Q1 2025 Fastly Inc Earnings Call Transcript

May 7, 2025 / 08:30 PM GMT

Release Date Price: R$3.5 (+7.03%)

Transcript 10-Q8-K

Key Points

Positve

Fastly Inc (FSLY) exceeded the upper ends of both revenue and operating loss guidance ranges for Q1 2025.
The company raised its 2025 revenue guidance by $10 million and operating loss guidance by $0.03 million at their respective midpoints.
Fastly Inc (FSLY) generated $8 million in positive free cash flow, moving closer to break-even for the year.
Revenue for Q1 2025 was $144.5 million, surpassing the high end of the $136 to $140 million guidance range, with an 8% year-over-year growth.
The company saw a 64% year-over-year growth in revenue from emerging products, driven primarily by compute products.

Negative

The trailing 12-month net retention rate declined to 100%, down from 102% in the prior quarter and 114% in the year-ago quarter.
Gross margin for Q1 2025 was 57.3%, down 230 basis points from 59.6% in Q1 2024.
Operating expenses were $88.7 million in Q1 2025, reflecting a 6% sequential growth due to seasonal payroll taxes.
Security revenue growth was only 7% year-over-year, not yet reflecting the impact of last year's portfolio expansion.
Concerns remain over potential geopolitical risks affecting TikTok's US operations, with Fastly Inc (FSLY) excluding US TikTok revenue beyond June 19th from its guidance.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

FSLY.N - Fastly Inc
Q1 2025 Fastly Inc Earnings Call
May 07, 2025 / 08:30PM GMT

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Presentation
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Unidentified_1 [1]
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Good afternoon. My name is Rebecca, and I will be your conference operator today. At this time, I would like to welcome everyone to the fastly first quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background.

After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press the pound key.

Thank you.

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Unidentified_2 [2]
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Thank you and

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