The earnings call reflects positive achievements in revenue growth, customer acquisition, and product expansion, with successful cost control measures leading to positive cash flow. However, challenges such as the decline in net retention rate and slower-than-expected security revenue growth, coupled with geopolitical uncertainties around TikTok, temper the optimism.

Company Guidance -

Q2 2025

During the Fastly First Quarter 2025 Earnings Conference Call, the company announced impressive results, exceeding the upper ends of both revenue and operating loss guidance ranges. Fastly increased its 2025 revenue guidance by $10 million and operating loss guidance by $3 million at their respective midpoints. The company reported $144.5 million in revenue, surpassing the original guidance range of $136 to $140 million, marking an 8% year-over-year growth. Fastly's gross margin was 57.3%, slightly better than anticipated, and the operating loss was $6 million, better than the guidance range of $11 million to $7 million loss. The company generated $8 million in positive free cash flow, nearing breakeven for the year. Fastly's customer count stood at 3,035, with 595 enterprise customers, and they onboarded 19 new enterprise customers with over $100,000 in annual revenue. The average enterprise customer spend increased by 4% quarter-over-quarter to $907,000. The top 10 customers accounted for 33% of revenue, down from 38% in the first quarter of 2024, while revenue outside the top 10 grew by 17% year-over-year, indicating strong diversification. Fastly also highlighted significant progress in its security portfolio, with security revenue growing 7% year-over-year. Looking ahead, Fastly anticipates a 9% annual growth for 2025, raising their prior guidance, with a cautious approach due to macro uncertainties and excluding U.S. TikTok revenue beyond June 19 from their guidance.

Revenue and Operating Loss Guidance Exceeded

Fastly surpassed the upper ends of both revenue and operating loss guidance ranges, leading to an increase in 2025 revenue guidance by $10 million and operating loss guidance by $3 million at their respective midpoints.

Positive Free Cash Flow

Fastly generated $8 million in positive free cash flow, marking progress towards breakeven for the year.

Customer and Revenue Growth

Revenue was $144.5 million, an 8% year-over-year increase. Enterprise customer count grew by 3%, and average enterprise customer spend increased by 4% quarter-over-quarter.

Diversified Revenue and Market Share Gains

Revenue outside of the top 10 customers grew 17% year-over-year. The top 10 customers represented a decreased share of total revenue, reflecting diversification.

Security and Product Expansion

Enhanced security offerings and product portfolio expansion, including AI bot detection, with a focus on cross-selling security solutions to existing customers.

Significant Growth in Compute and Emerging Products

Revenue from emerging products grew 64% year-over-year, driven primarily by compute products.

Improved Gross Margin and Cost Control

Gross margin was 57.3%, slightly better than projections. Cost controls and efficiency improvements have been implemented.

Fastly (FSLY) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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FSLY Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 06, 2025	2025 (Q2)	-0.05 / -	-0.07	―	―	―
May 07, 2025	2025 (Q1)	-0.07 / -0.05	-0.05	0.00% (0.00)	―
Feb 12, 2025	2024 (Q4)	>-0.01 / -0.03	0.01	-400.00% (-0.04)	―
Nov 06, 2024	2024 (Q3)	-0.06 / 0.02	-0.06	133.33% (+0.08)	―
Aug 07, 2024	2024 (Q2)	-0.08 / -0.07	-0.04	-75.00% (-0.03)	―
May 01, 2024	2024 (Q1)	-0.06 / -0.05	-0.09	44.44% (+0.04)	―
Feb 14, 2024	2023 (Q4)	-0.03 / 0.01	-0.08	112.50% (+0.09)	―
Nov 01, 2023	2023 (Q3)	-0.07 / -0.06	-0.14	57.14% (+0.08)	―
Aug 02, 2023	2023 (Q2)	-0.10 / -0.04	-0.23	82.61% (+0.19)	―
May 03, 2023	2023 (Q1)	-0.10 / -0.09	-0.15	40.00% (+0.06)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

FSLY Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 07, 2025	$6.03	$7.62	+26.37%
Feb 12, 2025	$10.07	$7.97	-20.85%
Nov 06, 2024	$8.16	$8.17	+0.12%
Aug 07, 2024	$6.84	$5.86	-14.33%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.