities, current |
|
20,919 |
|
|
20,271 |
|
||
| Other current liabilities |
|
33,422 |
|
|
45,107 |
|
||
| Total current liabilities |
|
144,599 |
|
|
131,872 |
|
||
| Long-term debt |
|
704,042 |
|
|
933,205 |
|
||
| Finance lease liabilities, noncurrent |
|
21,027 |
|
|
22,293 |
|
||
| Operating lease liabilities, noncurrent |
|
62,750 |
|
|
55,114 |
|
||
| Other long-term liabilities |
|
7,201 |
|
|
2,583 |
|
||
| Total liabilities |
|
939,619 |
|
|
1,145,067 |
|
||
| Stockholders’ equity: | ||||||||
| Class A common stock |
|
2 |
|
|
2 |
|
||
| Additional paid-in capital |
|
1,634,666 |
|
|
1,527,468 |
|
||
| Accumulated other comprehensive loss |
|
(12,678 |
) |
|
(2,627 |
) |
||
| Accumulated deficit |
|
(655,011 |
) |
|
(510,890 |
) |
||
| Total stockholders’ equity |
|
966,979 |
|
|
1,013,953 |
|
||
| Total liabilities and stockholders’ equity | $ |
1,906,598 |
|
$ |
2,159,020 |
|
||
| Condensed Consolidated Statements of Cash Flows | ||||||||||||||||
| (in thousands, unaudited) | ||||||||||||||||
Three months ended
|
|
Nine months ended
|
||||||||||||||
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
||
| Cash flows from operating activities: | ||||||||||||||||
| Net loss | $ |
(63,420 |
) |
$ |
(56,198 |
) |
$ |
(144,121 |
) |
$ |
(165,176 |
) |
||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
| Depreciation expense |
|
10,662 |
|
|
7,364 |
|
|
31,248 |
|
|
20,710 |
|
||||
| Amortization of intangible assets |
|
5,496 |
|
|
5,309 |
|
|
16,114 |
|
|
15,929 |
|
||||
| Amortization of right-of-use assets and other |
|
8,501 |
|
|
7,158 |
|
|
21,879 |
|
|
19,818 |
|
||||
| Amortization of debt discount and issuance costs |
|
715 |
|
|
966 |
|
|
2,454 |
|
|
2,235 |
|
||||
| Amortization of deferred contract costs |
|
2,031 |
|
|
1,621 |
|
|
6,020 |
|
|
4,567 |
|
||||
| Stock-based compensation |
|
39,378 |
|
|
36,636 |
|
|
114,378 |
|
|
100,900 |
|
||||
| Provision for credit losses |
|
1,253 |
|
|
236 |
|
|
1,782 |
|
|
41 |
|
||||
| Interest on finance lease |
|
(603 |
) |
|
(524 |
) |
|
(1,843 |
) |
|
(1,259 |
) |
||||
| Loss on disposals of property and equipment |
|
— |
|
|
(204 |
) |
|
854 |
|
|
(177 |
) |
||||
| Amortization and accretion of discounts and premiums on investments |
|
771 |
|
|
— |
|
|
2,622 |
|
|
— |
|
||||
| Net gain on extinguishment of debt |
|
— |
|
|
— |
|
|
(54,391 |
) |
|
— |
|
||||
| Other adjustments |
|
(353 |
) |
|
683 |
|
|
(292 |
) |
|
1,496 |
|
||||
| Changes in operating assets and liabilities: | ||||||||||||||||
| Accounts receivable |
|
(5,949 |
) |
|
1,595 |
|
|
(10,071 |
) |
|
(4,017 |
) |
||||
| Prepaid expenses and other current assets |
|
(975 |
) |
|
(8 |
) |
|
(5,787 |
) |
|
(5,502 |
) |
||||
| Other assets |
|
(13,505 |
) |
|
(2,231 |
) |
|
(19,904 |
) |
|
(7,320 |
) |
||||
| Accounts payable |
|
(4,301 |
) |
|
(1,815 |
) |
|
(3,457 |
) |
|
(1,653 |
) |
||||
| Accrued expenses |
|
3,328 |
|
|
6,548 |
|
|
4,490 |
|
|
2,713 |
|
||||
| Operating lease liabilities |
|
(7,830 |
) |
|
(6,879 |
) |
|
(20,667 |
) |
|
(19,735 |
) |
||||
| Other liabilities |
|
(2,833 |
) |
|
(2,948 |
) |
|
1,188 |
|
|
5,856 |
|
||||
| Net cash used in operating activities |
|
(27,634 |
) |
|
(2,691 |
) |
|
(57,504 |
) |
|
(30,574 |
) |
||||
| Cash flows from investing activities: | ||||||||||||||||
| Purchases of marketable securities |
|
— |
|
|
(443,701 |
) |
|
(355,479 |
) |
|
(777,569 |
) |
||||
| Sales of marketable securities |
|
— |
|
|
51,739 |
|
|
161,853 |
|
|
64,236 |
|
||||
| Maturities of marketable securities |
|
72,857 |
|
|
15,600 |
|
|
440,737 |
|
|
72,853 |
|
||||
| Business acquisitions, net of cash acquired and other related payments |
|
(1,746 |
) |
|
— |
|
|
(27,745 |
) |
|
— |
|
||||
| Advance payment for purchase of property and equipment |
|
(1,964 |
) |
|
— |
|
|
(31,274 |
) |
|
— |
|
||||
| Purchases of property and equipment |
|
(2,631 |
) |
|
(20,254 |
) |
|
(11,446 |
) |
|
(31,267 |
) |
||||
| Proceeds from sale of property and equipment |
|
125 |
|
|
291 |
|
|
366 |
|
|
291 |
|
||||
| Capitalized internal-use software |
|
(5,120 |
) |
|
(7,619 |
) |
|
(13,856 |
) |
|
(10,299 |
) |
||||
| Purchase of intangible assets |
|
— |
|
|
1 |
|
|
— |
|
|
(2,092 |
) |
||||
| Net cash provided by (used in) investing activities |
|
61,521 |
|
|
(403,943 |
) |
|
163,156 |
|
|
(683,847 |
) |
||||
| Cash flows from financing activities: | ||||||||||||||||
| Issuance of convertible note, net of issuance costs |
|
— |
|
|
— |
|
|
— |
|
|
930,775 |
|
||||
| Payments of other debt issuance costs |
|
— |
|
|
— |
|
|
— |
|
|
(1,351 |
) |
||||
| Net cash paid for debt extinguishment |
|
— |
|
|
— |
|
|
(177,082 |
) |
|
— |
|
||||
| Repayments of finance lease liabilities |
|
(7,076 |
) |
|
(3,985 |
) |
|
(18,105 |
) |
|
(10,564 |
) |
||||
| Cash received for restricted stock sold in advance of vesting conditions |
|
— |
|
|
— |
|
|
10,655 |
|
|
— |
|
||||
| Cash paid for early sale of restricted shares |
|
(3,618 |
) |
|
— |
|
|
(10,655 |
) |
|
— |
|
||||
| Proceeds from exercise of vested stock options |
|
555 |
|
|
1,430 |
|
|
5,324 |
|
|
9,094 |
|
||||
| Proceeds from employee stock purchase plan |
|
1,749 |
|
|
3,489 |
|
|
5,726 |
|
|
5,994 |
|
||||
| Net cash provided by (used in) financing activities |
|
(8,390 |
) |
|
934 |
|
|
(184,137 |
) |
|
933,948 |
|
||||
| Effects of exchange rate changes on cash and cash equivalents |
|
(110 |
) |
|
(242 |
) |
|
(429 |
) |
|
(383 |
) |
||||
| Net increase (decrease) in cash and cash equivalents |
|
25,387 |
|
|
(405,942 |
) |
|
(78,914 |
) |
|
219,144 |
|
||||
| Cash and cash equivalents and restricted cash at beginning of period |
|
62,660 |
|
|
688,966 |
|
|
166,961 |
|
|
63,880 |
|
||||
| Cash and cash equivalents and restricted cash at end of period |
|
88,047 |
|
|
283,024 |
|
|
88,047 |
|
|
283,024 |
|
||||
| Reconciliation of cash, cash equivalents, and restricted cash as shown in the statements of cash flows: | ||||||||||||||||
| Cash and cash equivalents |
|
87,897 |
|
|
282,131 |
|
|
87,897 |
|
|
282,131 |
|
||||
| Restricted cash, current |
|
150 |
|
|
— |
|
|
150 |
|
|
— |
|
||||
| Restricted cash, non-current |
|
— |
|
|
893 |
|
|
— |
|
|
893 |
|
||||
| Total cash, cash equivalents, and restricted cash | $ |
88,047 |
|
$ |
283,024 |
|
$ |
88,047 |
|
$ |
283,024 |
|
||||
| Free Cash Flow | ||||||||||||||||
| (in thousands, unaudited) | ||||||||||||||||
Three months ended
|
Nine months ended
|
|||||||||||||||
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
|||
| Cash flow used in operations | $ |
(27,634 |
) |
$ |
(2,691 |
) |
$ |
(57,504 |
) |
$ |
(30,574 |
) |
||||
| Capital expenditures(1) |
|
(14,702 |
) |
|
(31,567 |
) |
|
(43,041 |
) |
|
(51,839 |
) |
||||
| Advance payment for purchase of property and equipment(2) |
|
(1,964 |
) |
|
— |
|
|
(31,274 |
) |
|
— |
|
||||
| Free Cash Flow | $ |
(44,300 |
) |
$ |
(34,258 |
) |
$ |
(131,819 |
) |
$ |
(82,413 |
) |
||||
| __________ | ||||||||||||||||
| (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/20221102005747/en/
Investor Contact:
ir@fastly.com
Media Contact:
press@fastly.com
Source:
FAQ
What were Fastly's Q3 2022 revenue results?
What is Fastly's guidance for Q4 2022?
What is the net loss per share reported by Fastly for Q3 2022?
How did Fastly's gross margin perform in Q3 2022?
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