Fastly, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Fastly, Inc. filed its Q1 2024 10-Q, detailing financial performance, customer concentration, and geographic revenue segments.</b>

AI Summary

Fastly, Inc. (FSLY) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. Fastly, Inc. reported financial results for the quarter ended March 31, 2024. The filing details changes in common stock, additional paid-in capital, accumulated other comprehensive income, and retained earnings for the period. Customer concentration risk is highlighted, with specific mention of 'CustomerOneAndAffiliatedCustomerMember' impacting sales revenue and accounts receivable. Geographic revenue breakdown shows data for the US, Asia Pacific, Europe, and 'All Other Countries' for Q1 2024 and Q1 2023. The filing includes data related to restricted stock units (RSUs) granted during the first quarters of 2023 and 2024.

Why It Matters

For investors and stakeholders tracking Fastly, Inc., this filing contains several important signals. The filing provides a snapshot of Fastly's financial health and operational activities for the first quarter of 2024, crucial for investors assessing recent performance. Specific disclosures on customer concentration and geographic revenue are important for understanding revenue stability and market reach.

Risk Assessment

Risk Level: — Fastly, Inc. shows moderate risk based on this filing. The company faces medium risk due to customer concentration, as 'CustomerOneAndAffiliatedCustomerMember' significantly impacts revenue and accounts receivable, indicating potential dependency.

Analyst Insight

Investors should monitor Fastly's efforts to diversify its customer base and mitigate risks associated with significant customer dependencies.

Key Numbers

• 2024-03-31 — Reporting Period End Date (10-Q filing)
• 2024-05-01 — Filing Date (10-Q filing)
• 2024-01-01 — Quarter Start Date (Q1 2024 financial data)
• 2023-01-01 — Quarter Start Date (Q1 2023 financial data)

Key Players & Entities

• Fastly, Inc. (company) — Filer
• Skycache, Inc.(DE) (company) — Former company name
• CustomerOneAndAffiliatedCustomerMember (company) — Customer concentration risk

FAQ

Risk Factors

• Customer Concentration Risk [high — financial]: A significant portion of Fastly's revenue and accounts receivable is concentrated with a single customer and its affiliates, posing a risk if this relationship deteriorates.

Industry Context

Fastly operates in the edge computing and cloud networking industry, providing services that accelerate the delivery of digital content and applications.

Regulatory Implications

The filing is a standard 10-Q, a quarterly report required by the SEC for publicly traded companies to provide a comprehensive update on their financial condition.

What Investors Should Do

1. Analyze Fastly's revenue trends by geographic segment for Q1 2024 compared to Q1 2023.
2. Evaluate the impact of customer concentration risk on Fastly's financial stability.
3. Review changes in equity accounts (common stock, paid-in capital, retained earnings) from the previous quarter and year.

Year-Over-Year Comparison

This 10-Q filing provides updated financial information for the quarter ended March 31, 2024, compared to the prior year's comparable period and the preceding fiscal year-end.

Key Financial Figures

• $0.00002 — which registered Class A Common Stock, $0.00002 par value FSLY The New York Stock Excha

Filing Documents

• fsly-20240331.htm (10-Q) — 1579KB
• exhibit102-thirdamendmentt.htm (EX-10.2) — 1509KB
• exhibit103-stockownershipg.htm (EX-10.3) — 8KB
• fsly-33124x10qexhibit311.htm (EX-31.1) — 11KB
• fsly-33124x10qexhibit312.htm (EX-31.2) — 11KB
• fsly-33124x10qexhibit321.htm (EX-32.1) — 5KB
• fsly-33124x10qexhibit322.htm (EX-32.2) — 5KB
• 0001517413-24-000104.txt (&nbsp;) — 10245KB
• fsly-20240331.xsd (EX-101.SCH) — 54KB
• fsly-20240331_cal.xml (EX-101.CAL) — 92KB
• fsly-20240331_def.xml (EX-101.DEF) — 263KB
• fsly-20240331_lab.xml (EX-101.LAB) — 689KB
• fsly-20240331_pre.xml (EX-101.PRE) — 518KB
• fsly-20240331_htm.xml (XML) — 1293KB

- Financial Information

Part I - Financial Information Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 5 Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 5 Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 6 Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended March 31, 2024 and 2023 7 Condensed Consolidat e d Statements of Stockholders' Equity for the Three Months Ended March 31, 2024 and 2023 8 Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 9 Notes to Condensed Consolidated Financial Statements 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 45 Item 4.

Controls and Procedures

Controls and Procedures 45

- Other Information

Part II - Other Information 47 Item 1.

Legal Proceedings

Legal Proceedings 47 Item 1A.

Risk Factors

Risk Factors 47 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 85 Item 3. Defaults Upon Senior Securities 85 Item 4. Mine Safety Disclosures 85 Item 5. Other Information 85 Item 6. Exhibits 86

Signatures

Signatures 87 2 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended, (the "Exchange Act"), about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this report, including statements regarding our future results of operations and financial condition, business strategy, and plans and objectives of management for future operations, are forward-looking statements. In some cases, forward-looking statements may be identified by words such as "anticipate," "believe," "continue," "could," "design," "estimate," "expect," "intend," "may," "plan," "potentially," "predict," "project," "should," "will," "would," "target," or the negative of these terms or other similar expressions. Forward-looking statements are based on our management's beliefs and assumptions and on information currently available. These forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, including risks described in the section titled "Risk Factors" and elsewhere in this Quarterly Report on Form 10-Q, regarding, amongst other things: defects, interruptions, outages, delays in performance, or similar problems with our platform; our ability to attract new enterprise customers and to have existing enterprise customers continue and increase their use of our platform; the potential loss or significant reduction in usage by one or more of our major customers; component delays, shortages, and price increases; our limited operating history and history of operating losses; the potential that security measures, or those of third parties upon which we rely, are compromised, or the security, confidentiality, integrity or availabili

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements FASTLY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) As of March 31, 2024 As of December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 150,809 $ 107,921 Marketable securities, current 178,677 214,799 Accounts receivable, net of allowance for credit losses of $ 7,870 and $ 7,054 as of March 31, 2024 and December 31, 2023, respectively 107,517 120,498 Prepaid expenses and other current assets 23,207 20,455 Total current assets 460,210 463,673 Property and equipment, net 177,574 176,608 Operating lease right-of-use assets, net 54,420 55,212 Goodwill 670,356 670,356 Intangible assets, net 57,576 62,475 Marketable securities, non-current 1,743 6,088 Other assets 84,044 90,779 Total assets $ 1,505,923 $ 1,525,191 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 5,485 $ 5,611 Accrued expenses 35,555 61,818 Finance lease liabilities, current 11,974 15,684 Operating lease liabilities, current 22,580 24,042 Other current liabilities 44,633 40,539 Total current liabilities 120,227 147,694 Long-term debt 343,837 343,507 Finance lease liabilities, non-current 440 1,602 Operating lease liabilities, non-current 46,857 48,484 Other long-term liabilities 2,756 4,416 Total liabilities 514,117 545,703 Commitments and contingencies (Note 9) Stockholders' equity: Common stock 3 3 Additional paid-in capital 1,870,503 1,815,245 Accumulated other comprehensive loss ( 521 ) ( 1,008 ) Accumulated deficit ( 878,179 ) ( 834,752 ) Total stockholders' equity 991,806 979,488 Total liabilities and stockholders' equity $ 1,505,923 $ 1,525,191 The accompanying notes are an integral part of the condensed consolidated financial statements. 5 FASTLY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three months ended March 31, 2024 2023 Revenue $ 133,520 $ 117,564 Cost of revenue 60,286 57,310 Gro

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View this 10-Q filing on SEC EDGAR