In This Article:
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Fourth-Quarter Revenue: $140.6 million, exceeding guidance range of $136 million to $140 million, with 2% growth year over year and quarter over quarter.
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Annual Revenue 2024: $544 million, representing 7% growth year over year.
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Operating Loss: $4.2 million in the fourth quarter, within guidance range of $1 million to $5 million.
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Cash from Operations: Increased to $16 million in 2024 from $400,000 in 2023.
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Cash Flow Burn: Reduced to $36 million in 2024 from $59 million in 2023.
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Enterprise Customers: 596 at the end of Q4, growing 3% year over year and quarter over quarter.
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Gross Margin: 56.5% in Q4, down from 59.2% in Q4 2023.
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Adjusted EBITDA: $9.7 million in Q4, compared to $11.5 million in Q4 2023.
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Net Loss: $3.8 million or $0.03 loss per diluted share in Q4.
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Cash and Equivalents: Approximately $296 million at the end of the quarter.
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Convertible Debt: Refinanced a portion, raising $150 million of 7.75% convertible notes due in 2028.
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Free Cash Flow: Improved to negative $36 million in 2024 from negative $59 million in 2023.
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2025 Revenue Guidance: $575 million to $585 million, reflecting 7% annual growth at the midpoint.
Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Fastly Inc (NYSE:FSLY) reported record fourth-quarter revenue of $140.6 million, exceeding their guidance range and showing 2% growth year over year and quarter over quarter.
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The company achieved a 7% year-over-year revenue growth for 2024, reaching $544 million, despite facing demand headwinds from some of its largest customers.
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Fastly Inc (NYSE:FSLY) successfully diversified its revenue base, with the top 10 customers' revenue contribution dropping from 40% at the end of 2023 to 32% in the fourth quarter of 2024.
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The company saw a 16% year-over-year growth in revenue outside of its top 10 customers in the fourth quarter, indicating successful expansion in its broader customer base.
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Fastly Inc (NYSE:FSLY) improved its cash from operations significantly, increasing from $400,000 in 2023 to $16 million in 2024, and reduced its cash flow burn from $59 million in 2023 to $36 million in 2024.
Negative Points
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Fastly Inc (NYSE:FSLY) reported an operating loss of $4.2 million in the fourth quarter, within the guidance range but still a loss.
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The company's gross margin declined to 56.5% in the fourth quarter, down from 59.2% in the same quarter of the previous year.
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The trailing 12-month net retention rate decreased to 102%, down from 105% in the prior quarter and 113% in the year-ago quarter.
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Fastly Inc (NYSE:FSLY) experienced a decrease in its total customer count, with a net decrease of 182 year over year and 577 quarter over quarter, due to a one-time correction.
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The company provided a conservative 7% annual revenue growth guidance for 2025, reflecting potential risks and uncertainties, including the impact of legislation affecting TikTok, one of its larger customers.