FSLY - Earnings call transcript Q2 2021

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Operator

Good afternoon. My name is Mary and I will be your conference operator today. At this time, I would like to welcome everyone to the Fastly Second Quarter 2021 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator like Investor the Relations now Stefany over Flegel [ph], at to would conference turn to I Fastly. Please go ahead.

Unidentified Company Representative

Hello second quarter for joining call. you everyone. XXXX Thank earnings our

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

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

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

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

Joshua Bixby

Hi, second impacted Stefany. their will today. traffic The through impact modern of and delay everyone In our year coming saw outage Thanks joining of challenges, QX the products, of launch QX that relevant. several will delay for our which our and an managed us we significant quarter, these strong timing our on outlook. delays on the our results and new thanks a fueling full have and and Despite outage remains also and digital platform. these to mission experience customers securing

for continue are rigor, and go-to-market long-term drive our value confident and shareholders. of to operational led security our motion capabilities edge expansion that customers will We computed

our an bug by That minute returned from resulted configuration negatively impacted. our valid customer minutes. the said, were undiscovered XX significant XX% delays. strategy, year have an we that discuss outlook. outage the Before we further discuss change. impact outage QX a triggered that We I'd outage within had detected June, early network and one and was a results QX and normal customer software customers our The within to our like our impact to being full of will on In and bug

to following we decrease volumes customers As credits the a result, subsequently saw issued traffic and incident. select

to from we usage-based work expect near normal traffic the we downstream our to to impact bring And levels. see has QX our the their Given results. on impact business medium-term, as in of to back model nature to resulted revenue some outage our with the customers in

platform couple post the back customers outage. to customer, We one returned the also top have of a XX yet not have that traffic of

year. with uncertainty the of additional some several traffic additional customers have of the also timing half second onto in the ramping the We platform

of later in thus, impacting half the the expected come to we for our the will originally believe to but XXXX, that outlook network continue than We on year. second traffic had this

measures resiliency, significant implement We for their have customers and our ensure increased continue users. implemented will to to and

I Shirk, and mentioned We value organizations this and sales strategy as incredible joined to drive Chief our later and we in Chief believe as to finance As be who Officer growth. new who two in our are will a customers solid we organizations. now Kisling high the have executives building of experience deliver Financial against bring call, to to strategy. execute Brett Both our QX and Revenue Officer month. have seasoned this the optimizing beginning at the joining Ron managing significant through organization,

products in sales we execution, are and our strong very driven go-to-market security seeing to now growth Turning WAF. by next-generation

achievement representing a to great partnerships. marketplace, an WAF Amazon how creating is of by example of the the Fastly important of purchase significant We've a Signal introduction Cloud. agent, customers to opportunities. the now on strategy Our through route our with of available new milestone AWS market, channel is growth beta the for announced a Sciences recently is This Edge version integration go-to-market refreshed

introduced offering Fastly's also first security service. We our response security managed

website this develop Compute@Edge improving revealing are as to We're functionality like JavaScript our technology high against the added popular velocity architecting power and our Compute@Edge on at testing. will businesses to execute goes well engineering tapping adopting support how and continue expansive LaunchDarkly are experience. the language like entire Compute@Edge. local the of have to performance highlight, the for programming to companies ability grass and that experiences, also well potential and teams beyond Fastly's modern our like teams and digital I'd having recently continue roadmap building into as customers We own By Compute@Edge. fueling businesses and CDN products engineering

across gaming, multiple This quarter e-commerce. financial tech, with and we and services cross-sell new including saw business wins ad and up-sell verticals customers

from replacements all customers. will of continued both the ease solution resulting incumbent to existing our capturing moving segments and new of attributed important and wins edge. our Fastly's customer innovation share An providers note, combine capabilities strength single the the customers and of wallet that additional Both of use at metrics represented wins sciences from Our forward.

quarters all our metrics since for combined the the new the acquisition letter. included bottom of at also We shareholder

XXXX. QX QX in in grew Our X,XXX to from customer count X,XXX

to our including count, also In in base, customer we Signal our XXX previous base. and Sciences engagement core to further customer XXX growing of addition expansion enterprise the saw increased million We quarter. from enterprise customer our increased

quarter spend the $XXX,XXX second Fastly and customer average Sciences enterprise in Our spend. combined similar with quarter to Signal the customer first now average of enterprise reflects and $XXX,XXX

our Additionally, remained dollar-based XXX%. net expansion rate strong at

retention in We DBNER the our that inherent continued XX-month our removes and of customers. platform Our is the strength usage-based XXXX last highlights retention enterprise We rate NRR a of believe last and of QX the relationships the model. net net XXX%. volatility with in XX-month rate delivered of much XX% business

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

Adriel Lares

afternoon, and Thank good everyone. you, Joshua

as Before want contribution key note been our get I has into numbers, results, that the included financial in I the as Sciences well to of quarter metrics. our second Signal

Turning results. quarterly to the

outage, from Aside business performed the as expected. the

representing write-down This deferred acquisition Sciences, quarter $XX in net with of year-over-year we generated million Signal revenue associated $X.X a the growth. revenue million XX% of

year-over-year platform. acknowledging the and to demand While of long-term the potential XXXX, QX we tough comparison the are growth with pleased ongoing

margin. to gross Turning

Signal related Our for Please the compared acquisition margin to GAAP was adjustments note ago. quarter includes gross XX.X% quarter accounting XX.X% same this Sciences. the in a that of to the year

the year stock-based compensation quarter, in XX.X% in last margin decrease and our intangible non-GAAP to was customer reflects gross gross cloud excludes amortization year. a growth. tremendous do so plan this Fastly quarter We margin position Our for invest in for same future in have anticipation compared believe The in of infrastructure demand. edge our the continued which to mission XX.X% and expenses opportunity to and to investment capacity we

network in we have in continue said before, our invest As will in to keeping profitability long-term we disciplined manner, a mind.

quarter the We $X.X sheet. Turning billion remain capitalized ended in and to future the Fastly. restricted the balance of cash in growth to cash, with We invest well investments.

customers want remind usage-based year everyone model, can that platform QX we and anticipated guidance, unforeseen coming on our renewals. our to changes be XXXX in and impacted As meaning we a to discuss, timing I the by revenue our full have of

As Joshua, term guidance we our revising reflect this. to to explained the in medium by near are

we on our progresses. we additional we revenue today visibility guidance expect as to and the base visibility year that have always, the As gain

had outage the of related the quarter with the and new new timing along third full have uncertainty traffic, guidance. impact our initiatives As outlined traffic to an year Joshua and customers ramping earlier, returning on

For of the of operating net million $XX range per share loss loss in in $XX range $X.XX expect of million; we million. million negative Non-GAAP in $XX range the $X.XX. the the to revenue negative third to negative non-GAAP quarter, negative $XX to

recent to we've million. negative $XXX year range For to $XX million operating to the XXXX, million $XX of the $XX million the loss million to negative million in negative of $XXX fueling the challenges $X.XX $XXX non-GAAP revised from range loss our in $XXX negative per negative from full million Non-GAAP revenue mission in guidance of experience net our and $X.XX. $X.XX Despite experienced, negative digital the relevant. $XX $X.XX and and negative remains negative to to from the million, strong we've securing modern of range share

We operational to motion are our our confident the will rigor value that and security-led and continue our expansion deliver customers and shareholders. capabilities Compute@Edge of for go-to-market

take well I'll our With questions. over and confident to that, long-term said, your in for we to ability are execute operator we believe Joshua to positioned As we the are back turn success. it

Operator

from comes first Baird. [Operator line Power Your the Instructions] Will of question from

line open. Your is

Will Power

the mentioned the Hoping and that that year. question. drill back expected you have kind the the have half into the of taking visibility the for in ramp just of in you now level you confidence Thanks the right customer

could talk little confidence great. a just around that be level you If would the about that more bit

Joshua Bixby

Will, it's Joshua. Sure. Hey

And are based on is not us. to time remains lines. those who directly Our high. These related seem strong. confidence This moved own customers their

of either time we of in than example less that a see it's those are only is, time right or on -- cases lines there licensing or for a more are based customers. now, later locked but handful what again, are are that situations see And in, So them. Again most we anticipated. had few these we regulatory what lines

to the continue in these these we thing important our think situations with to strong relationships is closely build and them. with work customers I

chance are But large look exactly we initiatives always given very we remain really know, you And at in our to history. we our when also at when least new large and these a to great careful, come. in we What's As we initiatives. be business, time the don't want that. confident usage-based get guidance, is

that have going are revenue we And we from see pushed a out. the XXXX expect only deals we impact what material in so, in and with

Will Power

Got about as year for Joshua. beyond And then think well? rest of one gross Adriel. Adriel, should how the margins you. for Thanks, and this we

Adriel Lares

Yes.

compare, know a standpoint pandemic. QX -- you I tough think based seasonally, Clearly, flat. standpoint, gross a revenue was a the wasn't the because QX on from XXXX as relatively margin strong from seasonally was

respects saw as last unexpected result, leverage so you And in a some year.

revenue sort a So more from standpoint. of normalized this year was

about more the impact Now, think and you the from have about what when did gross that. utilization outage much because standpoint it's margin, an that really

I way the which of into kind when it Normally, this QX think unusually it than think about just So impact I second and outage into year goes QX, normal. is about leverage. of term, impacted, you longer that still along is the should the drive the of sort feel sort revenue. into given I that's revenue QX with of what But of sort sort is, half recent longer I confident what I about term, the your more drive see you of where think the think year, of the

Will Power

Thanks, you. Got guys.

Joshua Bixby

Thanks, Will.

Operator

of Jonathan Ho from Blair. from comes question the line William Next

is line open. Your

Jonathan Ho

the you as sense bit returned have of these you're the what of customers taking or just color fully maybe – give a you maybe us will also confidence on afternoon. Can some that well? delayed back restore traffic confidence in customers Good give actions maybe that gives that their a of haven't that come little to the some more Hi. us

Joshua Bixby

think should those and Sure. we I absolutely, things. Yeah, two separate

that really As to have we specifically the the talk out that outage. called we unrelated to customers delayed are

about, I continue on of is us. XX think, came enterprise we've to this as you specifically XX% if focus with back flip outage one top think, around, the what customer, customers and grow I the talked if we see you you more got are

lucky. are We

on that to downplay to chance are occur. in with many customers outage, transparent these It's the what we us But outages outages just phone they of out. Our got a it acknowledge own our going talked we're that We hear happened We And it. that's a put about post Archer and is, for that like cases, we an two, blog others to about process were one, it about happened. and do. appreciation you We executives. the to after. I've not technologists responsibility. during the understanding, what understand get in talked talked a real we And what and

although, be that, the the won't you’re technologically advanced because – good, these to important and wouldn't most world. stringent customers companies are, tell we think surprising it's you also remember I high-performance are think those if I who it in

we So of I not of they – requirements case have outage, very had bar. us it's a the outage, have. and high the that's noticed type where when customers of very and And high the we all think because we

short about took to we in were the we that the lot was the again. questions taken be we've questions remediation. specifically, term, couldn't So, sure about how been a There actions of and those a could lot that of make actions able there remediate that. And

a ago, with next Compute@Edge, remediation future half and four, four built the have – about that this when mindsets. of lot layer built we is set really talked we I in is think the two years it we about place we which that

wanted safety ourselves. have our doing, wanted we that they're to we what but The customers and first absolutely in flexibility which for more more also mindset,

so the a outage had of own types move for really all mitigates pushed platform, a which and challenges of the multi-tenant long forward environment. has delivery our products is these we've to Compute@Edge that in which time, drive And to a security

progress progress some direction. to on mitigation. some very aggressively you and acquisition announced having that long-term that's and Signal seen real Sciences a that in already the available We continue pushing with You've will that. us And see real

this hope to quarter Our going XX% they of are just fact position, them which hope not customers us wait understand are now in be We all have we the we a have that mitigations they have in the talking told for to but not about back from now we place, completed that, that, sufficient. are plus.

Jonathan Ho

Thank And maybe helpful. us actual in be that and either it Is you expect and for to quarter terms actual was applied? for had costs on to with the the year? what the to one you. what quantify a you impact revenue you be lost for it That's just Adriel, of outage. the maybe or way And the associated could there credits full for

Adriel Lares

which in Jonathan. yet sort one, two of Clearly, June. brought of at Yeah, that two is – the There's those had that winter the clearly time and not outage impact ramped occurred traffic. there's There's or customers impacts. the

lost So imagine for occurred revenue, you could that June. traffic lost the impact in

stuff The actually quarter. is actual other of we in up sort our June credits All impact reflected of the ended that out. giving that

that. a -- but in the The those the included the -- keep as So to June -- a not is from wasn't we the were that's we all that sort sort of that just result we credits, that this it being wasn't a tow a it. we have within the longer is June, clearly fact of And been fact thankful on than in credit things LDR would are it -- June. maybe just generated occurred within the already of as sort is had had but complete. all probably standpoint, so my and think I bit as have that even equal as and quickly range of outcome were it's had the But given it was occurred would immaterial, I bit result think of more certainly of kept a what relatively despite quarter unknown. an good it And on impacted really much traffic of month that's the higher

Jonathan Ho

you. Thank

Joshua Bixby

Thanks, Jonathan.

Operator

from Kessinger Davidson. D.A line Rudy Next comes from the question of

Your line is open.

Rudy Kessinger

any annual of addressed. the Hey, minutes and XX the top taking I the and the $XX curious way ramping if my traffic, Joshua, down the first and to that returned were just of the guys. on customers could so step these question. apologize the million yet. delays guide Thanks then that the for platform I'm piece, particularly, couple between you your also, in break there Is and hasn't customers reduction. launch out that had already

split what's Just the in the reduction?

Joshua Bixby

think you a Yes. if impact We that -- they have to number. pretty it both about significant

our know associated figures You to have customers top monthly. large their dollar

think see. terms There's into which a roughly do the about sort cautious of I would XX-XX, unknown, few is and be what put in we're with and -- talk what which back come and we really delay about they is then, of those of customer an our when the want say. you talking top we the guidance XX to So in know, about customers. think if we And few a you case you either about

In how both terms of XX-XX, that out they plays impact. significant or have a

Rudy Kessinger

Got weather. edge then, to And be that it. announcement curious know I'm able to compute to JavaScript now on being the compared the

that is meaningful longer-term the of customers? prospects and Compute@Edge how important Just for for your

Joshua Bixby

asking It's been program of what incredibly choice JavaScript They their is one know the to is And JavaScript. the just that meaningful. our is many. the thing we I it's have want choice. customers for of But mean for. not this language number language

have it developers it may as developers, who democratize we these them. be So really going own comfortable. helps into of is is bring really all be about people about it it goal That's number -- ecosystems And those this JavaScript, of of at. Compute@Edge meeting own not a communities around ecosystems into have it. they're communities platform is What been their cultures, Group, their Ruby the the and with know these where

on us we're So, amazing large allows it projects, assemble the talked Compute@Edge. some developers. are in And already really which seeing momentum. I script really of about a we mean group that being to built

the on calls, the So business on. for build true seeing and It's a companies at much to folks It's to exciting. I'm CDN that. of like larger looked our thing very is I fantastic solutions talk a business customers. the a for their differentiator at This us. example more Look, there, of was more when were relying right out about who looked We're that part have are industry, becoming entire of Compute@Edge. post blog for who on the they graft Compute@Edge example, why the all

Rudy Kessinger

it. Got Thanks. Helpful.

Joshua Bixby

Thanks.

Operator

comes the next Your Citi. Radke question line of Tyler from from

is line Your open.

Tyler Radke

the is to to visibility this they Thank afternoon. Are recent you in-house? Thanks going? the Are they're where platform. I customer Hey, in taking my ask about wanted that the new what's ability on they I related outage new for level taking And the a competitor? customers land guess impacting to kind just secondly, that customers? conversations outage terms do you good the have first, the left going of have you. you question. have of your to confidence not

Joshua Bixby

Sure.

outage, on any first I the of churn not think all, our in terms that. yet change seen in have significant of we

said, I a couple you it have and like historically has customers. certainly do is low. As at churn, act we of look very if But continues look it to which

looking this So are XX have is at though works like customers top the it one the in who bring. reasons capabilities the in-house pull But even that incredible us ability customers of to they have in-house. because capabilities at least with of advanced we we the

-- if customers actually important they And onto with is I so the platform think know a in conversations it. to to and speed this because back drive that back get if you I've how having one been it the particular,

about So is in-house, there's customers advancements the I you nice a pick but it's to bring. something us. stop And yes, the gap this we bring say would can and a have reason

I we that So that's on think see. what

are for not we This large outage things indicated the projects and unrelated the customers churn on to unrelated is for think most just we're the I as part. internally a work doing large that delayed guidance. to the issue. in and Those

Tyler Radke

give Is to you for one the Signal in of trying Science more And And I the performance of about you basis? embedded kind there's in you there on kind performance just if any look could a the kind so to I in revenue if of strong the quantify at your performance, Great. as understand but metrics look way Adriel. quarter? sneak of of there? we kind a can assumptions know talked could outlook a

Adriel Lares

Sure.

being we spoke guidance of at as about this year, of year, So them talked I initially I about think XX% the when about the sort revenue. of annual the we earlier year, beginning gave for

high of to the I to XX% expected QX think sort QX that in sort in level. was of be closer Xs. the is

outage case, this of in I sort facility revenue. So think the impacting clearly the heritage

to sort continues deliver they where doing where were and Sciences Signal were of growing. So they

lot the acquisition. In of Sciences specifically after lot occurred customer products of a the came led new fact, a wins our actually Signal in by through it of outage was that the sort and

was that on of So that case. think the I as progressing the result bit lower from of technical little -- But came sort the remains impact still I end still than bit higher they're revenue in generally, we the on credit as of probably that sort imagine standpoint expected. would a XX%. the of given a that it

Tyler Radke

you. Thank Great.

Joshua Bixby

Thank you.

Operator

question Piper from from line the James comes Your Sandler. next Fish of

Your line is open.

James Fish

Hey, questions. guys. Thanks for the

SaaS mix have Signal can coming to business itself. just them you for little with versus want term firewall a did? is than been bit of there. solutions? to Just this license what cloud-based that strong should and on the and new demand little the And amount we [Indiscernible] point? really demand how give the you guess Tyler's the color more think are business Sciences of go DDoS first, a bit about application expansionary seeing what off I for from And the at versus web products self-hosted you

Joshua Bixby

Jim, Hey, it's Sure. Josh.

at to metric mean, this deals continued from that look entire through of through the you the every high the and quarter. momentum start quarter -- very we're the the start that is high. seeing me I at and pipeline are when the demand said you end as closed Let

gets continue perspective, the accounts. incredibly really continues from and get into to it's increase as Overall, to wedge. So think It size, be us gains helpful. And a we it's from mix -- to the the business our one that go-to-market important a in ratio momentum great helps see initiatives story. And at to I going a It's we're being be license is driving with that is shift in of perspective, transformation as engine sales a the that Brett of his the we've SaaS, of XX% historically real in XX% security range. about forefront. seeing

motion see fill the We're the product security-led And that that. up innovating and to be no going more so side. more surprise should that we're on pipe also as of with we it

SigSci going to brought that. we about at edge continue the talked for I and As out to drive capabilities we're

there. further that real There's of a cycle All drives virtuous margin performance. and

overall we're the is we it really a a us mix lot confidence is this which of of actually the seeing of most So and business part, that exciting gives roll about XXXX. business, I a new think business see as nice lot through

James Fish

go-to-market? Got it capacity you. day, terabits impact helpful. XXX focus at supply an That's more network happen. quantify to because was various it up the refocus second But and are in sound does we're understanding second business to actually a size credits to the out material thing it point this shortages actually are can I And you're and this have And to of XX really Adriel stages execution all this was sense terabit like continue especially here here, and or typically does the can the it so in a we actually at make it can to be focus the material? per if really chain super there, and on quarter, more you does helpful point, how sense much material on would think building out to when make of at us understand it

the Thanks QX much how much was a it's then guide? impact, if impacting guys. And it how quarter? your in So downstream it also is

Joshua Bixby

Sure. Yes.

out certain in strategically have if but number doesn't macro And we story, The what lot place you side. applicable. locations. the a global network is the on demand building we're our start always is in the because the it not network tell side looking one really business region, in have me one of capacity a or on of as to think at area is that is Let number as

where where do we our you looking out capacity, do build need constantly customers. our build at build where of So can to as out, we're customers know we And us. we have ahead

think So last as delays if it's And about. three, that year, few where about have We thinking we time extremely have it's out still we us in we're always network pushed continuing this the where position build, you out months, but some to some two, but four about where in right? position talked that's something warrant be thoughtful was it built although, certainly we're delays still a hot. were of confidence we we year a demand the And this we for -- coming. a months

So I spend the number. would sort on aggregate less of time

did in the expecting. you year, CapEx we much at look and line If that doing the demand this it's I with we're very the quarter in over spending think, that that we're

You point do challenge issue an important chips the out vendors. for are a all

quarter. think been we've managed us it's about our a lucky a in has really that not it's -- risk that's impacted I and not we've but risk, how relationships the

side I want that? think on the credit you Adriel, do to answer

Adriel Lares

I do. X%. I new a my just needed about Jim button standpoint, my From apologies. credit to find is

So some magnitude. perspective hopefully of, about, that gives you sort

had been sort impacts where the had we been, had us we it's rest it's have from better of this that think have I that traffic not which importantly, would question back of, more clearly think more year on in we the outage all of would would we of And trying more as really have the a track. normal. done been terms about we were to bring traffic

James Fish

guys. you, Thank

Adriel Lares

you. Thank

Operator

comes the of from Jaluria question from next Rishi RBC. Your line

is line Your open.

Rishi Jaluria

taking and Thanks Joshua question. for Hi, my Adriel.

that ever kind of of NRR I've scary the footprint number the at NRR drop shrinking seen a through first and more is follow-up. little Maybe churn. to quarter about the going want I bit us walk their I walk quarter why First, this see. And, bringing discussion it be What customers time And fastly. -- XXX% it maybe Can is about go should you low in-house. was through a that this churn we their as metric to more customers competitors? have I itself Is a to If then at with me case bringing back and guess, number how spend that forward? this that's you XX%. in thinking maybe are downgrading as thinking to as around number so in I look the well that have below -- when

Joshua Bixby

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

Adriel Lares

to this happy Yes, Rishi. through one. walk Hi,

two out lot of to And a was as XXXX months comparing this compares of June months June the in then volatility. takes XXXX. opposed In result pulled As, months, June reasons case, a you credit. rate the of XXXX consequently, a as the And know, the to XXXX great net June XX clearly all as actually XX month also of was which metric pandemic. to you're a lot the basically a retention takes last of month solicit also that of we for particular unexpected

to a spread credits sort as of, spread of XX-month hit opposed through over, quarter well month as that period. not the So all the as

sort So comparing much would otherwise. impacted two it forcefully than months I have of particular metric think you're more that

Rishi Jaluria

pay which of the were off. this Signal of integration a I well. time. as to of tough And year profile growth Got then is the double-digit kind Okay. that onetime out IPO little at look the understand it. especially getting story should longer-term grower this a XX% compares about I to even some issues Got really remainder Is and growth mean Maybe this something the a trajectory, year. this term? as for single-digit these grower? the maybe company of the kind I investments think we type this is thinking if are some more be of there's start that for year the type you about low Is at QX the and organic and of of how told looking philosophical longer half but when But Sciences kind dividends, obviously back of guess the in at right? bit of print the we starts it. show

the current Thanks. the last next Just years philosophically year? growth comparison the and putting tough think this business of five we how years, should these profile over aside issues about three

Joshua Bixby

absolutely. growth pattern five three I only grown. see from I the to the years Yes, we perspective my still assumed years the mean, we think, holding next market that had has

If you fundamentally now edge some CAGR are applications look in critical like a towards organization I you we've the and every with security built IPO ups world. philosophical, a of in of looks at of many it's since so change range which looking to how being if got the that. idea almost our how that we've step at driving over trends the and downs. back rethink But got are the complete just for had part complete We've a

We capabilities. are budgets you look more have if you content and appliances need. the at these not many of in servicing them more associated who just that companies still and more trends others XG more with are at interactive that enterprise legacy and and like areas, huge And the and technology then pushing remain look

you got if we've think business XXX-odd about customers. So, enterprise our

before the think you us have or businesses XXX,XXX If enterprise came they customers. XXX,XXX of who

This we look early story. is and we an the are So, innings. at early this in say

been the influence absolutely so us only has some see world base is larger that of is we that that this have a may at And it's the our is accounts this smaller. of transformation the opportunity. for changing entire pandemic. story look the accelerated when larger early by and But reality digital is with we And

history we right here. the think So, pushouts notwithstanding -- side high. in We of optimism on certainly the we our are the are year, remains

Rishi Jaluria

it. Got you helpful. much. Its Thank so

Operator

question next of [Operator the Horan Oppenheimer. comes Tim from Instructions] line Your from

Your open. is line

Tim Horan

back the Thanks better. what's XX to him And you performance guys. say is take that come Did on? get wants substantially it going because customer left to back top to the

Joshua Bixby

the the I I this the told of checkpoint a make customer team what is the remediations But back working going to or are of they continues which at hope as mean place hatch. our certainly comes Archer sure whole expected. in project. And point I've the are is we count that with should temporary before on that to expectation been Yes. is team meetings has them our this say as the and chickens in the we said I aren't is being

talk said call Dialogue I months a that few are be in in the back is than as hope great is that I to this And strong. and ever. So about larger relationships and traffic fact

Tim Horan

think outage relationships? you are that increase is a to do make if easy people switch and at And at point. it to customers is their kind totally maybe of And there that competitor multisource confident how outage a way go this an down would you there more for to I going make we that to others there be is basically an will guess customer easier look from

Joshua Bixby

speaks residence of outages at that the months their Fastly last terms only is had I to of others in to look few that one I think that well. in the what something planning. not as And have mean is has everyone

at they I want of the customers advantage think platform the our and resiliency when take benefits you look that the to planning benefits that want the unique brings.

and And exploring really are of can innovative about have the on there so ways ideas ways when to that do And a it's actually number we resiliency we're exploring resiliency that. with our Fastly. customers different

-- we things could and capabilities you being like have multiple to we so have lot talked which imagine are copies and but of upon benefit So, your deliver scale own of a aren't other case you about have that it. went that down technology, the the ideas in you

managed performance say are where sparks thrust actually this. is common you has know having. why sort would ways I risk to customers some bring we that not So the real lies Are go see conversations that's conversation a going immune a lowest achieve and security of you our don't different we're to you seen everywhere I all which because private It other to would of vendors this this? already we're the to the the everyone And We if that this ways. as there and denominator the interesting offering. think that see in novel want? you

be use our in private to offering the managed of or Some customers redundant. order

ourselves. we're with So redundant

lot to see a more going I we're of that. think

Tim Horan

what give can material. revenues Interesting. or of to be start then just you at of it's when kind are it. maybe, growing computed Got getting Edge what a there it on Thanks. certain can us sense or And

Joshua Bixby

is the this XXXX on going to material talked benefit. we're we we've said be mean about We I I and Sure. where really year track. that well see think

side, On that examples about have. talked seen already we and we the we the the are that we've seeing growth revenue some about and examples

see be will there and meaningful. is more providing revenue today So point XXXX where we the hits but the value it inflection in it's significant that as wild year, where really out

Tim Horan

you. Thank

Joshua Bixby

you. Thank

Operator

Next question comes from the line of Brad Reback from Stifel.

Your line is open.

Brad Reback

you Great. or balance business a can deals, cash dry over have fix $X you those do of Do Thanks powder. sheet. you very you the on concurrently? need do additional billion of before Clearly, much. to the Josh lot

Joshua Bixby

Signal to what me tremendous we're do and seeing I deals. the a optimism and it deal of look at about there ability Sciences gives the our success

but a it was think by like much very transaction undergoing I that. we are aided a transformation

think I that is security, for absolutely see So broken take and so We lesson think can certainly more that us bring us, do customers is we our underway. the don't transformation But can we table, more the that asking right which that at compute are see that is to to that the I least far anything now. successfully. we do

Brad Reback

much. very Thanks Great.

Joshua Bixby

Thank you.

Operator

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

Joshua Bixby

and any fast, I responded that I'm Fastly operator. resilience Internet committed motivated by our say throughout we for has for you We in can call secure, inspired commitment lost confident a never and and you, today. incredible shown providing of our from Thank to been employee the I've and that the customers reliable I regaining team every trustworthy trust honestly Fastly I am the our more look how and around to world. all. year. the hope have future took forward

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off we support. Before sincerely thank you. want continued Thank community sign Fastly entire the I your you to for

Operator

This concludes today's conference call.

You may disconnect. now

Fastly (FSLY) 5 Aug 212021 Q2 Earnings call transcript