our or unless revenue XX% million. third and results XX% are Sciences everyone, to Thank financial thanks, for of reflected. was in increase year-over-year $XXX.X after top increase our I $XXX of my financial Total are year-over-year guidance. you, business all end from related discussion revenue million, Note increased us metrics then In the and discuss guidance price deferred quarter joining million XX% stated, otherwise metrics. revenue, quarter, today. will adjustments and of XX% the the revenue for our a non-GAAP-based review forward $XXX to third a Todd, exceeding products Signal to results purchase
smaller relatively not we from our expansion in benefiting macroeconomic to are gains market we our position challenging we traffic believe immune are the share, enterprise share otherwise revenue healthy growth. dynamics for trends, an While environment and us customers, from and seeing these are continued given
was prior trailing up XX-month XXX% XXX%, from Our quarter. slightly in retention the rate net
continue churn X%, We experience to very of retention and our dynamics than customer remain strong. low less
XXX As QX. revenue which had customers enterprise. the slightly of end Todd up we of were at XX% customers over X,XXX an for from XX-month of XX classified total trailing of excess Enterprise $XXX,XXX as contribution stated, months. revenue of the on QX, a customers in basis, with accounted their trailing XX% Those
customers business the grew to retention. continued the demonstrating within dollars in ability in our customer X% our our largest spend $XXX,XXX to that expand quarter, previous highlight However, further from key representing our our is strong and average customer expansion spent here and enterprise $XXX,XXX
average demonstrate increased customers share in of Our to our products customer expand retention new strong compute due continued within net delivery Security of business. in and and enterprise XX-month traffic ability enterprise to growth in rate emerging our our trailing adoption our and spend
Our third top quarter. the of XX prior in XXXX, customers revenues our slightly XX% total contribution comprised quarter of in XX% the above the
QX expectations, results, leadership progress align new great balance As finance align capital financial we closely leadership. of capital efforts visibility, deal our forecasting team to cross-cultural sheet We our review efforts improve with our a and with the transformation process I of organization last our our made spoke within Todd's to with traffic improved to and and continue management of and investments to our better and business enhance structure. to streamline including completed
rest efforts third also business, in of not its Fastly's financial to these transparency stated term community. longer I the but I the and efficiency allow quarter, last investor now the us turn to increased will results Fastly's position and strengthen improve financial competitive our drive quarter. only positioning As our to for
would gross the XX.X% costs, have was our been second third the compared in that Recall gross Our margin margin prior quarter would for onetime true-up it XX.X% of of second This second half expectations the that quarter, lift sequential excluding in in the to margin approximately for quarter improvement XXXX. the reflects gross XX%. XXXX.
the discussed, of of cost. a on of in XXXX, this our bandwidth quarter, patterns closely to half previously planning investment a traffic components revenue, our we is implication third in to our focus more discontinuance the our cost in As site of in first expenses the of capacity and and reducing due network improvements the including cost demand match reduction
patience we roughly XXX margin As the our or as the relative your the compared not through this a in to positive volatility. phase points of our result, prior expect pricing gross quarter. to changes, gross quarter to We of see the quarter negative improvement in quarter. fourth any margin third appreciate basis meaningful do I third
XXXX on our term. XX% loss range QX in of up midpoint X% quarter, through an over resulting but as had architecture, management expenses line were positions higher was ongoing with second higher-than-anticipated for than $XX.X margin the by $XX.X gross revenue, cost guidance be to sequentially forecasted, improvement medium quarter. to continue of This will network margin $XX.X million, in million efficiency network and next-generation respected continued planned and we and million improvement down we efficiency the and stated, from traffic Todd long investments the million. improvements the management handling previously operating in offset us in of near loss to traffic, in our our of focused operating investment third was of our As gross further Operating in $XX XXXX
our us for XXXX. sales in During marketing the accelerated revenue strong quarter, to and we third investments position growth
higher attrition the previously forecast, Additionally, we we in were despite our during than third the employee more rate disciplined our our costs hiring as a had decrease quarter, saw headcount quarter. in
in investing part indicated, efforts initiatives. our are revenue we of Todd go-to-market As as growth our
our put will in XXXX while to R&D in and motion, our are we G&A meaningfully flat. are there initiatives meaningful operations, opportunities sales expenses expenses reducing go-to-market confidence marketing losses operating especially efficiencies our anticipate us in investment quarter into these give increasing across As G&A and fourth relatively And our and despite efforts, greater beyond. in drive that increase sequentially, will remain
of $X.XX in share Our net and quarter was million million diluted third per compared and $XX.X basic loss share in $XX.X net basic loss per $X.XX an and or the a loss loss XXXX. diluted to QX
sheet. cash, classified cash balance quarter with in the and securities including long marketable to million ended Turning approximately the equivalents, investments We as $XXX those term.
million $XX to Our cash and negative in equipment free of down cash from was flows. quarter's flow capital sequentially second of due changes primarily a negative reduction payments million, million $XX $XX advanced operating the in
internal of leases payments quarter and expenditures capital capitalized of Third capital million, cash equipment $XX capital equipment, $X of include reflects flow the million, advanced the quarter. free purchases cash which financial on use of payments software during
X% approximately capital of expenditures revenue were third cash the Our quarter. in
equivalent. capital deployment used prepaid of Our internally cash and include capitalized capital expenditures and software
for now required year everybody expect like again by except We to obligation quarter the I these in following XXXX on range the discuss continue as and we in include remind for materially, turn may based forward-looking be of outlook XX% our our future, calendar will Actual undertake statements. XXXX. are and revenue. of fourth as to the of update cash to to no the XX% results capital the current statements and year full to that statements expectations forward-looking I'd to differ today law. expenditures
via top part new XXXX acquisition and deliver within Our full driven expansion products. and strong reflects customers, ability and enterprise customer fourth our outlook line continued by enhanced growth quarter in improved our year to
the note live streaming variety network fourth today. is quarter, to is the fourth Historically, viewership. items, on strong the nature in due relative revenue sees third quarter we of patterns subject in visibility the sports growth given we to holiday to like a and to our that have traffic similar volatility quarter, including revenue trajectory of drivers and a shopping also Our see XXXX. based guidance I'd
growth result, the XX% $XXX to the As million, we quarter, million a range midpoint. a annual fourth revenue the for in at $XXX representing expect of
We expect non-GAAP to per loss the $XX $X.XX. million non-GAAP $X.XX and $XX million to loss share of of operating a
increasing annual For million, XX% the to $XXX $X million by guidance range $XXX prior the our calendar million year of XXXX, to growth we revenue midpoint. are a representing at
non-GAAP $XX as marketing. operating a above, we We in of in investments I first the to increase outlook. loss impact of expenses $X.XX, expect to relative a third increased reflecting be expenses million second the to than due million higher operating revenue quarter, anticipate share operating and and $XX loss sales And per discussed $X.XX our will non-GAAP half to the now and QX will our half from
the your Fastly. open thank to like for interest Operator? for questions, and line we Before in you would support your we
