FSLY - Earnings call transcript Q1 2021

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Operator

Good afternoon. My name is Christian, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Fastly First Quarter 2021 Earnings Conference Call. [Operator Instructions]. I would now like to turn the conference over to your host, Ms. of President Vice Lukens, Investor Relations. Maria go please ahead. Ma'am,

Maria Lukens

our Hi, earnings XXXX you joining everyone. for first call. quarter Thank

We have Fastly with CEO, Joshua Bixby; and us CFO, today. Adriel Lares,

rest the and an call. of some Before the format your Relations letter a of website start, I lot the to details, reserve Since Investor everyone we brief questions. SEC the with about provides want on our make of ago. for opening published We about our the and a hour remarks shareholder we'll time remind usual letter

to Reconciliations not letter GAAP a comparable are We to directly financial for to be financial as uncertainties provided most call During this are materially law. and Also, available XXXX projected on non-GAAP be with we future non-GAAP Investor to our a differ. making of GAAP on letter implied look shareholder including could of substitute or and the These take statements, and the QX financial call, the Relations results the filings will this forward-looking discussion forward-looking note at on risks, to the in subject to our information today's as future Also, results. call. statements business, that our overall to based are cause certain our the expected measures. update obligation shareholder assumptions actual from and required by that call, forward-looking those could Please cause we disclaim date. any website. are that discuss a our growth factors except will statements any known statements results us intended statements, for our related of long-term SEC measures prospects. measures results, strategy, differ the These to during this performance unknown during

will the webcast our over to be call archived I'll turn website Joshua. this call With afterwards. and that, is on being Finally, shortly

Joshua Bixby

of million. thanks delivering and had line $XX nearly We another for joining us revenues everyone, outstanding Maria. quarter, top year-over-year with XX% Thanks, Hi, today. growth

We is of are into a pandemic. the signs no digital transformation over slowing. year now And showing

and believe start of era. the it's a we we are fact, In accelerating, new at

the then fast We computing in people in many XXXX on is the as the digital in world. on your security our online which time more appears accelerate Fastly of QX and tend outside every QX and less platform necessary products which delivery, time line the extraordinary be signed our expansion in Despite begins spend This to edge challenging in ramp QX, customers secure. and are remain compare, to platform we the on reopen. building more year. this Historically, innovating QX in to capability slower of latter half the Unlike of trends. historical and the we was confident experience year, XXXX, effect year-over-year with as to around exaggerated devices. the world Typically, somewhat will and in we continued be organization makes new believe our the ways, world growth. everywhere usage

note of you'll expectations our to QX guiding the a and from at QX view, of over from that long-term a we're time continues exceed CAGR QX take and you If our which XXXX, QX IPO. exiting of XX% subsequently

the by our continued year, by indicated the growth reflects roughly is guidance current year where with XXXX. in more seasonal flat Our in with revenue second outlook QX an growth trends, for of uptick half is in followed line and full our increased QX, as

customers significant as Revenue wins Officer, Signal selling we for the Fastly of new Sciences sales integration the customer and to Sciences Signal and demonstrated urgency our quarters verticals. shortening Brett the cycles. closing leadership joint as than it sense part simplifying and less a in acquisition, process and contract, cross-sell multiple since the the possible Sciences of offerings and tremendous have ordering purchase In we've opportunities to unified seen thanks of single saw we Signal on X quarter, across made This from by Chief

are the as which we of in very continued maturity interest as product operational drive to customer major edge, computed produce pleased Additionally, development. our with well efficiencies continues

focus core securing is communicated we a key security from and wider privacy core customers world. privacy us customers. we technology of have security as more ripe customers array Our intersection The to inseparable privacy our view By benefit privacy. edge their the to of the and is and Privacy are, provide security. user and efforts, of most around can of a compute, support ensure innovation. tangible our we making the that platform difference enterprise of it position a of is who to for is benefits The the to

things XXXX. All strong of demand these fueled the beginning in of

XXX including leading of health network Internet's wins customer by up of relied advertising in saw provider provider Our X,XXX, cryptocurrency We XXX, care, the QX human largest mitigation multilayered to provider, XXXX. customers publishing, among others. platforms and total software-defined automotive switches a SaaS XXXX. excluding a bot customer solutions enterprise on several count, X,XXX or e-commerce, across many and insurance networking leading security, digital leading Sciences, enterprises, a financial from services, increased to increased Signal and in from And up high-tech, QX

continue and it to XXX%. XXX,XXX growth. market of which among seamlessly we and edge company a rate execute we In expansion addition platform, from and customer to another to will net prior combines dollar-based increasing cloud and average our up spend for quarter computing continue XXX,XXX, future expand in strategy on new position customers with land in customer believe our invest existing the edge tremendous delivery, our strong presents to to demand, generating We opportunity, enterprise security

take adviser our as appoint On Adriel, news as to X future period and for missed, transition in Fastly your Board greatly and CFO over financials, will moment ensure which smooth in Adriel Before to as stepping also I we for smooth shared a wish luck to and transition. Adriel CFO to behalf his you period, will be team, years be after address down of to entire a from role an will you role his letter, of time deeply a to management Adriel and we that release over turn We're endeavors. some the with leadership expect of remain a the after continue it go the in I'd during we that press like successor shareholder to transition. will a a best of facilitate help appreciative service. you

over over it go Adriel Now financials. to I'll the turn to

Adriel Lares

appreciate afternoon, Joshua. Thank you, I good the words, kind and everyone.

up we saw had we demand strong companies their trends XXXX remain as quarter, on building the mentioned, transformation. continued first a digital Joshua in As focused

as I want Signal I last Before the financial go contribution again of point our mentioned to I has the out, quarter, that quarter been information. consolidated Sciences through numbers, first into

margin I'm Sciences. include give and numbers revenue to Signal about the So

Fastly consolidated separate quarter. metrics customer have in in Sciences metrics letter shareholder later provided We Signal this to begin XXXX. the and customer reporting We intend

nearly We invest Signal generated in associated market with million in million opportunity, a position further $XX growth. we cloud Sciences, edge revenue, of XX% our $X.X Sciences vast success. at net security the to we a provide continue ourselves year-over-year and will and deferred platform, representing expansion accelerate offerings Signal for believe our quarter, This acquisition the by revenue business to complemented write-down

acquisition Signal for Non-GAAP other acquisition and intangible in from for Signal the recent this for factors. and GAAP was last margin quarter quarter, among the year-over-year additional same of for XX.X% focus the gross additional of continued of the Sciences, quarter and quarter quarter XX.X% margin stock-based scale reflects Sciences. gross XX.X% compared improvement, which and gross in the the a investments year compensation expenses, same Our to ago, the reflecting scale which excludes recent XX.X% reflects margin, year. up amortization

we investments an timing customers continue we gross have on our leverage always As our deliver the annual ability platform, confident and by but usage by basis. and impacted margin of on to be our seasonal infrastructure remain in long-term personnel said, to will

the balance cash we In sheet, quarter restricted investments. billion $X.X ended terms the and in of cash, with

XXXX advantage provides strong took and market full the to opportunities to advantage us reminder, convertible new take the favorable of capital of principal due position X% issue This in conditions of a offering. our March, ahead. $XXX a amount senior flexibility and notes in million As in financial aggregate solidifies we private

our continue to we As remains on platform and edge offerings, beyond. and cloud focus strong innovating for investing see in our security and demand in for our XXXX growth further

progresses. top and of call Our QX year on usage-based $XX with range to the the operating we of visibility share million negative revenue growth our we acquisition. million. in the model, $XX prior And and the in an to negative Non-GAAP our that $X.XX. incremental the quarter, investments Signal have negative visibility business computing, full our reflects to as get of million. today. XXXX additional security range Sciences in loss with second $X.XX momentum, in we per the and the guidance Non-GAAP range revenue we net expense our outlook strategic $XX for expect Consistent based loss year the given negative strong years, line Beginning to $XX million expect

With pre-IPO Internet. to $XXX I negative and share guidance forward here premier while the allowing turn per For with $XX $XXX a companies back to your loss XXXX, finally, privilege Fastly and we negative going to $X.XX. to non-GAAP edge our million $XX a to for questions. to in we non-GAAP be team operator We me million. negative before the grateful increased and future to I'll take in Joshua, Artur $XXX range that one our as of to million our the the Q&A, of rest of company, to expanding continuing loss the the me public of from Fastly of million, work million would just look cloud revenue charge, maintained and the to say I net the that, keep delivering shepherding for to platform. and we've leading offerings $XXX range still, to to range to negative the I'm of Fastly full million the to year on Artur the it operating bringing I'm begin And $X.XX from

Operator

[Operator Instructions].

is first Ho William Jonathan from from Your question Blair.

Unidentified Analyst

This is John for Jonathan.

future one big on and that the wish an IPO congratulations your company products, luck in some radio, at takes you so of best off, First CFO, a endeavors. through

some about in ask, for like of talk replacement? you the Josh, For to looking a I'd you're parameters can

Joshua Bixby

Sure. be to I to shoes going big fill. mean, it is

number executive searches. had quarters, So we last over the of few have a

how I place. think come -- things desirable what's one is as a that is Fastly the out of

As Adriel is talked about the tremendous. opportunity here

certainly expertise, much that such, as And seen growth we somebody are scale. we as larger a business. many seen has continued that looking the somebody for for want poised who's We future. seen know, knowledge successful believe, So you into that and it years and at who

important. really that's So

special cultural really a brings mix as Adriel the think well I on side.

So in we we by the wants understands to of looking We're Fastly the of who for live them. a field. someone need with value experience someone certainly lot

that high before, Adriel that tremendous a all searches demand conducted that and Brett. amount found that with with we we So We in are with of like found and the joining of this the us. one, found we've people in is interested experience

prospects excited miss bringing But someone certainly the So about of Adriel. in. we'll

Unidentified Analyst

I'd the like to the color. ask Appreciate also question.

on to from Or you that turned -- is to that being it elaborated made outlook. outlook? quote progress has more the pretty the second your how because XQ outlook the think full marketplace with market? quarter or will increase typical a the You guidance with your half. Can anything in the to flattish second COVID that's happen your in you -- first color quarter it with you like curious, as in fit even made for raised -- be Do you on did first change there? you Q though anything Reopening give since explanation what is met COVID you and since the seen to that? year outlook overall, I'm He's the quarter range. expected year, raised reopening? Is was the you quarter. your in driving I anything raise have the that's you somewhat anything your more -- But little

Joshua Bixby

so. after. happy add Adriel Sure. color I'm of some Happy to to do sort have

the but with and so starts this of think year, business decisions make the you if lot in cycle. us, QX in QX, ones our a all that business business year business, about cycle. a customers buying I huge in the of QX come of the our think big e-commerce look our an time many at the traditional of has And QX the to a amount have businesses at land that they're end throughout similar frame, ready, or particular,

were are we of more visibility progresses, as think is It's seeing by sprout really industries we're as those that I So lot COVID, customers And matters. COVID. quality industries green see And we a up. not from them see definitely bounce into that that a get shoots really large year that. those We seeing the gains robust the really what give things opportunities. the in open We're back in acquisition. we challenged got customer seeing of

So by bumps? global say, happens we we about are all position past are we COVID in the happens can that I looking luxurious look are what okay, this in they saying, having these in worldwide crystal up. think and that countries by these defined where this COVID talked think network. And we services opening true hey, and at COVID, back. I've the not a sense in neither us that What a a are future tremendous to Are only obviously these ball not not customers. we're we And see are stock that, driven defined of driven most a but business Fastly that bright. in COVID I and and our and is giving I that's present bumps? phenomenon, as think seeing

are add little glad what anything optimism, we you're and seeing COVID, an because it's certainly an overall, they that's in -- projecting. because a that the that's up that of on going different QX to that's we're have quarter, But not talked So informed also because reopenings, that? now. a picking specific are of as impact that extraordinary general bit we to just than terms of Adriel, to about certainly on concept, customers although because I'm but are

Adriel Lares

years of kind sort in became Yes. the Thanks, know the XXXX, XX.X% it of and and Definitely of things continue XX.X%. that's sort been this I really going One words. Joshua, get in if churn look growing where the ahead. that Fastly, past quarter, XXXX beginning XXXX what the if but is still I we at with plenty is thanks, Jon, in to XXX% sub-X%, at XX%, more specific on category those we But of for and the miss we're observed and were look and exception high customers and we to what makings visibility. of more still of the -- business, of Devine I've a And acquire are seeing as act just of there's XXXX, like to putting question, standpoint sort and in that sort past the terms from to business feel

the So I year, sort little we can basically, see as further a into further. of get bit

reason of more able so And it's we're end we'll why because as the year of at as bit sort again, that. the of of that little very raise visibility did. little we fundamental sort get further a bit QX, And we a to get beyond

see and again, bit beginning at more time we So because a calendar of we're metrics of what of what the the for of We little year, just always are Joshua's conservative then making they second sort model. these and sort a planning the of little But point, primarily usage-based just our decisions what then. confidence. the every the being passage with is doing bit at a are half current we more get year are, customer

is So it of sort to we that familiar, me is what gives which part confidence do. do why

Operator

next is question Tim Your from from Horan Oppenheimer.

Timothy Horan

any guide on confidence way. gave the color stronger that? kind balance of out confidence can growth to fourth to of it's for you well, But pretty that. on third What the ramp. the second the just in like I yes, to looking to that of visibility it a large sequential bookings and guidance, mathematically, of either kind be the know So quarter. half, clear XX% -- are I just on mean, we're and more

Joshua Bixby

lot it's pipe. of our that really and right, security, our way just other of network about, being of that As It's are a collection customers. extremely it's foundation things top down coming you're privacy at important mind. opportunities a unique are of values the in talked things. that of number a looking large really a us we really And what's existing a the that are It's coming growth it's

pipe. a it's seeing we're in confidence the So in what absolutely

I to the a operational about remarks, this certainly seen diligence, on, and we -- As already really seen talked help in terms Brett's and an which in rigor start focus. of have is come we've prepared

things the well shift that which as strong on really of a he's a on is our for focusing focusing of partners. seeing slight channels, And One renewed business. in and in through us gives us we're leverage growth lot

to combined things of lot that confidence. a So us give

Timothy Horan

important computed part yet? now? differentiated you're and it is right what from edge an any of is color confidence that And compute how seeing more your longer maybe on of edge, And term just

Joshua Bixby

our Compute of remains market. view terms Yes. strong on this in

our customers. very differentiation We're the started really seeing We're -- front security put is is technology compute. well. And of and our talking into about looking as the also we ease where as do customers visibility context, is past you very not capability, to portfolio. organizations what Signal the integrate I secure, world Sciences a customers technical decision most a muster of as to the largest significant savvy But plus do and is outcome available and that of even part at works now. it's differentiated. that at into story for things in to the emerging just of creates on we technical compute operational, that terms forming important. all in better the this know, use, for think buying our an that important very qualities are they scale, It that We're is what

differentiation we our versus both particularly say differentiation. compute legacy combination the are seem that to which players. together to Stories, of the that a it's coming would lead, increasing and I be Security So And the unique create

Operator

Van Markets. Jeff from Craig-Hallum is Rhee from question next Capital Your

Rudy Kessinger

the circle to is I on of to kind This back want guide. Jeff. Rudy for

linearity with In XXXX, that mean X% excluding to the sequential saw to if to QX QX, QX, to mid-teens. to totally QX and X QX curious I'm past I X. X% typically Just years, end increase That assume of the a from XX% to would to typical QX low sequential annual were the get I just QX to X% X%, or QX, guide. like force QX a to

just you rest So play that curious linearity of for year? expect out I'm the to how the

Joshua Bixby

want Adriel, to one? do you Sure. that handle

Adriel Lares

year overall, of QX. both Yes, of second where the we've in it's first how submissions to of far probably that the play parameters. experienced come out growth going And is of across out absolutely. going year. the clearly in here of just of still that sort in in see other sort of two the those currently sort stronger second the just the so half growth But we today, customers half exactly QX, implying see respects be growth the half think and seen, you're see faster to faster the are in definitely Yes, terms in QX are that's clearly will the little have likely think of remain sort the underlying to we of first in than going factor growth that I you're I bit visibility a be or of half. to but But going some to a we a

Rudy Kessinger

any share seeing Signal to of can Got you customers? it. team is on that sales have guys respect sales with you with motion? team? to then integrating different front? you kind respect more How buying curious, the different And now right I'm just existing with color Just the what kind that of Are Sciences, learned

Joshua Bixby

Sure.

the of Let the to year start me in integration, moved the mean, I sales start. integrate completely. we at teams of terms

that delivery it So of here advent The the view is that example, the different in buying advantage back able sort has expand selling buying groups our been security into to buyer CECL of taking to of Sciences are differentiated we're intertwined. suite. vastly comes complete everyone Again, centers. seeing us We're Signal for security at some the and does the crack, or intimately that. have opportunity and really centers,

waiting a tent. large sort that we're cycles these to that view wedge of we're larger sales contract. expansion We've the It's into And seeing security space. finding ways enterprise the history real to opportunities organizations So of of us a delivery for nose the done of Fastly's into that always definitely seeing allowing space, in in and delivery of may the renewal be a in camel's had slip

the quarter-over-quarter, a nice really business overall, subset. differentiated we -- as saw over customer in which is And approach, out So SigSci the fantastic. well expanding growth

Rudy Kessinger

if from step just down And lastly, basis QX could. obviously, Great. points. about steep then I margin, XXX Gross pretty

Was competitors the pressures. that? heard pricing drove about some of we what we've talk year? And for how the should Just that some about then think here it just from rest

Joshua Bixby

Adriel? Sure,

Adriel Lares

I year-over-year feel I certainly. mean, we're able gross XXX grow foremost, to points. basis at still going least Yes, to we confident and first margin think, that

that, of driving do the a sort a doing mean, we as normally In the year. we're the of the down, terms beginning primarily, things step few investments I few at of

down. step So normally we see a

better is some we pop additional already our The sort will infrastructure, resiliency increase the is. actual other it our locations the of of investments that than factor got into network into

digits, And look so we high I still CapEx you think this it's to the expect if that of XX% is of in from XX% the experienced, CapEx range. QX, sort this single our be that to cadence we normal in at to somewhere year be spend sort in and standpoint, our

So from this my normal. all is standpoint,

of QX utilization and and picks QX. see the half, as And see revenue. up sort sort in here downtick it then in seasonal of a you'll You'll normal first

of and on on customer Signal You'll And the typically. and enterprise wins as drive clearly gross gross see especially Sciences, margin we side, sort in a some joint particular, that the side, accretive products with the uptick future are that be of our had I In given because Signal wins tell some about greater gross again. I margin the well Sciences there's think margin now that so much

Operator

from Majek Raymond Robert question James. next Your is from

Robert Majek

It's your some as CDN the maybe quantify of guidance of and you level I embedded to And just prior touched on QX you some exit tough two, for quickly we contribution give further should about helpful. the implied portfolio ramping Two And we COVID color general share color year? and/or remainder from contribution year-over-year on would QX you you. just questions, QX be what's you One, start the working if is could Single a product on but pleasure how year luck, can. in Best comparisons? with us think of you the Great. If growth always Adriel. start can't traffic how revenue that it, any face in can specifics, guiding? in Sciences pretty the to and in

Joshua Bixby

why take and question don't X the take don't side Sure, I Adriel, traffic you why the question.

think has continues to traffic grow. I grown. It

continue of see We growth. at QX, to the into look I There's certainly nothing that back world a pace that is that QX. normality when to that think nice we continuing. confidence unexpected in that. speaks And in moving our see We

growth. think in our that's guidance. assumptions around why And projected Adriel, it's pleased the side don't fixed and it's question? you We're strong. the I and important take with outlined

Adriel Lares

happen to. Yes,

was of XX% in it kind quarter-over-quarter. grew I approximately of in of And growth So around approximately QX. rates, terms revenue XX% on mid-teens the

the cross-sell answer think see, is earlier going great still mentioned, side. nice think that from the the an business where I've and And grow on being There's to a business security the perspective pipe. in It's to. that we've generated before, of nicely. world funnel is just the some of to that as So top results also There's lot continues it's we and really had I

a is you the out for words. there, also again, the for So thank And best I Much products of Fastly. having kind appreciated. think, one win of

Operator

[Operator Instructions].

from Sandler. Fish James Piper question is next from Your

James Fish

question, working for renewals being of have generated point new most new that it business and balance did new quarter? I'll with you revenue going maybe you the you term there's Signal but for But maintenance about talked here. last back what Is this guys quarter? miss and see this at sheet Obviously, SaaS do on licenses. Sciences, expect off What Adriel, Signal from licenses next And just or of upsell kind you Sciences? the and

Joshua Bixby

Adriel?

Adriel Lares

I Signal definitely there I Yes. you to Sciences think I expecting we're But range. that regardless. of would see in XX% be out still sort definitely. Jim, mean,

we're think sell encourage also bullish. the us sort cross-selling we're for we're And part given what sort is on we're rates I new growth the it bring delivery still because think I -- the advantage does really of opportunities to of trying and the Fastly to seeing, of that business. co-selling more the

So look I our standpoint, think from good. things

saw only we I year. that's results of leading have just the for but just rest general to also think what's in the QX, the bulletins not we that the

Joshua Bixby

X have would noticed quarter. indication letter, up. of customer Sika to of we're and new may Again, see in over seen enterprise You the continue the the that's wins ramp the from you to have an future where going

James Fish

obviously, out tough a around really environment absolutely, the happening our seems in large other and anticipating providers No, Yes. the XXX%. Josh. of of events that and anticipating to flat guide of the it. sporting picked but it's there events to again, low of we've back how for up? some Olympics on here, largest half Not kind streaming kind it's you but beat brings mean, the horse compare and full dead a are QX like of And NRR you're I down of it QX, good What guide, anticipating for year, it's single-digit like those tough one for but -- compare, organic growth QX. from is the kind guide much And to that of large wins events. some share obviously, kind Obviously,

Joshua Bixby

Sure, take come I'll the don't side, in side? and Adriel, you traffic the on guide why

Adriel Lares

the about a this half of didn't event the drives half and of like On for of necessarily it we've that the a revenue. portion which Jim, or isn't second Yes. end good. sort -- quarter particular before, talked second year, Sounds --

current we're those recently most board that brought the further on I have QX, we've that and the the clearly in also year at second customers least way, things think what they're of that in but sort planning a In guide, customers full guide seeing implied for. the year -- is of half that the you're second the half of just enterprise we customers. penetrating

right, guide. it of at -- us into if seen XXXX confidence. a sort comparison we implying that the some really to you're that, sort we're And think patterns once going of level of excuse QX. QX So XXXX, of kind me, QX year, once is again, Again, going from that necessarily begin these last I you get the that in gives QX And before. sort you sort seen of point business, in going just but have That's to of to event the sort back we alleviate get necessarily generally business. given our isn't past you are we've particular comparison. an general of comparison It of of just discussions we're you'll the upticks There beyond of And or low to a it's overall our follow outside last event, excusing that seasonal XXXX year. XXXX see that that's uptick will be before that of to will. of have terms of

Joshua Bixby

I other who a recognize think our is the large QX customer of here about that's we last And year important is chunk to thing had previously Yes. largest revenue. disclosed

were So X lockdown, normalize the we XX% we're our if in quarter, now. you months, or that we're houses normalize notwithstanding for plus for which you all SigSci, and which locked those COVID seeing the fact that in remove still the seeing growth not

next growth the we're there's and of that leading feeling XX% a sort the So and in confident above growth the if the both beyond the latter of look "Hey, say, quarter through about you that, and at part year. --

Operator

Radke Your next Tyler from Citi. from question is

Tyler Radke

Just first follow-up on Jim's question. a

around little retention back recover maybe half the of just that you And as color retention the bit kind something help is net me just to year? help year into of comps I And rate down expect understand kind from down XXX% Just as ago. the put at, just you on this think, that Maybe that? drivers revenue normalize, XXX% number? a the a of get net of more

Joshua Bixby

take Sure. do you Adriel, one? that want to

Adriel Lares

Yes, Tyler.

et thing the at the we sort to the take point version a look again, why of sort whereas LTM component sort to metric, at of within is, XXX.X%. greater et metrics, both of we a eventually the of QX, down and you is think X but tries I we Fastly. is in which XXX%, I which traditional the have take if That which that which which think was NRR, because at a dev, referenced bit seasonality, from And came one LTM was just that the published we a SaaS-based cetera, slightly version will cetera. NRR, of month, the measures of coal that

whereas a to version we you bit more although is will have the we is publish a metric, look to think little better the normal. make I sure at, one NRR, So bounce LTM make sure around than we'll that

Tyler Radke

there was Okay. edge. prepared reference then computed a customer it But of little in talked kind a on I new to letter. about and follow-up some you I in that timing you that investor one, And terms with of a curious, that of number a remarks momentum, the are the be know think there? bit there just of in the of you'd to business kind verticals seeing really the ready to that strongest when momentum, a piece you're disclose? what's certain And the the expect be would

Joshua Bixby

Yes.

the security, time. with human requires we as certainly we have being strong technology side referenced up of e-commerce. to Security uptick where security. with keep the is folks uptick this is of the in are to So all space the seen on used example innovating bad augment security other a kind this strong who fast-moving and We're seeing a in

X are cetera. So really markets. the some space, cases use in those IoT certainly interesting seeing big We're et

-- perspective. are from our of is impact writing at overall, are said the us the they you be the will have year at to I that are But that's I understood there, customers, happens where on not a be edges. have part a customers XXXX using choice. And this It examples that's edge. is business when their compute. below starting and many customers to work to marquee their that customers our for almost And the of think believe change the changed is that will who in VCL many today on our rely well for our I we my of enterprise and level. this case. into our code in the out enterprise revenue. customers compute language a meaningful of we is that's all case mean, about but our our thing have to One nothing's cases be year along and all getting year XXXX

able that product we to fooled continue our into in that of past That's the future. what thinking be and the the code. the new writing our some in is and be to version VCL that customers, it extend our to not code. offer don't ability in What Fastly to choice is the this new is But today. be So the customers aren't to idea core of write functionality something will differentiation beyond of their of bringing languages in

Operator

Your from Stifel. Reback from next is question Brad

Brad Reback

sheet on of future Josh, now the billion with cash appetite balance $X roughly, M&A? what's for the

Joshua Bixby

money we in that mind. mean in that I part raised with Yes.

in anniversary. not We continue -- history, XX-year at we to very to grown our be engaged its XX-year and a over now Fastly ecosystem. have business the that's are is

all. congratulations -- So But not company a doing grown continuously by M&A. that's having to M&A we're

are in and you hallmarks for, technology, in So to -- I Sciences deal to to we overlap opportunities. for what continue continue be the a we're with best real look looking is think regard. what the We're needs. best picky be but to to that saw Signal customer the people going which will for We're going our going the

in So it we'll if what pretty which that our up which assets. and meets continue criteria, acting. us and could see for -- how I asset. are opportunity, And look a future unique regard. was is us it pops gives to the that But that unique strict, fantastic, one We'll holds see

Operator

time. questions back turn at you. this over Mr. further There no Bixby, the I'll call to are

Joshua Bixby

customers, together. culture our our pride agile to with I Reminiscing we acknowledge take moment off, take sign a we decade, safeguarded milestone of XX-year want Fastly's many anniversary our to achievements that in as Before in change. on past our rapid the remarkably remain a and quick the values, a having face huge led served marks company,

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Operator

you for and participation, Thank wonderful call. day. have your conference today's a concludes This

Fastly (FSLY) 6 May 212021 Q1 Earnings call transcript