Q1 2024 Fastly Inc Earnings Call Transcript
Key Points
- Fastly Inc (FSLY) reported a revenue of $133.5 million in Q1 2024, a 14% year-over-year growth, exceeding the midpoint of their guidance.
- The company's Long-Term Net Retention Rate (LTM NRR) improved to 114%, indicating better customer retention and growth.
- Gross margin improved significantly to 58.8%, up 320 basis points year over year, due to better cost control and operational efficiencies.
- Operating loss decreased to $9.7 million from $14.1 million in Q1 2023, showing improved financial management.
- Fastly Inc (FSLY) achieved positive adjusted EBITDA of $3.7 million and a positive cash flow from operations of $11.1 million.
- Fastly Inc (FSLY) experienced a decrease in enterprise customers, dropping by 1 from the previous quarter.
- The company's Q2 and full-year 2024 revenue growth projections were adjusted downward to 6-9% and 12% year-over-year, respectively, indicating slower growth expectations.
- Revenue from Fastly Inc (FSLY)'s top 10 customers decreased from 40% to 38%, showing a reduction in revenue concentration from major clients.
- The company noted increased volatility and pricing pressure from its largest accounts, which could impact future revenue stability.
- Fastly Inc (FSLY) is facing challenges with customer acquisition and retention, as indicated by the slight uptick in customer churn and the need for revised sales strategies.
Ladies and gentlemen, good afternoon. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Fastly first-quarter 2024 earnings conference call. (Operator Instructions)
And I would now like to turn the conference over to Vern Essi, Investor Relations at Fastly. Please go ahead.
Thank you, and welcome, everyone to our first-quarter 2024 earnings conference call. We have Fastly CEO, Todd Nightingale; and CFO, Ron Kisling, with us today.
The webcast of this call can be accessed through our website, fastly.com, and will be archived for one year. Also a replay will be available by dialing 800-770-2030 and referencing conference ID number 754-3239 nine shortly after the conclusion of today's call. A copy of today's earnings press release, related financial tables, and investor supplement, all of which are furnished in our 8-K filing today can be found in the Investor Relations portion of Fastly's website.
During this call, we will
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